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Is the Supreme Court Primed to Reverse Jevic? Watch ABI’s Bill Rochelle Recap Yesterday’s Oral Argument

ABI Editor-at-Large Bill Rochelle provides a recap of the oral argument yesterday before the Supreme Court in Czyzewski v. Jevic Holding Corp. Click here to watch. 

To read his special edition of Rochelle’s Daily Wire focused on the oral argument, please click here.  

For a full transcript of yesterday’s oral argument in Jevic, please click here

Reverse Mortgage Firms Fined $799,000 over Deceptive Consumer Ads

Three reverse mortgage companies were collectively fined $790,000 by the Consumer Financial Protection Bureau (CFPB) for using deceptive advertising that claimed consumers could not lose their homes, USA Today reported today. American Advisors Group, Reverse Mortgage Solutions and Aegean Financial reached consent agreements with the CFPB after the regulator's investigation found they used ads whose scripts featured similarly misleading though reassuring claims. Consumers with reverse mortgages can "live in your home for the rest of your life" "stay in your home forever" and "never ever be forced from your home,” according to the ads. Reverse Mortgage Solutions based in Houston and licensed in 48 states, said it was pleased with the settlement and "will continue to focus our efforts on improving our procedures for the future." American Advisors Group, licensed in 49 states and the District of Columbia, said in a formal statement that it takes its regulatory responsibilities seriously and has made a significant investment in its compliance and legal infrastructure to conform to all marketing laws and rules. Along with paying the financial penalties, the companies are required to make clear and prominent disclosures in their reverse mortgage ads and use internal oversight systems to ensure they are obeying all laws.

Schumer Opposes Effort to Change CFPB Structure

Incoming Senate Minority Leader Chuck Schumer is not willing to join Republicans in making changes to the Consumer Financial Protection Bureau’s governance structure, reported yesterday. Matt House, a spokesman for Schumer, said that the New York Democrat won’t work with Majority Leader Mitch McConnell (R-Ky.) on standalone legislation to change the bureau’s sole-director structure to a five-member bipartisan commission. Meanwhile, the presidents of four Washington, D.C.-based banking groups yesterday urged Schumer and McConnell to make the change in the next Congress. The groups have called for a five-member commission before. But the outcome of this year’s presidential election, combined with a federal court ruling faulting the bureau’s structure, makes legislation an easier sell. The new circumstances prove that the current structure is “fragile, uncertain, and leads to instability at the bureau,” according to the industry groups.

Huizenga: Dodd-Frank Replacement Will Reflect Unified GOP Government

House Republicans are retooling their Dodd-Frank overhaul legislation to increase its odds of being enacted, a key House lawmaker said in an interview. The changes are aimed at pacifying enough moderates to avoid trouble in the Senate and averting strife with the incoming administration, reported yesterday. Rep. Bill Huizenga (R-Mich.), a senior member of the House Financial Services Committee, said that Republicans are holding internal discussions over changes to the Financial CHOICE Act, a measure sponsored by Committee Chairman Jeb Hensarling (R-Texas). During the presidential campaign, Trump pledged to repeal Dodd-Frank. Many of his financial regulation proposals echo parts of the CHOICE Act, but Trump never publicly embraced Hensarling’s bill. In the Senate, Banking Committee Chairman Richard Shelby (R-Ala.) has been cool to the measure. But he is stepping down from the post and replaced by Sen. Mike Crapo (R-Idaho), who has yet to outline his own plans for the panel.

SFX Entertainment Emerges From Bankruptcy with New Name

For the last two years, one of the most arresting stories in the concert business has been the decline of SFX Entertainment, which tried to build a global network of dance-music festivals but collapsed and went bankrupt, the New York Times DealBook reported yesterday. SFX emerged from bankruptcy protection last week, with its debt load reduced by about $400 million, and this week it announced a new name and leadership. The new company, LiveStyle, will be led by Randy Phillips, the former chief executive of the concert company AEG Live, and there will be a commitment to something akin to its original mission of being “the world’s largest electronic music event producer,” according to the announcement, though it offered few other details. According to its statement, LiveStyle will be based in Los Angeles and retain control of some of SFX’s flagship properties, including the Tomorrowland and Electric Zoo festivals, as well as the online music store Beatport and the ticketing service Paylogic.

Sears Holdings Losses Mount as Sales Continue to Slide

Sears Holdings Corp. reported a $748 million quarterly loss as revenue and gross margin fell, extending woes for the struggling retailer as it continues to explore ways to monetize its key brands, the Wall Street Journal reported today. Chief Executive Edward Lampert said Sears is “fully committed to restoring profitability,” an uphill effort so far that the company said could include additional expense reductions and financing transactions. Sears in May said that it was exploring opportunities for its Kenmore, Craftsman and DieHard brands, its Sears Home Services business, and the company’s real-estate portfolio. The company on Thursday said that those efforts are continuing, but it didn’t provide an update. For its fiscal third quarter, Sears reported a loss of $748 million, or $6.99 a share, compared with a loss of $454 million, or $4.26 a share, a year earlier. Revenue fell 13 percent to $5.03 billion from $5.75 billion a year earlier, dented by fewer Kmart and Sears stores in operation as well as a 7.4 percent drop in same-store sales.