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Action–reaction: US financial regulation meets ESG considerations
Journal of Financial Compliance,
6
(3),
267-280
(2023)
Abstract
In this paper recent legislative trends in the United States in response to environmental, social and governance (ESG) measures adopted by financial institutions are discussed. The paper explores new sources of potential compliance risk associated with states enacting and enforcing so-called anti-ESG laws, which are designed to protect firms such as fossil fuel companies and gun manufacturers from the expected detrimental impact of socially responsible banking and investment policies. It refers to existing anti-discrimination compliance paradigms to provide insights regarding how financial institutions may minimise the compliance risk associated with these anti-ESG measures.
Keywords: environment; social; governance; ESG; banks; anti-discrimination
The full article is available to subscribers to the journal.
Author's Biography
Jeffrey P. Naimon a partner at Buckley LLP, has more than 25 years of experience assisting bank and non-bank financial services providers (and investors in same) with regulatory, enforcement and transactional matters. He defends financial services companies facing complex examination or enforcement matters before the Consumer Financial Protection Bureau, Federal Trade Commission, and federal and state banking regulators, with a focus on fair lending, UDAAP, loan servicing, privacy and credit reporting, debt collection, service member protections and other consumer protection issues. He is a graduate of Yale University and the University of Virginia School of Law.
Caroline M. Stapleton a senior counsel at Buckley LLP, advises financial institutions in federal and state regulatory compliance, supervision and enforcement matters. She provides a variety of institutions, from FinTech start-ups to multinational banks, with tailored, practical guidance that considers each company's unique characteristics and strategic goals while providing a comprehensive picture of the legal risks and opportunities each new matter presents. Before joining Buckley, she was head of compliance and assistant general counsel at a Virginia-based financial technology company and an attorney in the litigation division of the Office of the Comptroller of the Currency. She is a graduate of Duke University and Duke University School of Law.
Benjamin M. Litchfield an associate at Buckley LLP, assists clients in a variety of matters, including regulatory examinations and compliance issues for banks and non-bank financial institutions, government enforcement actions, and internal investigations. Previously, he was counsel in the Office of Supervision Policy at the Consumer Financial Protection Bureau, where he provided legal advice to bureau examiners on the applicability of federal consumer financial laws related to credit card account management, mortgages, student loans and automobile loan originations and servicing. He also served as staff attorney in the Regulations and Legislation Division of the Office of General Counsel at the National Credit Union Administration, where he was responsible for drafting rules and regulations applicable to credit union corporate operations, mergers, structured finance and consumer protection. He is a graduate of the George Washington University and Howard University School of Law.
