The long-awaited  Tenth Circuit Court of Appeals decision in the case of Fourth Corner Credit Union v. Federal Reserve Bank of Kansas City was issued this week. In short: the would-be credit union, formed to serve participants in the state-legal marijuana sector, lives to fight another day—but minus its original purpose for existing.


Fourth Corner Credit Union was originally formed to solve an acute problem for marijuana-related businesses (MRBs) and individuals associated with MRBs: the inability to obtain mainstream banking services. Without access to bank or credit union accounts, MRBs remain chiefly cash-based businesses, left to their own devices to figure out how to store money and move it around, including how to pay employees and vendors, and to keep cash safe from theft.  Continue Reading Fourth Corner Credit Union Obtains Pyrrhic Victory for Marijuana Banking

As the clock ticks toward the July 22 comment deadline for the proposed Dodd-Frank incentive compensation rules, entities that may be covered by the rules continue to evaluate the potential effects on their operations and their compensation practices. The rules could significantly affect how financial institutions provide incentive-based compensation to their employees. As proposed, the rules would impose obligations such as lengthy clawback periods; deferral of compensation; limitations on “excessive” compensation; specific governance requirements; and long recordkeeping periods. Continue Reading Insurance Companies – Are You Covered? The Dodd-Frank Proposed Rules on Incentive-Based Compensation

Howard B. Iwrey, Michigan-based antitrust and trade regulation attorney with the law firm of Dykema Gossett PLLC, was quoted extensively in the Law360 article, “How Banks Can Build Strong Antitrust Compliance Programs,” which discusses various ways that banks can add new preventive measures against antitrust violations.

Banks and other financial institutions have been under a high level of scrutiny by the antitrust enforcement authorities for a number of years. Investigations and civil litigation have focused on, among other things, manipulation of the Libor and the foreign exchange markets. Continue Reading Howard Iwrey Quoted Extensively in Article on Antitrust Compliance for Banks

Federal regulators published guidance Monday regarding the application of customer identification program (CIP) requirements to holders of prepaid cards and other types of prepaid access. Although the guidance is meant to clarify longstanding CIP rules—issued in 2003 to implement USA PATRIOT Act amendments to the Bank Secrecy Act (BSA)—the guidance has the effect of setting new standards for banks that issue prepaid access. This includes prepaid cards that third-party program managers sell and distribute, as well as cards that are used to provide employee wages, healthcare, and government benefits. Continue Reading Federal Regulators Release BSA/AML Guidance for Prepaid Products