Banking

  • September 19, 2014

    Accountant Gets 40 Months For Texas Lender Takeover Plot

    A Pennsylvania accountant was sentenced on Friday to 40 months in prison for conspiring with reputed members of the Lucchese organized crime family to takeover a Texas-based mortgage lender through extortion and drain it of $12 million, forcing the lender into bankruptcy.

  • September 19, 2014

    RE Rumor Mill: Hines, Goldman, Claremont

    St. Thomas Church has gotten $71 million from Hines and Goldman Sachs, while the San Pablo Casino may buy an adjacent hospital and Claremont is turning a Wall Street office building into condos with the help of a $52 million loan.

  • September 19, 2014

    FINRA Floats Rules On Recruitment Disclosure, Transparency

    The Financial Industry Regulatory Authority on Friday said it plans to propose a new set of rules requiring firms to provide educational information to customers of brokers they recruit from competitors, alongside a wide array of regulations aimed at increasing the transparency of the equity and fixed-income markets.

  • September 19, 2014

    Gov't Derides BofA Challenge Of Mortgage Fraud Verdict

    Bank of America Corp.'s attempt to overturn a New York federal jury's verdict that it defrauded Fannie Mae and Freddie Mac through an expedited mortgage-issuing program — prompting a $1.3 billion fine — defies "the evidence, the law and common sense," the government argued Friday.

  • September 19, 2014

    IBRC Can Remarket Blackrock Loans After €24M Sale Fails

    A Delaware bankruptcy judge Friday denied a bid from a shareholder of Ireland's Blackrock Clinic to be declared the purchaser of Irish Bank Resolution Corp. loans secured by shares in the hospital after the €24 million sale failed to close in connection with a dispute with his financial backer.

  • September 19, 2014

    NY Man Arrested For $36M Bailout Loan Fraud Scheme

    New York authorities on Thursday arrested a Westchester County businessman after investigators concluded he had fraudulently obtained more than $36 million in commercial real estate loans from Capital One Financial Corp. and engaged in a decade-long tax evasion scheme.

  • September 19, 2014

    Morgan Stanley Can't Boot $32M Securities Suit Out Of NY

    A New York judge has refused Morgan Stanley's bid to dismiss on jurisdictional grounds a lawsuit alleging it sold a Singaporean financial services corporation $72 million worth of doomed securities and profited off their failure, ruling that the case has sufficient ties to the state.

  • September 19, 2014

    2nd Circ. Tosses Citibank Appeal Of Argentina Bond Ruling

    The Second Circuit on Friday dismissed Citibank NA's appeal of a New York federal judge's order preventing it from processing an upcoming payment on $8.4 billion in Argentine sovereign debt, a day after the bank's lawyer argued that the lower court's ruling has "put a gun to our head."

  • September 19, 2014

    JPMorgan Demands $35M In Refunds For Chrysler First-Liens

    JPMorgan Chase Bank NA asked a New York bankruptcy court to force Chrysler's old bankruptcy trustee to pay out $35 million in 2009 tax refunds, saying the money is fair game as proceeds from the few assets that Fiat SpA didn't purchase in the bankruptcy.

  • September 19, 2014

    DOJ Says It Proved AmEx Steering Rules Harm Competition

    The U.S. Department of Justice told a New York federal judge Thursday that it successfully proved at trial that American Express Co.'s rules preventing merchants from steering customers to alternative credit card products are anti-competitive and flout the Sherman Act, ahead of closing arguments next month.

  • September 19, 2014

    Bank Groups Tell High Court Only Suit Can Rescind Mortgage

    A coalition of financial industry groups has urged the U.S. Supreme Court to rule that borrowers must file suit, and not merely a notice of intent to rescind, in order to cancel a mortgage under the Truth in Lending Act, saying a looser standard would hurt both the industry and borrowers.

  • September 19, 2014

    Putin Blasts Western Sanctions As Blatant WTO Violations

    Russian President Vladimir Putin on Thursday chided the U.S. and European Union for escalating sanctions on Moscow's financial, defense and energy industries in response to the crisis in Ukraine, alleging those measures violate the most basic rules underpinning the World Trade Organization.

  • September 19, 2014

    BofA Gets Nod On $31M Flood Insurance Class Settlement

    An Oregon federal judge gave final approval on Thursday to a $31 million settlement resolving seven proposed class actions alleging Bank of America NA illegally forced homeowners to buy excessive amounts of flood insurance, overruling objections that a 25 percent class counsel fee is too high. 

  • September 18, 2014

    BMO Harris Socked With $24B Suit Over Petters Ponzi Scheme

    A trustee for two bankrupt Florida investment firms on Thursday hit BMO Harris Bank NA with a $24 billion adversary suit, alleging its Marshall & Illsley Bank helped convicted Ponzi scammer Thomas Petters bilk investors out of $3.7 billion.

  • September 18, 2014

    Senate Gives Final OK To ISIS Fight Aid, Avoids Shutdown

    The U.S. Senate on Thursday overwhelmingly approved funding for Syrian rebels to battle the Islamic State militant group, as part of a short-term spending bill that will fund the federal government through early December and avert another shutdown.

  • September 18, 2014

    Arab Bank Tells Jury States, Not Lenders, Name Terrorists

    Arab Bank PLC on Thursday urged a New York jury to find it never knowingly aided the financing of terrorism, since it closely adhered to government blacklists of known offenders, as the trial over the Jordanian lender’s alleged connections to the Palestinian Islamist group Hamas entered the homestretch.

  • September 18, 2014

    CFPB Auto Loan Rule Revs Up Scrutiny On Nonbanks

    Nonbank auto lenders should expect to face an unprecedented compliance burden as a new Consumer Financial Protection Bureau rule seeks to put them on equal oversight footing with banks, with careful scrutiny of practices ranging from debt collection to consumer credit reporting, attorneys say.

  • September 18, 2014

    Citibank Warns Of Fallout On Blocked Argentina Payment

    A New York federal judge’s refusal to let Citibank NA process an upcoming payment on $8.4 billion in Argentine sovereign debt has put a “gun to our head” and could land the bank under criminal prosecution in Argentina if allowed to stand, its attorney told the Second Circuit on Thursday.

  • September 18, 2014

    Morgan Lewis Beats Malpractice Suit Over $112M RE Deal

    A Pennsylvania appeals court on Thursday refused to revive a malpractice suit accusing Morgan Lewis & Bockius LLP of giving faulty financial advice that ultimately sank a $112.5 million real estate deal, ruling that a Philadelphia developer’s expert couldn’t use forward projections in his testimony.

  • September 18, 2014

    Fed Tightens Reins On Santander Unit After $52M Dividend

    The Federal Reserve said Thursday that it had taken enforcement action against Santander Holdings USA Inc., requiring the company to exercise stricter controls on capital distributions after a subsidiary issued an unauthorized $52 million dividend.

Expert Analysis

  • Reverse Due Diligence — A New Trend In Financial M&A

    Excerpt from Lexis Practice Advisor
    Elizabeth A. Raymond

    Concerns around regulatory uncertainty is starting to be reflected in the merger and acquisition process of specialty finance businesses, and some of the tactics of the immediate post-credit crisis period — selling assets and businesses quickly for a discounted price with no strings attached — are now less likely to pass muster, say Elizabeth Raymond and Jeffrey Taft of Mayer Brown LLP.

  • The EU General Court Gets A Rap On Its Knuckles

    James Webber

    In a case involving a French association of banking institutions, the EU Court of Justice severely reprimanded the General Court for its failure to properly analyze a restriction of competition "by object," thus reminding both the European Commission and the General Court that not all agreements between undertakings can be presumed to harm competition, say attorneys with Shearman & Sterling LLP.

  • Equity Cure Rights In Middle-Market Deals — A Primer

    Mark M. Oveson

    The equity cure right has gained significant acceptance in all ranges of the middle market for sponsor-backed deals, and lenders are adapting equity cure provisions for the middle-market risk profile by including tighter controls on the use of proceeds and limits on the borrower’s ability to exercise the cure right, say attorneys with Brownstein Hyatt Farber Schreck LLP.

  • Resurgence Of 'Negligent Loan Servicing' Theory In Calif.

    Luke Sosnicki

    California’s First District Court of Appeal recently doubled-down on its 2013 ruling in Jolley v. Chase Home Finance LLC, again holding that a residential mortgage servicer owed a borrower a duty of care when reviewing a loan-modification application. In doing so, however, the court did not address other — and perhaps more basic — questions, say Luke Sosnicki and Stephanie Yu of Dykema Gossett PLLC.

  • What The EU MasterCard Ruling Means For Banks, Retailers

    Irene Fraile

    The EU Court of Justice recently dismissed MasterCard Inc.’s final appeal against a 2007 antitrust infringement decision. This judgment finally puts an end to a seven-year legal battle over interbank card fees and will have a profound impact on banks, merchants and, ultimately, consumers, says Irene Fraile of Constantine Cannon LLP.

  • Scotland — The 'Succession Event' Question

    James Duncan

    A vote for an independent Scotland will have many consequences for the United Kingdom. Unsurprisingly, the implications for U.K. sovereign credit default swaps have not featured prominently in the public debate, say attorneys with Shearman & Sterling LLP.

  • The CFPB's 'UDAAPification' Of Consumer Protection Law

    Jonice G. Tucker

    The Consumer Financial Protection Bureau has significant latitude to pursue infractions it asserts are unfair, deceptive or abusive acts or practices, a pursuit it is now using to push its jurisdictional limits over perceived legal violations it might not otherwise have authority over, say Jonice Tucker and Aaron Mahler of BuckleySandler LLP.

  • Bandfield Confirms Aggressive FATCA Enforcement Tactics

    Miriam L. Fisher

    The scheme detailed in the U.S v. Robert Bandfield indictment follows a well-worn path of prior offshore financial frauds, but the prosecutors’ focus on the defendants’ alleged attempt to avoid compliance with the Foreign Account Tax Compliance Act sends a strong message to the global financial community, say Miriam Fisher and Brian McManus of Latham & Watkins LLP.

  • A Look At The New US And EU Sanctions On Russia

    Triplett Mackintosh

    While the latest U.S. and EU sanctions do not cut off entire sectors of the Russian economy, they come close, say attorneys with Holland & Hart LLP.

  • Next Possible CFPB Targets: Foreclosures And Law Firms

    Richard B. Benenson

    Currently, the Consumer Financial Protection Bureau stands at the threshold of a circuit split regarding the scope of the Fair Debt Collection Practices Act, with foreclosure entities — for now — enjoying an exemption from FDCPA enforcement, say Richard Benenson and Emily Renwick of Brownstein Hyatt Farber Schreck LLP.