Jason Grimes

Jason Grimes

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CFTC Acting Chairman Makes Budget Request

On June 8, 2017, Acting Chair J. Christopher Giancarlo of the Commodity Futures Trading Commission (“CFTC”) made his request for the CFTC’s budget for fiscal year 2018 (“FY 2018”) to the House Appropriations Committee Subcommittee on Agriculture, Rural Development and Related Agencies (“Subcommittee”).  Acting Chair Giancarlo is seeking an increase in the CFTC’s budget from … Continue Reading

CFTC Adopts Amendments to Whistleblower Rule, Asserts Anti-Retaliation Authority

On May 22, 2017, the Commodity Futures Trading Commission (“CFTC”) announced the finalization of amendments to its whistleblower rules.  The most important change is the CFTC’s assertion of the authority to enforce Section 23(h)(1) of the Commodity Exchange Act (“CEA”), which prohibits retaliation against whistleblowers.  When it originally promulgated its whistleblower rules in 2011, the … Continue Reading

CFTC Launches FinTech Initiative “LabCFTC”

On May 17, 2017, the Commodity Futures Trading Commission (“CFTC”) announced the launch of its financial technology (“FinTech”) initiative, LabCFTC.  Per the agency, the initiative is designed to “promot[e] responsible FinTech innovation to improve the quality, resiliency, and competitiveness of the markets the CFTC oversees.”  According to Acting Chair J. Christopher Giancarlo, LabCFTC is “intended … Continue Reading

D.C. Circuit Holds Oral Argument in Rehearing of PHH v. CFPB

On May 24, 2017, the U.S. Court of Appeals for the D.C. Circuit held en banc oral argument in the rehearing of PHH Corp., et al. v. Consumer Financial Protection Bureau (“PHH”).  The lively oral argument extended well beyond the time originally allotted by the Court, as lawyers for PHH, the Department of Justice, and … Continue Reading

CHOICE Act 2.0: House Financial Services Committee Revises Regulatory Reform Bill

On April 19, 2017, the House Financial Services Committee released a new discussion draft of the Financial CHOICE Act, its comprehensive regulatory reform bill.  The Committee released the first version of the CHOICE Act in June 2016.  Buoyed by the election of a Republican president, and following several months of public and industry outreach, Committee … Continue Reading

CFPB Director Richard Cordray Spars with Republicans at House Financial Services Committee Hearing

On April 5, 2017, the House Financial Services Committee held a hearing at which Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray was the sole witness.  During the five hours of the hearing, a wide partisan split over the performance of the CFPB  and Director Cordray  was on full display.  Throughout, Republicans characterized the CFPB … Continue Reading

CFTC Settles Allegations that Dairy Company Acted as FCM for Milk Suppliers

On March 27, 2017, the Commodity Futures Trading Commission (“CFTC”) announced it entered into a consent order with Davisco Foods International, Inc. (“Davisco”), a dairy company, to settle allegations that Davisco acted as a futures commission merchant (“FCM”) for its milk suppliers without registering as an FCM.  Section 4d of the Commodity Exchange Act defines … Continue Reading

Trump Administration to nominate J. Christopher Giancarlo to serve as CFTC Chairman

On March 14, 2017, the White House announced that President Donald Trump intends to nominate J. Christopher Giancarlo, currently Acting Chairman of the Commodity Futures Trading Commission (“CFTC”), to serve as the CFTC’s permanent Chairman, subject to confirmation by the Senate. Acting Chairman Giancarlo joined the CFTC as a commissioner in 2014, and was named … Continue Reading

CFPB Releases Supervisory Report Focused on Improvements in Credit Reporting

On March 2, 2017 the Consumer Financial Protection Bureau (“CFPB”) released a “special edition” supervisory report that focused on improvements made in the credit reporting industry since the CFPB began supervising the industry in 2012.  This report follows on the heels of the monthly complaints report the CFPB released on March 1, 2017, which also … Continue Reading

CFPB Monthly Complaint Report Highlights Complaints About Credit Reports

On February 28, 2017, the Consumer Financial Protection Bureau (“CFPB”) released its monthly complaint report. For the month of January 2017, the products and services generating the most complaints were debt collection, student loans, and credit reporting, collectively representing about 60 percent of complaints.  This is  the first time since the CFPB started releasing monthly complaint reports in … Continue Reading

CFPB’s Monthly Complaint Report Focuses on Mortgages

On February 8, 2017, the Consumer Financial Protection Bureau (“CFPB”) released its monthly complaint report. For the month of December 2016, the products and services generating the most complaints were debt collection, credit reporting, and mortgages, collectively representing about 65 percent of complaints. In a year-to-year comparison covering the three-month time period between October and December in 2015 … Continue Reading

CFPB, New York AG Accuse Settlement Funding Company of Engaging in Deceptive and Abusive Conduct Towards 9/11 First Responders, NFL Players

On February 7, 2017, the Consumer Financial Protection Bureau (“CFPB”) and the New York Attorney General filed a complaint in federal court accusing companies RD Legal Funding, LLC, RD Legal Finance, LLC, and RD Legal Funding Partners, LP (collectively, “RD Legal”) and their principal, Roni Dersovitz, of misleading consumers regarding advances made on payouts from … Continue Reading

President Trump Begins Efforts to Roll Back Financial Regulations

Throughout his campaign, President Donald Trump promised to curtail financial regulations, particularly those promulgated under the Dodd-Frank Act.  President Trump argued frequently that the regulations issued under the act have proven overly burdensome and, among other things, limited job growth.  This afternoon, the President took his first formal step in implementing his deregulatory agenda.  He … Continue Reading

CFTC Issues No-Action Relief for Swap Dealers who Comply with EU Uncleared Swap Requirements

On February 1, 2017, the Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the Commodity Futures Trading Commission (“CFTC”) issued a no-action letter granting relief from compliance with certain provisions of the CFTC’s margin requirements for uncleared swaps.  This relief applies to swap dealers entering into swaps with counterparties subject to the non-centrally cleared … Continue Reading

CFTC Commissioner Giancarlo Forecasts Swap Market Reforms

On January 18, 2017, Commodity Futures Trading Commission (“CFTC”) Commissioner J. Christopher Giancarlo delivered a keynote address at SEFCON VII in which he gave an indication of the types of reforms in the swap markets he plans to implement as Acting Chair and, if nominated and confirmed, as permanent Chair.  His comments echoed a theme … Continue Reading

CFTC Proposes Capital Rules for Swap Dealers and Major Swap Participants

On December 2, 2016, the Commodity Futures Trading Commission (“CFTC”) proposed rules establishing capital requirements for swap dealers (“SDs”) and major swap participants (“MSPs”). The CFTC’s proposed capital rules would cover those swap dealers and major swap participants that are not subject to prudential regulation. Chairman Timothy Massad noted in his attached statement that the … Continue Reading

CFTC Commissioner Giancarlo Delivers Speech Urging Regulatory Reform

On December 9, 2016, Commodity Futures Trading Commission (“CFTC”) Commissioner J. Christopher Giancarlo delivered the keynote address at the International Swaps and Derivatives Association Trade Execution Legal Forum.  His address included a strong rebuke of the CFTC’s swaps trading regime, stating that the “time has come for the CFTC to revisit its flawed swaps trading … Continue Reading

OCC Head Argues Against Loosening Bank Standards

In a speech delivered to The Clearing House on November 30, 2016, Comptroller of the Currency Thomas J. Curry argued against weakening the capital, leverage, liquidity and supervisory standards that were put in place in response to the 2008 financial crisis.  Throughout his remarks, Comptroller Curry rejected the notion that the current standards are unduly … Continue Reading

Pre-trial Briefing: CFTC v. Wilson and the Requirement of Intent to Cause an Artificial Price in Attempted Manipulation Cases

The Commodity Futures Trading Commission is set to begin its trial of Donald R. Wilson and his proprietary trading firm, DRW Investments, LLC on December 1, 2016.  In advance of this trial, this alert provides the legal theory that will be tested during this trial and other observations related to the CFTC’s pursuit of attempted … Continue Reading

“Flash Crash” Derivatives Trader Settles Spoofing Case

On November 17, 2016, a federal court entered a consent order that will settle the civil case the Commodity Futures Trading Commission (“CFTC”) brought against Navinder Singh Sarao and his company, Nav Sarao Futures Limited PLC, for engaging in a “spoofing” scheme and manipulating the price of the Chicago Mercantile Exchange’s E-mini S&P 500 futures … Continue Reading

Ag. Committee Chairman Tells Massad and CFTC “Pens Down” on Pending Rules

As we have noted in a recent client alert, the transition to the Trump administration is likely to have a significant impact on the regulatory agenda of the Commodity Futures Trading Commission (“CFTC” or “Commission”). House Agriculture Committee Chairman K. Michael Conaway wants to ensure that the status quo is preserved until such time as … Continue Reading

Post-Election Outlook: Derivatives Regulatory Agenda

On November 8, 2016, American voters elected Republican Donald J. Trump as President.  In addition, Republicans maintained control of the House of Representatives and the Senate.  As the campaign rhetoric fades into the background over the coming weeks and months, the business of transitioning to a new administration will begin in earnest.  The results of … Continue Reading

New York DFS Enters Consent Order with PHH Mortgage

On November 9, 2016, the New York State Department of Financial Services (“NYDFS”) entered into a consent order with PHH Mortgage Corporation and PHH Home Loans (collectively “PHH”) to settle allegations that PHH violated New York and federal laws relating to mortgage origination and servicing.  NYDFS discovered the alleged violations of law in a series … Continue Reading
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