June 2024 - cypherpunks - lists.cpunks.org

White House Threatens Veto Over Policy Riders In VA Bill
by Gunnar Larson 05 Jun '24

05 Jun '24

White House Threatens Veto Over Policy Riders In VA Bill <https://www.law360.com/governmentcontracts/articles/1844102?nl_pk=4126fe73-…> By Daniel Wilson The White House has threatened to veto a $147.5 billion bill funding military construction and the U.S. Department of Veterans Affairs, citing partisan policy proposals it said would harm minority groups and risk patient safety at VA medical facilities. 2 documents attached | Read full article » <https://www.law360.com/governmentcontracts/articles/1844102?nl_pk=4126fe73-…> | Save to favorites » <https://www.law360.com/governmentcontracts/articles/1844102?nl_pk=4126fe73-…>

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Microsoft Failing To Protect Students' Data, EU Watchdog Told
by Gunnar Larson 05 Jun '24

05 Jun '24

Microsoft Failing To Protect Students' Data, EU Watchdog Told <https://www.law360.com/compliance/articles/1844116?nl_pk=ab5ce197-c1fb-4d8e…> By Allison Grande A prominent Austrian advocacy group is urging the country's data protection authority to take a closer look at how Microsoft is protecting children's personal information, arguing the tech giant is unfairly trying to "shift" its responsibility under European Union privacy law to the schools that use its educational software and is secretly tracking minors' online activities. 2 documents attached | Read full article » <https://www.law360.com/compliance/articles/1844116?nl_pk=ab5ce197-c1fb-4d8e…> | Save to favorites » <https://www.law360.com/compliance/articles/1844116?nl_pk=ab5ce197-c1fb-4d8e…>

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Airbus' Satcom Unit Fined $44K For Anti-Boycott Violations
by Gunnar Larson 05 Jun '24

05 Jun '24

Airbus' Satcom Unit Fined $44K For Anti-Boycott Violations <https://www.law360.com/compliance/articles/1844040?nl_pk=ab5ce197-c1fb-4d8e…> By Jennifer Doherty The U.S. Department of Commerce announced a penalty of $44,750 against Airbus DS Government Solutions Inc. on Tuesday after the company self-reported three violations of federal regulations prohibiting U.S. companies from supporting boycotts against Israel. Settlement attached | Read full article » <https://www.law360.com/compliance/articles/1844040?nl_pk=ab5ce197-c1fb-4d8e…> | Save to favorites » <https://www.law360.com/compliance/articles/1844040?nl_pk=ab5ce197-c1fb-4d8e…>

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CFPB Seeks Traffic Cop For Parallel Small-Biz Data Rule Suits
by Gunnar Larson 05 Jun '24

05 Jun '24

CFPB Seeks Traffic Cop For Parallel Small-Biz Data Rule Suits <https://www.law360.com/compliance/articles/1844242?nl_pk=ab5ce197-c1fb-4d8e…> By Jon Hill The Consumer Financial Protection Bureau on Tuesday asked a Kentucky federal judge to stay an industry lawsuit challenging the agency's small-business lender reporting requirements, saying a largely identical challenge filed earlier in Texas should take precedence. Motion attached | Read full article » <https://www.law360.com/compliance/articles/1844242?nl_pk=ab5ce197-c1fb-4d8e…> | Save to favorites » <https://www.law360.com/compliance/articles/1844242?nl_pk=ab5ce197-c1fb-4d8e…>

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Research Co. Pays Record $35M Fine In Dog Abuse Case
by Gunnar Larson 05 Jun '24

05 Jun '24

Research Co. Pays Record $35M Fine In Dog Abuse Case <https://www.law360.com/compliance/articles/1843616?nl_pk=ab5ce197-c1fb-4d8e…> By Elliot Weld A clinical research company has agreed to pay a record $35 million fine for violations of the Animal Welfare Act as part of a deal to resolve criminal charges stemming from the abuse of beagles that it bred for medical research. 1 document attached | Read full article » <https://www.law360.com/compliance/articles/1843616?nl_pk=ab5ce197-c1fb-4d8e…> | Save to favorites » <https://www.law360.com/compliance/articles/1843616?nl_pk=ab5ce197-c1fb-4d8e…>

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JPMorgan Accused Of Retaliating Against Indian H-1B Worker
by Gunnar Larson 05 Jun '24

05 Jun '24

JPMorgan Accused Of Retaliating Against Indian H-1B Worker <https://www.law360.com/technology/articles/1844243?nl_pk=2bd720dd-746c-4744…> By Rae Ann Varona JPMorgan Chase & Co. is facing a new lawsuit accusing it of firing an Indian product manager on an H-1B visa after the former employee confronted his supervisor for allegedly discriminating against him based on his race and nationality. Complaint attached | Read full article » <https://www.law360.com/technology/articles/1844243?nl_pk=2bd720dd-746c-4744…> | Save to favorites » <https://www.law360.com/technology/articles/1844243?nl_pk=2bd720dd-746c-4744…>

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7th Circ. Lambasts Lawyer's 'Twilight Zone' Font
by Gunnar Larson 05 Jun '24

05 Jun '24

7th Circ. Lambasts Lawyer's 'Twilight Zone' Font <https://www.law360.com/technology/articles/1843812?nl_pk=2bd720dd-746c-4744…> By Lauraann Wood A Seventh Circuit panel criticized an attorney's use of the typeface used in the "Twilight Zone" logo, urging lawyers to use more conventional fonts recommended in the court's handbook that won't "wear out judicial eyes," though the attorney told Law360 he's unlikely to change. Opinion attached | Read full article » <https://www.law360.com/technology/articles/1843812?nl_pk=2bd720dd-746c-4744…> | Save to favorites » <https://www.law360.com/technology/articles/1843812?nl_pk=2bd720dd-746c-4744…>

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Judiciary Panel Clears 1st MDL Rule, Eyes 'Mouthpiece' Amici
by Gunnar Larson 05 Jun '24

05 Jun '24

Judiciary Panel Clears 1st MDL Rule, Eyes 'Mouthpiece' Amici <https://www.law360.com/technology/articles/1844246?nl_pk=2bd720dd-746c-4744…> By Jeff Overley Top rulemaking gatekeepers for the federal judiciary Tuesday capped off seven years of strife in the defense and plaintiffs bars by backing a milestone measure aimed at optimizing multidistrict litigation, and then promptly greenlighted an entirely different war of words over new efforts to ferret out amicus briefs from "paid mouthpieces" masquerading as independent experts. 2 documents attached | Read full article » <https://www.law360.com/technology/articles/1844246?nl_pk=2bd720dd-746c-4744…> | Save to favorites » <https://www.law360.com/technology/articles/1844246?nl_pk=2bd720dd-746c-4744…>

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FTX Seeks Ch. 11 Stay On Competing Asset Claims
by Gunnar Larson 05 Jun '24

05 Jun '24

FTX Seeks Ch. 11 Stay On Competing Asset Claims <https://www.law360.com/fintech/articles/1844055?nl_pk=d2b3e7ef-ab62-4a62-80…> By Emlyn Cameron Defunct cryptocurrency exchange FTX has urged a Delaware bankruptcy judge to put the brakes on multidistrict litigation targeting former company insiders, arguing that those claims rightfully belong to the bankruptcy estate and that any property recovered should instead go to creditors. Complaint attached | Read full article » <https://www.law360.com/fintech/articles/1844055?nl_pk=d2b3e7ef-ab62-4a62-80…> | Save to favorites » <https://www.law360.com/fintech/articles/1844055?nl_pk=d2b3e7ef-ab62-4a62-80…>

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A Former Exec at Citibank Raises Alarm Bells in Federal Court Over Failed Risk Controls Inside the Bank
by Gunnar Larson 05 Jun '24

05 Jun '24

https://wallstreetonparade.com/2024/06/a-former-exec-at-citibank-raises-ala… By Pam Martens and Russ Martens: June 5, 2024 ~ Jane Fraser, Citigroup CEO Jane Fraser, Citigroup CEO Kathleen Martin, a former Managing Director at Citigroup’s federally-insured bank, Citibank N.A., has sued the bank and her former boss, Anand Selva, in federal court in Manhattan. According to Martin’s lawsuit, she was hired for the express purpose of making sure that Citibank complied with a Consent Order from a federal banking regulator. Instead, Martin alleges, she was fired in retaliation for refusing to file false information with that regulator. The first thing you need to know about Citigroup/Citibank is that it is a recidivist megabank – serially charged for wrongdoing by its regulators while also being perpetually bailed out by the Fed. This particular saga of sticking its finger in the eye of its regulator began on October 7, 2020 when the federal regulator of national banks, the Office of the Comptroller of the Currency (OCC), slapped a $400 million fine on the bank. The accompanying Consent Order stated that the OCC had “identified unsafe or unsound practices with respect to the Bank’s internal controls, including, among other things, an absence of clearly defined roles and responsibilities and noncompliance with multiple laws and regulations.” In a sign of just how alarmed the OCC was with the conditions it found at Citibank, the Consent Order indicated that if the OCC did not determine that the bank was making “sufficient and sustainable progress towards achieving compliance with this Order,” the OCC was reserving the right to fire any or all members of the Citi Board of Directors as well as “senior executive officers.” And just exactly what were these alarming conditions the OCC found at Citibank? As is typical of bank regulators, the OCC did not spell out with any granularity what it had found at the bank, but the word “capital” does appear multiple times in the Consent Order. For example, the OCC writes: “The Bank shall improve the Bank’s capital planning processes that shall, at a minimum, ensure: (a) the development of and adherence to effective governance over capital planning and calculations; (b) that capital and risk-weighted assets are appropriately identified and reported; and (c) that periodic assessments of the Bank’s capital calculations and management and regulatory reporting ensure the capital calculations adequately take into account the Bank’s size, complexity, and overall risk profile.” For an idea of what might have been raising alarm bells at the OCC in regard to capital at Citigroup’s Citibank, see our report: Citigroup Has Been Paying Out More than It Earned for Years; Now It Has $102.5 Billion in Debt Maturing within Three Years. (Retaining earnings adds to capital at banks; using those earnings to buy back stock in order to prop up the share price can erode the capital base of a bank.) The OCC’s Consent Order also used the word “liquidity” multiple times. Things do not seem to be moving in the right direction there either. See: Citigroup’s Citibank Took the Largest Amount of Loans from the FHLB of NY in 2022, Reminiscent of FHLB Loans Taken by Silvergate, SVB, Signature, and First Republic Bank; and After Getting the Largest Bailout in U.S. History in 2008, 85.5 Percent of the $1.34 Trillion in Deposits at Citigroup’s Citibank Lack FDIC Insurance Today. If the Kathleen Martin lawsuit has a familiar ring to it, that’s because something quite similar happened in the same courthouse in 2021. A former compliance attorney at JPMorgan Chase, Shaquala Williams, alleged in a lawsuit that she was fired in retaliation for reporting wrongdoing at the bank. That case was also related to alleged attempts to make regulators think the bank was complying with regulatory orders when it was all a sham. Williams charged in her lawsuit that JPMorgan Chase was keeping two sets of books and effectively making a monkey out of the U.S. Department of Justice by brazenly flouting the non-prosecution agreement it had signed with the Justice Department in a previous case. In 2016 the Justice Department had charged that JPMorgan’s Asia subsidiary engaged in quid pro quo agreements with Chinese officials to obtain investment-banking business and had falsified internal documents to cover up the activities. The quid pro quo agreements involved the bank putting the children of high-ranking Chinese government officials on its payroll in order to enhance its business interests in China. In exchange for avoiding prosecution by receiving a non-prosecution agreement, the Justice Department required the bank to put in place compliance controls around third-party payments. Williams alleges, among other serious charges, that the so-called third-party payment controls were a sham and that when she blew the whistle to her superiors at the bank, JPMorgan Chase retaliated against her by firing her in October 2019. It came out in Williams’ deposition testimony, which is part of the court record, that one of the people being paid under her allegation of the bank keeping two sets of books was Tony Blair, the former Prime Minister of the U.K. (See our report: JPMorgan Whistleblower Names Former U.K. Prime Minister Tony Blair in Court Documents as Receiving “Emergency” Payments from Bank.) The Williams case was quietly settled 10 days before the trial was set to begin. The Judge presiding over the case was Jed Rakoff – the same Judge who presided over multiple cases last year involving JPMorgan Chase’s financial involvement with sex trafficker Jeffrey Epstein. (See our report: Judge Jed Rakoff Has Regularly Dined in the Past with the Chairman of the Law Firm that Just Got a Big Win in His Court in the JPMorgan Sex Trafficking Case.)

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