| Financial Services Enforcement |
WilmerHale's Financial Institutions Group has been active in defending financial institutions and individual officers and directors who are threatened with enforcement action by federal and state regulators. We also represent financial institutions in connection with regulatory examinations of retail lending and related operations, and in connection with responses to Congressional and Department of Justice inquiries. We have a broad range of experience, and a demonstrated track record of success, in obtaining the best possible outcomes for our clients in such matters.
We regularly appear before the Federal Reserve Board, the Comptroller of the Currency, Federal Deposit Insurance Corporation, Department of Justice, Federal Trade Commission (FTC) and the US Senate’s Permanent Subcommittee on Investigations. We have also represented clients in connection with high profile state Attorney General investigations.
Our enforcement actions have included representing:
- A national bank in responding to various requests by the PSI for documentation and witness interviews in connection with investigations of the bank’s customers for corruption, money laundering and tax evasion.
- A bank holding company and its two state-chartered bank subsidiaries that were placed under enforcement orders, including an order for prompt corrective action, issued by federal and state regulators.
- The board of directors of a national bank placed under an OCC consent order, compliance with which required the development and implementation of a strategic plan, capital plan, loan management program and the maintenance of higher minimum capital ratios.
- The board of directors of a state member bank, the principal shareholders of a bank holding company and the controlling shareholders of a national bank in separate cases threatened or brought by the Federal Reserve or the OCC, as applicable, involving allegations of breach of fiduciary duty.
- A former officer of a national bank involving allegations of unsafe and unsound practices.
- A subprime mortgage lender, a subprime finance company and a subprime mortgage servicer in various enforcement actions undertaken by the OCC and the FTC for violations of the FDI Act and FTC Act.
- Banks, bank holding companies, shareholders and outside directors in anti-money laundering cases involving the OCC, Federal Reserve Board and/or the Department of Justice.
- An action brought by the OCC against a law firm for allegedly causing a troubled national bank to engage in unsafe and sound practices and commit other violations.
- A financial institution responding to Home Mortgage Disclosure Act related inquiries by federal and state regulators.
- Numerous clients responding to HUD investigations of potential RESPA Section 8 referral fee violations.
Members of the Financial Institutions Group work closely with our Securities Group in enforcement actions brought against financial institutions concerning violations of the federal securities laws, securities disclosure issues (which may arise at the bank or thrift regulatory agencies as well as at the SEC), proper accounting and procedures for dealing with other real estate owned, allegations of fraud and self-dealing by insiders, and other areas where the securities laws are implicated. We have also advised banks facing SEC enforcement action on the collateral consequences of those proceedings including the impact on the institutions relationships with their primary federal banking agencies.
For further information on our Enforcement and Compliance Practice, please contact Russ Bruemmer at +1 202 663 6804 or Franca Harris Gutierrez at +1 202 663 6557.