On October 3, the second morning of its new term, the Supreme Court of the United States (SCOTUS) heard oral arguments in the case of Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. This case is
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Supreme Court Ruling on Bankruptcy Code May Have Far-Reaching Implications for Tribal Business Arrangements
On June 15, 2023, the Supreme Court held that the Bankruptcy Code unambiguously abrogates the sovereign immunity of federally recognized Indian tribes. Therefore, tribes may not raise sovereign immunity as a defense to multiple portions of the Bankruptcy Code. Many…
What Do the Coinbase and Binance Lawsuits Mean for the Future of Crypto?
With two of crypto’s largest trading platforms coming under fire last week, what’s next for the digital currency industry? Ashley Fickel and Brian Newman of Dykema’s Financial Services Industry Group weigh in.…
Distressed Business’ Alternatives to Bankruptcy: An Overview of Out-of-Court Workout Options
Distressed businesses that are facing severe financial difficulties often think that only bankruptcy, whether a Chapter 11 reorganization or Chapter 7 liquidation, can solve their problems. While bankruptcy is certainly an option, it may not be the only—or even the…
Are Yield Maintenance and Make-whole Provisions in Jeopardy? Recent Fifth Circuit Decision Casts Serious Doubt on Enforceability of Such Loan Provisions in the Context of Bankruptcy.
Bankruptcy provides an opportunity for a fresh financial start. In that spirit, creditors’ contractual rights are often impaired. But what happens in those rare circumstances when a debtor is deemed solvent? According to a recent decision from the United States…
Fifth Circuit Holds CFPB Funding Structure is Unconstitutional, Invalidates Payday Lending Rule
By Dykema
A three-judge panel of the United States Fifth Circuit Court of Appeals held that the CFPB’s funding structure is unconstitutional. The CFPB must now consider whether to appeal to the Supreme Court, seek en banc review (by all of the Fifth Circuit…
CFPB Director States That a New Rule Aimed at Consumer Arbitration Clauses Is Unlikely but Calls for Non-monetary “Structural” Penalties for “Repeat Offenders”
The Director of the Consumer Financial Protection Bureau (“CFPB”), Rohit Chopra, while attending an event organized by the Public Citizen (a group that opposes mandatory arbitration clauses in consumer agreements), indicated that the CFPB is unlikely to issue a new…
California Governor Newsom Signs Blockchain and Crypto Assets Executive Order: Familiar Agencies To Lead Efforts To Regulate New Technology
On May 4, 2022, California Governor Gavin Newsom signed an executive order aimed at creating a framework for both regulating and developing the quickly growing blockchain and cryptocurrency industry. The Order follows President Biden’s March 9, 2022, Executive Order on…
The California Supreme Court Rules that Lenders Have No General Tort Duty to Process, Review, and Respond to a Borrower’s Application for a Loan Modification
Yesterday, in Sheen v. Wells Fargo (S258019), the California Supreme Court resolved an important issue for the mortgage servicing industry. The court unanimously held that lenders owe no tort duty to process, review, and respond to a borrower’s loan modification…
Mining the Metaverse: Prospecting the Virtual Real Estate Boom and Implications For Lenders
If Mark Zuckerberg is to be believed, the Metaverse is the next step in our digital evolution, a virtual reality space where users can interact with a computer-generated environment and socialize among user-created avatars.
And it’s already here.
The Metaverse…