The director of the U.S. Consumer Financial Protection Bureau may be facing a challenge the constitutionality of his “recess appointment,” following a January 25 ruling by the D.C. Circuit Court of Appeals. In that case, the court held three of President Obama’s appointments to the NLRB were unconstitutional. The party challenging director Richard Cordray’s status would likely argue that the opinion applies to him as well, as he was appointed via the same process. For more, see Bloomberg.
The Justice Department has sued Anheuser-Busch InBev in Washington D.C. district court, attempting to block the company’s proposed $20.1 billion merger with Modelo. The head of the DOJ’s antitrust division, William J. Baer, said the deal would reduce competition in the American beer industry, as InBev would control 46 percent of the country’s annual sales. “Even small price increases could lead to significant harm,” Baer said. For more, see the NYTimes.
The Commodity Futures Trading Commission is drafting rules for “swaps,” under the directive of the Dodd-Frank financial markets overhaul. The stakes are high, as the complex instruments account for eight-ninths of the derivatives market—and Wall Street banks have been jockeying to frame the proposals as too burdensome for their respective industries. For more, see Reuters.
Capitol Hill may again take up a system of voluntary cybersecurity standards. According to a new Senate Commerce Committee report, there is strong support among Fortune 500 companies. U.S. Senator Jay Rockefeller (D., W.Va.) has spearheaded the effort, and his data suggests differing perspectives from industry leaders and the U.S. Chamber of Commerce. Sen. Rockefeller hopes to pass a bill this year. For more, see the Wall Street Journal.