Famous for his sports-betting prowess, William “Billy” Walters was sentenced to five years in prison for orchestrating an insider trading scheme involving Dean Foods. Among the recipients of his tips was pro golfer Phil Mickelson, who forfeited about $1 million to the SEC as a “relief defendant.” [Wall Street Journal]
Trump’s pick for a top Federal Reserve post signaled support Thursday for a regulatory goal of the financial industry: More transparency around how stress tests are run for big banks. That nominee, Randal Quarles, criticized “the lack of transparency that has surrounded” the annual tests. His predecessor resisted disclosing certain information out of fear banks would learn how to game the tests. [Wall Street Journal]
The Consumer Financial Protection Bureau took a gamble finalizing a rule banning arbitration agreements that include class action waivers. The risk was clear: If the rule became the latest undone through the Congressional Review Act, the agency would be barred from reupping the rule without new authorization from lawmakers. The House this week voted to nullify the rule, leaving the regulation in the Senate’s hands. [The Hill]
