The CFPB launched an inquiry into how it should study
arbitration clauses and agreements between financial service
companies and consumers. Section 1028(a) of the Dodd Frank
Act requires the CFPB to conduct a study of arbitration agreements
and clauses and provide a report to Congress. For purposes of
conducting the study, the CFPB issued a public request for
information, seeking comment in three areas: (1) prevalence of use
of arbitration clauses and agreements; (2) use and impact in
arbitration proceedings; and (3) impact and use of outside
arbitration proceedings. Comments are due June 23, 2012.
Click here for the related press release and
here for the information request.
Goodwin Procter LLP is one of the nation's leading law
firms, with a team of 700 attorneys and offices in Boston, Los
Angeles, New York, San Diego, San Francisco and Washington, D.C.
The firm combines in-depth legal knowledge with practical business
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problems. We provide litigation, corporate law and real estate
services to clients ranging from start-up companies to Fortune 500
multinationals, with a focus on matters involving private equity,
technology companies, real estate capital markets, financial
services, intellectual property and products liability.
On November 13, 2013, the Division of Corporation Finance of the Securities and Exchange Commission issued new Compliance and Disclosure Interpretations providing guidance regarding new rules allowing for general solicitation in private offerings.
On November 14, the Division of Swap Dealer and Intermediary Oversight of the Commodity Futures Trading Commission created confusion and consternation in the derivatives world by issuing an advisory indicating that certain requirements will apply to swaps entered into between a registered non-U.S. swap dealer and a non-U.S. person if the swap is handled by personnel or agents of the non-U.S. swap dealer located in the United States.
On September 30, 2013, the US Securities and Exchange Commission Division of Trading and Markets issued Frequently Asked Questions in an effort to provide guidance regarding potential supervisory liability of broker-dealer compliance and legal personnel under Sections 15(b)(4) and 15(b)(6) of the Securities Exchange Act of 1934, as amended.
On November 12, the liquidators for two Bear Stearns overseas hedge funds filed their complaint against McGraw Hill, Standard & Poor’s, Moody’s, and Fitch in an action in New York Supreme Court alleging that fraudulent ratings led to over $1 billion in losses for the funds’ investors.
Last week the Second Circuit held that: (1) a creditor can face liability under the Fair Debt Collection Practices Act (FDCPA) when a third party it hires to contact debtors does not make bona fide attempts to collect the debt but rather acts as a mere conduit between the creditor and debtor; and (2) the assignee of a debt is not a "creditor" for purposes of the Truth in Lending Act (TILA).
Recently, the Delaware Court of Chancery in Pfeiffer v. Leedle declined to dismiss a shareholder derivative action against a board for breach of fiduciary duty, where the directors allegedly approved stock options exceeding the maximum number of options permissible under the corporation’s stock incentive plan. C.A. No. 7831-VCP (Del. Ch. Nov. 8, 2013).