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NRA Lawsuit Could Limit Regulatory Emphasis on ‘Reputational Risk’

A lawsuit pitting the National Rifle Association against New York's powerful banking supervisor could compel state and federal regulators alike to refrain from advising banks to reevaluate their ties with socially or politically controversial clients, analysts told ACAMS moneylaundering.com. In a preliminary finding, the U.S. Supreme Court unanimously confirmed that Maria Vullo, former head of New York's Department of Financial Services, or DFS, "plausibly" violated the First Amendment by allegedly using her erstwhile position to "punish or suppress" the NRA's pro-gun advocacy, paving the way for the group's 53-page complaint against her to proceed. By permitting the lawsuit to continue,...

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