Legal issues and news

U.S. District Judge Tanya Chutkan said the Environmental Protection Agency could not suspend the previously awarded funds. The case put Citigroup in the crossfire of a legal battle between climate groups and the Trump administration.

A federal judge in Texas found that the Consumer Financial Protection Bureau had violated the CARD Act by barring banks from charging late fees for credit cards.

A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit narrowed a lower court's injunction barring the termination of Consumer Financial Protection Bureau employees but maintained restrictions on mass firings.

Two recent executive orders could speed up the administration's push to rollback regulations, but they also change the notice-and-comment rulemaking process.

A former TD Bank employee pleaded guilty to a felony in connection with a check-fraud scheme; EWA provider DailyPay filed a lawsuit against New York Attorney General Letitia James; First Citizens BancShares ended the shared-loss agreement it made with the FDIC after acquiring Silicon Valley Bank; and more in this week's banking news roundup.

Regulators said the payment company did not provide sufficient customer identification and monitoring, increasing risk for its transfer app. This week's fine follows earlier penalties in other states and the federal government.

Victims of a pig butchering scheme recently sued Qbit, a Solid customer that allegedly laundered millions of dollars through Solid accounts.

A federal appeals court panel seemed open to accommodating the Trump administration by putting some conditions on a preliminary injunction that has blocked it from reductions in force at the Consumer Financial Protection Bureau.

Three U.S. agencies lack a "comprehensive, government-wide strategy," according to a report that echoes complaints banks have made for years.

In a speech at the American Bankers Association Washington Summit Wednesday morning, Treasury Secretary Scott Bessent downplayed economic risks from tariffs, floated capital reforms and urged regulatory relief for community banks.

The decision to stop enforcing the Corporate Transparency Act, which requires the disclosure of the beneficial ownership of businesses, could make the U.S. an attractive environment for fraudsters.

A joint advisory from the U.S. and allies warns that fast flux is enabling threat actors to hide malware and control compromised devices undetected.

The Department of Justice said in a court filing Friday that a February stop-work order from acting Consumer Financial Protection Bureau Director Russell Vought did not entail stopping statutorily mandated work by the bureau, defying earlier testimony.

The megaservicer is fending off a class-action lawsuit while suing its insurers for allegedly failing to indemnify it following its breach in 2023.

Individual victims of the data breach could get up to $3,000, but most will see around $20, possibly less. The breach also affected fintech partners.

The state's banking commissioner said the married founders of Valuex Research and Valuex Fintech used investor money for rent, plastic surgery and shopping instead of funding a promised investing tool.

A three-judge panel will hear an appeal by the Trump administration of a preliminary injunction that has blocked the government from dissolving the Consumer Financial Protection Bureau.

Time and again, seemingly successful bank mergers have been rocked by revelations of poor anti-money-laundering compliance. Assessing the AML risk of a potential merger partner is extremely tricky.