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Liability Financial Institutions

Ropes & Gray LLP

SEC Speaks 2025: Key Takeaways from Division of Enforcement Panels

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The SEC’s Division of Enforcement intends to remain a “cop on the beat,” and will refocus on traditional core enforcement areas, such as insider trading, accounting and disclosure fraud, market manipulation, and breaches of...more

Katten Muchin Rosenman LLP

The More You Know Can Hurt You: Court Rules Financial Institutions Need 'Actual Knowledge' of Mismatches for ACH Scam Liability

On March 26, the US Court of Appeals for the Fourth Circuit issued a decision that has important ramifications for banks and credit unions that process millions of Automated Clearing House (ACH) and Electronic Funds Transfer...more

Holland & Knight LLP

Fourth Circuit Limits Beneficiary Bank Liability in BEC Schemes, Requires Actual Knowledge

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Business email compromise (BEC) fraud, driven by technology and increasing sophistication by criminal organizations, has become a major issue for both consumers and financial institutions. According to a September 2024...more

A&O Shearman

Indemnity or indemNOTy? The difference between a guarantee and an indemnity

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A bank sought payment under “deeds of indemnity” related to swap agreements which were part of a number of Dutch mortgage-backed securitisations. The mortgage provider refused to pay, a key argument being that the “deeds...more

Katten Muchin Rosenman LLP

Federal Court Finds Consumer Wire Transfers Are Subject to the Electronic Funds Transfer Act

In an apparent departure from decades of jurisprudence acknowledging the exemption of wire transfers from the ambit of the Electronic Funds Transfer Act (EFTA or the Act), one federal district court recently found that a bank...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

A&O Shearman

UK Financial Conduct Authority Supports Expedition of Appeals of Motor Finance Decisions

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The U.K. Financial Conduct Authority has published a letter addressed to the Supreme Court regarding the applications for permission to appeal to the SC and requests for expedition in the recent motor finance commission...more

White & Case LLP

South African Bank and Bank Controlling Company Flac Instruments: Contractual Recognition of the South African Reserve Bank’s...

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The Prudential Authority of South Africa (the "Prudential Authority") published Draft Prudential Standard RA03 entitled "Flac Instrument Requirements for Designated Institutions" (the "Draft Flac Standard") in December 2023...more

Skadden, Arps, Slate, Meagher & Flom LLP

EU’s 14th Sanctions Package: Compliance Obligations Expand and Exits Are Facilitated

On 24 June 2024, the European Union (EU) adopted its 14th sanctions package directed against Russia, imposing an asset freeze against an additional 116 individuals and entities and expanding sectoral sanctions targeting key...more

Strafford

[Webinar] Erroneous Payment Provisions in Loan Agreements: Common Features; LSTA Form; Negotiation Tips - Fine Tuning Revlon...

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This CLE webinar will explore the evolution of erroneous payment provisions in credit agreements as a result of the infamous Revlon case. The panel will review provisions developed by market participants, including language...more

Buchalter

PPP Lender Liability, Enforcement, & Fintech Challenges

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The Paycheck Protection Program (“PPP”) emerged as a lifeline for small businesses grappling with the unprecedented challenges of the COVID-19 pandemic. Lenders navigated a landscape of regulations that Congress quickly...more

Davis Wright Tremaine LLP

First Impressions on CFPB's Proposed Open Banking Rule: Considerations for Key Stakeholders

On October 19, 2023, the Consumer Financial Protection Bureau (CFPB) released its long-awaited "Required Rulemaking on Personal Financial Data Rights" (Proposed Rule) for public comment. The Proposed Rule was issued under...more

Kohrman Jackson & Krantz LLP

Who’s Liable When Your Cryptocurrency Is Stolen?

One of the asserted advantages of blockchain and cryptocurrency is their operation outside the commercial banking system. However, this very feature poses a challenge when cryptocurrency is stolen—or more accurately,...more

WilmerHale

United States V. Danske Bank: New Theory of Liability for Violation of US AML Standards

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This Article discusses the recent plea agreement between the United States and Danske Bank. It argues that the Department of Justice has advanced a new and evolving theory of liability for foreign banks that access the U.S....more

Orrick, Herrington & Sutcliffe LLP

11th Circuit advances TILA suit weighing agency theory of liability

On February 6, the U.S. Court of Appeals for the Eleventh Circuit reversed a district court’s finding of summary judgment in favor of a financing company concerning alleged violations of TILA. The plaintiff agreed to purchase...more

Shipkevich PLLC

CFPB’s October 26, 2022 Circular Clarifies Surprise Overdraft Fees Trigger Liability under the Consumer Financial Protection Act...

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On October 26, 2022 the Consumer Financial Protection Bureau (“CFPB”)  published Consumer Financial Protection Circular 2022-06. Circular 2022-06 asserts that the imposition of overdraft fees upon consumers by financial...more

Cadwalader, Wickersham & Taft LLP

Regulation E Model Forms May Not Always Be a Safe Harbor

In an opinion written by U.S. District of Delaware circuit judge Stephanos Bibas that begins, “A good template serves as a guide, not gospel,” Del-One Federal Credit Union was denied the safe harbor typically proffered by use...more

Wiley Rein LLP

No Notice-Prejudice Exception Applies to Financial Institution Bonds under Oklahoma Law

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The United States District Court for the Northern District of Oklahoma has held, as a matter of first impression, that no notice-prejudice exception applies under Oklahoma law to a financial institution bond in the case of an...more

Sheppard Mullin Richter & Hampton LLP

And Then There Were Three: Colorado Passes Privacy Law, Effective July 2023

Colorado recently joined Virginia and California in passing a more comprehensive privacy law. The Colorado Privacy Act (CPA) will go into effect July 1, 2023. This is six months after Virginia’s law (CDPA) and California’s...more

Balch & Bingham LLP

Eleventh Circuit Affirms FCRA Punitive Damage Award But Reduces Ration to 4:1

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In Williams v. First Advantage LNS Screening Solutions, Inc., 947 F.3d 735 (11th Cir. Jan. 9, 2020), the plaintiff recovered a jury verdict under the FCRA for $250,000 of compensatory damages and $3.3 Million of punitive...more

Burr & Forman

The Alabama Supreme Court Interprets Alabama's Uniform Power of Attorney Act

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Financial institutions should understand that relying on a power of attorney may subject them to potential liability as the use of powers of attorney becomes more commonplace.  The Alabama Supreme Court recently shed some...more

Seyfarth Shaw LLP

Ninth Circuit Rules That Users, Not Consumers, Must Prove an Authorized Purpose for Obtaining a Consumer Report

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Synopsis: Last month, the Ninth Circuit issued an opinion, affirming broad Article III standing and holding that, for permissible-purpose claims, a consumer-plaintiff need allege only that his/her credit report was obtained...more

Carlton Fields

Senate Follows House Seeking to Make Cannabis Banking "S.A.F.E."

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Sens. Jeff Merkley and Cory Gardner have reintroduced the Secure and Fair Enforcement (SAFE) Banking Act as a companion to House bill HR 1595....more

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