House Financial Services Subcommittee Hearing on Discrimination Against LGBTQ+ in Lending and Housing

The House Financial Services Subcommittee on Oversight and Investigations held a hearing this week on the extent and effects of discrimination against persons who identify as lesbian, gay, bisexual, transgender, or queer (LGBTQ+) when seeking housing or credit in the United States. A recording of the hearing has been made available online.

Testimony by Alphonso David, President of the Human Rights Campaign, Harper Jean Tobin, Director of Policy for the National Center for Transgender Equality, and others painted a bleak picture of the economic insecurity confronting LGBTQ+ communities. Their testimony attested to the correlation of lower household incomes to lower utilization of basic banking products, such as checking and savings accounts, LGBTQ+ communities face economic insecurity to a greater degree than their non-LGBTQ+ peers. Witnesses testified that factors contributing to this economic insecurity include lack of universal protection against housing discrimination, lack of equal access to benefits for same-sex partners, and lack of family support.


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Federal Judge Rules the OCC Lacks Authority to Issue Fintech Bank Charters

U.S. District Judge Victor Marrero approved a final judgment in favor of the New York Department of Financial Services (NYDFS) that sets aside the Office of the Comptroller of the Currency’s (OCC) special-purpose chartering regulation for certain non-depository fintech applicants seeking a limited-service national bank charter (the Fintech Charter).

The OCC has claimed authority to issue Fintech Charters through (i) its leeway to interpret the term “business of banking” under the National Bank Act; (ii) its authority to issue limited purpose national charters under 5 C.F.R. § 5.20(e)(1)(i); and (iii) its authority to interpret the term “business of banking” in such a way that it can grant a special-purpose banking charter to a company that is engaged in any one of the three core banking functions: receiving deposits, paying checks, or lending money. Given its interpretation of its authority, the OCC did not go through the Administrative Procedure Act (APA) rulemaking process when initiating the Fintech Charter process.


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The International Swaps and Derivatives Association (ISDA) has published the first in a series of guidelines for what it colloquially refers to as “smart derivatives contracts” (the Guidelines).* A smart derivatives contract is a derivative that incorporates software code to automate aspects of the derivative transaction and operates on a distributed ledger, such as a

What 2017 Has in Store for Fintech
Pitchbook Report

Fintech saw a much more interesting 2016 after a 2015 when the subsector looked ripe for ascendency. Tumult in the high-yield credit market rocked the calculus of alternative finance, and digital currencies faced both scandal and huge rallies. Huge name brands both entered, exited and doubled