To kick off the month of May, there has been no shortage of developments demanding our attention in the financial services and regulatory realms. At the same time, we see certain key themes and topics – such as ESG and crypto – appearing in new places and as part of evolving conversations. Our "Take Five" coverage includes the SEC’s recent move to bolster investor protection in crypto markets, the banking agencies coming back together to issue a CRA proposal, and the launch of the UK Transition Plan Taskforce, in support of climate transition plans.

For our “In Depth” article, we provide an update on Russia sanctions-related developments, including proposed legislative changes to streamline the forfeiture of sanctioned assets. 

What do you think about this week’s topics and Cabinet News and Views in general? We’d love to hear from you. Just write to us here.

Daniel Meade & Michael Sholem
Co-Editors, Cabinet News and Views

By Mercedes Kelley Tunstall

Partner | Financial Regulation

The Securities and Exchange Commission ("SEC") has renamed and expanded a unit within its Division of Enforcement to address protection of investors in crypto markets. The “Crypto Assets and Cyber Unit,” which also has responsibility for addressing cyber-related threats to investors, will now have 50 people working on these issues in Washington, D.C., as well as in several regional offices. 

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By Daniel Meade

Partner | Financial Regulation

On May 5, the Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve Board (“FRB”) and the Office of the Comptroller of the Currency (“OCC”) (together, the “Agencies”) issued a notice of proposed rulemaking to amend and update the rules implementing the Community Reinvestment Act (“CRA”). The comment period on the proposal will be open until August 5, 2022. The proposal states that it would make substantive changes in five key areas. 

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By Michael Sholem

Partner | Financial Services

On April 25, 2022, the UK Transition Plan Taskforce (the “Taskforce”) was formally launched by HM Treasury. The goal of the independent Taskforce is to develop a “gold standard” for climate transition plans. With a two-year mandate and active involvement from regulators (to draw on the Taskforce’s findings and strengthen disclosure rules), industry leaders and academia, the Taskforce will “help to drive decarbonisation by ensuring that financial institutions and companies prepare rigorous plans to achieve net zero and support efforts to tackle greenwashing.”

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By Mercedes Kelley Tunstall

Partner | Financial Regulation

The Consumer Financial Protection Bureau ("CFPB") announced in a press release issued in conjunction with the release of its latest Supervisory Highlights that it is concerned that financial institutions and other companies involved with auto financing might be incented to step up repossession of cars belonging to borrowers in default. While repossession is permissible, it is usually a last-ditch solution to a chronically behind borrower.  And, any time physical property is taken from a consumer, additional precautions must be taken. However, the CFPB has observed several situations in its examinations where companies jump to repossess vehicles, without paying close enough attention to their own records.  

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By Rachel Rodman

Partner | Consumer Financial Services Enforcement and Litigation

By Ellen V. Holloman

Partner | Global Litigation

By Victor Celis

Associate | Global Litigation

On April 29, 2022, the U.S. Court of Appeals for the Third Circuit granted a petition for permission to appeal in Consumer Financial Protection Bureau v. The National Collegiate Master Student Loan Trusts filed by defendants The National Collegiate Student Loan Trusts (the “Trusts”) and certain interveners in the action. The Third Circuit agreed to hear two certified questions from the district court in the appeal: (1) whether, under the Consumer Financial Protection Act (“CFPA”), the Trusts are “covered persons” subject to the CFPB enforcement authority; and (2) whether, after Collins v. Yellen, the CFPB was required to ratify the enforcement action before the three-year statute of limitations ran out.

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By Christian Larson

Associate | White Collar Defense and Investigations

Alongside the slew of new sanctions imposed in response to Russia’s invasion of Ukraine, the Biden administration also has been laying the groundwork to maximize the impact of those sanctions. Just days after Russian military action began, President Biden announced in his March 1 State of the Union Address an initiative to increase pressure on Russia’s political leadership by “go[ing] after the crimes” of its enablers – the so-called “oligarchs” who have amassed control over much of the country’s wealth. 

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