The House Financial Services Committee is expected to blast Wells Fargo & Co. Chairman and CEO John Stumpf on Thursday over the more than 2 million unauthorized accounts his employees created, but committee Republicans will also attempt to turn up the heat on regulators for not stepping in sooner.
The U.S. Securities and Exchange Commission voted Wednesday to adopt rules to strengthen regulations of systemically important clearing agencies and propose changes to clearing settlement cycles, even though two of the agency’s commissioners expressed reservations with the new standards.
A New York state court judge overseeing former American International Group Inc. CEO Maurice “Hank” Greenberg's civil fraud trial told him on Wednesday to stop pointing to his reliance on “lawyers and accountants” in answer to questions about a challenged reinsurance deal.
New York Democratic Gov. Andrew Cuomo on Tuesday said that the state’s Department of Financial Services has proposed a new regulation that will require banks and mortgage servicers to inspect delinquent properties and secure any so-called zombie properties that they find are abandoned.
The investors suing HSBC and Citibank over the Libor scandal asked a New York court Tuesday for final approval of their $58 million settlements with the banks.
Two U.S. Bank NA trusts and General Electric’s former loan originator have settled a 4-year-old suit accusing the ex-GE unit of not upholding guarantees it made regarding subprime residential mortgages it sold to UBS AG, which transferred the loans to the trusts that issued securities, the parties have said.
A United Kingdom-based financial service provider has been fined £130,000 ($169,000) by the country’s Information Commissioner’s Office for sending more than 7 million texts marketing a new credit card on behalf of a company that didn’t have consumers’ permission, the agency said Wednesday.
The Securities and Exchange Commission said a big-data-driven investigation has led to a $15 million settlement with a UBS AG unit over allegations that it failed to properly train sales staff to make sound recommendations about highly complex financial products sold to retail investors.
National mortgage servicer Ditech Financial LLC has paid $1.4 million in a settlement related to its alleged abusive debt collection practices that affected more 5,000 borrower accounts in Massachusetts, state Attorney General Maura Healey said on Wednesday.
Deutsche Bank AG agreed to sell its Abbey Life insurance business to Phoenix Group Holdings in a £935 million ($1.22 billion) deal on Wednesday, as the bank gears up for a fight with U.S. regulators over a $14 billion settlement stemming from its mortgage-backed securities sales practices.
Jones Day has strengthened its financial institutions, litigation and regulation practice by adding as a partner in its Miami office a former legal and compliance department director at Credit Suisse with a strong background in cross-border regulatory matters involving private banking markets, the firm announced recently.
Federal Reserve Chair Janet Yellen said Wednesday that regulators will be prepared to mete out penalties to five giant banks scheduled to file revised resolution plans later this week if there are not significant improvements to the so-called living wills.
Goldman Sachs Group Inc. has invested $70 million in budget hotel chain Red Planet Hotels, according to an announcement from Bangkok-based Red Planet on Wednesday.
The Financial Industry Regulatory Authority has reached a settlement with a New York-based brokerage firm over claims that it failed to implement anti-money-laundering safeguards in the sale of over $2.5 billion in Venezuelan bonds.
Two former Deutsche Bank traders accused of manipulating the London Interbank Offered Rate will go to trial on Jan. 8, 2018, a New York federal judge said Wednesday morning, after one of the men pled not guilty to 11 federal criminal charges.
Wells Fargo on Tuesday said CEO John G. Stumpf will forfeit $41 million in unvested stock and announced an internal investigation amid a growing scandal over the opening of millions of unauthorized customer accounts that has already spawned a $185 million fine, a congressional hearing, and shareholder and employment class actions.
The U.S. Department of Justice has touted the similarities between its antitrust cases against American Express and a North Carolina hospital system, but that comparison could come back to haunt it now that the Second Circuit has found that AmEx's anti-steering rules are not anti-competitive.
Pennsylvania-based bank holding company Orrstown Financial Services Inc. agreed to pay a $1 million fine to settle allegations it failed to disclose nearly $70 million in impaired loans when facing a decline in real estate values, the U.S. Securities and Exchange Commission announced Tuesday.
The Royal Bank of Scotland will pay the National Credit Union Administration $1.1 billion to settle legal claims over the sale of allegedly faulty mortgage-backed securities to two corporate credit unions that caused them to fail, the administration announced on Tuesday.
The Eleventh Circuit ruled Tuesday that former North Miami Mayor Lucie Tondreau can't escape a conviction and over-five-year prison sentence for an $8 million scheme in which she and others used a radio show to recruit straw borrowers for fraudulent mortgage loans, saying it found no error in the lower court's decision.
Often lost in discussions about Alexander Hamilton is that he was an extremely important New York lawyer. He had an extensive law practice until his death in 1804 and he wrote what is considered to be the first treatise in the field of private law. Ultimately, Hamilton certainly did get a lot farther "by working a lot harder, by being a lot smarter, by being a self-starter," says Randy Maniloff of White and Williams LLP.
Although many fear that Brexit may be disruptive and create great uncertainty for many businesses in the United Kingdom, paradoxically, the U.K.’s occasionally controversial practice of gold-plating financial and corporate governance regulations may provide a measure of stability and continuity, say Jonathan New and Elizabeth McCurrach of BakerHostetler LLP.
There is a tendency to think of consumer fraud and misrepresentation as intentional acts that deceive consumers into engaging in transactions that they would not otherwise engage in. However, a California federal court's recent decision in Consumer Financial Protection Bureau v. CashCall demonstrates that the CFPB takes a much different view, say Leonard Chanin and Oliver Ireland of Morrison & Foerster LLP.
Sorry, fellow lawyers, judges and legislators, but the jig is up. It’s time to show the public the cards up our sleeves and give them a chance to weigh in on the fairness of a system that touches so many aspects of their everyday lives, says Chas Rampenthal, general counsel of LegalZoom.
Many companies involved in blockchain research projects are filing patent applications to protect their innovations, and many are leveraging software code that is governed by various open-source licenses. The variety of these licenses and the particular uses by companies of the code that is licensed under them raise a host of issues that, to the uninitiated, could result in significant consequences, say Paul Keller and Sue Ross of ... (continued)
One side effect of the rise in bug bounty programs, and disclosures by security researchers and others, is a commensurate increase in publicly known security vulnerabilities that can lead to increased scrutiny from regulators and the plaintiffs bar, says Kim Peretti, co-leader of Alston & Bird LLP's cybersecurity preparedness and response team.
With five days to go before a government shutdown, the parties are not that far apart, but those differences have proven difficult to resolve, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.
Our view is that a system of voluntary self-identification of virtual currency users could be a ground-breaking development in the world of virtual currency. Is it something that is coming further down the line or maybe a significant opportunity is being missed here? ask members of Locke Lord LLP.
In its new regulations covering payday loans the Consumer Financial Protection Bureau asserts that compelled reborrowings associated with these types of loans are harmful to consumers. However, a careful review of the economic literature shows that this concept is manufactured in order to support what appear to be the CFPB’s prejudices about how this market should operate, says Dennis Shaul, CEO of the Community Financial Services ... (continued)
Because of Newman, prosecutors in the Southern District of New York are required to show that a tipper of inside information received a personal benefit “that is objective, consequential, and represents at least a potential gain of a pecuniary or similarly valuable nature” to trigger liability. The Sean Stewart case now helps define that standard, say attorneys with Orrick Herrington & Sutcliffe LLP.