Debit Card Rules Upheld.

On March 21st, the D.C. Circuit substantially upheld the Federal Reserve Board's regulations imposing a cap on the per-transaction debit card fees banks receive and requiring that at least two networks owned and operated by different companies be able to process transactions on each debit card. The Court found that the Board's rules were reasonable and within the Board's discretion to resolve the ambiguity inherent in the legislation. The Court remanded one minor issue, the Board's treatment of so-called transactions-monitoring costs, to the Board for further explanation. NACS v. Board of Governors of the Federal Reserve System.

Insider Trading Convictions Affirmed.

On March 25, the 2nd Circuit affirmed Rajat Gupta's insider trading convictions, concluding that the former Goldman Sachs director's contentions on appeal lacked merit. The Court held wiretapped calls between third parties were admissible as non-hearsay statements in furtherance of a conspiracy and under the exception for statements against penal interest. It further held that the trial court did not abuse its discretion in excluding testimony by Gupta's daughter, purported evidence of an alternative tipster, and character evidence. U.S. v. Gupta.