Banking and Finance Law Daily Wrap Up, WORTH NOTING—Other regulatory, legislative, litigation, and industry developments, (Nov 7, 2025)

By WK Editorial Staff

A weekly roundup of other items of interest to the banking and finance law community.

COMMUNITY DEVELOPMENT—United States Representatives Mike Lawler (R-N.Y.), Joyce Beatty (D-Ohio), and Young Kim (R-Calif.) announced that they are co-sponsoring a bipartisan bill to increase the amount banks can invest in local economic investment and public welfare projects. The “Community Investment and Prosperity Act” would allow the Comptroller of the Currency and the Federal Reserve Board to “increase the aggregate amount of investments that a national banking association and a state member bank may make to promote the public welfare.” For instance, the measure seeks to raise a cap on such banks’ investments from their capital and surplus under the Federal Reserve Act from 15% to 20%. The announcement noted that this type of investment bolsters affordable housing, small business lending, and community revitalization.

DEPOSIT INSURANCE—United States Senators Bill Hagerty (R-Tenn.) and Angela Alsobrooks (D-Md.) have introduced the “Main Street Depositor Protection Act,” which would amend the Federal Deposit Insurance Act to “provide deposit insurance for noninterest-bearing transaction accounts.” Also, in response to a Wall Street Journal article criticizing the bill, U.S. Treasury Secretary Scott Bessent joined Senator Hagerty in defending the proposed legislation to expand deposit insurance limits. The two not only argued that the Main Street Depositor Protection Act’s expansion of deposit insurance would correct competitive imbalances favoring large banks, they also pointed to bipartisan support from major banking and credit union groups for the bill.

LAW FIRM NEWS—Sullivan & Cromwell LLP announced that Adrienne A. Harris, who served as Superintendent of the New York State Department of Financial Services from August 2021 through October 2025, has re-joined the firm as Of Counsel and Policy Advisor in its New York office. As the longest-serving Superintendent in New York’s history, Harris played a significant role in shaping cryptocurrency development and regulation globally. Her extensive experience in public service is expected to enhance the firm’s Financial Services Group’s regulatory, advisory and enforcement practices. “I’m thrilled to return to S&C, where I began my career, and to collaborate once again with this exceptional team,” said Harris. Sullivan & Cromwell Co-Chairs Robert Giuffra and Scott Miller stated that they are “delighted to welcome Adrienne back to our firm as we continue to focus on providing the highest quality counsel to our financial services clients and expanding our work in global financial markets.”

OVERSIGHT AND INVESTIGATION—United States Senators John Cornyn (R-Texas) and Catherine Cortez Masto (D-Nev.) have co-sponsored a bipartisan bill that seeks to bolster transparency at the U.S. Department of Housing and Urban Development (HUD). More specifically, the “HUD Transparency Act” would mandate annual testimony from the Inspector General (IG) for HUD. Further, the measure would require the HUD IG to report to Congress about: current efforts to detect or prevent fraud, waste and abuse; the IG’s ability to conduct and supervise audits, investigations and reviews; efforts it has taken to identify areas for improvement among HUD programs; and recommendations on ways to improve overall efficiency and public accountability at HUD.

OVERSIGHT AND INVESTIGATION—United States Senator Elizabeth Warren (D-Mass.), ranking member of the Senate Banking Committee, issued a statement on November 3 underscoring the absence of an acting Inspector General (IG) for the Federal Housing Finance Agency. Among other things, Warren openly questioned FHFA Director William Pulte over the lack of a watchdog. Warren said, “What does Pulte have to hide as he continues to use his role to investigate President Trump’s perceived political enemies while failing to lower housing costs for the American people?” As of November 4, The FHFA’s “Meet the Inspector General” web page indicated that the IG position was “currently vacant.”

OVERSIGHT AND INVESTIGATION—Twenty-eight Democratic members of the U.S. House of Representatives are condemning President Donald Trump’s pardon of Changpeng Zhao, the founder and former CEO of cryptocurrency exchange Binance, in a November 6 letter to the U.S. Attorney General and Treasury Department. The pardon raised concern of potential conflicts of interest after Binance entered into an investment deal that agreed to use the White House-connected World Liberty Financial’s USD1 stablecoin. Zhao was convicted in 2023 of violating U.S. anti-money laundering laws, serving four months in prison following a $4 billion settlement with the Biden administration that required Binance to exit U.S. markets and submit to federal compliance monitors. Lawmakers urged officials to maintain those monitorships amid larger concerns of regulatory backsliding. The lawmakers have requested responses by November 20 from Attorney General Pam Bondi and Treasury Secretary Scott Bessent for various questions, including reports that Binance had been lobbying the two departments to end its compliance monitor requirements.

Attorneys: Robert Giuffra; Adrienne A. Harris; Scott Miller (Sullivan & Cromwell LLP).

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