Richard Hong Discusses Stifel’s Decision to Reject CFTC Settlement in Law360
Partner Richard Hong was quoted in a Law360 article entitled “Stifel Balks at CFTC Offer to Settle Text Messaging Case.” The article discussed Stifel Financial Corp.’s decision to reject the U.S. Commodity Futures Trading Commission’s (CFTC) offer to settle claims related to off-channel communications use. The investment bank, which was also under scrutiny by the U.S. Securities and Exchange Commission, previously settled with the regulator for $35 million.
Richard, a former prosecutor and SEC trial lawyer, said Stifel likely rejected the CFTC's settlement offer over the size of the requested penalty, which may have been greater than the SEC's fine or greater than the amount already reserved. He explained that a looming election can sometimes weigh on settlement discussions when companies are facing enforcement. “Generally, the second Trump administration is going to be much more business friendly and less regulatory, so kicking it down the road to see what happens is probably not a bad idea from a defense standpoint,” Richard said.
Richard said that while he does not know the factors involved in Stifel’s decision to reject the CFTC settlement, given that off-channel communications cases have been controversial within the industry, he expects they will become a “relic of the past” in the next Trump administration.
Law360 subscribers may read the full article here.
Contacts
- Richard Hong Partner
- rhong@morrisoncohen.com
Related Practices
Our dynamic bench of business litigators defends corporations and individuals in complex, high-stakes matters in courts throughout the country.
Morrison Cohen handles a full range of securities matters, including complex, high-stakes securities litigations, in both federal and state trial and appellate courts, as well as before various arbitration and ADR forums, including FINRA and the AAA.
Our Technology, Data & IP Practice helps you design long-term strategies for the protection of your intellectual property assets, maximize your technology infrastructure and comply with the myriad privacy and data security laws facing business today. Where necessary, we also develop and implement cost-efficient litigation strategies to best protect and enhance your business, now and in the future.
Our White Collar and Regulatory Enforcement Practice represents corporate entities and individuals in investigations brought by a wide array of governmental agencies, as well as exchanges and self-regulatory organizations.
Related Sectors
Our multidisciplinary Financial Services & Fintech team approaches every matter as dealmakers, trusted advisors and problem solvers.
