After a three-judge appellate panel reinstated a property owner's class action alleging that oil and chemical companies contributed to Hurricane Katrina's ferocity, the Fifth Circuit granted the defendants' motion to rehear the case en banc. Then, because it couldn't muster enough judges to hear it, the appellate court dismissed the appeal.

In a once-sleepy corner of the Treasury Department, regulation of overseas conduct is going strong. That's bad news for European banks, but good news for American foreign policy--and a handful of well-positioned firms that excel at both litigation and bank regulation.