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California Loses Last-Ditch Effort to Force Exide to Deal with Toxic Legacy

Submitted by jhartgen@abi.org on

California taxpayers were left responsible for a dangerously contaminated plant outside Los Angeles after a federal judge turned down an emergency bid by state environmental regulators to block Exide Technologies LLC from exiting bankruptcy, the WSJ Pro Bankruptcy reported. Yesterday’s court ruling rejected a last-ditch effort from California, which has been hammering Exide for years over a polluted battery-recycling facility in Vernon, near Los Angeles, that authorities view as a risk to the surrounding community. Once a cheap source of lead for Exide’s battery business, the plant left a toxic legacy for the largely working-class residents nearby. California taxpayers are now being stuck with the Vernon facility, which closed down in 2015. It remains an imminent danger to a densely populated residential area nearby, according to the state’s Department of Toxic Substances Control. State authorities have said it will cost $72 million to prevent contaminated dust in Vernon from blowing into residential areas, dwarfing the money Exide is leaving behind for cleanup, which amounts to $2.6 million from a court-approved bankruptcy plan plus $26 million in surety bonds and cash that Exide agreed years ago to set aside.

States Sue Trump Administration Over New Payday-Lending Rule

Submitted by ckanon@abi.org on
Seeking to stop the cycle of unsophisticated borrowers getting trapped in a recurring cycle of debt, multiple states have imposed regulations on payday lenders in recent years — regulations that will no longer apply to some lenders under a new Trump administration rule, Courthouse News Service reported. California, Illinois and New York sued the Office of the Comptroller of Currency, a bureau of the U.S. Treasury Department, over a new rule that makes it easier for lenders to skirt state laws that cap interest rates for payday loans. The rule finalized on June 2 makes lenders who partner with federally regulated banks exempt from state interest rate caps on loans. The states are challenging the new rule on several grounds. They claim OCC lacks the power to enact the rule, that the rule violates procedures created by Congress after the last financial crisis, that it ignores the potential for regulatory evasion of state laws and that OCC fails to provide evidence supporting its change in policy.