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Trump To Nominate Former OneWest CEO To Head the OCC; Reportedly Makes Picks for Fed Nominees

The OCC On June 5, 2017, the White House announced that Donald Trump will nominate Joseph Otting to succeed Thomas J. Curry as Comptroller of the Currency.  Otting is the former CEO of OneWest Bank, where he worked for current Treasury Secretary Steve Mnuchin. Otting is a longtime financial services executive who worked at U.S. … Continue Reading

CFTC Proposes Amendments to CCO and Annual Report Requirements for Certain CFTC Registrants

The CFTC recently proposed amendments (the “Proposal”) to its regulations regarding certain duties of chief compliance officers (‘‘CCOs’’) of swap dealers (‘‘SDs’’), major swap participants (‘‘MSPs’’), and futures commission merchants (‘‘FCMs’’) (collectively, ‘‘Registrants’’); and certain requirements for preparing and furnishing to the Commission an annual report containing an assessment of the Registrant’s compliance activities. The … Continue Reading

CFPB Issues Request for Information on the Small Business Lending Market

On May 10, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a request for information on small business lending. In a press release accompanying the request, the CFPB stated that its goal is to “learn more about how small businesses engage with financial institutions, with a particular focus on women-owned and minority-owned small business,” in … Continue Reading

CFPB Spring 2017 Supervisory Highlights Focus on Student Loan and Mortgage Servicers

On April 26, 2017, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) released its Supervisory Highlights, Spring 2017. The Supervisory Highlights state that supervisory resolutions in the September-December 2016 period led to approximately $6.1 million in restitution to over 16,000 consumers. The Supervisory Highlights reflect a continued focus by the CFPB on the mortgage … Continue Reading

CFTC Will Have Enhanced Enforcement Powered by In-House Market Surveillance

CFTC Acting Chairman Chris Giancarlo recently announced some organizational changes within the CFTC’s Divisions that will enhance the agency’s ability to investigate market abuse. Further, Acting Chairman Giancarlo recently announced the appointment of federal prosecutor James M. McDonald as the agency’s new Director of Enforcement. Covington’s Futures and Derivatives group provides our initial thoughts on … Continue Reading

CFTC Extends Relief for SEFs with respect to SEF Confirmation and Recordkeeping Requirements

On March 24, 2017, the CFTC issued an extension of no-action relief with respect to confirmation and recordkeeping requirements for swap execution facilities (“SEFs”) under CFTC Regulations 37.6(b), 37.1000, 37.1001, 45.2 and 45.3(a). SEFs are required under SEF Core Principle 10–implemented by CFTC Regulations 37.1000 and 37.1001– to maintain records of all activities relating to … 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

Europe and American Financial Regulatory Outlooks Could Diverge

As reported by Law360, European Central Bank (“ECB”) Executive Board Member and Supervisory Board Vice-Chair Sabine Lautenschläger suggested in a February 19 interview that the ECB intends to keep “European [banking] institutions on a tighter rein” than the United States appears to intend to do with domestic banks. Ms. Lautenschläger noted “it is imperative that … Continue Reading

Regulators Release Guidance for Compliance with Variation Margin Requirements for Non-Cleared Swaps

Today, both the Federal Reserve and the Office of the Comptroller of the Currency (“OCC”) published guidance addressing the agencies’ “expectations for compliance” with minimum variation margin requirements for non-cleared swaps that become effective March 1, 2017. The guidance is relevant to any swap dealer registered with the Commodity Futures Trading Commission (“CFTC”) for which … Continue Reading

CME Adopts Rule Changes Regarding Offenses

CME has issued a Special Executive Report listing out amendments to Rule 432 (General Offenses) of the CME, CBOT, NYMEX, COMEX, and CME SEF rulebooks. These amendments are aimed at specifically prohibiting: attempted fraudulent or bad faith actions; the intentional or reckless use or attempted use of a manipulative device, scheme or artifice to defraud; … 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

CFTC Acting Chairman Giancarlo Appoints Amir Zaidi as Director of the Division of Market Oversight

On Friday January 27, CFTC Acting Chairman announced a series of staff changes at the CFTC, including the appointment of Amir Zaidi to lead the CFTC’s Division of Market Oversight (“DMO”). Mr. Zaidi has served in a number of roles at the Commission since he joined in 2010. Most recently, he was Legal Counsel and … Continue Reading

Congress Attempts to Counsel Trump Concerning Removal of CFPB Director Cordray, While PHH Petition for Rehearing Remains Undecided

Today Senators Chuck Schumer (D-NY), Sherrod Brown (D-OH), Elizabeth Warren (D-MA) and others voiced their opposition to any attempt by President-elect Donald Trump to oust Richard Cordray, the current Director of the Consumer Financial Protection Bureau (“CFPB”), before Cordray’s term ends in July 2018. They also sent a letter to Cordray outlining and praising his … Continue Reading

CME Implements Significant Penalty Increases for Futures and Swaps Trading Violations

Effective December 14, 2016, and subject to CFTC regulatory review periods, the Chicago Mercantile Exchange Inc., The Board of Trade of the City of Chicago, Inc., New York Mercantile Exchange, Inc., Commodity Exchange, Inc. and the Swap Execution Facility Division of Chicago Mercantile Exchange Inc. have adopted amendments to the rulebooks of their respective platforms. … Continue Reading

FTC Obtains Preliminary Injunction Against Companies For Allegedly Impersonating Government Agencies

On September 29, 2016, the FTC obtained a preliminary injunction against three companies and their principals for allegedly impersonating government transportation authorities (such as the U.S. Department of Transportation) to obtain payments for federal and state motor carrier registrations and required reports from commercial truckers and trucking companies.  The complaint in FTC v. DOTAuthority.com, Inc. … Continue Reading
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