The Longer Arm of the Law in New York

Matthew J. Gaul, Douglas Kantor, and Philip S. Khinda
Securities Docket
October 28, 2011

On October 28, 2011, Securities Docket published a column by Matt Gaul, Doug Kantor, and Phil Khinda titled "The Longer Arm of the Law in New York."  The article discusses the Department of Financial Services (a consolidation of the state’s insurance and banking departments) and the creation of a powerful new Financial Frauds and Consumer Protection Division.  The creation of that new unit and the appointment of New York Governor Andrew Cuomo Chief of Staff and former federal prosecutor Ben Lawsky to run the combined agency are clear indications of increased efforts to regulate the financial services industry beyond a traditional range of jurisdiction.

The new attorney general in New York, Eric Schneiderman, is also monitoring that industry and, as he and Lawsky independently make waves as they investigate a broader range of financial matters, there are early signs that competition between the two agencies will be a hallmark of the New York enforcement arena.  Given the new competing regimes in New York, many leading companies and institutions will likely find themselves the subject of much scrutiny and should prepare themselves accordingly and in the manner the authors describe.

Click here to read the full article.