The Consumer Financial Protection Bureau (CFPB) has taken legal action against Capital One, N.A., and its parent company, Capital One Financial Corp. The lawsuit accuses the banking giant of misleading millions of customers about interest rates on its flagship “360 Savings” account—an alleged misrepresentation that may have cost savers more than $2 billion in unpaid interest.
The U.S. Department of Justice (DOJ) has filed a civil lawsuit against KKR & Co. Inc. and several of its affiliated investment advisors and funds for systematically violating the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), a crucial component of U.S. antitrust law. The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that KKR repeatedly circumvented the premerger review process by withholding and altering key documents and failing to file required premerger notifications for at least 16 transactions between 2021 and 2022.
You might think that some of Wall Street’s biggest names would have the basics covered, like keeping track of emails and messages they’re legally required to save. But as as the Securities and Exchange Commission (SEC) revealed recently, even financial heavyweights can fumble the fundamentals—at a collective cost of $63.1 million in penalties.
Robinhood, the company that once championed itself as the revolutionary force in making investing accessible to all, is now dealing with the fallout from a significant misstep. Today, the Securities and Exchange Commission (SEC) slapped the fintech giant with a $45 million fine, citing a series of failures to adhere to key securities laws. The fine isn’t just a financial penalty—it’s a clear signal to other broker-dealers and fintech firms: you can’t grow fast without properly managing risk and compliance.
In a significant settlement, Fidelity Brokerage Services LLC (Fidelity) has agreed to pay a $600,000 fine and accept a censure in response to regulatory violations uncovered by the Financial Industry Regulatory Authority (FINRA). This settlement comes after an eight-year lapse in the company’s ability to effectively supervise transactions and the safeguarding of sensitive financial data for international clients.
The French Financial Markets Authority (Autorité des Marchés Financiers, AMF) Enforcement Committee has levied fines totaling €10 million against EcoR1 Capital, a San Francisco-based investment fund, and its director, Oleg Nodelman, for price manipulation during the initial public offering (IPO) of French biotech firm Innate Pharma on the Nasdaq.
The Securities and Exchange Commission (SEC) recently announced that BMO Capital Markets Corp. would pay over $40 million to settle charges related to supervisory lapses. The case centers on misleading sales of mortgage-backed securities, leaving a trail of misinformed investors and a $3 billion problem.