• September 2, 2015

    Ex-Willkie Farr Atty Admits Info Sharing In $7B Interchange Deal

    A lawyer who represented Mastercard Inc. admitted in a New York federal court filing late Tuesday that she used information from opposing counsel in a $7.25 billion deal to settle multidistrict litigation over Mastercard, Visa Inc. and other banks' interchange fees. 

  • September 1, 2015

    Ex-UCB Exec Gets 8 Years, $17M Fine For Securities Fraud

    A former United Commercial Bank executive was sentenced by a California federal judge Monday to more than eight years in prison and fined nearly $17 million for his role in a securities fraud case that caused the country’s ninth-largest bank failure since 2007 and ultimately cost taxpayers and the federal government $1.1 billion.

  • September 1, 2015

    Payment Processors Can't Escape Phantom Debt Robocall Suit

    A Georgia federal judge on Tuesday blocked payment processors from escaping a closely watched case in which the Consumer Financial Protection Bureau accuses them of violating debt collection rules and facilitating illegal payments, finding reasonable cause for a trial to proceed.

  • September 1, 2015

    JPMorgan, Citi Mortgagors Seek Cert. In Inspection Fees Row

    Citibank NA and JPMorgan Chase & Co. mortgage borrowers urged a California federal judge on Tuesday to certify a nationwide class of millions of homeowners whom the banks allegedly charged unnecessary fees for property inspections when their loans were in default.

  • September 1, 2015

    ABA Pairs With BakerHostetler To Offer Cyberinsurance

    Bank and small business insurer ABA Insurance Services announced Tuesday that it is partnering with the privacy and data protection team at BakerHostetler to provide its bank policyholders with a new cyberinsurance coverage product that would help them prepare for and respond to data security incidents. 

  • September 1, 2015

    NFL Player Almost Loses Jury Rights In BB&T Fraud Trial

    The jury portion of a group of National Football League players' federal negligence trial against Branch Banking & Trust Co. resumed Tuesday in Miami, but one plaintiff almost saw his jury rights stripped before the day was over.

  • September 1, 2015

    Visa Says Atty Misconduct Shouldn't Kill $7.25B MDL Deal

    MasterCard Inc., Visa Inc. and other banks tangled up in multidistrict litigation over credit card transaction fees fought Tuesday to keep a $7.25 billion settlement alive after a number of major retailers pushed a New York federal court to trash the deal over attorney misconduct.

  • September 1, 2015

    BB&T, Assurant Unit Facing Suit Over Force-Placed Insurance

    Branch Banking & Trust Co. charged mortgage holders inflated premiums for force-placed insurance and took kickbacks from an Assurant Inc. unit in exchange for exclusively using their services, according to a putative class action filed Tuesday in Florida federal court by two homeowners.

  • September 1, 2015

    NC Court Clamps Down On Native-Owned Payday Lender

    North Carolina’s attorney general said Tuesday that the state will keep fighting online consumer finance company Western Sky Financial LLC and others after a state court rejected the companies’ claims of Native American tribal immunity and barred them from making and collecting loans in the state.

  • September 1, 2015

    PTAB Invalidates Pair Of Credit Card Security Patents

    The Patent Trial and Appeal Board invalidated two credit card-related patents Monday that MasterCard International Inc. had been accused of infringing, ruling each of their claims were unpatentable.

  • September 1, 2015

    Real Estate Rumors: LaserShip, Capital One, Hayes Properties contractor LaserShip has reportedly leased nearly 41,000 square feet in New York, Capital One is said to have loaned $80 million for a Maryland hotel construction project, and Hayes Properties is said to have dropped $31 million on a Chicago residential tower.

  • September 1, 2015

    Dentons Launches Greek Desk In Brussels

    Dentons has launched a Greek desk in the firm's Brussels office, which will act as a one-stop shop for its clients already active in the Greek market, as well as those considering entering it for the first time.

  • September 1, 2015

    BofA, Others Can't Dodge Miami's Discriminatory Lending Suit

    The Eleventh Circuit said Tuesday that the city of Miami has standing to sue Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. over alleged racially discriminatory lending practices that cost the city tax revenue, overturning a lower court's ruling to the contrary.

  • September 1, 2015

    Puerto Rico Muni Bond FINRA Claimants Awarded $3M

    A Financial Industry Regulatory Authority arbitration panel in Puerto Rico awarded more than $2.9 million on Monday to three claimants that alleged fraud against UBS Financial Services Inc. of Puerto Rico in connection with borrowing secured by investments in the bank's closed-end funds and other municipal bonds.

  • September 1, 2015

    Deals Rumor Mill: BG Group, GE Capital, Ajinomoto

    BG Group will sell a Thailand offshore gas field stake for around $1.2 billion, three finalists are vying for GE Capital's Australian commercial lending and leasing businesses, worth $1.8 billion, and Ajinomoto will spend up to $1.7 billion on deals over the next year.

  • September 1, 2015

    Gov't Fights Ex-CEO's Leniency Claims In $18M Bank Fraud

    Prosecutors have asked a New York federal judge to reject a retail design CEO’s request for a lenient sentence after he pled guilty to conspiracy to commit wire fraud, saying he defrauded lenders of more than $18 million solely out of greed.

  • September 1, 2015

    Banks Say CFPB Complaints Must Be Verified To Be Useful

    Banking industry groups on Tuesday said that the Consumer Financial Protection Bureau should be careful to use only verified complaints when it moves forward with plans to provide more context around raw complaint data.

  • September 1, 2015

    Iran Bank Says $1.7B Is Out Of Bombing Victims' Reach

    Iran’s central bank asked the Second Circuit on Monday to uphold a ruling that families of victims of the 1983 bombing of a U.S. Marine Corps barracks in Beirut can’t collect $1.68 billion from it, saying the money is out of reach in Luxembourg.

  • September 1, 2015

    Madoff Trustee Granted Access To Cohmad Agent's Bank Docs

    A New York bankruptcy judge on Tuesday granted Madoff brokerage trustee Irving H. Picard's request to access bank records of a former Cohmad Securities Corp. agent involved in a $245 million clawback suit accusing Cohmad of steering clients and money to Madoff's firm.

  • September 1, 2015

    Anti-Bribery Odd Couple Takes Its Show On The Road

    It’s not unusual for cooperating witnesses to reach out to prosecutors or other investigators long after their cases are finished. What is unusual is for a cooperating witness and a former prosecutor to join forces and go on the road to educate companies on the type of conduct that brought them together in the first place.

Expert Analysis

  • Consent Order Shows More CFPB Interest In Student Loans

    Jodie H. Lawson

    The severity of the Consumer Financial Protection Bureau's consent order against Discover Financial Services, coupled with the CFPB's request for information on student loan servicing practices, indicates that the bureau is currently taking a hard look at student loan servicers, say Jordan Sykes and Jodie Lawson of McGuireWoods LLP.

  • The High Court's Key Jurisdiction Question In Manning

    Matthew Tobin

    The circuits are divided on whether federal jurisdiction can be grounded in the first instance on Section 27 of the Securities Exchange Act, which states that federal courts “shall have exclusive jurisdiction” of violations arising under the act’s regulations. The resolution of this issue by the U.S. Supreme Court in Manning v. Merrill Lynch Pierce Fenner & Smith Inc. stands to affect not just Exchange Act claims, say Matthew Tobin... (continued)

  • Putting The Brakes On 'Responsible Banking' Ordinances

    H. Rodgin Cohen

    A recent Southern District of New York decision striking down New York City’s “Responsible Banking Act” confirms that courts will scrutinize municipal laws that venture into the field of bank regulation and sets a precedent for potential challenges to responsible banking acts currently in place in various cities across the United States, say attorneys with Sullivan & Cromwell LLP.

  • FinCEN Continues Aggressive Anti-Money Laundering Trend


    If adopted, the Financial Crimes Enforcement Network’s recently proposed rules will prescribe specific anti-money laundering obligations for investment advisers, which previously had not been subject to Bank Secrecy Act AML regulations notwithstanding their potential criminal liability for engaging in or aiding and abetting money laundering, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Litigation Risk For HFT Facilitators Fades Fast

    Kathleen Massey

    A New York federal judge’s decision last week dismissing all claims against several U.S. stock exchanges and a dark pool operator is just the latest defeat for plaintiffs firms hoping to put high-frequency trading on trial in the wake of Michael Lewis’ book “Flash Boys,” say Kathleen Massey and Jeffrey Benner of Dechert LLP.

  • An Important Reading Of High Court's Advisory Fee Opinion

    Molly K. McGinley

    More than five years after the U.S. Supreme Court in Jones v. Harris Associates LP adopted the Gartenberg standard for cases brought under Section 36(b) of the Investment Company Act, the Seventh Circuit on remand highlighted the importance of, and interplay between, two Gartenberg factors — comparative fees and the nature and quality of services provided, says Molly McGinley of K&L Gates LLP.

  • Come To Terms With CFPB Civil Investigative Demands

    Anthony E. DiResta

    Consumer Financial Protection Bureau Director Richard Cordray does not believe a civil investigative demand's notification of purpose need list anything more than the industry being investigated and any potentially applicable laws. It is clear from the opinion involving Selling Source LLC that objections to a broad or vague notification of purpose in a civil investigative demand will fail, say attorneys at Holland & Knight LLP.

  • 5 Tips For Beating A Bank Foreclosure

    Evan M. Rosen

    There is a common saying in the law, "widows and orphans make bad law." Apparently, we can add banks to that too. Bedrock principles of law are all being rechiseled in favor of banks. But, there are still a few issues within res judicata and the statute of limitations which are being upheld and can be applied to successfully defend a foreclosure suit, says Evan Rosen founder of Rosen Law Firm PA.

  • Tips For Responding To An FTC Subpoena

    Julie A. Flaming

    A subpoena from the Federal Trade Commission can be unnerving and may appear daunting in the scope of its requests. Negotiations with the FTC regarding scope of discovery, time frames and even format of production can assist in reducing the burden for companies, say Julie Flaming and Katie Smith of Nelson Mullins Riley & Scarborough LLP.

  • Key Online Lending Takeaways As Regulators Assess Industry

    Christopher L. Allen

    Regulators are assessing what a well-calibrated online lending regulatory framework may look like — one that balances greater access to credit with appropriate risk management and borrower protections. This may impact investments relating to online lending and the M&A opportunities available to strategically acquisitive bank and nonbank lenders, say attorneys with Arnold & Porter LLP.