Fintech : Law360 : Legal News & Analysis (2024)

FDIC's Gruenberg Scolded By Senators Over Agency Culture

Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Thursday faced a second round of congressional reprimand from both sides of the political aisle over his agency's workplace misconduct scandal, but SenateDemocrats seemed ready to let Gruenberg clean up the mess himself and continue histenure.

2nd Circ. Backs Win For Big Banks In Forex-Rigging Suit

The Second Circuit on Thursday backed a ruling in favor of a group of large banks accused of conspiring to manipulate the foreign currency exchange market in euros and dollars, agreeing with a lower court that the plaintiffs hadn't made qualifying transactions or shown how prices were distorted.

Justices Say CFPB Is Constitutionally Funded

The U.S. Supreme Court ruled Thursday that the Consumer Financial Protection Bureau is constitutionally funded, rejecting a payday lender-backed challenge that threatened to incapacitate the agency and throw a wrench in the Biden administration's financial regulatory agenda.

3 Things To Know About CFTC's Election Betting Proposal

The U.S. Commodity Futures Trading Commission has proposed toban the trading of event contracts tied to things like election outcomes, sporting events and the Academy Awards. Here are three things to know about a proposal that is likely to be closely watched by industry insiders, some of whom are already wrapped up in litigation with the agency over this very issue.

'Pissed Off,' 'You Need To Go': Reps Rip FDIC's Gruenberg

Federal Deposit Insurance Corp. Chairman Martin Gruenberg took withering, bipartisan criticism over his agency's workplace misconduct scandal at a House hearing on Wednesday, although no new Democrats joined their Republican colleagues in directly calling for his resignation.

Bolt Financial Cancels $37M In Shares To End CEO Loan Suit

Bolt Financial Inc.will cancel over $37 million in shares to settle a derivative suit against the company's board of directors that accuses its former CEO of purposely defaulting on a $30 million loan, according to a filing in Delaware's Court of Chancery.

UnitedHealth Concealed DOJ Merger Investigation, Suit Says

UnitedHealth Group has been hit with a proposed shareholder class action alleging that it failed to disclose that the U.S. Department of Justice had reopened an antitrust investigation into the health insurance giant following its acquisition of a healthcare data company, and that top executives had sold more than $120 million of shares knowing about the investigation before a news report revealed it to the public.

Colo. Says Lending Law Challenge Aims To Strip Federal Right

The state of Colorado has urged a federal judge to dismiss a suit seeking to block a new state law to rein in high-cost online lending by out-of-state banks, saying federal law "expressly permits" states to opt out of the relevant statute, so their interest rate laws will not be preempted by state-chartered banks.

Brothers Stole $25M Of Crypto In 12 Seconds, Feds Say

Two Massachusetts Institute of Technology-educated brothers were charged with orchestrating a first-of-its-kind cryptocurrency heist that allowed them to siphon virtual tokens worth around $25 million from Ethereum blockchain users within just 12 seconds, an indictment unsealed Wednesday said.

Buchalter Starts Fintech And AI Practice With New Seattle Hire

Buchalter PC announced that it hired the former chief legal officer at mortgage-focused fintech company Sagent as a Seattle-based shareholder and chair of its newly launched fintech and artificial intelligence practice group.

Cahill Gordon Adds Crypto Attys, Launches Delaware Office

Cahill Gordon & Reindel LLP announced Wednesday that it has added three attorneys to its rebranded digital assets and emerging technology practice, including a former Delaware deputy attorney general who will lead its newly launched office in the state.

Ex-FTX Exec Seeks Leniency, Saying He Was Kept In The Dark

A former top FTX official has asked a Manhattan federal judge for a lenient 18-month sentence, saying he was not part of company co-founder Sam Bankman-Fried's inner circle and was as shocked as everyone else to learn that the crypto exchange was operating a fraud that siphoned billions in customer funds.

AI Job Recruiter Joonko Blames CEO Fraud For Ch. 11 Filing

AI-powered employee recruitment venture Joonko Diversity Inc. has filed for Chapter 11 protection in a Delaware bankruptcy court, saying its business had rested almost entirely on fraudulent claims made by its ex-CEO.

Senators Release 'Road Map' For Crafting Federal AI Policy

A bipartisan group of senators on Wednesday laid out a "road map" for artificial intelligence policy that calls for increased AI innovation funding, testing of potential harms posed by AI and consideration of the technology's workforce implications.

Swiss Seek Feedback On Crypto Information Exchange

Switzerland's executive body, the Federal Council, is seeking feedback from the public on its plan to adopt two Organization for Economic Cooperation and Development standards that will update the country's automatic exchanges of information to account for crypto-assets, it said Wednesday.

In Hot Seat, FDIC's Gruenberg Pledges 'Fundamental Change'

Federal Deposit Insurance Corp. Chairman Martin Gruenberg will tell House lawmakers Wednesday that he is taking "full responsibility" for his agency's workplace misconduct scandal and eyeing "fundamental" structural reforms, striking a humbled but determined tone as he faces the first of two hearings that could be make-or-break for his job.

FINRA Official Calls Off-Channel Flags 'Shockingly Common'

A Financial Industry Regulatory Authority official said Tuesday that firms often veer into issues with off-channel business communications thanks to what's on their representatives' business cards and email signatures, and that the biggest red flag of recordkeeping violations are the habits of firms' own leaders and managers.

5th Circ. Expresses Doubt On Nasdaq Board Diversity Rules

Lawyers for the U.S. Securities and Exchange Commission and Nasdaq Stock Market LLC faced a barrage of questions from the full Fifth Circuit on Tuesday, with judges wondering whether rules requiring corporations to disclose board diversity information would open the door to investor questions on religious practices, political beliefs or Taylor Swift fandom.

USPTO Guidance On AI And Patents Draws Worry And Praise

U.S. Patent and Trademark Office guidance on when inventions developed using artificial intelligence can be patented has generated concern from some companies and industry groups about discouraging AI adoption and putting patents at risk, while others welcomed it as a sound approach.

Congressional IP Attorneys Keeping Close Watch On AI

Top intellectual property attorneys from the U.S. Senate and U.S. House of Representatives told a room full of Federal Circuit practitioners on Tuesday that artificial intelligence is the biggest thing to watch within IP law over the next few years.

Workday's Liability Defense In AI Bias Battle Troubles Judge

A California federal judge handling a job candidate's discrimination case over Workday's artificial intelligence-powered hiring tools seemed ready Tuesdayto let thelegal battle move ahead, as she expressed skepticism about the software developer's assertion that federal employment laws can't reach it.

Sullivan & Cromwell LLP wants a Florida federal court to dismiss a proposed class action allegingthe firm knew about and helped facilitate the massive fraud by FTX, saying customers of the cryptocurrency exchange platform fail to claim anything beyond a "series of speculative allegations with no factual basis."

Bank Lobbies Rattle Sabers At Fed Over Debit Swipe Fees

Some of the same banking industry groups that sued over the Consumer Financial Protection Bureau's credit card late fee rule have urged the Federal Reserve to refrain from lowering a separate cap on debit card swipe fees, signaling it could be the next bank fee regulation to face a legal challenge if finalized.

Banking Groups Oppose FDIC Position On Interstate Lending

Two banking associations have argued the Federal Deposit Insurance Corp. is trying to create a new regulation through its support of a Colorado state law aimed at reining in high-cost lending by claiming for the first time, in an amicus brief, that interstate loans are made in both the lender's and borrower's states.

CFTC Hits Crypto Firm With First-Ever Registration Claims

A Seychelles-incorporated entity has agreed to pay nearly $1.8 million in penalties and disgorgement to end U.S. Commodity Futures Trading Commission allegations it failed to register as a futures commission merchant in what the CFTC described Monday as a first-of-its-kind action involving digital asset exchanges.