Banking

  • July 24, 2014

    BNP Paribas Reaches $80M Deal In Federal Credit FCA Suit

    BNP Paribas SA and two affiliates have agreed to pay $80 million to settle the federal government’s False Claims Act suit over a scheme to fraudulently obtain government financing for international shipments under a U.S. Department of Agriculture credit program, according a Texas federal court order filed Thursday.

  • July 24, 2014

    Visa Tackled AmEx To Keep 'Bread and Butter,' Ex-Exec Says

    Visa Inc.’s “we prefer” campaign was designed to stave off American Express Co.’s attempt in the late ‘80s to expand into Visa’s “bread and butter” markets and customer base, a former Visa executive testified Thursday at the government’s antitrust trial against AmEx.

  • July 24, 2014

    Fed Can't Escape ADA Suit Over Ex-Worker's PTSD

    A New York federal judge on Tuesday denied a bid by the Federal Reserve Bank of New York to escape a disability suit brought by an employee who says his post-traumatic stress disorder was exacerbated when he was relocated to a building near the World Trade Center site.

  • July 24, 2014

    BofA Customers Lose Bid To Revive Insurance Fee Suit

    The Ninth Circuit on Thursday affirmed the dismissal of a putative class action alleging Bank of America and an affiliate enrolled and charged bank customers for accidental-death insurance without consent, saying the plaintiffs didn't state a plausible claim for relief or detail their fraud-based claims.

  • July 24, 2014

    RBS Securities Can't Duck CUNA Mutual's MBS Suit

    A Wisconsin federal judge refused Wednesday to dismiss CUNA Mutual Group's suit against RBS Securities Inc., saying the insurer may have been justified in dragging its heels on some claims that the investment bank overhyped its mortgage-backed securities.

  • July 24, 2014

    CFPB's Mortgage Data Reboot Poses Risks For Lenders

    The Consumer Financial Protection Bureau’s plan to require lenders to report additional data about homebuyers will finally bring a decades-old disclosure rule in line with modern lending practices, but it could expose banks and others to privacy breaches and enforcement actions, experts say.

  • July 24, 2014

    Dodd-Frank Architect Says Law Can Adapt To The Times

    Although the Dodd-Frank Act has come under fire from critics on all sides of the financial regulatory reform debate, one of the law's key architects told Law360 that it provides more than enough flexibility for regulators to fix problems as they arise. This is Part 5 of a five-part series on the four-year anniversary of the Dodd-Frank Act.

  • July 24, 2014

    SIFMA Asks High Court To Limit American Pipe Tolling Rule

    The Securities Industry and Financial Markets Association on Thursday told the U.S. Supreme Court that its decision in American Pipe & Construction Co. v. Utah, which held that filing a putative class action stops the statute of limitations from running for would-be class members, should not apply equally to securities litigation statutes of repose.

  • July 24, 2014

    Former BES Chief Arrested As 3rd Espirito Co. Hits Bankruptcy

    Troubles worsened within Portugal’s Espirito Santo banking empire Thursday when prosecutors arrested the former chief executive of Banco Espirito Santo in a money-laundering and tax-evasion probe and a third company in the group sought court protection from creditors.

  • July 24, 2014

    Judge Upholds Madoff Aides' Convictions But Slams Feds

    A New York federal judge on Thursday upheld the convictions of five former Bernard L. Madoff Investment Securities LLC employees accused of aiding the Ponzi scheme but sharply criticized prosecutors for making “derogatory generalizations” in closing arguments to the jury.

  • July 24, 2014

    Brazil Antitrust Agency Fines Payment Processor $3.4M

    Brazil’s antitrust watchdog on Wednesday slapped credit card networking services provider Redecard S.A. with a $3.4 million fine for anti-competitive conduct regarding the company's alleged abuse of its dominant position in the market for Brazilian commercial Internet transaction facilitators.

  • July 24, 2014

    European Central Bank Database Hacked, Personal Data Stolen

    The European Central Bank said on Thursday that hackers breached the security protecting a database serving its public website, and stole email addresses and other contact data left by people registering for events at the bank.

  • July 24, 2014

    Professional Liability Pro Rejoins Kaufman Dolowich In NJ

    A one-time Kaufman Dolowich & Voluck LLP attorney who specializes in professional liability defense for law firms as well as parties in the insurance, real estate and financial services industries has rejoined the firm from The Gonzo Law Group LLC, Kaufman Dolowich announced Wednesday.

  • July 24, 2014

    ResCap Borrower's Bad-Foreclosure Claim Pared In Ch. 11

    A $58 million bankruptcy trust set up to compensate Residential Capital LLC borrowers cannot entirely expunge a claim brought by a man blaming a wrongful foreclosure for his wife's death, a New York bankruptcy judge ruled Thursday, saying the claimant can recover for any resulting emotional distress.

  • July 24, 2014

    Mt. Gox Parent Blocked From Auctioning Bitcoins.com Domain

    A federal judge in Seattle has temporarily stopped the parent of bankrupt bitcoin exchange Mt. Gox from auctioning off the domain name bitcoins.com, finding that letting the sale proceed would hinder her ability to award potential damages in a $75 million contract suit against the company over licensing its intellectual property.

  • July 24, 2014

    Orrick's Credit Suisse MBS Analysis Is Fair Game, Judge Says

    A New York judge on Wednesday said Credit Suisse AG must produce documents stemming from an analysis by Orrick Herrington & Sutcliffe LLP on repurchase demands for loans underlying $497 million worth of residential mortgage-backed securities, finding the study isn't protected by attorney-client privilege.

  • July 24, 2014

    Deals Rumor Mill: BSkyB, SodaStream, Islandsbanki

    BSkyB plans to unveil a multibillion-euro bid deal early Friday to buy Rupert Murdoch's assets in Italy and Germany, while SodaStream is mulling a roughly $828 million take-private deal with an investment firm.

  • July 24, 2014

    New Loan Accounting Rules For Non-US Banks Unveiled

    Non-U.S. banks and lenders will be subject to a new model for classifying financial assets and liabilities and will have to account for expected credit losses in a more timely manner under new finance accounting rules finalized by the U.K.-based International Accounting Standards Board on Thursday.

  • July 24, 2014

    Barclays Fires Back At NY AG's Dark Pool Claims

    Barclays PLC asked a state judge Thursday to toss New York Attorney General Eric T. Schneiderman's claims the firm tried to increase the market share of its dark pool by lying to clients and investors, saying not only did it not commit fraud but that the attorney general has no regulatory authority to bring his claims.

  • July 24, 2014

    Morgan Stanley Pays SEC $275M To Settle RMBS Claims

    The U.S. Securities and Exchange Commission on Thursday said it settled claims against three Morgan Stanley entities accused of misleading investors in a pair of residential mortgage-backed securitizations that were the last subprime deals the firms underwrote, sponsored and sold.

Expert Analysis

  • 3 Takeaways From BofA's $16.5M Settlement With OFAC

    Michael V. Dobson

    Bank of America’s roughly $16.5 million settlement with the Office of Foreign Assets Control for alleged violation of OFAC sanctions is a treasure trove of sanctions compliance guidance, and carries important lessons for those preparing to submit voluntary self-disclosures, says Michael Dobson Jr. of Kelley Drye & Warren LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • High Court Will End Circuit Split With Libor MDL Case

    Stacey Slaughter

    The U.S. Supreme Court's acceptance of Gelboim v. Bank of America Corp. will resolve a circuit split on whether a plaintiff can immediately appeal the district court’s dismissal of a lawsuit that has been consolidated with other suits that are still pending, but it is merely the first of several steps needed to revive the bondholder plaintiffs' antitrust claim, say Stacey Slaughter and Thomas Berndt of Robins Kaplan Miller & Ciresi LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • OPINION: CFPB Should Not Weaponize Consumer Complaints

    Brett M. Kitt

    The Consumer Financial Protection Bureau's cavalier attitude toward the privacy risks associated with publishing consumer complaint narratives in their raw form is particularly troublesome given that, in a prior policy statement, it committed to refrain from doing so without a proper study, says Brett Kitt, of counsel with Greenberg Traurig LLP and former senior counsel for the CFPB.

  • How To Respond To CFPB Civil Investigative Demands

    Alice S. Fisher

    Since the Consumer Financial Protection Bureau became operational its initial enforcement actions have focused on mortgages, credit cards, auto loans and debt relief organizations, however more recent actions show the bureau is expanding its reach toward other industries and products — a trend we expect to continue, say attorneys at Latham & Watkins LLP.

  • Protections Remain In Place For Ga. Officers, Directors

    J. Timothy Mast

    The Georgia Supreme Court’s highly anticipated decision in Federal Deposit Insurance Corp. v. Loudermilk clarifies the protections afforded by the business judgment rule to directors and officers of banks and corporations, and proves that the “wisdom” of corporate decisions continues to be shielded from claims of ordinary negligence, say attorneys with Troutman Sanders LLP.

  • 5 Takeaways From Latest US Sanctions Against Russian Cos.

    Alexandra Lopez-Casero

    The latest round of U.S. sanctions against Russia’s oil, natural gas and financial industries is a dramatic departure from how the United States has applied targeted sanctions in the past, and raises several questions, say Alexandra Lopez-Casero and D. Grayson Yeargin of Nixon Peabody LLP.

  • Separate Classification Gone Too Far

    Scott M. Grossman

    A district court decision in CWCapital Asset Management v. Burcam Capital II may bolster the arguments of secured creditors in opposing cramdown efforts by debtors who may have been emboldened by other recent decisions supporting creative classification schemes, say Scott Grossman and Ari Newman of Greenberg Traurig LLP.

  • Beyond Citigroup: A Look At Corporate Settlements

    Kirsten Mayer

    A decision in Better Markets Inc. v. United States Department of Justice may provide more clarity on the scope of Executive Branch discretion in resolving corporate cases and whether there is any role for “public interest” litigation in such matters, say attorneys with Ropes & Gray LLP.