Banking

  • November 20, 2014

    US Bank Must Face Trial Over Role In $215M Peregrine Fraud

    U.S. Bank NA must face at trial claims from the Commodities Futures Trading Commission for almost $36 million in restitution, an Iowa federal judge ruled Wednesday, in a lawsuit accusing the lender of helping bankrupt Peregrine Financial Group Inc.’s former CEO misappropriate $215 million in customer funds.

  • November 20, 2014

    Federal Reserve Reviews Methods For Supervising Big Banks

    The Federal Reserve is conducting two reviews regarding its supervision of big banks to ensure that such practices are consistent and well supported, and that decision makers are aware when there's dissent among bank examiners, the Fed announced Thursday.

  • November 20, 2014

    Class Counsel In $40M HSBC Suit Say 7th Circ. Backs Fee Bid

    Class counsel in a proposed $40 million Telephone Consumer Protection Act settlement with HSBC Bank NA told an Illinois federal judge Thursday that the Seventh Circuit's recent opinion slamming a “selfish” false labeling class settlement supported their $12 million fee bid and asked the court to approve their deal.

  • November 20, 2014

    Deals Rumor Mill: Fresenius, Springleaf, Bain Capital

    Fresenius Medical Care Holdings Inc. and Permira have teamed up to bid for The Groupe Danone's $6 billion medical nutrition business, while Springleaf Holdings Inc. and Centerbridge Partners LP are among a host of players interested in buying a Citigroup Inc. lending unit that could be worth more than $4 billion.

  • November 20, 2014

    CFPB Proposes Tighter Mortgage Servicing Regulations

    The Consumer Financial Protection Bureau on Thursday proposed a rule that would further tighten the agency's already strict regulations on mortgage servicers in an effort to help prevent foreclosures.

  • November 20, 2014

    Synchrony Financial Mobilizes For $7.5B Debt Offering

    Synchrony Financial, the retail credit company spun out of General Electric Co., plans to raise $7.5 billion through an offering of debt securities, marking the company’s first public offering after raising $2.9 billion in its market debut in July.

  • November 20, 2014

    CFTC Commissioner Slams Finance Regulation 'Explosion'

    Commodities Futures Trading Commissioner J. Christopher Giancarlo on Thursday criticized his agency and other regulators for their “regulatory explosion” following the financial crisis, saying misguided and flawed rules have driven derivatives transactions away from the U.S., wrongly hurt smaller market participants and discouraged legitimate risk-taking.

  • November 20, 2014

    As FATCA Slowly Rolls Out, Its Impact Is Uneven

    The U.S. government’s Foreign Account Tax Compliance Act took effect four months ago, and attorneys say they’re starting to see it have an impact in certain tax compliance areas while they wait for some of the biggest questions about the law to be answered. Here, attorneys share updates on how FATCA is affecting — or not affecting — their clients.

  • November 20, 2014

    BBVA Raises $2.5B To Beef Up Stake In Turkish Bank Garanti

    Banco Bilbao Vizcaya Argentaria SA said Thursday that it will finance its up-to-€1.99 billion ($2.5 billion) purchase of an almost 15 percent stake in Turkish bank Garanti Bank with the proceeds from a new share issue.

  • November 20, 2014

    $6B Record Haul For DOJ As FCA Reaches New Heights

    The U.S. Department of Justice on Thursday announced that it recovered $5.7 billion through False Claims Act litigation in fiscal 2014, a record haul buoyed by exceptionally large penalties against financial institutions as well as continued success policing hospitals, drugmakers and defense contractors.

  • November 20, 2014

    Top NY Court Takes Closer Look At Commerzbank Fraud Claim

    New York's top court on Thursday took up Commerzbank AG's bid to revive a fraud claim against Morgan Stanley & Co. after the Second Circuit said a lower court gave impermissibly short shrift to the German bank's key assertion that it had acquired the claim — related to a failed, complex debt investment — when it purchased another bank.

  • November 20, 2014

    Market Rumors: Alibaba, CGN Power, Medibank

    Alibaba launched a debut $8 billion bond offering amid strong demand, while CGN Power, China's largest nuclear plant operator, has sold a significant chunk of its upcoming $3 billion IPO in Hong Kong to cornerstone investors.

  • November 20, 2014

    Cordray Warns Banks Real-Time Payments Need Safeguards

    Consumer Financial Protection Bureau Director Richard Cordray on Thursday warned bankers to take consumers into account as they develop a new, real-time electronic payments system.

  • November 20, 2014

    Lender Tied To Houston Pol Targets Consumer Protection Law

    A payday lender connected to Texas state Rep. Gary Elkins sued the city of Houston Wednesday to throw out a new consumer protection ordinance that it claims is being used to put the state-approved creditor out of business.

  • November 20, 2014

    Goldman Denies Metals Market Wrongdoing Before Senate

    Representatives for Goldman Sachs Group Inc. and Metro International Trade Services LLC told members of the Senate Permanent Subcommittee on Investigations on Thursday that the companies haven't improperly benefited from Goldman's purchase of Metro and subsequent activity in the aluminum storage market.

  • November 20, 2014

    Fed Gov. Says More Bank Liquidity Proposals Coming In 2015

    U.S. banking regulators will release a proposal next year that would force banks to hold sufficient cash or assets that can be quickly turned into cash to cover their potential losses over the course of a year, the Federal Reserve governor leading financial reform efforts said Thursday.

  • November 19, 2014

    Goldman, JPMorgan Overwhelmed Oil, Metals Markets: Report

    JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley took on such large roles in commodities markets for oil, aluminum and natural gas that they increased financial instability and at times potentially impacted prices in those markets, a Senate investigation revealed Wednesday.

  • November 19, 2014

    Norton Rose Scoops Up Ex-Hunton Banking Partner In Dallas

    Norton Rose Fulbright hired away from Hunton & Williams LLP a corporate and regulatory banking partner who advises on private and public securities offerings, mergers and acquisitions, and corporate finance the firm said Wednesday.

  • November 19, 2014

    SEC Will Struggle To Extend New Glitch Rules To Brokers

    The head of the U.S. Securities and Exchange Commission scored points for investors Wednesday when she passed with little resistance new rules aimed at minimizing market-shaking technology glitches, but Mary Jo White will have a fight on her hands when she looks to float similar regulations for broker-dealers down the road.

  • November 19, 2014

    DC Circ. Urged To Revive Challenges To Dodd-Frank, CFPB

    A group of 11 states and several private plaintiffs urged the D.C. Circuit on Wednesday to revive their constitutional challenge to the Consumer Financial Protection Bureau and aspects of the Dodd-Frank Act, including its orderly liquidation process, arguing they had suffered concrete injuries that gave them standing to sue.

Expert Analysis

  • Principles Of Eligibility Criteria For Asset-Based Loans

    Excerpt from Lexis Practice Advisor
    David W. Morse

    While a company wants to be certain as to the amount it will be able to borrow, the asset-based lender needs the ability to respond to changing circumstances in order to manage its risk properly. This issue may be addressed in the eligibility criteria in different ways, says David Morse of Otterbourg PC.

  • Checking In On The CFPB: Part 2

    Jon Eisenberg

    While credit card cases produced by far the largest recoveries for the Consumer Financial Protection Bureau, mortgages produced the most cases, which is not surprising since the CFPB receives roughly three times as many complaints about mortgages as it does about any other product, says Jon Eisenberg of K&L Gates LLP.

  • The Print Room: How To Spend Less And Get More

    Senthil Rajakrishnan

    Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.

  • Has NYC Added A 4th Test For Determining Combined Group?

    Jessica L. Kerner

    In the matter of the petition of Astoria Financial Corp. & Affiliates, an administrative law judge determined that the federal savings and loan association was not required to include a subsidiary in its combined New York City bank tax return. It appears, however, that in addition to focusing on the three statutory criteria for requiring a combined return, the city audit also raised a fourth criterion, say Jessica Kerner and Leah R... (continued)

  • Checking In On The CFPB: Part 1

    Jon Eisenberg

    Credit card and mortgage-related enforcement actions account for well over 90 percent of the Consumer Financial Protection Bureau's recoveries to date and industry should expect continued focus here — the level of consumer complaints in these areas is a strong predictor of where the CFPB will focus its enforcement resources, says Jon Eisenberg of K&L Gates LLP.

  • MBS Investors Entitled To Increased Bankruptcy Recoveries

    Shan A. Haider

    In addition to securities litigation, the financial crisis yielded many bankruptcy filings by parties connected to the issuance of mortgage-backed securities. MBS investors, however, have found some solace through increased recoveries in decisions reached in the Washington Mutual and Lehman Brothers bankruptcy cases, says Shan Haider of Perkins Coie LLP.

  • Dewey Partner Clawback Ruling May Hurt New York Law Firms

    Evan C. Hollander

    Unless the recent ruling in the Dewey & LeBoeuf LLP bankruptcy case is overturned on appeal or the New York Legislature amends the state’s fraudulent transfer and partnership laws, partners of New York firms will bear greater risk if their firms fail than will members of many non-New York partnerships. This risk factor might even affect decisions by prospective lateral partners about which firms to join, say attorneys with Arnold & Porter LLP.

  • Key Tools For Monitoring Vendor Data Security

    Gregory Stein

    The common denominator of most of the recent high-profile breaches is that they are retail businesses that accept credit cards. Accordingly, as recent guidance from the Payment Card Industry Security Standards Council reminds us, companies that process credit cards should be scrutinizing vendors’ security practices as closely as they review and manage their own practices, says Gregory Stein of Ulmer & Berne LLP.

  • Is Disparate Impact Protection For Lenders On The Horizon?

    Michael R. Pennington

    A district court recently tossed the Department of Housing and Urban Development’s adoption of the disparate impact rule — a decision that serves as a significant stumbling block to the Obama administration’s efforts to regulate the banking and mortgage industries, and a significant weapon for those wishing to resist any application of the disparate impact theory in the context of Fair Housing Act claims, say attorneys with Bradley... (continued)

  • Proposed Prepaid Rule Unlikely To Stem Growth

    Franca Harris Gutierrez

    While the Consumer Financial Protection Bureau’s proposed prepaid card rule will increase compliance costs for the issuer and provide the CFPB another rule for enforcement, it is unlikely to stem the growth of the prepaid industry. Consumers are increasingly opting for prepaid products, and increased oversight and disclosure may, in fact, prompt additional customers to use a physical or virtual prepaid card, say attorneys with WilmerHale.