News & Analysis as of

Fiduciary Duty Banks

Troutman Pepper Locke

Federal Agencies Release Guidance on Crypto-Asset Safekeeping for Banks

Troutman Pepper Locke on

On July 14, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (the Board), and the Federal Deposit Insurance Corporation (FDIC) jointly issued a statement addressing the...more

Polsinelli

Federal Reserve Board Enforcement Action Raises Concerns as to Reach of Regulators’ Jurisdiction

Polsinelli on

Key Takeaways - The Federal Reserve Board issued a removal and prohibition order against a former bank employee based on alleged misconduct unrelated to her role at the bank, raising concerns about the scope of regulatory...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

UBS Faces Forfeiture Lawsuit

UBS has found itself the latest target in the growing wave of ERISA litigation surrounding the handling of forfeitures in 401(k) plans. In Czakoczi v. UBS AG et al., filed in the District of New Jersey, the allegations mirror...more

Offit Kurman

Director & Officer Duties: What Every Leader Should Know

Offit Kurman on

Earlier this year, the FDIC, acting as receiver for Silicon Valley Bank (“SVB”), filed a breach of fiduciary duty lawsuit against six officers and eleven directors of the bank. The FDIC alleged that these individuals ignored...more

Charles E. Rounds, Jr. - Suffolk University...

Individual Trustee Delegates to Financial Institution the Job of Taking Custody and Keeping Track of Income and Principal: The...

While PC software programs are a practical improvement over the trustee’s hard-copy ledger book, when it comes to keeping track of trust income and principal these programs still require serious clerical monitoring on the...more

Shook, Hardy & Bacon L.L.P.

Judgment Secured in Case Alleging Mismanagement of Artist's Trust

A five-year legal dispute between heirs of the renowned artist Thomas Hart Benton and the trust department that administered and managed the Benton Trust produced a significant ruling last month in Jackson County, Missouri...more

K&L Gates LLP

QPAM Amendments Impact on CITs: What Banks and Their Advisers Need to Know

K&L Gates LLP on

Effective 17 June 2024, the US Department of Labor (DOL) adopted comprehensive amendments to Prohibited Transaction Exemption (PTE) 84-14, also known as the “QPAM exemption” (Exemption)....more

Kilpatrick

The Hidden Risk for Lenders for Implied Fiduciary Duty

Kilpatrick on

Fiduciary duty may be implied in certain “special circumstances where a lender (i) takes on “extra services” for the borrower, (ii) receives greater economic benefit from a typical transaction; or (iii) exercises extensive...more

Orrick, Herrington & Sutcliffe LLP

Wyoming SF 96 amends regulations for banks offering custodial or fiduciary services for digital assets

On March 15, the Governor of Wyoming signed SF 96 (the “Act”), which amended regulations for banks offering custodial or fiduciary services for digital assets, made conforming adjustments, and set an effective date. The Act...more

Orrick, Herrington & Sutcliffe LLP

FDIC agrees to settle with CEO and board members after District Court dismissal

On December 7, the U.S. District Court for the Eastern District of Louisiana dismissed a lawsuit brought by the FDIC against the chairman, president and CEO and board members of a state-chartered Louisiana bank after the...more

Faegre Drinker Biddle & Reath LLP

The New Fiduciary Rule (1): An Overview

The US Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment advice to plans, participants (including...more

Orrick, Herrington & Sutcliffe LLP

FDIC releases July enforcement actions, including breaches of fiduciary duty and FDPA violations

On August 25, the FDIC announced a list of administrative enforcement actions taken against banks and individuals in July. The 10 orders include “two orders that combined a prohibition order and order to pay CMP; one combined...more

Davidoff Hutcher & Citron LLP

What Should Mid-Market Companies Do To Protect Deposits During the Current Bank Liquidity Crunch?

Breaking Up Is Hard To Do - In the wake of the collapse of Silicon Valley Bank and Signature Bank, every chief executive officer of a mid-market privately held company had the same two questions this morning: what banks hold...more

Goodwin

Bank Officer and Director Enforcement Exposures In the Wake of Silicon Valley Bank

Goodwin on

The recent and sudden failures of Silicon Valley Bank and Signature Bank, and the threat of other bank failures, have led to intense public focus on what caused these banks to run into trouble, who is to blame, and what...more

Winstead PC

Federal Court Denies Defendant Banks’ Motion For Summary Judgment On Plaintiffs’ Knowing Participation In Breach Of Fiduciary Duty...

Winstead PC on

In Rotstain v. Trustmark Nat’l Bank, plaintiffs sued banks for assisting Stanford and his entities regarding a Ponzi scheme. No. 3:09-CV-2384-N, 2022 U.S. Dist. LEXIS 10332 (N.D. Tex. January 20, 2022). ...more

Goodwin

Litigation Insights - July 2021

Goodwin on

FOREWORD - On behalf of the new and expanding Goodwin London litigation team I am delighted to welcome you to our first ever ‘Litigation Insights’: a series of quarterly updates on important and interesting developments...more

McDermott Will & Emery

Department of Labor Exemption Impacts Investment Advice Fiduciaries

McDermott Will & Emery on

The US Department of Labor (DOL) recently issued guidance concerning a new exemption under the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) in connection with the provision...more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #54

The Department of Labor’s “Fiduciary Rule,” PTE 2020-02: An Overview - This article is an overview of the requirements of PTE 2020-02. It discusses the expanded fiduciary definition, the conditions in the PTE, and the...more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #40

On December 18, 2020, the DOL issued its final prohibited transaction exemption (PTE) that permits investment advisers, broker-dealers, banks and insurance companies, and their representatives, to receive conflicted...more

Winstead PC

Court Holds That Bank Did Not Owe Fiduciary Duties To Depositor/Customer

Winstead PC on

In Denson v. JPMorgan Chase Bank, N.A., Sandra Denson went to her bank to deposit $730 when a $50 bill became temporarily stuck in the cash counting machine, causing the teller to miscount the amount of the deposit as $680....more

Goodwin

Ninth Circuit Holds Loss Causation May Be Predicated on Information Potentially Available Under Freedom of Information Act

Goodwin on

Ninth Circuit Holds Loss Causation May Be Predicated on Information Potentially Available Under Freedom of Information Act; D.C. Circuit Upholds FINRA’s Permanent Ban of Broker Accused of Misconduct After Finding SCOTUS...more

Pillsbury Winthrop Shaw Pittman LLP

National Banks Allowed to Provide Cryptocurrency Services

OCC grants national banks the authority to provide cryptocurrency custody services for customers. On July 22, 2020, the Office of the Comptroller of the Currency (OCC) issued an interpretive letter (the letter) granting...more

Faegre Drinker Biddle & Reath LLP

When Are Default-Rate Duties Triggered? The Tenth Circuit Provides Insight

The concept of default-rate interest — interest that accrues on a debt at a higher-than-normal rate if the debtor defaults on terms of the underlying financial instrument — is well known. Default-rate duties, however, may be...more

White & Case LLP

Federal Reserve Finalizes Rule Updating Controlling Influence Framework

White & Case LLP on

On January 30, the Federal Reserve released a highly anticipated final rule that substantially updates and clarifies the agency's regulatory framework for determining when an investor exercises a controlling influence over a...more

Herbert Smith Freehills Kramer

Understanding the Newly Proposed Credit Fund Exclusion Under the Volcker Rule

Section 13 of the Bank Holding Company Act of 1956 (the BHC Act) generally prohibits any insured depository institution (as defined in Section 3(c) of the Federal Deposit Insurance Act, but excluding institutions that...more

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