New U.S. rule on class actions survives first challenge

[Eugene]

Source: Reuters

#BUSINESS NEWS
JULY 31, 2017 / 12:20 PM / 2 HOURS AGO

New U.S. rule on class actions survives first challenge

Lisa Lambert and Pete Schroeder

WASHINGTON (Reuters) - A new U.S. rule aimed at restoring consumers' ability to band together to sue financial companies has survived its first challenge, as a top banking regulator on Monday said he would not petition for it to be suspended.

The Consumer Financial Protection Bureau's rule abolishing "mandatory arbitration clauses" was released on July 10, and was immediately threatened by Republicans in Congress and President Donald Trump's administration.

Acting U.S. Comptroller of the Currency Keith Noreika publicly argued with CFPB Director Richard Cordray, appointed by former President Barack Obama, a Democrat, over whether the rule could endanger the banking system.

Many had expected Noreika to ask colleagues on the Financial Stability Oversight Council consisting of the country's chief financial regulators to stay the rule. But in Monday's statement he said he was unable to complete a thorough review of the rule in time to make a petition.

-snip-

Read more: http://www.reuters.com/article/us-usa-consumers-arbitration-idUSKBN1AG1ZJ

[sandensea]

1. Gene Scalia must be throwing ashtrays at people as we speak.

A life of whoring for Wall Street, and all for nothing.