Morgan Stanley on Thursday agreed to pay $3.2 billion to resolve claims that it misled investors about mortgage-backed securities before the financial crisis, New York Attorney General Eric Schneiderman said.
A D.C. federal judge on Wednesday appeared concerned that the Consumer Financial Protection Bureau’s subpoena of a for-profit college accrediting group as part of a probe into the industry's lending practices constitutes a “fishing expedition" and asked why the agency doesn't just target individual schools for consumer violations.
A former executive settled her Dodd-Frank Act claim against COR Clearing in Nebraska federal court just weeks before trial Wednesday, abruptly ending a years-long battle that had briefly raised questions about the Act that the Eighth Circuit shied away from answering.
U.S. and European financial regulators on Wednesday dodged a potential market crisis down the road when they announced a major accord covering the $550 trillion global derivatives market. While the agreement on clearing arrangements scored applause, the yearslong process to reach it raised questions about the next time authorities need to resolve differences overseas.
A unit of HSBC Holdings PLC on Wednesday urged a New York appeals court to revive its lawsuit against a division of Japanese lender Nomura Holdings Inc. over a soured pool of $289 million worth of residential mortgage-backed securities, saying the action was timely brought.
The U.S. Securities and Exchange Commission on Wednesday approved a rule it said will ensure foreign and domestic security-based swaps dealers are subject to equal scrutiny under the Dodd-Frank Act when they engage in deals here, closing what had been called a loophole left open by the prior framework.
The U.S. Senate unanimously passed a bill Wednesday to step up sanctions on North Korea, targeting banks that process certain transactions and other companies that aid the isolated nation after its recent rounds of weapons tests.
The Third Circuit on Wednesday gave Global Client Solutions LLC and Rocky Mountain Bank and Trust another chance at securing arbitration in a putative class action accusing them of participating in a scheme to defraud indebted consumers that involved fabricated negotiations with creditors.
Professional race car driver Scott Tucker and one of his attorneys were arrested by the FBI on Wednesday and charged with running a $2 billion illegal payday lending operation involving Native American tribes that charged interest rates as high as 700 percent.
The Eighth Circuit on Wednesday revived a proposed class action claiming former executives of Dolan Co. should have disclosed the loss of Bank of America Corp. business that decimated the company's legal services division, saying the lower court erred in finding the shareholders hadn't alleged recklessness.
A Missouri man has been indicted by a New York grand jury with running a payday lending scheme that evaded state usury laws and collected over $161 million from hundreds of thousands of customers, Manhattan U.S. Attorney Preet Bharara announced Wednesday.
Cravath Swaine & Moore LLP confirmed Wednesday that Argentina has picked the firm to take over as the country’s lead counsel in long-running bondholder litigation in New York stemming from its 2001 debt default.
New York Gov. Andrew Cuomo on Wednesday asked federal regulators to block the proposed merger of KeyCorp and First Niagara Financial Group, saying the combination of the two banks would harm consumers and upstate New York’s economy.
Carrington Coleman Sloman & Blumenthal LLP on Tuesday announced that it has strengthened its corporate transaction and counseling services with the addition of a former general counsel to BearingPoint and Affiliated Computer Services Inc. as a partner in Dallas, with expertise in the areas of banking, securities, private equity and technology, among others.
A mortgage borrower accusing Bank of America of assigning customers inflated interest rates by way of a Libor-rigging conspiracy asked a New York federal judge Tuesday to bar the bank's bid to strike his class allegations, saying it would waste the court’s time.
A D.C. federal judge criticized the process behind the Financial Stability Oversight Council's decision to designate MetLife a systemically important financial institution subject to stricter rules, noting Wednesday that the agency did not separate staff functions in a way that would have allowed neutrality.
HSBC Holdings PLC is facing claims that it financed terrorism by allowing a number of Mexican drug cartels to launder billions of dollars through its branches, according to the families of victims of three “horrific” attacks, who have sued the bank in Texas federal court.
Federal Reserve Chair Janet Yellen on Wednesday told members of Congress that she hopes her agency will release capital rules for insurers that it now oversees sometime in the near future.
Lead counsel for financial institutions suing Target over its notorious 2013 data breach have urged a Minnesota federal court to grant them $20 million in attorneys’ fees and expenses, a figure they called fair and reasonable after extensive work on the case.
U.S. and European derivatives regulators on Wednesday announced a long-awaited plan to harmonize key regulations concerning the central clearing of swaps agreements and other instruments, settling years of intense negotiations in which the future of cross-border derivatives trading was at stake.
Freddie Mac and Fannie Mae have made various changes over the past few years to reduce the risk lenders face when selling mortgages to Freddie and Fannie, and to provide greater clarity and procedural assurances. The recently announced independent dispute resolution process furthers that effort, say Christopher Dueringer and Jason Stavely of Bryan Cave LLP.
By asserting that claims pursued in administrative enforcement proceedings are not subject to the three-year statute of limitations set forth in the Consumer Financial Protection Bureau's enabling statute, the agency signals it may be willing to target long-ago violations when seeking restitution and penalties, and more significantly, breaks new legal ground, say Nicholas Smyth and D. Patrick Yoest of Reed Smith LLP.
Companies — and their investors — continue to face a myriad of risks associated with uncertainty over future regulatory developments concerning the marijuana industry. As large states like California and Ohio prepare for legalization initiatives, however, the trend toward increasing liberalization and associated comfort levels of investors seems likely to continue, say John Bessonette and Tai Aliya of Kramer Levin Naftalis & Frankel LLP.
Analyzing the reasons why clients choose certain firms reveals a great deal about what is important and valued in the marketplace. Based on interviews with a random sample of over 600 heads of legal in the largest U.S. organizations, Elizabeth Duffy, vice president of Acritas US Inc., identifies the core brand drivers of Skadden Arps Slate Meagher & Flom LLP.
Property and casualty insurers using collection agencies to collect subrogation claims in Florida can now cite a Florida district court case to insulate them from consumer claims based on collection activities of their agencies, says Elizabeth Bohn at Carlton Fields.
The risk of the government applying the False Claims Act to Fannie Mae and Freddie Mac loans is not nearly as remote as it may seem. In fact, the U.S. Department of Justice has already pursued several FCA cases involving government-sponsored enterprise loans, and the number of cases is sure to increase if the government prevails in Adams v. Aurora Loan Services awaiting decision in the Ninth Circuit, says Andrew Schilling, partner ... (continued)
In a recent Law360 article it was suggested that promotion to partner was a competition between associates and that taking maternity, paternity or family medical leave could impact an associate's chances at promotion. But this sort of ethos — which may have contributed to law firms’ success in the past — is not the best way to secure the industry's future, says Daniel Butcher, managing partner of Strasburger & Price LLP.
The Ninth Circuit in Jacksonville Police and Fire Pension Fund v. CVB Financial added another wrinkle to the determination of whether and when the public disclosure of an internal investigation or a government subpoena establishes loss causation under the federal securities laws, say attorneys with Paul Hastings LLP.
The marketplace lending industry continues to mature and the regulatory landscape continues to evolve to address the unique challenges it poses. Anthony Nolan and Edward Dartley of K&L Gates LLP discuss some federal securities law considerations that are critical to the structures and business models of online marketplaces and their interactions with investors.
Where a perceived conflict is identified early in the process, a party may consider asking the forum overseeing an arbitration to determine whether it is appropriate for an arbitrator to serve on the panel. Despite the potential opacity of these kinds of decisions, discussions with practitioners and experience suggest that such challenges can arise from a number of situations, says Kirkland & Ellis LLP partner Matthew Solum.