NY Court agrees with major banks on definition of “foreign currency retail transactions”

Maria Nikolova

Judge Lorna G. Schofield agreed with defendant banks that the definition includes only transactions involving foreign currency purchased with USD and physically received at the banks’ retail branches within the US.

Judge Lorna G. Schofield of the New York Southern District Court has once again sided with a number of major banks over the definition of “foreign currency retail transactions”. On Thursday, September 6th, the Judge issued an order denying the plaintiffs’ motion for reconsideration of the Court’s earlier decision which supported the banks’ stance on what the definition of “foreign currency retail transactions” covers.

Let’s recall that this is a Forex benchmark rate fixing case targeting top banks like JPMorgan Chase & Co. (NYSE:JPM), JPMorgan Chase Bank, N.A., Barclays Capital, Inc., Citibank, N.A., Citigroup Inc (NYSE:C), Bank of America Corp (NYSE:BAC), Bank of America, N.A, HSBC Bank USA, N.A., and HSBC North America Holdings, Inc.

The plaintiffs in the lawsuit – including Go Everywhere, Inc., Valarie Jolly, Mad Travel, Inc., Lisa McCarthy, John Nypl, and William Rubinsohn, had to explain the basis for their position that the term “foreign currency retail transactions” in this case should include transactions other than those involving foreign currency purchased with USD and physically received at the defendant banks’ retail branches within the United States, including credit and debit card transactions and ATM cash withdrawals abroad.

In explaining her decision that denied the plaintiffs’ motion for reconsideration, Judge Lorna G. Schofield noted that the plaintiffs fail to identify an intervening change of controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest injustice. The latter factors are crucial for granting a motion for reconsideration.

Furthermore, according to Judge Schofield, the plaintiffs seek reconsideration of the Court’s earlier decision to reject plaintiffs’ interpretation of the term “foreign currency retail transactions” by restating and expanding on arguments made in their initial motion, which the Court already rejected. The plaintiffs principally reargue their contention that references to the word “purchase” in the third amended complaint include credit, debit and ATM card transactions. The Court rejected this argument, adopting the reasons stated in the defendant banks’ opposition.

The Judge notes that the plaintiffs also reargue their contentions that (1) exchange rates charged to Plaintiffs for credit, debit and ATM card transactions were based on wholesale benchmark rates; (2) Plaintiffs’ expert found a correlation between benchmark rates and rates used by Visa and MasterCard; and (3) Defendants advertised that wire transfers and credit, debit and ATM cards could be used abroad. But these arguments were rejected because none of them is relevant to the interpretation of the allegations of the third amended complaint, which include only the purchase of currency at retail branches in the United States.

The plaintiffs also tried to introduce new material, a “Federal Reserve Payments Study 2016,” to support their motion for reconsideration. This study, however, does not provide a basis for reconsideration, the Judge says, as it has nothing to do with the third amended complaint or foreign exchange transactions, and merely identifies “trends in noncash payments in the United States.”

The case is captioned Nypl v. JP Morgan Chase & Co. et al (1:15-cv-09300).

Read this next

blockdag

Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

blockdag

Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.

blockdag

BlockDAG’s X1 Miner App Beta Sparks $49.2M Presale Rise; Uniswap & XRP Whales Getting Involved?

Experience BlockDAG’s meteoric 1120% presale rise, Uniswap’s UNI climbing 18%, and Ripple’s XRP anticipating ETF approval. Explore their latest breakthroughs!

Market News, Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 13 June, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2700, which has been reversing the price from last month.

Institutional FX

U.S. sanctions halt dollar and euro trading on Moscow Exchange

New U.S. sanctions against Russia have led to the immediate suspension of trading in dollars and euros on the Moscow Exchange (MOEX), the country’s largest exchange group.

<