CFPB – Overlawyered https://www.overlawyered.com/ Chronicling the high cost of our legal system Mon, 06 Jan 2020 15:04:57 +0000 en-US hourly 1 Supreme Court roundup https://www.overlawyered.com/2020/01/supreme-court-roundup-32/ https://www.overlawyered.com/2020/01/supreme-court-roundup-32/#comments Mon, 06 Jan 2020 11:01:02 +0000 https://www.overlawyered.com/?p=73745 Hosanna-Tabor sequel: Court agrees to review Ninth Circuit decisions taking narrow view of “ministerial exception,” which restricts court review of some decisions by religious employers [SCOTUSBlog, Eric Rassbach; Joseph Cosby on Our Lady of Guadalupe School v. Morrissey-Berru and St. James School v. Biel] Once again the Court is being asked to green-light open-ended claims […]

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  • Hosanna-Tabor sequel: Court agrees to review Ninth Circuit decisions taking narrow view of “ministerial exception,” which restricts court review of some decisions by religious employers [SCOTUSBlog, Eric Rassbach; Joseph Cosby on Our Lady of Guadalupe School v. Morrissey-Berru and St. James School v. Biel]
  • Once again the Court is being asked to green-light open-ended claims of disparate impact liability in mortgage lending. Proximate cause principles offer a way to hold the line [Ilya Shapiro, Trevor Burrus, and Sam Spiegelman on Cato amicus in Bank of America v. Miami]
  • Article I, Section 3 of the Constitution provides that the Chief Justice shall preside over an impeachment trial of the President in the Senate. Should it wish, however, the Senate will have wide latitude to overrule Roberts’s rulings [John Kruzel, The Hill]
  • Regulatory agencies whose officials are unremovable amount to an unaccountable fourth (or fifth?) branch of government [Ilya Shapiro and James Knight on Cato amicus brief in Seila Law v. CFPB]
  • Comcast Corp. v. National Association of African American-Owned Media, argued before the Court Nov. 13, originally appeared to hinge on the Ninth Circuit’s adopting a looser standard for allegations of race discrimination in contracting than did other circuits; as it has evolved, however, it may be decided on questions of pleading [Washington Legal Foundation and more from WLF’s Richard Samp, ABA Journal; Dominic Patten and Mike Fleming Jr., Deadline on underlying dispute; Howard Wasserman and followup]
  • Nearly two years after joining the Court, Justice Neil Gorsuch now has a track record [Jacob Sullum, Michael Greve] Gorsuch may be joining Thomas in the position that a federal agency’s considered decision *not* to regulate should not be interpreted to pre-empt state regulatory power [James Beck on concurrence in Lipschultz v. Charter Advanced Services (MN), LLC]
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    ]]>     https://www.overlawyered.com/2020/01/supreme-court-roundup-32/feed/ 1     Banking and finance roundup https://www.overlawyered.com/2020/01/banking-and-finance-roundup-30/ https://www.overlawyered.com/2020/01/banking-and-finance-roundup-30/#comments Fri, 03 Jan 2020 13:11:02 +0000 https://www.overlawyered.com/?p=73694 Senator Elizabeth Warren and her Accountable Capitalism Act represent an attempt to revive a theory of the corporation that fell out of favor long ago, that corporate status is a grant of favor in exchange for which the state may demand services or cooperation [Abdurrahman Kayiklik, Columbia Law School Blue Sky Blog; earlier with links […]

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  • Senator Elizabeth Warren and her Accountable Capitalism Act represent an attempt to revive a theory of the corporation that fell out of favor long ago, that corporate status is a grant of favor in exchange for which the state may demand services or cooperation [Abdurrahman Kayiklik, Columbia Law School Blue Sky Blog; earlier with links to Warren on corporate governance and other topics]
  • Bill in Congress would enlist banks in watching gun sales [Robert VerBruggen/NRO; Noah Shepardson, Reason] NRA, in litigation, contends it has evidence New York state officials negotiated with U.K.’s Lloyds to curtail insurance availability in a way specifically targeted at the association [Stephen Gutowski thread]
  • “The Misguided Quest to Limit Choice in Consumer Credit” [Diego Zuluaga]
  • “The CFPB and Payday Lending Regulations” [Peter Van Doren last February; earlier on payday lending; Federalist Society Regulatory Transparency Project video on regulation-through-investigation of payday lenders with Jamie Fulmer, Chris Peterson, and Brian Knight]
  • Federalist Society podcast on Community Reinvestment Act with Aaron Klein and Diego Zuluaga;
  • Learned a new word, lutulent, which means “muddy, turbid, thick” and is more or less the opposite of luculent (“lucid, clear, transparent”) [Keith Paul Bishop on unclarities in new California law requiring gender quotas on boards (“a lutulent mess”); earlier here, etc.]
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    ]]>     https://www.overlawyered.com/2020/01/banking-and-finance-roundup-30/feed/ 4     Banking and finance roundup https://www.overlawyered.com/2019/10/banking-and-finance-roundup-29/ Mon, 28 Oct 2019 09:59:48 +0000 https://www.overlawyered.com/?p=73552 Supreme Court poised to strike down structure of Consumer Financial Protection Bureau (CFPB) as unconstitutional [Ilya Shapiro, National Review] No love lost between Elizabeth Warren’s, Barack Obama’s teams when consumer finance regulation was on the table [Alex Thompson, Politico] Cato Daily Podcasts on two topics with Diego Zuluaga and Caleb Brown: Congress is considering a […]

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  • Supreme Court poised to strike down structure of Consumer Financial Protection Bureau (CFPB) as unconstitutional [Ilya Shapiro, National Review]
  • No love lost between Elizabeth Warren’s, Barack Obama’s teams when consumer finance regulation was on the table [Alex Thompson, Politico]
  • Cato Daily Podcasts on two topics with Diego Zuluaga and Caleb Brown: Congress is considering a ban on cashless stores, and Bernie Sanders wants to create a public credit scoring system;
  • And speaking of the Vermont senator: “The Economic Consequences of Sen. Sanders’ Stock Confiscation Plan” [Ryan Bourne, Cato]
  • State Street hearing before Boston federal judge lays bare politics and accounting issues of one large securities class action settlement [Daniel Fisher/Legal Newsline and more, Law360 also via Fisher]
  • SEC rules on “accredited investors” are an attempt “to protect us from ourselves. Yet there are no such rules for betting in Las Vegas.” [David Henderson]
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    ]]>         Banking and finance roundup https://www.overlawyered.com/2019/09/banking-and-finance-roundup-28/ Sun, 08 Sep 2019 15:58:44 +0000 https://www.overlawyered.com/?p=73339 Neat trick: banks can get Community Reinvestment Act credit for lending in “low-income census tracts” even when that means extending $800K mortgages to gentrifiers [Diego Zuluaga, Politico, related policy analysis and Cato podcast] Sen. Elizabeth Warren has a plan to regulate private equity. It’s not good [Steven Bainbridge] When you’ve lost veteran liberal columnist Steven […]

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  • Neat trick: banks can get Community Reinvestment Act credit for lending in “low-income census tracts” even when that means extending $800K mortgages to gentrifiers [Diego Zuluaga, Politico, related policy analysis and Cato podcast]
  • Sen. Elizabeth Warren has a plan to regulate private equity. It’s not good [Steven Bainbridge] When you’ve lost veteran liberal columnist Steven Pearlstein… [Washington Post]
  • Speaking of terms with ugly histories, maybe it’s time for Sens. Warren and Sanders to retire the metaphor of the financial sector as vampires or “vultures” engaged in “sucking” or “bleeding” [Ira Stoll, related]
  • Volume of securities litigation is on sharp upswing, policy remedies needed [Kevin LaCroix/D&O Diary and more, Chubb “Rising Tide” report] Rising in Australia too [Nicola Middlemiss, Insurance Business Australia]
  • Unconstitutionality of CFPB structure hasn’t gone away and neither has the need for the Supreme Court to tackle the issue [Ilya Shapiro on Cato certiorari amicus brief in Seila Law LLC v. CFPB] Appointment process for Puerto Rico financial oversight board under PROMESA law is of doubtful constitutionality [Shapiro on Cato amicus brief in Financial Oversight & Management Board for Puerto Rico v. Aurelius Investment, LLC]
  • In an age of professional consultants, why does the law continue to require corporate governance to be delivered by way of individual board members? Firms specializing in board services could offer attractive alternative [Todd Henderson, Charles Elson, Stephen Bainbridge, Federalist Society Forum]
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    ]]>         Banking and finance roundup https://www.overlawyered.com/2018/12/banking-and-finance-roundup-24/ https://www.overlawyered.com/2018/12/banking-and-finance-roundup-24/#comments Mon, 17 Dec 2018 10:58:15 +0000 https://www.overlawyered.com/?p=72761 Gov. Jerry Brown signs into law California bill imposing minimum quota for women on corporate boards: “it’s very hard to see how this law could be upheld” [Emily Gold Waldman, PrawfsBlawg, earlier, more: Alison Somin, Federalist Society] “The passage of this law resulted in a significant decline in shareholder value for firms headquartered in California.” […]

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  • Gov. Jerry Brown signs into law California bill imposing minimum quota for women on corporate boards: “it’s very hard to see how this law could be upheld” [Emily Gold Waldman, PrawfsBlawg, earlier, more: Alison Somin, Federalist Society] “The passage of this law resulted in a significant decline in shareholder value for firms headquartered in California.” [Hwang et al. via Bainbridge]
  • Martin Act, part umpteen: “New York Attorney General Overreaches in Climate-Change Complaint Against Exxon” [Merritt B. Fox, Columbia Blue Sky Blog]
  • “Now he tells us! You’d think that maybe Bharara would have publicly acknowledged this ambiguity and haziness [in insider trading law] before bringing a series of cases that destroyed careers and imposed huge costs on the individuals who were accused.” [Ira Stoll]
  • “Because [Florida agriculture commissioner-elect Nikki Fried] took donations from the medical marijuana industry, Wells Fargo and BB&T banks closed her campaign accounts briefly, citing policies against serving businesses related to marijuana, which is still prohibited under federal law.” [Lori Rozsa, Washington Post, Erin Dunne, Washington Examiner (“fix the marijuana banking mess”)]
  • Survey: “Average cost of a settled merger-objection claim has increased 63% to $4.5 million over four years, with little benefit to shareholders” [Chubb] “Time for Another Round of Securities Class Action Litigation Reform?” [Kevin LaCroix, D&O Diary on U.S. Chamber paper, and more on trends in Australia]
  • “Congress Can’t Create an Independent and Unaccountable New Branch of Government” [Ilya Shapiro on Cato cert amicus in State National Bank of Big Spring v. Mnuchin, on constitutionality of Consumer Financial Protection Bureau (CFPB)]
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    ]]>     https://www.overlawyered.com/2018/12/banking-and-finance-roundup-24/feed/ 5     Banking and finance roundup https://www.overlawyered.com/2018/08/banking-and-finance-roundup-20/ https://www.overlawyered.com/2018/08/banking-and-finance-roundup-20/#comments Fri, 03 Aug 2018 10:03:37 +0000 https://www.overlawyered.com/?p=71813 “State-run retirement plans are the wrong way to protect the poor” [Andrew G. Biggs, AEI] Fifth Circuit panel: Federal Housing Finance Agency (FHFA) “is unconstitutionally structured and violates the separation of powers” [Jonathan Adler] Unconstitutional structure afflicts Consumer Finance Protection Bureau too [Ilya Shapiro on Cato amicus brief in Fifth Circuit case of CFPB v. […]

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  • “State-run retirement plans are the wrong way to protect the poor” [Andrew G. Biggs, AEI]
  • Fifth Circuit panel: Federal Housing Finance Agency (FHFA) “is unconstitutionally structured and violates the separation of powers” [Jonathan Adler] Unconstitutional structure afflicts Consumer Finance Protection Bureau too [Ilya Shapiro on Cato amicus brief in Fifth Circuit case of CFPB v. All American Check Cashing, earlier here, etc.]
  • Study: financial advisers in Canada who are not subject to fiduciary duty have personal investments similar to their clients [Peter Van Doren]
  • Regulation can have a lulling effect. Might it even breed financial illiteracy? [Diego Zuluaga, Cato]
  • “As I predicted, the ratchet effect is going to save Dodd-Frank. Sigh.” [Bainbridge]
  • “SEC proposes to limit whistleblower awards” [Francine McKenna, MarketWatch]
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    ]]>     https://www.overlawyered.com/2018/08/banking-and-finance-roundup-20/feed/ 1     Banking and finance roundup https://www.overlawyered.com/2018/07/banking-and-finance-roundup-19/ https://www.overlawyered.com/2018/07/banking-and-finance-roundup-19/#comments Tue, 10 Jul 2018 09:58:37 +0000 https://www.overlawyered.com/?p=70955 Federal judge Preska of Southern District of New York rules structure of Consumer Financial Protection Bureau unconstitutional, creating split with D.C. Circuit which upheld CFPB structure; “Australia Attempts to Fight Tobacco Black Markets by Banning Large Cash Transactions” [Scott Shackford] “Restoring Accountability to the Business of Banking” [John A. Allison and Lydia Mashburn, Washington Examiner] […]

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  • Federal judge Preska of Southern District of New York rules structure of Consumer Financial Protection Bureau unconstitutional, creating split with D.C. Circuit which upheld CFPB structure;
  • “Australia Attempts to Fight Tobacco Black Markets by Banning Large Cash Transactions” [Scott Shackford]
  • “Restoring Accountability to the Business of Banking” [John A. Allison and Lydia Mashburn, Washington Examiner]
  • NAM is among backers of Main Street Investors Coalition that will push back against corporate governance and shareholder activism forces on Left [Bainbridge; Alicia McElhaney, Institutional Investor]
  • Supreme Court agrees to hear SEC enforcement action case on scope of liability for false statements [Greg Stohr, Bloomberg; Peter J. Henning, New York Times DealBook; Lorenzo v. Securities and Exchange Commission]
  • “Why the Fall in IPOs Is a Threat to Popular Capitalism” [Diego Zuluaga, Cato]
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    ]]>     https://www.overlawyered.com/2018/07/banking-and-finance-roundup-19/feed/ 1     Banking and finance roundup https://www.overlawyered.com/2018/06/banking-and-finance-roundup-18/ https://www.overlawyered.com/2018/06/banking-and-finance-roundup-18/#comments Tue, 05 Jun 2018 09:57:36 +0000 https://www.overlawyered.com/?p=70393 Dodd-Frank “rollback” nips around the edges only [Victoria Guida and Zachary Warmbrodt, Politico, Diego Zuluaga, Cato] Study on law’s impact on small businesses and banks [Michael D. Bordo and John V. Duca, NBER via Tyler Cowen] “In Defense of Cash: Around the world, governments are trying to kill paper money. It’s a terrible idea.” [William […]

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  • Dodd-Frank “rollback” nips around the edges only [Victoria Guida and Zachary Warmbrodt, Politico, Diego Zuluaga, Cato] Study on law’s impact on small businesses and banks [Michael D. Bordo and John V. Duca, NBER via Tyler Cowen]
  • “In Defense of Cash: Around the world, governments are trying to kill paper money. It’s a terrible idea.” [William J. Luther, Reason]
  • U.S. Department of Labor: shareholder resolutions demanding environmental, social, or corporate governance changes can run counter to best interest of investors, and sponsors should not pretend otherwise in weighing fiduciary duty [Ike Brannon, Cato] “Corporate social responsibility” is not politically neutral [Stephen Bainbridge] More: Burchell Wilson, Economics 21;
  • How to improve the CFPB, assuming that abolishing it isn’t on the agenda [Diego Zuluaga, The Hill]
  • Lingering federal prohibitions doom state-legal cannabis to the plight of an unbanked industry [documentary screening and video of Cato panel with Matt Wood, Julie A. Hill, John Hudak, Jeffrey Miron, and George Selgin]
  • “Mortgage Interest Deduction Reform Worked; Sky Isn’t Falling” [Vanessa Brown Calder, Cato]
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    ]]>     https://www.overlawyered.com/2018/06/banking-and-finance-roundup-18/feed/ 6     Mulvaney memo on the CFPB https://www.overlawyered.com/2018/02/mulvaney-memo-cfpb/ https://www.overlawyered.com/2018/02/mulvaney-memo-cfpb/#comments Sun, 18 Feb 2018 16:59:09 +0000 https://www.overlawyered.com/?p=68980 Acting Director Mick Mulvaney’s memo on the future of the Consumer Financial Protection Board “encapsulates a humility and restraint and respect for rule of law that is often all too lacking in government.” [Ira Stoll, New York Sun] Tags: CFPB, regulation and its reform, rule of law

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    ]]>     Acting Director Mick Mulvaney’s memo on the future of the Consumer Financial Protection Board “encapsulates a humility and restraint and respect for rule of law that is often all too lacking in government.” [Ira Stoll, New York Sun]

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    ]]>     https://www.overlawyered.com/2018/02/mulvaney-memo-cfpb/feed/ 1     Banking and finance roundup https://www.overlawyered.com/2018/02/banking-finance-roundup-44/ Thu, 08 Feb 2018 11:07:35 +0000 https://www.overlawyered.com/?p=68249 D.C. Circuit’s en banc decision upholding constitutionality of CFPB disappointing but not surprising. On to SCOTUS [Ilya Shapiro, Aaron Nielson, Jonathan Adler] Big thinking under way at the SEC could replace securities class action sector with free contract: “The SEC should authorize mandatory arbitration of shareholder class action lawsuits” [Bainbridge, Benjamin Bain/Bloomberg News (noting that […]

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  • D.C. Circuit’s en banc decision upholding constitutionality of CFPB disappointing but not surprising. On to SCOTUS [Ilya Shapiro, Aaron Nielson, Jonathan Adler]
  • Big thinking under way at the SEC could replace securities class action sector with free contract: “The SEC should authorize mandatory arbitration of shareholder class action lawsuits” [Bainbridge, Benjamin Bain/Bloomberg News (noting that broker dealers have long been free to use arbitration clauses)]
  • Milberg Weiss founder Melvyn Weiss dies at 82 [ABA Journal, our coverage over the years of Weiss and his firm, @PaulHorwitz (“Give generously, and to the right people, so that your NYT obit can be a glowing apologia despite a few inconvenient facts.”)]
  • Here come the shareholder derivative suits over sleazy-boss #MeToo scandals [Kevin LaCroix] “NERA: 2017 Securities Suits Filed at ‘Record Pace'” [same]
  • Rogoff rebuttals: “More Evidence of the High Collateral Damage of a War on Cash” [Lawrence White, Cato, earlier] “Money as coined liberty” [David R. Henderson]
  • Quotas/targets for percentages of women, disabled and indigenous persons on Canadian corporate boards? [Terence Corcoran/Financial Post, more]
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