Banking

  • August 20, 2014

    Bank Of America, US Reach $17B Mortgage Settlement

    Bank of America Corp. and the U.S. Department of Justice on Wednesday reportedly agreed to a nearly $17 billion settlement that will resolve the bulk of the financial crisis-era claims against the beleaguered bank.

  • August 20, 2014

    S&P Says German Lender's False Ratings Suit Is Too Late

    Standard & Poor’s Ratings Services on Wednesday pressed a New York federal judge to quash a lawsuit from German lender IKB Deutsche Industriebank AG that claims the ratings agency gave falsely positive ratings to an investment vehicle filled with residential mortgage-backed securities, calling the action untimely.

  • August 20, 2014

    FSOC Closes Evidentiary Record In MetLife SIFI Review

    U.S. financial regulators have moved a step closer to deciding whether to designate MetLife Inc. a “systemically important financial institution,” approving the completion of the evidentiary record in the probe.

  • August 20, 2014

    Fla. Condo Seller Pleads Guilty To Bank Fraud, To Pay $18M

    Brendan Bolger pled guilty on Wednesday to his role selling condominiums through shell company Capital Management Guarantee LLC as part of a bank fraud scheme and has agreed to pay $18 million, according to the U.S. Attorney’s Office for the Middle District of Florida.

  • August 20, 2014

    GM Should Face Wrongful-Conviction Claims, Trustee Says

    Trustee Wilmington Trust Co. and General Motors LLC filed dueling briefs Tuesday in New York bankruptcy court in response to a former GM employee’s bid to pursue claims against GM over his wrongful conviction for rape, with Wilmington arguing GM should face the claims.

  • August 20, 2014

    Texas Firm Can't Use Immunity To Duck Atty Fraud Claim

    A Texas appeals court on Tuesday reversed a grant of attorney immunity to Dallas firm Mackie Wolf & Zientz & Mann PC, saying although the actions the firm took were on behalf of its clients, it couldn’t escape an allegation that it helped perpetuate the use of a fraudulent promissory note.

  • August 20, 2014

    Insurers Demand Cleary, Cadwalader Docs In JPMorgan Suit

    A group of insurers asked a New York state judge Monday to force Cleary Gottlieb Steen & Hamilton LLP and Cadwalader Wickersham & Taft LLP to hand over documents related to Bear Stearns Cos. Inc.’s market-timing settlement, in the insurers' bid to avoid JPMorgan Chase & Co.’s bid for a $200 million reimbursement.

  • August 20, 2014

    Wells Fargo Worker Shorted On Health Coverage: 9th Circ.

    A Ninth Circuit panel on Wednesday ruled that United Behavioral Health improperly denied benefits under the Employee Retirement Income Security Act to a Wells Fargo & Co. employee who was hospitalized for weeks due to anorexia, reversing a district judge's decision.

  • August 20, 2014

    Lehman Trustee Wants 2nd Circ. Rehearing Over $4B Assets

    The Lehman Brothers Inc. liquidating trustee on Tuesday asked for the full Second Circuit to rehear his claims that Barclays PLC is not entitled to $4 billion in Lehman Brothers Inc. trading collateral, arguing that a panel’s decision could allow attorneys to negotiate bankruptcy sales in secret.

  • August 20, 2014

    Kanye West Prevails In 'Coinye' E-Currency Trademark Suit

    Rapper Kanye West on Wednesday won a default judgment against the operators of digital currency exchange "Coinye West" after the defendants had failed to respond to trademark allegations in New York federal court.

  • August 20, 2014

    TD Urges 11th Circ. To Rehear $67M Rothstein Fraud Verdict

    TD Bank NA on Tuesday urged the Eleventh Circuit to revisit a ruling that investors in jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme had standing to win a $67 million verdict from the bank, saying plaintiff Coquina Investments LLC didn't suffer personal injury and thus lack standing.

  • August 20, 2014

    Ex-Im Chief Threatened With Subpoenas In Renewal Probe

    The chairman of the House Financial Services Committee on Monday criticized the U.S. Export-Import Bank for failing to provide the committee with information that lawmakers have requested as they consider renewing the Ex-Im charter, saying that the panel may force the bank to comply through subpoenas.

  • August 20, 2014

    Gatehouse, Arch Capital Pay $89.6M For Manhattan Marriott

    Gatehouse Bank PLC and Arch Street Capital Advisors LLC have paid $89.6 million to purchase the Residence Inn New York Marriott at 144 East 48th St. in Manhattan from AEW Capital Management, according to records filed with the city Tuesday.

  • August 20, 2014

    Barclays Capital And Thornburg Trustee Settle For $23M

    Barclays Capital Inc. has agreed to pay $23 million to resolve a suit brought by the trustee for defunct Thornburg Mortgage Inc. over a $2.7 billion mortgage-backed securities liquidation that allegedly undervalued Thornburg's assets and contributed to its collapse, according to court documents filed on Wednesday in Maryland bankruptcy court.

  • August 20, 2014

    10th Circ. Won't Halt MBS Suit Despite High Court CTS Ruling

    The Tenth Circuit has given the green light for a federal regulator to proceed in its claims against banks over $1.74 billion of soured mortgage bond deals that capsized two credit unions, saying the U.S. Supreme Court's recent CTS Corp. decision did not upend its original opinion that the suits were not time-barred.

  • August 20, 2014

    Firm Conflict Led To Unfair $32M HSBC Deal, Class Says

    Disgruntled class members on Tuesday pressed a Florida federal judge to scrap a $32 million settlement of a suit alleging HSBC Bank USA BA and others overcharged homeowners for force-placed insurance, again pointing to an alleged conflict involving a named plaintiff who is also a partner at class counsel’s law firm.

  • August 20, 2014

    Visa, MasterCard Severed From Target Data Breach MDL

    The Judicial Panel on Multidistrict Litigation has agreed to sever claims against Visa Inc. and MasterCard Inc. in one of a group of class actions arising from Target Corp.’s disastrous 2013 data breach, saying the claims against the credit card companies and the retailer were sufficiently different.

  • August 20, 2014

    CFPB Fines Auto Lender $2.8M Over Flawed Credit Reporting

    The Consumer Financial Protection Bureau on Wednesday fined a Texas-based auto lender $2.75 million for failing to fix a computer system that it knew was submitting incorrect information about its customers to credit reporting agencies.

  • August 20, 2014

    Jones Day Adds White & Case PE Pro In Singapore

    Jones Day has nabbed a private equity pro from White & Case LLP, who specializes in advising investment banks and hedge funds on cross-border mergers and acquisitions, to join its Singapore office, the firm said Monday.

  • August 20, 2014

    2nd Circ. Nixes $6M Atty Fee Request From Citi Investors

    The Second Circuit on Wednesday affirmed the denial of a $6 million fee request from plaintiffs’ attorneys in a shareholder derivative lawsuit accusing Citigroup of issuing excessive compensation in 2011, agreeing with a district court that the plaintiffs failed to show their suit caused two of the bank’s executives to resign.

Expert Analysis

  • A Review Of The Subscription Credit Facility Market

    Michael C. Mascia

    Despite the nearly uniform positive trending in the data supporting facility credit performance, none of it goes to the heart of the fundamental credit underwriting premise of a facility. And from this vantage point, the 2014 year-to-date trending has been far less beneficial for lenders, say attorneys with Mayer Brown LLP.

  • Foreclosure Sale Purchasers Face New Risks In Illinois

    Simon A. Fleischmann

    A recent Illinois Appellate Court decision in 1010 Lake Shore Association v. Deutsche Bank National Trust Co. has brought to the forefront the ongoing dispute between foreclosure sale purchasers and homeowners associations regarding the extent to which purchasers are responsible for HOA assessments — and the balance appears to have shifted toward the HOAs, say attorneys with Locke Lord LLP.

  • Picard Powerless To Block Independent Madoff Settlements

    Jonathan Sablone

    The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • Inside New York's Proposed Virtual Currency Regulation

    Marcus A. Asner

    New York’s proposed virtual currency rules intended to prevent money laundering and bolster cybersecurity have been met with mixed reactions and will likely trigger a lot of discussion about issues such as rooting out illegal activity without stifling innovation, say attorneys with Arnold & Porter LLP.

  • Congress Asks, CFPB Delivers On SCRA Violations

    John Costello

    A prudent retailer, lender or servicer should avail itself of the online database that provides information regarding the active-duty status of service members. As noted by the Consumer Financial Protection Bureau’s recent actions, Servicemembers Civil Relief Act compliance is regaining focus and attention, says John Costello of Locke Lord LLP.

  • Lessons From SEC Focus On Compliance Officers

    Louis Greenstein

    The two recent U.S. Securities and Exchange Commission proceedings involving Penson Financial Services Inc. and Private Capital Management Inc. illustrate the continued focus of SEC enforcement on the duties and potential liability of compliance officers, say attorneys with McGuireWoods LLP.

  • Yet Another Case Counters 6th Circ.'s Omnicare Reasoning

    John S. Durrant

    As the U.S. Supreme Court gears up to hear Omnicare, the Tenth Circuit has presented yet another case supporting the view that Section 11 claims cannot arise simply from opinions contained in securities offering documents that turn out in hindsight to be false or misleading, say attorneys with Paul Hastings LLP.

  • 17,000% APR Or 0 Credit: The True Cost Of Overdrafts

    Suzanne Garwood

    Despite consumer advocate and regulator concerns over the size of the annual percentage rate in small-dollar transactions, it is a nearly useless tool when considering the cost of credit with a duration of less than one year — small-dollar values plus short duration will always equal a shockingly large APR, says Suzanne Garwood of Venable LLP.

  • An In-House Lawyer's Top 10 Tips For Outside Counsel

    Francis M. Drelling

    To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.

  • 3rd Circ. Puts Debtors 1st In FDCPA Case

    Wayne Streibich

    Arguments in Fair Debt Collection Practices Act cases at the district level were outweighed by the Third Circuit in McLaughlin v. Phelan Hallinan & Schmeig LLP, which establishes that a debtor’s failure to dispute a debt will not likely be a basis for dismissal of claims, say Wayne Streibich and Louise Bowes of Blank Rome LLP.