Banking and Finance Law Daily Wrap Up, WORTH NOTING—Other regulatory, legislative, litigation, and industry developments, (Sep 16, 2026)

By WK Editorial Staff

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

LOANS—The Federal Reserve Board has released its most-recent periodic report under Section13(3) of the Federal Reserve Act, outlining the status of emergency lending facilities as of Aug. 31, 2026. Notably, the Paycheck Protection Program Liquidity Facility (PPPLF) shows $ 15,854,097 in outstanding advances fully secured by collateral, with interest and fees accruing to $ 470,755,667, and is expected to close without losses. Additionally, the Main Street Lending Program—spanning five facilities—recorded $0 in loans outstanding to the special purpose vehicle, backed by $ $894,465,358 in collateral, generating $ 3,665,710,521 in revenue. In addition, the Fed has released transaction-specific disclosures for the PPPLF.

OVERSIGHT AND INVESTIGATION—S.D.Ind.: In a Sept. 11 order, the U.S. District Court for the Southern District of Indiana adopted without objection a magistrate judge's recommendation personally sanctioning plaintiff’s attorney James Policchio $10,000 under Rule 11(b). A required citation audit identified 11 nonexistent and four inaccurate citations across five filings, including a filing submitted seven days after defendants first raised citation concerns. The court found that Policchio abandoned his reasonable-inquiry duty and that failing to verify a citation’s accuracy or existence was objectively unreasonable. Policchio did not identify generative AI use, but the court said he remained responsible regardless of the technology used, and noted that “it is difficult to see how Policchio's explanation accounts for the presence of nonexistent or inaccurate citations—often ‘hallmarks of AI hallucinations’—in his filings.” The matter was referred to the Indiana Attorney Disciplinary Commission, and Policchio must pay the sanction to the Clerk of Court within 30 days after service of the order (Virgil v. Experian Information Solutions Inc., et al, 1:25-cv-01641-MPB-MJD (S.D. Ind. Sep. 11, 2026)).

Attorneys: James Louis Policchio (Jl Policchio Law LLC) for Seth Cameron Virgil. Anne L. Cowgur (Paganelli Law Group) for Experian Information Solutions Inc.

Companies: Experian Information Solutions Inc.

IndustryNews: CrimesOffenses FederalReserveSystem FinancialStability Loans OversightInvestigations