Trump V. Deutsche Bank Ag

On expedited interlocutory appeal, the Second Circuit affirmed in substantial part the district court’s order denying President Trump’s motion for a preliminary injunction preventing compliance with subpoenas seeking his financial records and denying President Trump’s motion for a stay pending appeal. Specifically at issue was the lawfulness of three subpoenas issued by the House Committee on Financial Services and the House Permanent Select Committee on Intelligence to two banks, Deutsche Bank AG and Capital One Financial Corporation, seeking financial records of President Trump, members of his family, and the Trump Organization (collectively, “appellants”), and financial records from the Trump Organization and affiliated entities.

The court held that those seeking to preliminarily enjoin compliance with subpoenas issued by congressional committees exercising their constitutional and duly authorized power to subpoena documents in aid of both regulatory oversight and consideration of potential legislation must satisfy the more rigorous likelihood‐of‐success standard.

In this case, although appellants have established irreparable injury, the court held that appellants have not shown a likelihood of success on any of their statutory and constitutional claims. The court also held that the balance of the hardships and equities did not decidedly tip in favor of appellants, and the public interest in vindicating the committees’ constitutional authority was clear and substantial.

Therefore, the court affirmed the district court’s order in substantial part to the extent that it denied a preliminary injunction and ordered prompt compliance with the subpoenas, except that the case is remanded to a limited extent for implementation of the procedure set forth in this opinion concerning the nondisclosure of sensitive personal information and a limited opportunity for appellants to object to disclosure of other specific documents within the coverage of those paragraphs of the subpoenas listed in this opinion. The court dismissed as moot the appeal from the order to the extent that it denied a stay pending appeal.