Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
U.S. District Court Judge Refuses to 'Rubber-Stamp' CFTC Settlement Agreement
On Sept. 22, 2016, Judge William H. Pauley III of the United States District Court for the Southern District of New York denied the United States Commodity Futures Trading Commission's (CFTC) and Deutsche Bank AG's (Deutsche Bank) request for entry of a consent order to impose an injunction, appoint an independent monitor, and improve control mechanisms at Deutsche Bank in response to violations of the Commodity Exchange Act and CFTC regulations. See generally U.S. Commodity Futures Trading Commission v. Deutsche Bank AG, No. 16-06544 (S.D.N.Y). Judge Pauley's decision is the most recent example of increasing judicial oversight and scrutiny of settlement agreements between corporations and government prosecutors/regulators.
The consent order was drafted in response to a settlement concluded between the CFTC and Deutsche Bank in August 2016. Deutsche Bank had previously agreed, as part of a settlement reached in September 2015, to implement policies and procedures to prevent system outages as part of its business continuity and disaster recovery plan. However, a systems outage in April 2016 left Deutsche Bank unable to report swaps transactions for multiple asset classes for nearly a week. According to the CFTC, the April 2016 outage made market data unavailable to the public and inhibited its ability to assess the risks associated with market swaps, in addition to violating the previous settlement for which Deutsche Bank paid a $2.5 million civil penalty.
While the CFTC and Deutsche Bank pushed for approval of the consent order drafted in response to the April 2016 systems outage, Judge Pauley refused to approve it, absent precedent providing that said settlement would be “fair, reasonable, adequate and in the public interest.” See SEC. v. Citigroup Global Mkts., Inc., 752 F.3d 285, 294 (2d Cir. 2014). Judge Pauley continued, “While regulatory agencies such as the CFTC should be afforded deference, a district judge's 'duty extends beyond that of a 'rubber stamp.'” See Consumer Financial Protection Bureau v. Sprint Corp., No. 14-cv-9931 (WHP), 2015 WL 3395581, at *1 (S.D.N.Y. May 19, 2015). Noting that the CFTC's application for entry of the order was “bereft of any authorities,” Judge Pauley ordered the CFTC to file a memorandum explaining the reasons why the consent order was consistent with applicable law.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
As businesses across various industries increasingly adopt blockchain, it will become a critical source of discoverable electronically stored information. The potential benefits of blockchain for e-discovery and data preservation are substantial, making it an area of growing interest and importance.