Banking and Finance Law Daily Wrap Up, WORTH NOTING—Other regulatory, legislative, litigation, and industry developments, (Mar 27, 2026)

By WK Editorial Staff

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

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau requested reinstatement of an information collection titled Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking (Regulation V). The consumer disclosures included in Regulation V establish a method for a victim of trafficking to submit documentation to consumer reporting agencies, including information identifying any adverse item of information about the consumer that resulted from certain types of human trafficking, and prohibit the consumer reporting agencies from furnishing a consumer report containing the adverse item(s) of information. Comments on the proposed information collection are due by Apr. 30, 2026.

ENFORCEMENT ACTIONS—U.S.: The United States Supreme Court has denied a petition for a writ of certiorari by Nationwide Biweekly Administration, Inc., on two questions in connection with a recent Ninth Circuit decision that upheld a California federal district court’s August 2024 rulings and $7.93 million judgment in favor of the Consumer Financial Protection Bureau in a CFPB enforcement action (see Banking and Finance Law Daily, Nov. 21, 2025). Among other arguments, Nationwide contended the enforcement action was invalid because of the CFPB director’s “unconstitutional for-cause removal protections between 2015 and 2020” and the district court “applied the wrong standard” in addressing Nationwide’s counterclaims that a CFPB press release “violated its due process rights because it destroyed Nationwide’s relationships with banking partners” (CFPB v. Nationwide Biweekly Administration, Inc. (U.S., Dkt. No. 25-990, March 23, 2026)).

ENFORCEMENT ACTIONS—5th Cir.: The U.S. Court of Appeals for the Fifth Circuit has issued a per curiam opinion declining a request for an en banc review of a panel decision that 12 U.S.C. §1818(i)(1) deprived a district court of jurisdiction in a former bank CEO’s challenge to an enforcement action by the Federal Deposit Insurance Corporation. At the trial court level, the CEO had claimed that the FDIC’s administrative law judge constitutionally appointed (Burgess v. Whang, 22-11172 (5th Cir. Mar. 20, 2026)).

FAIR CREDIT —U.S.: The U.S. Supreme Court has denied a petition for a writ of certiorari filed by MOHELA, the Higher Education Loan Authority of the State of Missouri. MOHELA had challenged a Tenth Circuit holding that it was not an arm-of-the-state for Eleventh Amendment purposes (see Banking and Finance Law Daily, Mar. 19, 2025). MOHELA had urged the high court to take the case in light of the number and wide variety of different kinds of public entities which the states have intended to serve public purposes (The Higher Education Loan Authority of the State of Missouri v. Good, No. 24-992 (U.S. Mar. 18, 2025)).

FINANCIAL STABILITY—The Financial Stability Oversight Council convened in executive session on Mar. 25, 2026, where members received several presentations tied to the Council’s core financial stability mandate. Council staff presented the quarterly financial stability monitor, highlighting recent developments across the banking sector, financial markets, household finances, and financial innovation. The briefing also addressed geopolitical risks, trends in private credit growth, consumer credit conditions, and the financial stability implications of increased investment in artificial intelligence. Members additionally reviewed a presentation on proposed revisions to the Council’s interpretive guidance on nonbank financial company designations, culminating in a unanimous vote to publish the proposed guidance for public comment. Issues discussed during the Council’s Dec. 11, 2025, executive session provided the foundation for several of those presentations. At that meeting, members reviewed updates on priority workstreams focused on market resilience, household financial resilience, artificial intelligence, and the functioning of core capital markets. The executive session also featured an in-depth briefing on the Council’s interpretive guidance and analytic framework for identifying and assessing financial stability risks posed by nonbank financial companies. Council members discussed potential revisions to prior guidance, procedural considerations, and the overall approach for future evaluations before concluding the session.

OVERSIGHT AND INVESTIGATION—The Federal Deposit Insurance Corporation’s Office of Inspector General issued its latest report identifying eight top management and performance challenges facing the agency amid ongoing government-wide restructuring. The report says these challenges include optimizing the FDIC workforce, maintaining a safe and accountable workplace culture, strengthening governance, and sustaining readiness for bank resolutions and receiverships. It also highlights risks related to effective supervision, contract management, cybersecurity, and identifying and combating external fraud and misrepresentation. According to the OIG, the FDIC experienced significant workforce reductions in 2025, with staffing levels falling by roughly 20 percent as of early 2026, raising concerns about succession planning and the loss of institutional knowledge. The report notes that attrition has affected key divisions responsible for bank supervision, resolution, and receivership activities, even as financial sector risks continue to evolve. While the OIG acknowledged that organizational transformation may create efficiencies, it emphasized that staffing changes remain ongoing and their full impact is not yet known. The OIG said it will continue oversight and reassess the FDIC’s progress as the agency addresses these challenges.

Companies: Higher Education Loan Authority of the State of Missouri; Nationwide Biweekly Administration, Inc.

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