Trump Relief for Foreign-Convicted Banks Quashed by Biden DOL

The U.S. Labor Department has revoked a 2020 policy that allowed banks to maintain key retirement asset management waivers after foreign convictions, accusing Trump administration political leaders of overruling agency regulators to OK requests from powerful financial institutions.

In a Wednesday letter marked confidential that was obtained by Bloomberg Law, the Biden-appointed deputy labor solicitor informed an industry trade association that the opinion provided to the group in November is now withdrawn because DOL’s then-No. 2 and No. 3 officials advanced an improper legal stance that “bypassed” the “objections” of leadership at the department’s employee benefits subagency.

Nearly five months ...