Sector developments and company hires

Amended complaint filed

The state of Colorado has filed a Second Amended Complaint relating to state court actions against Avant and Marlette, alleging that the platforms have violated its Uniform Consumer Credit Code (SCI 12 May 2017). According to a Chapman and Cutler client memo, in addition to making the same claims against the platforms, the state is suing trustees for the trusts into which Colorado loans made through the platforms had been securitised and the SPEs used to transfer the loans into the securitisation trusts. While the state recognises in its filing that “banks may, pursuant to federal law, lawfully lend in Colorado and other states at rates that exceed the interest and other finance charge limits imposed by state law”, it claims that non-banks cannot enforce a bank’s federal interest rate exportation rights when they purchase loans from banks “because banks cannot validly assign such rights to non-banks” under the Madden vs Midland Funding case.

Clearing platform planned

Societe Generale is opening a clearing capability in Paris at the end of the year, which will service clients on listed derivatives and OTC products and it is further boosting prime services sales teams in continental Europe.

FDIC initiative announced

The FDIC last week announced multiple initiatives and resources related to the deposit insurance application process for organisers of new banks and to promote a more streamlined process for all applications submitted to the agency. One such initiative is the option to request feedback on a draft deposit insurance proposal before filing a formal application, thereby providing an early opportunity for both the FDIC and organisers to identify potential challenges with respect to statutory criteria and areas that may require further detail or support. The agency also wants to streamline its application process and is seeking comments on how that can be achieved. The move has been welcomed as the final step towards enabling fintechs to compete with traditional banks.

ILS head appointed

Aon has promoted Anup Seth to the new role of global leader of underwriting solutions. In addition to his current role as md of Bermuda operations, Seth will lead the newly created underwriting solutions line that includes global commercial re/insurance, White Rock and ILS management businesses.

Sears CDS development

Following the latest discussions in relation to the Sears CDS saga among the external review administrative meeting, the determinations committee (DC) has agreed to extend the deadline to hold the oral argument until 19 December, 2018 and to extend the external review decision deadline until 21 December. The DC will reconvene following publication of the external review decision to finalise the auction date but it is not expected to be held before 7 January 2019.