Banking & Finance Trending Topics

To help with your writing efforts, here’s what people are looking for in Banking & Finance Law online. Trending topics culled from JD Supra, search analytics, social media conversations, and other sources:

Lessons From TD Bank Money Laundering Case 

Consider writing about:

A guilty plea by TD Bank involving violations of the Bank Secrecy Act (BSA) and money laundering; factors contributing to the record-setting $1.3 billion penalty against the bank; what other financial institutions may be able to learn from this case regarding lack of internal controls and other compliance failures, and their potential effects and consequences.

Related information:

https://www.justice.gov/opa/pr/td-bank-pleads-guilty-bank-secrecy-act-and-money-laundering-conspiracy-violations-18b

https://www.fincen.gov/news/news-releases/fincen-assesses-record-13-billion-penalty-against-td-bank

Criminal Charges Brought Over Suspected Widespread Crypto Fraud 

Consider writing about:

Criminal charges brought against financial services firms for alleged market manipulation and “wash trading” in the cryptocurrency industry; how this constitutes a groundbreaking case; what “wash trades” consist of; how investors can protect themselves from scams similar to those allegedly perpetrated in this case.

Related information:

https://www.reuters.com/legal/us-charges-18-people-companies-cryptocurrency-fraud-2024-10-09

https://www.justice.gov/usao-ma/pr/eighteen-individuals-and-entities-charged-international-operation-targeting-widespread

IRS Releases Guidance Regarding Student Loan Payments and Employer Matching Contributions 

Consider writing about:

Recent guidance from the Internal Revenue Service regarding employer matching contributions involving payments on student loans; types of plans or arrangements to which this interim guidance applies; key eligibility and compliance points that employers or employees should take note of.

Related information:

https://www.irs.gov/newsroom/irs-issues-important-interim-guidance-on-employer-matching-contributions-made-to-retirement-plans-related-to-employee-student-loan-payments

Medical Debt Goes Under the Microscope 

Consider writing about:

The issue of medical debt; how authorities on the state or federal level are addressing medical debt’s impact on individuals; any noteworthy legislation that has been passed on this front or that is in the pipeline for likely implementation; additional actions by regulators; implications for industry; any resources that individuals may be able to turn to for coping with medical debt.

Related information:

https://www.npr.org/sections/shots-health-news/2024/10/07/nx-s1-5135641/medical-debt-solutions-hospitals-republicans-democrats-state-laws

OCC Leans on Wells Fargo Over Internal Controls 

Consider writing about:

A new requirement imposed on Wells Fargo by the Office of the Comptroller of the Currency; reasons for the OCC’s action; related enforcement trends involving money laundering and sanctions compliance; practical implications for other financial entities.

Related information:

https://www.occ.gov/news-issuances/news-releases/2024/nr-occ-2024-99.html

UK Financial Watchdog Brings First Charges Over Crypto ATMs 

Consider writing about:

Groundbreaking action recently taken by the United Kingdom’s Financial Conduct Authority regarding crypto ATMs; how prevalent unauthorized crypto ATMs are believed to in the UK; how the crypto sector is regulated in the United Kingdom; what else individuals or businesses interested in crypto assets should know about related risks and best practices.

Related information:

https://www.fca.org.uk/news/press-releases/fca-charges-first-individual-running-network-illegal-crypto-atms

Leading Student Loan Servicer Reaches $120M Settlement With CFPB 

Consider writing about:

A $120 million settlement reached between the Consumer Financial Protection Bureau and student loan servicer Navient; reasons for the company being banned from servicing federal student loans; what the ban means for the financial services industry, students, and others; how individuals can learn whether they will be receiving funds from the settlement, and by what process; how affected individuals can bolster their credit ratings; other financial assistance options for students.

Related information:

https://www.consumerfinance.gov/about-us/newsroom/cfpb-bans-navient-from-federal-student-loan-servicing-and-orders-the-company-to-pay-120-million-for-wide-ranging-student-lending-failures

SEC Announces Multimillion-Dollar Settlement Over Off-Channel Communications 

Consider writing about:

A multimillion-dollar settlement announced on Aug. 14 by the U.S. Securities and Exchange Commission involving a failure by multiple entities and individuals to preserve electronic communications; applicable recordkeeping obligations under federal securities laws; related compliance weaknesses that firms should be on the lookout for; how this latest settlement compares to prior SEC actions involving off-channel communications; how firms can reduce penalties against them through self-reporting or other actions.

Related information:

https://www.sec.gov/newsroom/press-releases/2024-98

What to Know About Two Final Rules From FinCEN 

Consider writing about:

Final rules issued on Aug. 28 by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN); types of properties and transactions at issue in the residential real estate rule and the investment adviser rule; how the final rules will affect reporting obligations and related practices on the part of real estate professionals, investment advisers, and others; concerns or trends that led FinCEN to develop the new rules.

Related information:

https://www.fincen.gov/news/news-releases/fincen-issues-final-rules-safeguard-residential-real-estate-investment-adviser

https://apnews.com/article/real-estate-money-laundering-sanctions-treasury-yellen-c76722475812fadd4bb10a52a37a9571

7th Circuit Sides With Equifax in Dispute Over Mortgage Application, Credit History 

Consider writing about:

A federal appeals court’s ruling regarding a bank’s denial of a mortgage application; how the applicant’s credit history and related records became an issue in this case; what would-be real estate buyers should know about credit reports’ preparation and their recourse if they believe that the reports are inaccurate or misleading in some regard.

Getting to Know DORA Before It’s Too Late 

Consider writing about:

The Digital Operational Resilience Act; intent and status of this European Union law; how DORA stands to affect the financial services sector; how DORA will be enforced; how banks and affiliated entities should be preparing for this new law.

USAA Set to Pay $62M to Settle Overcharge Allegations 

Consider writing about:

A $62.4 million penalty facing financial services company USAA; key allegations made against USAA; what to know about the Civil Relief Act, Military Lending Act and Truth in Lending Act, and associated obligations on the part of financial institutions; related enforcement trends.

Related information:

https://www.reuters.com/legal/usaa-pay-624-million-resolve-military-fee-lawsuit-2024-08-05

CFPB Issues Warning About Contract-for-Deed Arrangements 

Consider writing about:

A form of home seller financing known as contracts for deed; what these types of arrangements commonly consist of; how these types of contracts are regulated or overseen; related protections or risks; key takeaways from a recent release by the Consumer Financial Protection Bureau regarding contracts for deed; potential recourse for individuals who feel they have been wronged by the use of predatory mortgage products.

Related information:

https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-to-stop-contract-for-deed-investors-from-setting-borrowers-up-to-fail

https://www.consumerfinance.gov/about-us/newsroom/consumer-advisory-help-is-available-for-people-facing-housing-problems-because-of-a-contract-for-deed

Where Does Proposed Discover-Capital One Merger Stand? 

Consider writing about:

The proposed merger between Capital One Financial Corp. and Discover Financial Services; the potential implications, whether for consumers or the financial industry, or a merger of this magnitude; objections being raised against the merger, whether on Capitol Hill, in legal filings, or otherwise; current status of the proposed merger’s mechanics and regulatory approval; what related trends – whether involving M&A activity in the financial services industry or involving antitrust developments on a broader scale – could indicate regarding the outlook for a Discover-Capital One merger.

Zelle and Banks in Hot Seat Over Scammers’ Frauds Against Consumers 

Consider writing about:

New pressures being put on major banks and Zelle over scammers’ use of peer-to-peer payment apps to prey on unsuspecting targets; actions being considered or taken by legislators or regulators; how customer protections vary among various online payment platforms or apps; what individuals or institutions should know about their rights and risks when using these forms of payment.

Related information:

https://finance.yahoo.com/news/jpmorgan-says-cfpb-may-levy-213535731.html

https://www.cnn.com/2024/08/02/business/zelle-fraud-scam-payment/index.html

https://www.banking.senate.gov/newsroom/majority/brown-colleagues-press-zelle-to-clarify-policies-to-protect-customers-from-fraud-and-scams

https://www.blumenthal.senate.gov/newsroom/press/release/blumenthal-calls-on-cfpb-to-investigate-zelle-and-big-banks-for-mishandling-fraud

https://www.bankingdive.com/news/jpmorgan-threaten-lawsuit-cfpb-zelle-wells-fargo-blumenthal-authorized-transaction-fraud-scam/723283

Financing Options for Small Businesses [Ongoing] 

Consider writing about:

Financing options for a small business when a bank loan fails to come through; pros and cons of alternative sources of funding; risks of borrowing from nontraditional lenders and how to mitigate them.

Citigroup Penalized Over Compliance Performance 

Consider writing about:

Recent government actions against Citibank and Citigroup; performance issues leading up to the actions by the Office of the Comptroller of the Currency and the Federal Reserve Board; related enforcement trends, and practical guidance for financial institutions.

Related information:

https://www.occ.gov/news-issuances/news-releases/2024/nr-occ-2024-76.html

https://www.federalreserve.gov/newsevents/pressreleases/enforcement20240710a.htm

Who Will Be the Next FDIC Chair? 

Consider writing about:

The search for the next head of the Federal Deposit Insurance Corp.; what to know about President Biden’s selection for the role of FDIC chair and the related confirmation process; challenges that face the next chair in the wake of an independent investigation into allegations of a toxic culture at the FDIC. On a related note, will the FDIC’s successor be a case of another woman being ushered on to a “glass cliff” at a struggling organization?

Related information:

https://www.cnn.com/2024/06/13/economy/biden-nominates-new-fdic-head/index.html

https://www.vox.com/2018/10/31/17960156/what-is-the-glass-cliff-women-ceos

Venture Capital Trends Worth Knowing About [Ongoing] 

Consider writing about:

Venture capital activity in the country or region of your choice; noteworthy details, whether involving deal sizes, types, or factors driving VC activity; volume and type comparisons to prior months or years; emerging trends or industry sectors of note; investor concerns; challenges for businesses in attracting VC funding.

Interchange Fees May Be Headed for Chopping Block in Illinois; Will Other States Follow? 

Consider writing about:

Illinois legislation that takes aim at debit and credit card interchange fees involving sales taxes, excise taxes, and gratuities; purpose of the legislation; how this measure would affect merchants, credit card issuers, or consumers; current status of the Illinois legislation; prospects for similar measures being passed by other state legislatures or implemented on the federal level.

Related information:

https://legiscan.com/IL/text/HB4951/2023

Silvergate Reaches Settlement Over AML Controls 

Consider writing about:

A lawsuit filed by the U.S. Securities and Exchange Commission against Silvergate Bank and three of its chief officers; key allegations in the lawsuit; what the lawsuit and resulting settlement in this case may illustrate regarding the maintenance of adequate anti-money laundering controls and related compliance obligations; related enforcement trends involving crypto activity.

Related information:

https://www.sec.gov/newsroom/press-releases/2024-82

https://www.axios.com/2024/07/01/sec-sues-silvergate-bank-secrecy-act

https://www.theverge.com/2024/7/1/24190255/silvergate-sec-fraud-ftx-crypto-bank

IRS Releases Final Reporting Rules for Digital Asset Brokers 

Consider writing about:

The Internal Revenue Service’s release late last month of final tax reporting rules for digital asset brokers; how the final rules compare to a draft form released by the IRS earlier this year; the finalized regulations’ effective date and other practical implications for investors, tax advisers, and others.

Related information:

https://public-inspection.federalregister.gov/2024-14004.pdf

https://www.cnbc.com/2024/07/01/irs-crypto-tax-reporting-guidance.html

Takeaways From CFPB Report 

Consider writing about:

The Consumer Financial Protection Bureau’s latest semi-annual report to Congress, issued earlier this month; top takeaways from the report itself, and also from congressional banking committee hearings, where the CFPB director presented the report; how trends from the CFPB’s latest report compare to its past reports, and what those may indicate about its success rate, focus, challenges confronting it, and direction of its efforts.

Related information:

https://www.consumerfinance.gov/data-research/research-reports/semi-annual-report-of-the-consumer-financial-protection-bureau-2024

What to Know About FIT21 Legislation 

Consider writing about:

The Financial Innovation and Technology for the 21st Century Act; status, purpose, and significance of this legislation; prospects for its passage by Congress; what FIT21 could mean for the financial services industry, digital asset users, and regulators.

Related information:

https://www.congress.gov/bill/118th-congress/house-bill/4763

Debunking De-Banking: An Actual Problem or Much Ado About Nothing? 

Consider writing about:

De-banking. How is this term currently being used, and what does it consist of (in theory or in fact)? Why are financial institutions in the United States and elsewhere being accused of de-banking individuals based on their religion or politics? What should banks or other financial services entities know about these allegations and how should they be ready to respond if they are hit with these types of claims?

Related information:

https://finance.yahoo.com/news/15-ags-put-bofa-notice-115643110.html

United States Eases Financial Restrictions on Cuba 

Consider writing about:

Changes in financial restrictions affecting Cuba; what a recent announcement by the U.S. Treasury Department could mean for the banking sector, for people doing business in or with Cuba, or for the Cuban economy more generally; related limitations, restrictions, or potential risks the financial services industry should be aware of.

Related information:

https://home.treasury.gov/news/press-releases/jy2374

https://abcnews.go.com/US/wireStory/us-opens-banking-private-cuban-businesses-aims-boost-110617719

How a Fintech Dispute Led to Locked Customer Accounts 

Consider writing about:

A fintech sector dispute that has led to thousands of customers being locked out of their accounts. Consider unpacking this dispute involving at least three entities and what it may illustrate regarding consumer risk, regulation, and “banking as a service” operations and trends.

Related information:

https://www.cnbc.com/2024/06/01/synapse-bankruptcy-yotta-accounts-locked.html