Financial Services Blog

Showing 8 posts in Laws & Regulations.

New York’s DFS Narrows Proposed Cybersecurity Regulations

On September 13, 2016, the New York State Department of Financial Services (“NYDFS”) issued  proposed cybersecurity regulations (“Original Proposed Regulations”) that would impose new, stringent cybersecurity requirements on banks, money transmitters, insurance companies, and other financial service providers regulated by the NYDFS (collectively, “Regulated Institutions”). Read More ›

What Financial Institutions Need To Know About IRS Form 1042-S

IRS Form 1042-S is a tax form for foreign individuals reporting income from a United States based source.  Recent federal law requires that all United States financial institutions file a Form 1042-S for foreign customers earning interest on their United States accounts.  The filing of Form 1042-S by financial institutions is not discretionary, and the failure to tender the form when required may face a compliance penalty.  The purpose of the form is to report interest earned on the non-resident alien fiduciary or foreign corporation’s account with the financial institution.    Read More ›

New Savings Options Authorized for Retail Customers

Towards the end of 2014, two new national savings laws were signed by President Barack Obama.  The first is American Savings Act, H.R. 3374.  To encourage consumer savings, this Act permits financial institutions to offer prize-linked savings products.  Citing the need to improve the country’s saving rate by American households, and following the success the State of Michigan saw with its own similar program, the Act permits a saving promotion raffle to be offered by insured financial institutions, including federal savings and loan institutions.  A permitted savings promotion raffle is a contest in which the consideration for entry is obtained by the deposit of a specified amount of money into a savings account or other savings program offered by a financial institution. Read More ›

A Warning to Financial Institutions: Failure to Issue a Litigation Hold May Have Serious Consequences

As electronic discovery has become more prevalent and voluminous, national standards for the preservation of evidence have evolved dramatically in the past decade. Through a proliferation of electronic discovery orders involving discovery compliance, courts have addressed when the duty to preserve evidence arises, signifying a party’s duty to issue a “litigation hold.” Courts have not answered, however, whether a party can withhold documents generated before issuing a litigation hold on the basis of work product protection. Both the duty to preserve evidence and the work product doctrine require the “anticipation of litigation.” Thus, can a party anticipate litigation for purposes of asserting work product protection before it anticipates litigation for purposes of issuing a litigation hold? Read More ›

Location, Location, Location: Understanding How Contract Provisions Can Impact Where Litigation Takes Place and What Law Applies

            Edwina McDunnough decides to open a baby boutique in Nashville with the help of her husband, H.I.  A successful Arizona furniture tycoon, Nathan Huffhines, approaches Edwina about being the exclusive supplier of cribs for the store, resulting in a contract to that effect.  Edwina notices that the contract states “This contract shall be governed by the laws of the State of Tennessee” and draws some comfort that she will not have to litigate in Arizona if the relationship does not work.  A year later and after her business relationship with Huffhines sours, Edwina learns that she has been sued in Tempe, Arizona for breach of her agreement with Huffhines.  Edwina is confused because she believed that any dispute with Huffhines would be litigated in Tennessee under Tennessee law.  She is wrong.  Put another way, Edwina’s understanding of the contract was a rocky place where the contract language could find no purchase. Read More ›


The Consumer Financial Protection Bureau has replaced the Federal Trade Commission as the agency responsible for rulemaking and enforcement of the Fair Credit Reporting Act (“FCRA”).  Consequently, it has updated the FCRA Summary of Rights (as well as “the Notice to Users of Consumer Reports of their Obligations Under the FCRA” and “the Notice to Furnishers of Information of Their Obligations Under the FCRA”) to reflect this change.  Effective January 1, 2013, employers should replace their current FCRA Summary of Rights with the new version – a copy is attached. Read More ›

Apple v. Samsung Sanctions Highlight Importance of Understanding Litigation Holds

Like all litigants, financial institutions face important discovery duties in every significant lawsuit. The sanctions recently levied against Samsung in its patent infringement dispute with Apple serve as a potent reminder that understanding data and document preservation requirements is imperative.  Read More ›

Insured prevails in $6.8 million claim for data breach losses

An insurance company’s efforts to deny payment of a claim by DSW Shoe Warehouse under its computer fraud rider to a “Blanket Crime Policy” was thwarted by a recent decision by the U.S. Sixth Circuit Court of Appeals.  In Retail Ventures, Inc., DSW, Inc., and DSW Shoe Warehouse, Inc. v. National Union Fire Insurance Company of Pittsburgh , the Court affirmed the district court’s decision that the plaintiffs suffered a loss resulting directly from the theft of any insured property by computer fraud,  and it rejected the defendant’s assertion that the loss was excluded under an exclusion for confidential information.  The opinion provides a cautionary lesson for companies to review their blanket crime policies and fidelity bonds to determine whether they provide the coverage for losses they anticipate in the event of a data security breach. Read More ›

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Attorney Spotlight

Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.