Top Story Compliance Related

The OCC has issued a consent order for the assessment of a $15 million civil money penalty against U.S. Bank National Association for bankruptcy filing violations. The OCC found that, between 2009 and 2014, the bank engaged in filing practices in bankruptcy courts with respect to proofs of claim, payment change notices, and post-petition fees, among others, that did not comply with bankruptcy rules and constituted unsafe or unsound banking practices. In addition to the civil money penalty, U.S. Bank has made or will make about $29 million in remediation payments to approximately 22,000 account holders.

The Federal Emergency Management Agency continued a series of after-the-fact publications of community suspensions from the National Flood Insurance Program for noncompliance with the floodplain management requirements of the program. In today's Federal Register, FEMA announced April 19, 2017, suspensions of communities in Louisiana (portions of St. Mary Parish), and Minnesota (portions of Fillmore, Goodhue, Lake of the Woods, Olmsted and Roseau Counties). [82 FR 19190]

The CFPB has published [82 FR 19142] its proposal to make technical corrections and to clarify certain requirements in the Bureau's HMDA (Regulation C) final rule published on October 28, 2015. Comments on the proposal are due by May 25, 2017.

The Securities and Exchange Commission has filed a complaint against a vice president in the risk management department of a New York-based investment bank charging him with insider trading on confidential information he learned in advance of a private equity firm’s acquisition of a publicly-traded technology company. The SEC alleges that Avaneesh Krishnamoorthy learned that Golden Gate Capital planned to acquire Neustar Inc., and he then began trading in Neustar securities. The trading took place in two brokerage accounts that Krishnamoorthy allegedly kept hidden from his employer, which had been approached by Golden Gate Capital to finance the transaction. According to the SEC’s complaint, Krishnamoorthy made approximately $48,000 in illicit profits.

A federal court, at the request of the FTC, has ordered Timothy Ford, the president of Commercial Recovery Systems Inc. (CRS), to pay a $2 million civil penalty for violating the Fair Debt Collection Practices Act by falsely threatening debtors. The lawsuit filed in 2015 by the FTC alleged that CRS's collectors falsely claimed the company would sue debtors, garnish their wages, levy their bank accounts, or seize their property unless their debts were paid.

The FDIC has announced its advisory Committee on Economic Inclusion (ComE-IN) will meet on April 27 to discuss measures banks may consider to reach underserved populations, such as collaborations with community-based organizations, resources for affordable mortgage lending, and new research that may be used to more effectively target resources to promote broader access to bank branches in underserved neighborhoods. The meeting will be open to the general public from 9 a.m. to 4 p.m. in the FDIC's Board Room, 6th Floor, 550 17th Street, N.W., Washington, D.C. Meeting agenda

The OCC has issued a notice that it will host a public meeting of the Mutual Savings Association Advisory Committee (MSAAC) on May 9, 2017, beginning at 8:30 a.m. EDT at 400 7th Street SW, Washington, D.C.

The FDIC and the Federal Reserve have announced that Wells Fargo & Company has adequately remediated the deficiencies in its 2015 resolution plan. As a result, the firm will no longer be subject to growth restrictions imposed last year.

In one of the largest sanctions actions in its history, OFAC yesterday designated 271 employees of Syria's Scientific Studies and Research Center (SSRC), the Syrian government agency responsible for developing and producing non-conventional weapons and the means to deliver them. The action was taken in response to the April 4, 2017 sarin attack on innocent civilians in Khan Sheikhoun, Syria, by the regime of Syrian dictator Bashar al-Assad. This action was taken pursuant to E.O. 13582, which targets the Government of Syria and its supporters. As a result of this action, any property or interest in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked, and U.S. persons are generally prohibited from dealing with them. For further information, see our OFAC Update.

The Securities and Exchange Commission is extending the comment period for its request for comment seeking public input as to the disclosures called for by Industry Guide 3, Statistical Disclosure by Bank Holding Companies. The original comment period is scheduled to end on May 8, 2017. The Commission is extending the time period in which to provide the Commission with comments until July 7, 2017.