United News of Bangladesh

The Consumer Financial Protection Bureau is dropping its lawsuit against the company that runs the Zelle payment platform and three U.S. banks as federal agencies continue to pull back on previous enforcement actions now that President Donald Trump is back in office. In December a federal regulator sued JPMorgan Chase, Wells Fargo and Bank of America, claiming the banks failed to protect hundreds of thousands of consumers from rampant fraud on Zelle, in violation of consumer financial laws. In the federal civil complaint, the CFPB asserted that the banks rushed to get the peer-to-peer payments platform to market without effective safeguards against fraud and then, after consumers complained about being defrauded on the service, largely denied them relief. Early Warning Services, a fintech company based in Scottsdale, Arizona, that operates Zelle, was named as a defendant in the lawsuit. EWS is owned by seven U.S. banks, including JPMorgan, Wells Fargo and Bank of America. Those three banks are the largest financial institutions on the Zelle network, accounting for 73% of activity on Zelle in 2023. But a filing in the U.S. District Court for the District of Arizona on Tuesday indicated that the CFPB was dismissing its lawsuit against EWS, Bank of America, JPMorgan Chase and Wells Fargo with prejudice. The dismissal comes less than a week after the CFPB dropped several enforcement actions against companies like Capital One and Rocket Homes. China keeps its economic growth target at 'around 5%' despite a looming trade war In notices of voluntary dismissals that were filed, the CFPB dropped lawsuits it had brought against Capital One, Rocket Homes, Vanderbilt Mortgage and Finance, owned by Warren Buffett’s Berkshire Hathaway, and others. Those suits were all filed under the agency’s previous director, Rohit Chopra, who Trump fired just weeks ago. The CPFB has since plunged into turmoil — with the White House later ordering it to halt nearly all its work. The administration also closed the agency’s headquarters and moved to fire scores of its workers. Trump has defended his administration’s broadside against the CFPB — including recent claims about the agency being “set up to destroy people.” But supporters of the agency stress that it provides crucial oversight and protects consumers from being vulnerable to predatory business practices. The CPFB isn’t the only federal agency to signal a pullback on previous enforcement action under the new administration. The U.S. Securities and Exchange Commission has either closed or paused legal action against several cryptocurrency platforms in recent weeks, as the regulator tries to present itself as more crypto-friendly under Trump. Earlier this month, Binance and the SEC filed a joint motion to pause its high-profile lawsuit against the crypto exchange. And both Coinbase and Robinhood have said that cases against them have also been dismissed or closed, although the SEC declined to immediately comment further.

The government of the U.S. Virgin Islands is trying to subpoena billionaire Elon Musk for documents in its lawsuit seeking to hold JPMorgan Chase liable for sex trafficking acts committed by businessman Jeffrey Epstein. Musk has never been publicly accused of any wrongdoing related to Epstein, who killed himself in 2019 as he awaited sex trafficking charges in a federal jail in Manhattan. But over the years, there had been unconfirmed speculation — encouraged by Epstein himself — that Epstein had advised Musk on certain business matters. Also Read: Musk, new Twitter CEO Linda Yaccarino spar over content moderation during on-stage interview Spokespeople for Musk have denied those reports, but the government of the U.S. Virgin Islands said in a court filing that it believes Epstein may have referred or tried to refer Musk to JPMorgan as a potential client. The Virgin Islands, where Epstein had an estate, sued JPMorgan last year, saying its investigation has revealed that the financial services giant enabled Epstein’s recruiters to pay victims and was “indispensable to the operation and concealment of the Epstein trafficking enterprise.” Lawyers for JPMorgan did not immediately return messages seeking comment Monday. In the past, they have said victims are entitled to justice but litigation attempting to blame the financial institution for Epstein’s actions were legally meritless, directed at the wrong party and should be dismissed. Also Read: Elon Musk’s Tesla tweet trial delves into investor damages Authorities alleged that Epstein recruited and sexually abused dozens of underage girls at his mansions in New York and Palm Beach, Florida, in the early 2000s. He had pleaded not guilty. Lawyers for the Virgin Islands told a federal judge Monday that they haven't been able to locate Musk to serve him with the subpoena. They asked the court to serve Tesla, his electric vehicle company, instead. They said they hired an investigative firm to search public records databases for possible addresses for Musk and reached out to one of his lawyers by email, but received no response. A message sent to a lawyer for Musk seeking comment Monday was not immediately returned. The subpoena — one of several sent to prominent business figures — sought documents from Jan. 1, 2002, to the present reflecting communications between Musk and JPMorgan or Musk and Epstein regarding Epstein or Epstein’s role in Musk’s accounts, transactions or financial management. It also sought all documents reflecting or regarding Epstein’s involvement in human trafficking and his procurement of girls or women for commercial sex. And it sought information about fees Musk might have paid to Epstein or JPMorgan and any documents concerning communications between Musk, Epstein and JPMorgan regarding accounts, transactions or the relationship at JPMorgan.