Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) Explored in 2015
No, not FERRARI! The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) is a rarely used statute designed to protect federally insured financial institutions from mail, wire, and other fraud and from insider violations through civil action. Originally, the Act was designed to protect against savings and loans officials mis-using thrift funds. It established the Resolution Trust Corporation to close hundreds of insolvent thrifts and transferred regulatory authority to the Office of Thrift Supervision; thereby changing the savings and loan industry and its federal regulation. FIRREA, broader in scope than the False Claims Act, has wide application since it incorporates a variety of banking law and invokes huge, civil monetary penalties that can be ruinous to institutions.
The Knowledge Group has assembled a panel of key thought leaders to provide the audience with an over-view and in-depth analysis of the Financial Institutions Reform, Recovery and Enforcement Act. Speakers will discuss the latest developments regarding its enactment, enforcement, and potential effects on financial industries; among others.
Key topics include:
- Overview on Financial Institutions Reform, Recovery and Enforcement Act
- Scope and Limitations
- Federal Financial Institutions Examination Council (FFIEC) Role
- Implications of its Provisions: Why Now?
- Next: Student Loans?
- Recent Regulatory Developments and Enactment Issues
- Best Compliance and Enforcement Practices
- Possible Civil Monetary Penalties
Richard J. Zack, Partner
Pepper Hamilton LLP
- Background on FIRREA
- Time when it was not being used
- Recently revived by Justice Department in cases filed against banks
- Broad powers to investigate, including subpoenas and testimony
- Very broad application
- Any type of fraud involving a financial institution is implicated
- Operation Choke Point update
- Recent bank settlements
- Criticism of DOJ's use of FIRREA
Jennifer M. Wollenberg, Special Counsel
Fried, Frank, Harris, Shriver & Jacobson LLP
- FIRREA Scope and Limitations, including Key Comparisons to the Civil False Claims Act
- FIRREA Targets: Recent Bank Cases, Car Lending Subpoenas in 2014, and the Possibility that the Student Loan Industry will be Next
- FIRREA Penalties, including Discussion of Judge Rakoff’s Decision in U.S. ex rel. O'Donnell v. Bank of America Corp et al.
Alex P. McBride, Attorney
- FIRREA permits the Government to obtain large civil penalties for violations of predicate criminal statutes and lucrative governmental settlements.
- Under FIRREA, the Government is only required to prove its claims by a preponderance of the evidence standard, even though the claim is based on criminal law.
- FIRREA has a very long statute of limitations (10 years) and thus still covers crisis era activities for at least a few more years.
- FIRREA allows the Government to conduct pre-litigation discovery through administrative subpoenas, a tool not available to ordinary civil litigants.
- FIRREA suits may be brought against the same financial institutions that were also the alleged victims of the alleged misconduct.
Who Should Attend:
- BSA/AML Compliance Officers
- Lending/Loan Officers
- Mortgage Business Line Personnel
- Fraud Analysts
- Bank and Financial Institution Auditors
- Bank and Financial Institution Executives
- Fraud Monitoring
- Fund Managers
- Bank Regulation Lawyers
- Banking & Finance Lawyers
Richard J. Zack is a partner in the White Collar Litigation and Investigations of Pepper Hamilton LLP, resident in the Philadelphia office.
Mr. Zack represents businesses, educational institutions, nonprofits and individuals facing investigation by federal and state law enforcement authorities, and government regulatory agencies. Mr. Zack also represents businesses and individuals who have been victims of crimes. He has extensive experience in representing financial service firms before federal and state prosecutors and regulators and firms facing investigations of transactions involving foreign entities. He regularly provides advice regarding dealing with government sanctions against foreign countries and compliance with regulations of the Office of Foreign Asset Control, also known as OFAC, and the Financial Crimes Enforcement Network, or FinCEN.
Prior to joining Pepper, Mr. Zack was chief of commercial and consumer fraud and deputy chief of economic crimes for the U.S. Attorney’s Office for the Eastern District of Pennsylvania. There he supervised all consumer and commercial fraud cases, including mortgage, investment, securities and corporate fraud. Before that, Mr. Zack was deputy chief of the criminal division and an Assistant U.S. Attorney.
Richard J. Zack is a partner in the White Collar Litigation and Investigations of Pepper Hamilton LLP, resident in the …
Jennifer M. Wollenberg, special counsel at Fried Frank and a member of the Firm’s False Claims Act/Qui Tam and FIRREA practice group, represents corporations in a variety of complex civil litigation matters and, in particular, cases involving the financial, aerospace, and defense industries. Ms. Wollenberg currently is representing a financial institution in one of the largest active FIRREA litigations in the country. Ms. Wollenberg received her JD from Cornell Law School and is admitted to practice in the District of Columbia, New York, the United States Court of Appeals (Second, Ninth, and District of Columbia Circuits), the United States Court of Federal Claims, and the United States District Court for the District of Columbia.
Jennifer M. Wollenberg, special counsel at Fried Frank and a member of the Firm’s False Claims Act/Qui Tam and FIRREA practice …
Alex McBride's practice focuses on complex financial products litigation. In addition to commercial litigation in federal and state courts, Alex has in-depth experience in chapter 11 bankruptcy proceedings, SEC investigations, and congressional inquiries. He is well-versed in the rapidly evolving interplay between structured credit products, derivatives, and the state common law and federal securities law.
Alex authored "The Constitutionality of and Need for Mortgage Moratoria in the Context of Hurricane Katrina," 81 Tul. L. Rev. 1303 (2007), along with the case profiles for the online companion site to PBS's series "The Supreme Court."
Alex McBride's practice focuses on complex financial products litigation. In addition to commercial litigation in federal and state courts, Alex …
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Method of Presentation:
On-demand Webcast (CLE)
NASBA Field of Study:
NY Category of CLE Credit:
Areas of Professional Practice
2.0 CPE (Not eligible for QAS (On-demand) CPE credits)
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About Pepper Hamilton LLP
Pepper Hamilton LLP is a multi-practice law firm with more than 500 lawyers nationally. The firm provides corporate, litigation, intellectual property and regulatory legal services to leading businesses, governmental entities, nonprofit organizations and individuals throughout the nation and the world. While our practice is remarkably diverse, we operate as a unified firm, using our size, depth of talent and the latest technology to assist our clients.
Our firm has grown from a two-person law office formed in 1890 in Philadelphia to a sophisticated, large law firm with a national and international practice. While much about Pepper Hamilton is new and different from its beginnings, we retain traditional values passed down through the decades: respect for the rule of law, pride in an excellent work product and commitment to the client’s cause. Today, Pepper Hamilton is a diverse firm of men and women from a broad spectrum of backgrounds, united in these values.
About Fried, Frank, Harris, Shriver & Jacobson LLP
From offices located in the world's principal financial centers, Fried Frank, Harris, Shriver & Jacobson LLP’s lawyers provide advice to clients regarding their most critical legal and business needs. Fried Frank’s False Claims Act and FIRREA attorneys have extensive experience in every facet of the civil False Claims Act and FIRREA, and have been on the cutting edge of litigation and debate about the interpretation and scope of both statutes. The Firm regularly represents financial industry, defense, health care, and other government contractors in high stakes cases. The Firm’s False Claims Act and FIRREA practitioners also assist and represent entities not normally associated with federal and state fraud investigations, such as municipal airport authorities, computer manufacturers, private and state universities, academic medical centers, import and export companies, major accounting and consulting firms, magazine publishers, and oil and gas exploration companies.
About Jones Day
Jones Day is a global law firm with more than 40 offices in the major business centers throughout the world. They provide significant legal representation for approximately half of the Fortune 500, Fortune Global 500, and FT Global 500. Jones Day's financial institutions regulatory and litigation experience is unmatched, and their knowledge of consumer financial services regulation and litigation is cutting-edge. The “One Firm Worldwide” approach allows Jones Day to bring together the right team of lawyers to meet their clients’ business objectives and work seamlessly to bring the best of the Firm to every client engagement. Jones Day has ranked No. 1 eight times in the 12 years of the “BTI Client Service” survey, and among the “Fearsome Foursome” -- the law firms that clients would least like to see on the other side of the table -- for the third consecutive time.