Passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act ushered in a new era for the financial services industry, including a renewed focus on investigations and enforcement by a host of federal and state government authorities. For example:
- The new Consumer Financial Protection Bureau (CFPB) is already gearing up to crack down on alleged abuses with credit cards and other consumer credit products, and is actively mining complaints made to the Federal Trade Commission (FTC) for new targets.
- The Department of Justice (DOJ) has renamed the old Office of Consumer Litigation to add "Protection" to its title, and tapped a veteran fraud prosecutor from the Eastern District of Pennsylvania to head it - an unprecedented action for the 40-year-old agency and a sure sign it is ramping up for increased investigations and enforcement.
- The DOJ also has beefed up the Civil Rights Division's fair lending unit, and is cooperating with the CFPB and FTC on fair lending matters.
- The DOJ is stepping up its examination of "payment processors," entities which process payments for third parties and which are often used to commit fraud and launder money. Financial institutions should be on the lookout for potential problems related to payment processors and be proactive in examining their relationships with these entities.
Add increased attention from individual U.S. attorney's offices, state attorneys general, and the Securities and Exchange Commission (newly armed with whistleblower protection guarantees by the Dodd-Frank Act), as well as by federal and state banking regulators, and the enforcement picture looks very busy indeed for the industry.
Join our panel of experienced former prosecutors and regulators as we take a closer look at what to expect in financial services enforcement. Our panel includes key members of Pepper's Financial Services Enforcement Response Team, a dedicated group of ex-government trial lawyers, investigators and regulators with extensive experience in the financial services industry.
Post-Event Document (.pdf)