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October 27, 2022

The major headline grabber in the past week has been the decision by a three-judge panel for the U.S. Court of Appeals for the Fifth Circuit to find that the Consumer Financial Protection Bureau’s funding structure is unconstitutional.

As my colleague Rachel Rodman, a former senior counsel and enforcement attorney for the CFPB, wrote in a Bloomberg Law article published on Tuesday, “This ruling threatens to undo many, if not all, of the bureau’s past actions, and may make it impossible to perform its responsibilities under the Consumer Financial Protection Act.” And I might add, the ruling's logic seems to implicitly question the off-budget funding of the Fed, FDIC and OCC as well. You'll want to read the article, written by Rachel and associates Keith Gerver and Ken Bergman, in this week's newsletter.

Not to be outdone, crypto is in the news again. This time, in an important speech at the Brookings Institution, FDIC Acting Chair Martin Gruenberg emphasized the importance of disclosure and consumer protection in his examination of stablecoin oversight. My colleague Mercedes Tunstall and I take a closer look down below.

This issue also includes reprints of several timely and relevant articles: a Clients & Friends Memo on ESG ratings and two news items from our new Cadwalader Climate newsletter that we thought would be of interest to the financial services industry.  

Any comments or questions? Just drop me a note here.

Daniel Meade 
Editor, Cabinet News and Views

Partner | Global Litigation
Associate | White Collar Defense and Investigations
Associate | Global Litigation

In Community Financial Services Association of America v. CFPB, a three-judge panel for the U.S. Court of Appeals for the Fifth Circuit became the first federal court to find that the Consumer Financial Protection Bureau’s funding structure is unconstitutional.

This ruling threatens to undo many, if not all, of the bureau’s past actions, and may make it impossible to perform its responsibilities under the Consumer Financial Protection Act. It also raises the possibility of future litigation against similarly funded agencies.

You can read our Bloomberg Law article here.

Partner | Financial Regulation
Partner | Financial Regulation

In a recent speech at the Brookings Institution, Martin Gruenberg, Acting Chair of the Federal Deposit Insurance Corporation, focused on three broad topics: (1) an overview of banking innovation and crypto assets, generally; (2) approach to prudential regulation of banks’ crypto-asset related activities; and (3) potential benefits, risks and policy questions related to stablecoins.

Read More »

Partner | Global Litigation

The UK’s Advertising Standards Authority has ruled that two UK retail banking advertisements, which made claims about the financial institution’s green credentials, were “misleading” and “omitted material information.”

Read More »

Special Counsel | White Collar Defense and Investigations

South Pole, a Swiss carbon finance consultancy, has published a report which suggests that one in four companies around the globe have decided not to publicize details of their climate targets.

Read More »

Partner | Global Litigation
Special Counsel | White Collar Defense and Investigations
Associate | Global Litigation
Associate | Global Litigation
Law Clerk | Global Litigation

Currently, ESG rating providers often greatly differ in both their methodology and approach. A variety of different sources of data, methodologies and formulae are utilized by providers when determining their ratings. This can lead to divergent rankings given to the same company by different ESG rating providers. Regulators in the U.S., UK, and EU recognize the issues caused by the current inconsistencies and are starting to develop rules in this area. Read our most recent Clients & Friends Memo here.

Maurine R. Bartlett
Senior Counsel
T. +1 212 504 6218
maurine.bartlett@cwt.com

Brian Foster
Partner
T. +1 212 504 6736
brian.foster@cwt.com

James Frazier
Partner
T. +1 212 504 6963
james.frazier@cwt.com

Mark Howe
Partner
T. +1 202 862 2236
mark.howe@cwt.com

Gregg Jubin
Partner
T. +1 202 862 2485
gregg.jubin@cwt.com

Philip S. Khinda
Partner
T. +1 202 862 2262
philip.khinda@cwt.com

Ivan Loncar
Partner
T. +1 212 504 6339
ivan.loncar@cwt.com

Peter Y. Malyshev
Partner
T. +1 202 862 2474
peter.malyshev@cwt.com

Daniel Meade
Partner
T. +1 202 862 2294
daniel.meade@cwt.com

Jed Miller
Partner
T. +1 212 504 6821
jed.miller@cwt.com

Michael Newell
Partner
T. +44 0 20 7170 8540
michael.newell@cwt.com

Rachel Rodman
Partner
T. +1 202 862 2210
rachel.rodman@cwt.com

Richard M. Schetman
Senior Counsel
T. +1 212 504 6906
richard.schetman@cwt.com

Lary Stromfeld
Partner
T. +1 212 504 6291
lary.stromfeld@cwt.com

Jonathan M. Wainwright
Senior Counsel
T. +1 212 504 6122
jonathan.wainwright@cwt.com

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