Banking

  • July 7, 2015

    Greek Debt Aid Could Pose Moral Hazard, ECB Suggests

    The European Central Bank on Tuesday warned of the “moral hazard” of providing financial assistance to struggling institutions on too-generous terms, a day after the central bank increased collateral requirements on emergency aid to Greek banks.

  • July 7, 2015

    JPMorgan, FDIC Trim More WaMu Tax Liability Claims

    JPMorgan Chase NA and the Federal Deposit Insurance Corp. told a D.C. federal court Tuesday that New York and Pennsylvania tax authorities have dropped claims of outstanding liabilities on Washington Mutual Inc. and they will no longer fight over them.

  • July 7, 2015

    4th Circ. Schools Mercedes-Benz Credit On Best Practices

    The Fourth Circuit on Tuesday refused to revive a suit accusing Mercedes-Benz Credit Corp. of not timely releasing a lien placed on a woman's residence after she paid off the loan her Audi sedan, but called the company out for “substandard” conduct and warned it should review its business practices.

  • July 7, 2015

    Hitachi Parent Cut From Truenorth's $6.8M Merger Fee Suit

    Finding no jurisdictional tie to New York, a Manhattan federal judge Tuesday cut Japan-based Hitachi Metals Ltd. and two of its subsidiaries from investment banking firm Truenorth Capital Partners LLC's bid to collect a $6.8 million fee tied to Hitachi's 2014 purchase of Waupaca Foundry Inc. for $1.3 billion.

  • July 7, 2015

    Okla. Tribe Wants To Join Native Farmer Settlement Row

    The Choctaw Nation on Monday urged the D.C. Circuit to reverse its denied bid to intervene in a dispute over how to distribute some $380 million in unclaimed funds from a U.S. Department of Agriculture class action settlement over a farm loan program.

  • July 7, 2015

    CFPB Says Student Loan Companies Fail To Serve Troops

    A Consumer Financial Protection Bureau report released Tuesday found that members of the military continue to get the runaround from student loan servicers that fail to grant requested deferments or provide federally-mandated lower interest rates, with the agency saying it has received 1,300 complaints over the past three years.

  • July 7, 2015

    Lehman Taking $67M Tax Credit Fight To 2nd Circ.

    Lehman Brothers Holdings Inc. said Monday it is appealing to the Second Circuit a decision denying its bankruptcy administrators $67 million in foreign tax credits, challenging a federal judge’s reading of a bilateral tax treaty between the U.S. and the U.K.

  • July 7, 2015

    Adams & Reese's $5M Stanford Deal Slammed Over Attys' Cut

    A proposed $5 million payout to end class claims that Adams and Reese LLP, Breazeale Sachse & Wilson LLP and others aided and abetted Allen Stanford’s $7 billion Ponzi scheme was challenged Monday for purportedly handing attorneys the bulk of the settlement.

  • July 7, 2015

    'Flash Crash' Trader Blasts 'Arbitrary' CFTC Spoofing Case

    Accused “flash crash” trader Nav Sarao attacked the U.S. Commodity Futures Trading Commission's suit against him Tuesday, saying his alleged spoofing couldn't have influenced the market he traded in.

  • July 6, 2015

    SEC Gives Macquarie Waiver From DQ Over Puda Coal IPO

    The U.S. Securities and Exchange Commission granted Macquarie Capital USA Inc. a full waiver from disqualification from private securities transactions Monday following the company's agreement to pay $15 million to settle claims over its allegedly botched underwriting of a Chinese coal company’s stock offering.

  • July 6, 2015

    Nev. Firm's Suit Against BofA In Embezzlement Case Revived

    A Nevada state court was wrong to relieve Bank of America Corp. of liability in a case where a law firm learned one of its employees was embezzling by writing personal checks from the firm's account, the state supreme court ruled Thursday.

  • July 6, 2015

    FINRA Dangles Cooperation Carrot With Fine-Free Settlements

    The Financial Industry Regulatory Authority's decision Monday to not levy fines against three broker-dealers that allegedly overcharged certain mutual fund customers shows there can be extraordinary rewards for extraordinary cooperation, attorneys say, and that could entice others to come clean to the regulator about internal compliance problems they have discovered.

  • July 6, 2015

    Sheppard Mullin Adds Ex-Loeb & Loeb Corporate Atty

    Sheppard Mullin Richter & Hampton LLP has added a former Loeb & Loeb LLP attorney — experienced in mergers and acquisitions, IPOs and other transactions in industries including life sciences, banking, telecommunications, e-commerce and private equity — as a partner in its New York-based corporate practice group, the firm said Monday.

  • July 6, 2015

    8th Circ. Raps Pig Farmers' US Bank Forbearance Suit

    The Eighth Circuit on Monday slapped a pig farming couple with sanctions over an appeal in their second suit against U.S. Bank, saying the suit claiming the bank cut off payments to a feed supplier to force the farmers into forbearance on their loans was “frivolously argued.”

  • July 6, 2015

    FDIC, Fed Release Public Resolution Plans For 12 Big Banks

    Federal banking regulators on Monday released the public sections of so-called living wills submitted last week by 12 of the world’s largest banks that provide an outline of how the institutions can be taken apart should they fail.

  • July 6, 2015

    Deutche Bank Avoids Discovery In Texas Pension Row

    A Texas appellate court held Friday that a Deutsche Bank AG unit doesn’t have to turn over marketing materials related to its sale of residential mortgage-backed securities to the Texas County and District Retirement System, which accused the bank of making misrepresentations about the underwriting of the securities.

  • July 6, 2015

    Fed. Circ. Nixes Intellectual Ventures Patents Under Alice

    The Federal Circuit on Monday rejected patent licensing giant Intellectual Ventures Management LLC's bid to overturn the invalidation of several online banking patents it asserted against Capital One Financial Corp., saying they cover abstract ideas under the standard set by the U.S. Supreme Court's landmark Alice ruling. 

  • July 6, 2015

    5 Firms Top $300B In Deals During 1st Half Of 2015 M&A Boom

    The onslaught of activity in the world of mergers and acquisitions maintained a ravenous pace through the first half of 2015, and a number of law firms capitalized on the robust market by having a hand in more than $300 billion worth of deals apiece.

  • July 6, 2015

    9th Circ. Upholds Conviction In Family Insider Trade Scheme

    The Ninth Circuit on Monday upheld a San Francisco federal jury's finding that Bassam Yacoub Salman, through a family scheme, committed securities fraud by receiving insider tips that originated from ex-Citigroup Global Markets Inc. investment banker Maher Kara and were passed on via Kara's brother Michael.

  • July 6, 2015

    European Central Bank Tightens Loans To Greek Banks

    The European Central Bank on Monday increased collateral requirements on emergency aid to Greek banks, increasing the pressure on the country’s government just a day after voters there rejected further austerity measures that international creditors had been demanding.

Expert Analysis

  • Devaluing The Currency Of Settlements

    Richard J. Morvillo

    The irony is that, while cooperation with the government is at an all-time high, so are the sanctions visited on cooperators. Many lawyers find it difficult to explain to their clients why cooperation was worth it when the settlement they negotiated still wound up requiring exceedingly large penalties, says Richard Morvillo, a former branch chief with the U.S. Securities and Exchange Commission's Division of Enforcement.

  • The Problems In CFPB Process For Identifying Race

    Christopher Craig

    The Consumer Financial Protection Bureau had ordered Ally Financial Inc. and Ally Bank to pay $80 million in damages to minority customers who were allegedly harmed by Ally’s automobile loan policies. Almost two years from the settlement, the CFPB seems no closer to identifying the minority borrowers purportedly harmed by Ally, say members of Edgeworth Economics LLC and O’Melveny & Myers LLP.

  • NY High Court Standing Ruling Looks Like A Win For Lenders

    Christopher A. Gorman

    In Aurora Loan Services LLC v. Taylor, the New York Court of Appeals finally weighed in on the issue of standing that has been at the center of hundreds of contested residential mortgage foreclosure actions. Taylor may be read to abandon the requirement that lenders provide “factual details of a physical delivery of the note” to establish their standing to foreclose, says Christopher Gorman of Westerman Ball Ederer Miller Zucker & Sharfstein LLP.

  • This Week In Congress: Post July 4 Tumult

    Richard A. Hertling

    The House and Senate return from the Independence Day recess this week facing a crowded July agenda. Richard Hertling and Kaitlyn McClure of Covington & Burling LLP map the issues, ranging from national transportation and infrastructure funding to the Export-Import Bank's lapsed charter to the slew of fiscal year 2016 spending bills.

  • The CFPB's Real Message In Its 1st Administrative Appeal

    Ori Lev

    The message from the Consumer Financial Protection Bureau after its first administrative appeal is now clear — no matter what the amount of payments made for services rendered, any quid pro quo agreement in which one party receives business as a result of referring settlement service business to another party is a violation of the Real Estate Settlement Procedures Act, says K&L Gates LLP's Ori Lev, a former deputy enforcement direc... (continued)

  • MCDC Settlements Cast Doubt On Self-Reporter Leniency

    Kit Addleman

    The recent U.S. Securities and Exchange Commission settlements with 36 municipal underwriters under the Municipalities Continuing Disclosure Cooperation Initiative provide little transparency regarding the determination of the penalty amounts. It seems incongruous that the penalty imposed on a firm that is not self-reporting would be similar or even less than the penalties imposed on some self-reporting firms, say Kit Addleman and ... (continued)

  • HOA Superpriority Litigation Intensifies In Nevada

    Robin Perkins

    For the last three years, Nevada lenders and homeowners’ associations have been battling over the interpretation of Nevada’s version of the Uniform Common Interest Ownership Act, which provides a limited superpriority lien for HOAs to recover past due assessments. Senate Bill 306 — which substantially revised the statute and these new provisions — will likely diminish investor interest in the HOA foreclosure market, say attorneys a... (continued)

  • Don't Discount Disparate Impact After High Court Case

    Michael B. Mierzewski

    The implications of the U.S. Supreme Court's ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project Inc. extends beyond the primary mortgage lending and insurance industries. The ruling almost certainly will embolden private plaintiffs and government agencies to assert claims of disparate impact discrimination, say attorneys at Arnold & Porter LLP.

  • Casinos Can No Longer Gamble On FinCEN Compliance

    Travis Nelson

    The Financial Crimes Enforcement Network's comments at the Nevada Bar Association’s Bank Secrecy Act Conference in Las Vegas and recent enforcement actions against casinos reflect FinCEN’s expectation that casinos and card clubs be held to the same high compliance standards as their much more pervasively regulated bank counterparts, say attorney at Reed Smith LLP.

  • A Fiduciary Standard For Brokerage Firms May Be Inevitable

    Jeffrey Holik

    It seems as if the entire financial services industry has been caught up in a drama, now approaching the end of its fifth year — will regulators adopt rules requiring brokerage firms to act in the best interest of customers when offering investment advice? Our advice for brokerage firms is not to give in to the “wait and see” temptation, say attorneys with Shulman Rogers Gandal Pordy & Ecker PA.