Banking

  • August 1, 2014

    Barclays Hit With Another Investor Suit Over Dark Pool

    Barclays PLC was hit with another investor proposed class action in California federal court on Thursday challenging its operation of secret trading “dark pools” that cater to predatory high-frequency traders, following a major securities fraud suit by the New York Attorney General bringing the issue to light.

  • August 1, 2014

    Miami Litigation Boutique Adds 2 From Fowler Rodriguez

    Miami boutique litigation firm Levine Kellogg Lehman Schneider Grossman LLP announced it has reeled in two attorneys from Fowler Rodriguez Counselors at Law who will help grow the firm's arbitration and Latin American offerings while bringing litigation experience in product liability, real estate, banking and trademark disputes, among other areas.

  • August 1, 2014

    Regulators Put Off Asset Manager SIFI Designations, For Now

    U.S. financial regulators on Thursday shifted their focus on the risks giant asset management firms posed to the economy, from the firms themselves to the products they offer, giving BlackRock Inc., Fidelity Investments and other firms a temporary reprieve from enhanced oversight as systemically important financial institutions.

  • August 1, 2014

    Ex-Evercore Director Gets 30 Months For Insider Trading

    A former Evercore Partners Inc. banker was sentenced Friday to 30 months in prison after pleading guilty earlier this year to an insider trading scheme that authorities have said partly went to pay child support for his young son.

  • August 1, 2014

    Church Attys Say Fraud Suit Subpoenas Are 'Gamesmanship'

    Lee Hong Degerman Kang & Waimey PC attorneys on Friday fought the Evangelical Christian Credit Union's bid to depose them in a Los Angeles church's $400 million fraud suit against the financial institution, calling the move unnecessary "gamesmanship" at odds with California law.

  • August 1, 2014

    Deals Rumor Mill: CorePharma, Awas, SMBC

    RoundTable Healthcare Partners is looking to end its nine-year ownership of generic-drug maker CorePharma in a deal potentially worth $1 billion, while Asia's richest man may snap up planes being sold by aircraft leasing company Awas.

  • August 1, 2014

    Kutak Rock Reps Bank Of The Ozarks In $228M Intervest Buy

    Bank of the Ozarks Inc. on Thursday announced an agreement to buy Intervest Bancshares Corp. in a $228.5 million deal that will increase its foothold in Florida’s banking sector.

  • August 1, 2014

    Citi To Sell Bulk Of $1.5B Metalmark Stake To Lexington

    Citigroup Inc. said Friday it will sell 80 percent of its $1.5 billion limited partnership interest in Metalmark Capital Partners II to secondary private equity firm Lexington Partners, the bank’s latest effort to shed alternative holdings to comply with post-financial crisis regulations.

  • August 1, 2014

    Deutsche Bank, HSBC Accused Of Manipulating Silver Futures

    Deutsche Bank AG, HSBC USA Bank NA and The Bank of Nova Scotia were hit Thursday with a class action in a New York federal court alleging they engaged in a scheme to manipulate the price of silver futures.

  • August 1, 2014

    Capital One, 3 Others Settle TCPA Action For Record $75M

    Capital One Financial Corp. and three collections agencies have agreed to pay almost $75.5 million to settle a consolidated class action alleging they used an automated dialer to call customers’ cellphones without consent, a settlement attorneys say is the largest ever under the Telephone Consumer Protection Act.

  • August 1, 2014

    SEC Closes Probe Of Citigroup's MBS Practice

    The U.S. Securities and Exchange Commission has closed its probe of Citigroup Inc.'s mortgage-backed securities practice and will not bring an enforcement action against the firm, Citigroup said in a quarterly SEC filing Friday.

  • August 1, 2014

    Ex-Im Renewal Bill Gains Steam As Reid Calls For Action

    A bipartisan bill to reauthorize the U.S. Export-Import Bank gained steam Thursday as Senate Majority Leader Harry Reid, D-Nev., marked the legislation as a key priority for the upper chamber once it returns from its legislative recess next month.

  • August 1, 2014

    Dealmakers Q&A: Richards Kibbe & Orbe's Jon Kibbe

    Use simple and direct language stripped of legal jargon, write short emails, and always assume your client is reading your emails on the tiny screen of a phone while sitting in the back of a cab, says Jon Kibbe, founding partner of Richards Kibbe & Orbe LLP.

  • August 1, 2014

    Dealmakers Q&A: Jenner & Block’s Uri Doron

    It will be interesting to see how the representations and warranties insurance companies deal with the claims that will eventually be filed against the policies. If recovery will be significantly more difficult than recovery from escrow or from the seller, the resurgence of representation and warranty insurance in M&A may face a serious headwind, says Uri Doron, co-head of Jenner & Block LLP's cross-border transactions practice.

  • July 31, 2014

    BofA Can't Bill Bankrupt Firm Owners For $60M Award: Judge

    A California judge said Thursday that a $60 million award Bank of America NA and Bank of the West obtained in the federal bankruptcy of Griffin Homebuilding Group LLC does not entitle the banks to collect that debt from the company's individual owners.

  • July 31, 2014

    Argentina Blames US For Debt Talks Failure, Denies Default

    Argentina’s government on Thursday said the collapse of negotiations with hedge funds demanding payment on government bonds was due to the “malpractice” of the U.S. judiciary and denied that it had defaulted on its sovereign debt for the second time in 13 years.

  • July 31, 2014

    CFTC Seeks $139M Penalty In RBC Wash Trading Case

    The U.S. Commodity Futures Trading Commission on Thursday pressed a New York federal judge for nearly $139 million in penalties against the Royal Bank of Canada for engaging in a massive scheme involving unlawful, uncompetitive trading, or "wash trading," to reap Canadian tax breaks and avoid risks.

  • July 31, 2014

    AmEx CEO Says Antitrust Case Could Doom Company

    American Express Co. CEO Kenneth Chenault criticized the U.S. Department of Justice on Thursday for bringing antitrust charges against the company and testified that AmEx “will not survive” if it is forced to end rules that prevent merchants from steering customers to lower-fee alternatives offered by MasterCard Inc. and Visa Inc.

  • July 31, 2014

    Revolving-Door Roundup: Sidley, Bingham, Greenberg

    July was a busy month for attorneys bouncing back and forth between the government and BigLaw. Nine attorneys crossed the public-private divide, including U.S. Commodity Futures Trading Commissioner Scott O'Malia, who raised eyebrows with a decision to join the International Swaps and Derivatives Association days after leaving his government post, and former Treasury Department general counsel George Madison, who joined Sidley Austin LLP after a cautious two-year hiatus.

  • July 31, 2014

    AIG, GE Capital Will Remain SIFIs, US Regulators Say

    U.S. financial regulators decided on Thursday that American International Group Inc. and GE Capital Corp. will keep their status as systemically important financial institutions, following an annual review of the designation.

Expert Analysis

  • The Crisis: The More We Know, The Less We Understand

    Kathryn Judge

    Many of the early narratives about the causes of the recent financial crisis — for example, securitization — were woefully incomplete, raising significant doubts about the advisability of reforms based on them. It turns out that the investors buying mortgage-backed securities were not dupes, says Kathryn Judge, associate professor at Columbia Law School.

  • OPINION: Lawyers Should Think In Terms Of Big Data

    James H. Wendell

    The vast majority of civil cases in the United States settle before trial. Knowing how many on a particular topic were filed, how many settled, when they settled, and on what terms clearly would be useful to a lawyer advising a client. Big Data could make it possible — yet this type of research is generally ignored by lawyers, says James Wendell of Riddell Williams PS.

  • Tardiness Does Not Warrant Equitable Subordination

    Michael L. Cook

    The Delaware District Court’s July 21 ruling reversing the bankruptcy court in the case of Franklin Bank Corp. shows that equitable subordination of a lender’s claim will require a strong factual showing of “egregious” misconduct — and that tardiness in filing claims is not enough, says Michael Cook of Schulte Roth & Zabel LLP.

  • What Bitcoin Can Learn From International Arbitration

    Jaime D. Guttman

    International trade was successful in creating a completely private dispute resolution system outside of the courts but widely recognized and accepted by governments across the world. Bitcoin needs to follow a similar path, says Jaime Guttman of Private Advising Group PA.

  • CFPB Enforcement Action Casts Shadow On Debt Collectors

    Jeffrey P. Taft

    In light of the ACE Cash Express Inc. enforcement action, financial institutions and other businesses engaging in first-party debt collection should assume the Consumer Financial Protection Bureau will attempt to impose Fair Debt Collection Practices Act standards on them through the unfair, deceptive and abusive acts or practice provisions of Dodd-Frank, say attorneys at Mayer Brown LLP.

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • A Novel Suit: Cities Try On The FHA For Size

    Mary B. Hogan

    Recent lawsuits brought by municipalities under the Fair Housing Act, which feature a novel theory of damages, have the potential to significantly expand the scope of fair lending liability for mortgage lenders, however whether their claims survive at the appellate level remains to be seen since there is still no coherent judicial view on statutory standing under the FHA, say attorneys at Debevoise & Plimpton LLP.

  • No Breach Of Fiduciary Duty, No Atty Fees

    Stewart D. Aaron

    The Delaware Chancery Court, with its recent decision in Raul v. Astoria Financial Corp., has properly limited plaintiff firms’ abilities to extract attorneys’ fees from public companies under the guise of protecting stockholders, say Stewart Aaron and Robert Azarow of Arnold & Porter LLP.

  • Watch Out For The 'Man In The Email'

    Susan Linda Ross

    Retailers, when is the last time you spoke with your bank about security? Now may be a good time, according to the FBI and the Internet Crime Complaint Center. A new email scam has been targeting CTOs, CFOs and comptrollers in particular, says Sue Ross of Norton Rose Fulbright.

  • Affiliated Vendors Are Popular Targets For Regulators

    Richard B. Benenson

    Lawsuits against large foreclosure law firms over their involvement with affiliated vendors in Colorado are not isolated, rather they seem to be the next front in the regulatory war against the foreclosure industry — a significant development given the pervasive use of affiliates in the industry, say attorneys at Brownstein Hyatt Farber Schreck LLP.