Banking

  • October 24, 2014

    Witness, Defense Clash Over Claims In UBS Tax Fraud Case

    Government witness Martin Liechti clashed with defense counsel Friday during the start of his cross-examination in the tax conspiracy trial of ex-UBS executive Raoul Weil, over the former senior Swiss banker's recollections of documents and meetings, Weil's actions on projects and their purported friendship.

  • October 24, 2014

    UK Watchdog Wants Extra £26.5M For Libor, Fraud Probes

    The U.K.'s Serious Fraud Office is seeking an extra £26.5 million ($42.6 million) in funding to cover the cost of high-profile investigations, including a probe into alleged manipulation of the London Interbank Offered Rate, according to a government official Thursday.

  • October 24, 2014

    Fannie Mae Pays $170M To Clear Investors' Subprime Suit

    Fannie Mae has agreed to pay $170 million to shareholders to settle a consolidated class action alleging the federal mortgage giant misrepresented its exposure to subprime loans in the runup to the 2008 mortgage crisis, according to documents filed in New York federal court Friday.

  • October 24, 2014

    JPMorgan Derivative Suit Over RMBS Practices Gets Quashed

    A California federal judge on Thursday dismissed a shareholder derivative lawsuit against the top brass at JPMorgan Chase & Co. over the bank’s residential mortgage-backed securities business that led to a $13 billion settlement with the government, saying the plaintiffs haven’t properly pled claims of false statements and self-dealing.

  • October 24, 2014

    Linklaters Guides Bank of China's $6.5B Share Sale

    A team of Hong Kong-based Linklaters LLP attorneys have helped advise Bank of China Ltd. in a landmark 39.94 billion yuan ($6.5 billion) issuance of offshore preference shares, which is the largest ever international regulatory capital issuance by a Chinese bank.

  • October 24, 2014

    Latham & Watkins Partner Withdraws From AG Consideration

    Latham & Watkins LLP partner and former White House Counsel Kathryn Ruemmler has withdrawn from the race to succeed Attorney General Eric Holder, an administration official confirmed Friday.

  • October 24, 2014

    Deals Rumor Mill: PetSmart, Societe Generale, Atlanta Hawks

    Private equity powerhouse KKR & Co. LP is reportedly among the buyout firms looking at snatching up PetSmart Inc., while Societe Generale SA is eyeing an exit from Brazil and has been negotiating a sale of its assets in the South American country to major local banks.

  • October 24, 2014

    11th Circ. Revives Integrity Trustee’s $70M Negligence Suit

    The Eleventh Circuit on Friday revived claims in which the Federal Deposit Insurance Corp., serving as the Chapter 7 trustee for the parent of failed Integrity Bank, sought $70 million from the bank’s ex-directors and officers for negligence, after the Georgia Supreme Court held the FDIC could assert such claims.

  • October 24, 2014

    3rd Circ. Won't Rehear Commerce Bank CEO's New Trial Bid

    The Third Circuit on Thursday refused to take a second look at its decision denying Commerce Bancorp’s former CEO a new trial in his suit seeking to claim a $17 million severance package that went unpaid after he was ousted from the bank.

  • October 24, 2014

    US Can Prove Banker Conspired To Cheat IRS, Judge Says

    A California federal judge on Friday allowed prosecutors to admit out-of-court statements made by coworkers of a California banker accused of helping Americans hide money from the Internal Revenue Service in an Israeli bank, saying prosecutors met a threshold showing they could prove a conspiracy existed.

  • October 24, 2014

    Fifth Third Can't Convert Simplexity Case To Ch. 7, For Now

    A Delaware bankruptcy judge on Thursday denied a second bid by Fifth Third Bank to convert the case of cellphone activator Simplexity LLC to Chapter 7, but he said he would grant the senior lender's request if the parties can't hammer out a Chapter 11 plan by December.

  • October 24, 2014

    Banks Must Boost Efforts To Block Corrupt Funds, DOJ Says

    The head of the U.S. Department of Justice's foreign asset recovery program on Friday called for banks to ramp up their efforts to know their customers and prevent funds from corrupt governments and dictators from entering their coffers, saying those due diligence procedures need to be in "the DNA of every financial institution."

  • October 24, 2014

    Market Rumors: Roku, Hella, Airbnb

    Media streaming company Roku has reached out to investment banks about plans to confidentially file for a U.S. initial public offering, while German automotive supplier Hella is eyeing a $5 billion IPO in Frankfurt later this year despite recent market conditions.

  • October 24, 2014

    11th Circ. Refuses To Reignite War Over $2.7M Judgment

    Competing claims to a $2.7 million judgment in a securities fraud suit against Capital International Holdings Inc. and another debtor were properly put to rest when the full amount of the judgment was deposited to a federal court registry rather than collected from banks through a garnishment, the Eleventh Circuit found Thursday.

  • October 24, 2014

    Starwood, Sankaty Snap Up €800M Spanish Loan Portfolio

    Starwood Capital Group and Sankaty Advisors LLC, the credit arm of private equity firm Bain Capital LLC, have acquired a portfolio of Spanish hotel and corporate loans with a par value of €800 million ($1 billion) from BFA-Bankia Group, they said Friday.

  • October 24, 2014

    Ponzi Schemer's Sentence Vacated In $6M Fraud Case

    The Second Circuit on Friday vacated an eight-year prison sentence for one of the defendants in a $6 million Ponzi scheme carried out by Watermark Financial Services Group Inc. and M-One Financial Services LLC, and upheld an 11-year sentence for another defendant.

  • October 24, 2014

    Homeowners Slam Wells Fargo's $281M Force-Placed Deal

    Disgruntled class members on Thursday challenged a purported $281 million settlement reached by Wells Fargo Bank NA and Assurant Inc. in a suit over their force-placed insurance practices, saying it is unclear how much of the money will actually reach affected homeowners.

  • October 24, 2014

    Russia's 3 Top Banks File Suit Over EU Sanctions

    Three of Russia's largest banks announced Friday that they are taking the European Union to court challenging sanctions imposed on them over Russia’s aggression in Ukraine, the same day that German Chancellor Angela Merkel announced the sanctions would remain in place because a cease-fire wasn’t being observed.

  • October 24, 2014

    GM Reveals Subprime Lending Probe Goes Beyond DOJ

    General Motors Co. on Thursday revealed in a securities filing that an ongoing investigation into its subprime auto lending practices at its financing unit has spread beyond a previously revealed U.S. Department of Justice inquiry.

  • October 23, 2014

    Citigroup, Argentina Gird For New Court Date In Bond Fight

    A New York federal judge has set a court date for Argentina's fight to make payments on $8.4 billion in Argentine law-governed bonds — payments whose blockage custodian Citigroup Inc. says could expose it to criminal sanctions in the South American nation.

Expert Analysis

  • Economic Impact On Mortgage Lenders From Strip-Off Law

    Ilyse M. Homer

    Recent circuit court case law allowing “Chapter 20” debtors to strip off valueless junior liens on their homes may result in mortgage lenders having their junior-lien rights eviscerated, rendering them general unsecured creditors with no recourse to the collateral securing their indebtedness, say Paul Avron and Ilyse Homer of Berger Singerman LLP.

  • New Lessons From Rural/Metro II For M&A Parties, Advisers

    Peter J. Rooney

    The Delaware Court of Chancery’s decision this month in the case of Rural/Metro Corp. Stockholders Litigation awarding nearly $76 million in damages against a seller’s financial adviser highlights the difficult strategic questions nonsettling defendants face by proceeding alone to trial, including whether to put on trial the conduct of the settling defendants, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • New Calif. Data Breach Rules Bring Obligations And Debate

    Ellen Giblin

    The new law regarding the California breach notification requirement related to identity theft prevention and mitigation services has already spurred debate on two issues, say attorneys with Edwards Wildman Palmer LLC.

  • Know The Collateral Consequences Of Financial Reg Action

    Eben P. Colby

    Understanding the collateral consequences of enforcement proceedings at the hands of the U.S. Securities and Exchange Commission or any other financial industry regulator can provide a valuable tool for proactively negotiating with the regulator and avoiding pitfalls arising from a failure to disclose, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • A Ban On Ban-The-Box?

    Natasha B. Dorsey

    In a regulatory landscape of ban-the-box laws and increased EEOC scrutiny of criminal history questions during the hiring process, employers in industries such as health care and finance are often put in the position of acting unlawfully because they are required to conduct background checks for certain positions. The Certainty in Enforcement Act could clarify things, but it also leaves the door open for trouble, says Natasha Dorse... (continued)

  • Talking The Talk: Nuclear Energy Lingo For Bankers

    George Borovas

    Three and a half years after the accident at the Fukushima Daiichi nuclear power plant, the nuclear industry is experiencing somewhat of a revival, however the apparent disconnect between its rhetoric and the mindset of financiers must be overcome to stimulate the successful development of new plants, say George Borovas and Helen Cook of Shearman & Sterling LLP.

  • The Cayman Way Of Identifying, Enforcing Against Assets

    Christopher Russell

    Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.

  • Takeaways From Broker-Dealers’ Section 5 Inadequacies

    Daniel A. Nathan

    The U.S. Securities and Exchange Commission has issued letters of deficiency for Section 5 compliance to 80 percent of the firms examined. Meanwhile, broker-dealers are continually confronted with the decision whether the revenue from accepting and selling large quantities of lower-priced stocks is worth the risks, say Daniel Nathan and Michael Sorrell of Morrison & Foerster LLP.

  • 5 Takeaways From The New Cybersecurity Executive Order

    Lisa Ledbetter

    President Obama signed an executive order on Friday that requires federal agencies to apply enhanced security features to government payment cards. The administration views chip-and-PIN technology as a significant step forward, but such technology does not provide protection in online, mail and telephone order purchases, and does not eliminate the risk of a security breach, say attorneys with Jones Day.