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Powerful Allies in Tow, Small Kansas Bank Takes on FDIC

The powerful U.S. banking lobby has thrown its support behind a single-branch lender in rural Kansas in a lawsuit that could upend how federal regulators penalize financial institutions for breaching anti-money laundering requirements. On Jan. 21, the American Bankers Association, Bank Policy Institute and National Bankers Association jointly filed a 30-page amicus curiae in support of CBW Bank, located in the 600-person town of Weir, Kansas, in a lawsuit accusing the Federal Deposit Insurance Corp. of violating the lender's Seventh Amendment right to a jury trial. The FDIC imposed a $20 million civil monetary penalty on CBW on Nov. 19...

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