Courts are new weapon of choice for banks looking to shift policy
By Rob Blackwell and Joe Adler
Financial services companies and groups are increasingly willing to take the regulatory regime to court in an effort to fight back against enforcement orders and new initiatives — and so far, they appear to be succeeding. …The proliferation of major cases is a sea change from the way the banking industry has behaved in the past. Generally speaking, banks don’t sue their regulators. “Bankers are reluctant to stick their heads up,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics. “They feel — with good reason — that they live or die with the goodwill of regulators.” But that is changing, in part because of victories by PHH Corp. and MetLife. “Success breeds courage,” Petrou said.