Nikhil Gore

Nikhil Gore

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Public Support for the CFPB and its Arbitration Rule — Is The Evidence Clear?

A recent poll — conducted by Lake Research Partners and Chesapeake Beach Consulting on behalf of Americans for Financial Reform and the Center for Responsible Lending — appears to show substantial public support for the Consumer Financial Protection Bureau (CFPB) and a number of its recent regulatory initiatives.  The published poll results reflect, among other things, … Continue Reading

Acting Comptroller Noreika Addresses Challenges to the OCC’s Fintech Charter

In remarks on Wednesday before the Exchequer Club in Washington, Acting Comptroller of the Currency Keith Noreika responded to State regulators and consumer advocates who have criticized the OCC’s proposed special purpose fintech charter (the proposed charter is discussed in this Covington client alert). Acting Comptroller Noreika’s comments on the fintech charter reflect an evolution … Continue Reading

Kokesh v. SEC and Implications for Consumer and Financial Regulatory Agencies

In its decision in Kokesh v. SEC, issued on Monday, June 5, 2017, the Supreme Court unanimously ruled that “disgorgement” of ill-gotten gains by the Securities and Exchange Commission (“SEC”) is a “penalty” within the meaning of 28 U.S.C. § 2462.  As a result, disgorgement is unavailable to the SEC in judicial proceedings involving conduct … Continue Reading

House Passes CHOICE Act 2.0

The House of Representatives voted this afternoon to pass the Financial CHOICE Act (“CHOICE 2.0”), its comprehensive financial regulatory reform bill.  The key provisions of CHOICE 2.0 are summarized in our client alert of April 24, 2017, available here, although the bill has evolved somewhat since April.  As we wrote late last month, Representative Jeb … Continue Reading

Comptroller Curry to Depart; Keith Noreika to Serve as Acting Comptroller of the Currency

The Treasury Department announced today that Comptroller of the Currency Thomas Curry would be stepping down from his post effective this Friday, May 5, 2017.  Keith Noreika, a Washington, D.C., banking lawyer who was part of President Trump’s transition team for Treasury, will be appointed First Deputy Comptroller of the Currency and will serve as … Continue Reading

FDIC Vice Chairman Hoenig’s Proposal for Regulation of Financial Holding Companies

As has been widely reported, FDIC Vice Chairman Thomas Hoenig put forward in remarks to the Institute of International Bankers on Monday, March 13, a “Market-Based Proposal for Regulatory Relief and Accountability” (the “Hoenig Proposal” or the “Proposal”).  If adopted, the Hoenig Proposal would substantially change the regulation of large and complex banking organizations doing … Continue Reading

TCH Report on Redesign of the AML/CFT Regulatory Framework

The Clearing House published this week a report that highlights potential anachronisms and inefficiencies in current U.S. anti-money laundering / counter-financing of terrorism regulation.  The report makes 8 core recommendations for reform, including the following: Centralizing Regulatory Responsibility:  “The Department of Treasury, through its Office of Terrorism and Financial Intelligence (TFI), should take a more … Continue Reading

Seventh Circuit Holds Open a Narrow Path for Challenging Bank Supervisory Ratings

The U.S. Court of Appeals for the Seventh Circuit recently issued a rare decision on a bank’s ability to challenge its supervisory ratings—in this case, its Federal Deposit Insurance Company (“FDIC”) Capital, Assets, Management, Earnings, Liquidity and Sensitivity (“CAMELS”) rating—in court.  See Builders Bank v. FDIC, — F.3d —, 2017 WL 237585 (7th Cir. 2017) … Continue Reading

Legislators and Others Seek To Intervene in PHH v. CFPB Litigation

As we previously discussed, in October 2016, a 3-judge panel of the D.C. Circuit reviewing an enforcement action by the CFPB determined that the Bureau’s director is subject to at-will removal by the President.  The Bureau subsequently petitioned for re-hearing before the full court. Late last week, following a motion to intervene by several state … Continue Reading

OCC Supplements Guidance on Third Party Oversight; Emphasizes Oversight of Lending Relationships

The Office of the Comptroller of the Currency (the “OCC”) has released supplemental examination procedures on third party risk management.  The procedures apply to national banks and federal savings associations of all sizes.  They supplement OCC Bulletin 2013-29, which governs the risk management frameworks maintained by OCC-regulated banks in establishing, monitoring and concluding third party … Continue Reading

FDIC Approves Extended Exam Cycles for Small Banks

Yesterday, the Federal banking agencies issued final rules that permanently extend the examination cycle, from 12 months to 18 months, for well-capitalized and well-managed banks, savings associations, and Federal agencies and branches of foreign banks with less than $1.0 billion in total assets. The final rules, which implement a Congressional mandate under a 2015 statute, … Continue Reading

Post-Election Outlook for Financial Regulatory Agencies: Financial Crimes Enforcement Network

President-Elect Donald J. Trump has said little about his plans for money laundering and terrorist financing enforcement, or his plans for the agency responsible for many of the Federal government’s anti-money laundering (“AML”) initiatives, the Financial Crimes Enforcement Network (“FinCEN”). FinCEN is a bureau within the Treasury Department and not a fully independent agency.  Its … Continue Reading

Comptroller Curry Emphasizes That Fintech Charter Will Not Involve Regulatory Relief, Rejects “Sandbox” Approach to Financial Innovation

In a speech delivered yesterday to an industry conference in London, Comptroller of the Currency Thomas Curry did not reject the idea of a special charter for fintech firms – but did reject the idea that such a charter would come with lessened regulatory burdens as compared to a traditional bank charter. In particular, Comptroller … Continue Reading

CFPB Releases Fall 2016 Supervisory Highlights Together With New Guidance on Student Loan Servicing, Fair Lending, Reverse Mortgage Servicing

The CFPB released yesterday its Supervisory Highlights for Fall 2016.  The Supervisory Highlights state that, taking into account non-public enforcement actions, “recent supervisory activities […] resulted in approximately $11.3 million in restitution to more than 225,000 consumers” during the May-August 2016 review period. The Highlights reflect continued focus by the CFPB on many of the … Continue Reading
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