Internal memo on CFPB’s investigation into Wells Fargo fake accounts made public

From: HousingWire

House Financial Services Committee Republicans say CFPB rushed to settle case

Brena Swanson


The committee’s announcement stated, “The Memorandum shows that the CFPB estimated that the bank was potentially liable for a statutory monetary penalty exceeding $10 billion. This penalty could potentially be increased further, CFPB enforcement attorneys noted, if CFPB determined whether the fraudulent behavior was reckless or knowing, as opposed to negligent, or if the CFPB discovered additional fraudulent behavior not yet reported or violations of other statutes.”


The Recommendation Memorandum, found here, offers much more information on what Wells Fargo’s penalty should be and what Cordray was advised.

Trump Treasury’s Blueprint for Financial Regulation in the Banking World

From: New York Law Journal

George W. Madison, Michael E. Borden and Michael D. Lewis


In June, the Treasury Department issued a report, “A Financial System That Creates Economic Opportunities: Banks and Credit Unions,” that serves as the most detailed roadmap yet on how Congress and the federal financial regulators might revisit the post-financial crisis regulatory framework. It is a blueprint primarily for loosening regulation of the U.S. banking sector. The recommendations in the Treasury report represent a wide-ranging rethinking of the rules governing banks and credit unions. If the recommendations were implemented in full or in large part, they would meaningfully reduce costs and other burdens for many institutions. Critics say they would negatively impact the financial system.

China ban can’t solve legal puzzle of cryptocurrency sales

From: PaymentsSource


So far, regulators in most major markets haven’t taken actions as drastic as China, whose ban on ICOs spurred selloffs across bitcoin and ethereum. The U.S. said in July ICO issuers must adhere to federal securities law, while Singapore and Hong Kong have also said they will regulate such sales if the tokens constitute securities. The latter said in a statement on Tuesday that ICOs bear risks of fraud and money laundering.