Banking

  • January 27, 2015

    Oppenheimer Fined $20M Over Penny Stock Sales

    Oppenheimer & Co. will pay $20 million and admit wrongdoing to settle claims by the U.S. Securities and Exchange Commission and the anti-money laundering arm of the U.S. Department of Treasury that it broke laws when selling unregistered shares of penny stocks on behalf of customers, authorities said Tuesday.

  • January 26, 2015

    Caesars, Creditors Square Off Over Ch. 11 Venue

    The forum fight to determine which court will oversee the high-profile bankruptcy of Caesars Entertainment Corp.'s debt-laden operating arm kicked off on Monday, pitting creditors who want the Chapter 11 in Delaware against the casino company's desire to conduct the case in Illinois.

  • January 26, 2015

    Lehman Brothers Worker Battles For $84M Bonus

    A former Lehman Brothers Inc. employee has renewed his battle for an $84 million bonus from the failed brokerage, telling a New York bankruptcy judge on Friday that Barclays PLC, his next employer, didn’t cover any of what Lehman allegedly owed.

  • January 26, 2015

    Downey Financial Gets $370M Refund In FDIC Fight: 3rd Circ.

    A Third Circuit panel upheld a decision in favor of Downey Financial Corp.'s Chapter 7 trustee on Monday in a $370 million tax refund dispute with the Federal Deposit Insurance Corp., finding a tax sharing agreement with Downey’s subsidiaries ensured the funds are part of its bankruptcy estate.

  • January 26, 2015

    NJ Court Backs BofA Over Loan Modification Refusal

    New Jersey appellate judges on Friday upheld a summary judgment ruling allowing Bank of America to deny a mortgage modification to a couple who claimed they had a contractual right to modified terms, ruling that the homeowners' repeated lapses in payments breached their contract.

  • January 26, 2015

    LA Bank's Proposed $52M Merger Raises Shareholder Hackles

    Southern California-based Bank of Manhattan, in the midst of a proposed $52 million merger with Plaza Bank, has come under fire from a shareholder claiming the acquisition was designed to benefit the board of directors and shortchange virtually everyone else holding stock in the company.

  • January 26, 2015

    Ex-TD Bank VP Mired In Rothstein Fallout Cuts Deal With SEC

    A Florida federal judge on Monday approved a consent judgment against former TD Bank regional vice president Frank Spinosa, who was accused by the U.S. Securities and Exchange Commission of defrauding investors as part of attorney Scott Rothstein's $1.2 billion Ponzi scheme.

  • January 26, 2015

    SEC Backs Bharara In 2nd Circ. Insider Trading Appeal

    The U.S. Securities and Exchange Commission on Monday asked the Second Circuit for leave to file an amicus brief in Manhattan U.S. Attorney Preet Bharara's appeal for an en banc review of the landmark ruling that vacated the insider trading convictions of two hedge fund managers.

  • January 26, 2015

    FDIC Wants High Court To Nix $170M AmFin Tax Refund Row

    The Federal Deposit Insurance Corp. says that the U.S. Supreme Court should uphold a Sixth Circuit decision that rescinded a $170 million tax refund granted to the bankruptcy estate of AmFin Financial Corp. because of an ambiguity in the holding company’s tax-sharing agreement.

  • January 26, 2015

    Ocwen Rejects Hedge Funds' Bond Default Claims

    Ocwen Financial Corp.’s legal team fought back on Monday against “wildly false” accusations from hedge funds that took the unusual step of publicly calling defaults on $9 billion in bonds they say have suffered from the embattled mortgage giant’s faulty loan servicing.

  • January 26, 2015

    Visa Contends Its Stiffer Merchant Fees Breed Competition

    Visa Inc. asked a Texas federal judge to throw out Pulse Network LLC’s antitrust suit for failing to state any claims that show Visa holds a monopoly on a network of debit services, arguing Friday that its fee increases are in fact competitive.

  • January 26, 2015

    Mayer Brown DQ'd From Representing HSBC In MBS Row

    A Minnesota federal judge has disqualified Mayer Brown LLP from defending HSBC Finance Corp. in a lawsuit brought by Residential Capital LLC successor Residential Funding Co. LLC over alleged defective mortgage-backed securities, on the grounds that Mayer Brown had a conflict of interest as ResCap's former counsel.

  • January 26, 2015

    South Beach Hotel Owner Protests Foreclosure Sanctions

    The owner of the iconic The Shore Club Hotel in Miami's South Beach told the U.S. Supreme Court last week that a sanction dismissing its pleadings and resulting in a default judgment in a $164 million state foreclosure action were imposed as a penalty rather than to compensate for resulting prejudice and violated its constitutional due process rights.

  • January 26, 2015

    OCC Won't Issue Anti-Money Laundering Recommendations

    Office of the Comptroller of the Currency examiners will no longer make recommendations on how banks can better comply with anti-money laundering regulations, raising all such problems to a level that could see enforcement actions if they are not fixed, a top agency official said Monday.

  • January 26, 2015

    Libor Investors Seek OK To Join 2nd Circ. Antitrust Appeal

    Two groups of investors asked a New York federal judge Friday to let them join an appeal challenging the dismissal of the antitrust claims from multidistrict litigation over Libor manipulation in the wake of the U.S. Supreme Court's decision that the Second Circuit must hear the case.

  • January 26, 2015

    Russia Faces More US Sanctions As Ukraine Violence Mounts

    A top U.S. Department of the Treasury official said Monday that more targeted sanctions could be coming against Russia amidst a recent escalation in violence in eastern Ukraine that the West says is backed by the Russian military.

  • January 23, 2015

    Ocwen Shells Out $2.5M To Keep Calif. Mortgage License

    An Ocwen Financial Corp. unit on Friday agreed to pay $2.5 million to a California regulator for failing to provide documentation showing it was complying with state laws protecting mortgage holders.

  • January 23, 2015

    11th Circ. Upholds Release For FFS Owner In Ch. 11 Plan

    The Eleventh Circuit on Friday upheld a lower court’s decision that IberiaBank Corp.’s claim against the owner of foreclosure listing company FFS Data Inc. over a $10.6 million loan was released by its Chapter 11 plan, ruling the bankruptcy court correctly denied the bank’s bid to negate the release.

  • January 23, 2015

    JPMorgan Accused Of Futures Manipulation In $25M Suit

    Hedge fund manager Daniel Shak on Thursday commenced a lawsuit in New York against JPMorgan Chase & Co. accusing the lender of manipulating the silver futures market at the expense of other traders and seeking at least $25 million in damages.

  • January 23, 2015

    FDIC Can Recover Up To $15.2M From Integra's Insurer

    An Indiana federal judge said Thursday that the Federal Deposit Insurance Corp., as receiver for Integra Bank NA, can recover up to $15.2 million from Fidelity and Deposit Co. of Maryland in a suit seeking coverage for losses from loans to Ponzi schemer Lou Pearlman.

Expert Analysis

  • Invoice Intercepted: A New Form Of Wire Fraud

    Jeffrey Rosenfeld

    A new scam has arisen in a sordid line of wire fraud scams. What makes this email scheme particularly pernicious is that the victims often do not realize they have been scammed out of thousands of dollars until days, if not weeks, after the scam has occurred, after they have lost their money, and after the perpetrator is long gone, says Jeffrey Rosenfeld of Kronenberger Rosenfeld LLP.

  • Jesinoski Presents Lenders With Difficult Questions

    Scott A. King

    In Jesinoski v. Countrywide Home Loans Inc., the U.S. Supreme Court broadly read the Truth in Lending Act’s rescission rights and will force lenders to make difficult decisions on requests to rescind a loan made years after it was funded, say Scott King and Richard Freshwater of Thompson Hine LLP.

  • To Err Is Costly: Why 2nd Circ. Enforced Faulty UCC Filing

    Mitchell P. Portnoy

    The Second Circuit last week declined to save a secured creditor who, as part of the termination of a $300 million General Motors financing, mistakenly also permitted the filing of a UCC3 termination statement pertaining to $1.5 billion in unrelated secured debt. The Second Circuit’s decision is not surprising, given long-standing case law, nor would the doctrine of mutual mistake help the bank, say attorneys with Troutman Sanders LLP.

  • Once More Unto The Breach — Rehearing In Newman?

    Eugene Ingoglia

    On Friday, the U.S. Attorney’s Office for the Southern District of New York decided to seek appellate review of several aspects of the recent insider-trading decision in U.S. v. Newman and Chiasson. En banc rehearing petitions are rarely granted in any circuit, and are particularly rare in the Second Circuit, which hears the fewest number of rehearings of any circuit in the country, say Eugene Ingoglia and Gregory Morvillo of Morvillo LLP.

  • China's Draft Foreign Investment Guidance Is Encouraging

    Woon-Wah Siu

    The draft of China's new Foreign Investment Guidance Catalogue lifts restrictions on foreign investment in dozens of service and general manufacture industries and would relax Chinese ownership requirements. Although foreign investors still would have to operate in some of these industries through Sino-foreign joint ventures, control by the Chinese partners would no longer be required, say Woon-Wah Siu and Liang Tao of Pillsbury Wi... (continued)

  • A Data Security Checklist For Companies Hiring Law Firms

    Jenn Topper

    We trust our law firms with huge amounts of data, whether in or out of discovery, investigations or litigation. All too often, we have relied on privilege, confidentiality and attorney ethics as a proxy for data protection and information security. But in fact, law firms ought to be held to a much more stringent standard — and in-house counsel would be wise to begin with a number of specific inquiries, says legal industry consultan... (continued)

  • DOD Credit Rule May Limit Lending To Service Members

    Leonard N. Chanin

    With the U.S. Department of Defense's comment period regarding proposed changes to the way it intends to apply the Military Lending Act to new types of creditors and credit products now closed, harsh results from violating the MLA are likely to give lenders pause when providing credit to covered persons and could result in a negative impact on lending to service members and their families, say Leonard Chanin and Ryan Rogers of Morr... (continued)

  • Gelboim Does Little To Limit MDL Court Appeals Discretion

    Adam T. Schramek

    While the U.S. Supreme Court’s Gelboim v. Bank of America ruling is an important one in multidistrict litigation jurisprudence, it ultimately does little to impinge on the wide discretion MDL courts have in deciding what gets appealed and when. District courts continue to possess the tools needed to avoid final judgments during pretrial MDL proceedings, say Adam Schramek and Eric Hoffman of Norton Rose Fulbright US LLP.

  • FSOC At It Again, Places Asset Managers In Its Crosshairs

    Jay G. Baris

    In seeking comment on potential risks to the U.S. financial system created by asset managers including investment advisers, insurance companies and private funds, the Financial Stability Oversight Council again places these institutions in its crosshairs, but the FSOC’s latest effort to explore the issue through crowdsourcing should not be ignored, say Jay Baris and Oliver Ireland of Morrison & Foerster LLP.

  • Can Consumers Waive Right To Revoke Consent Under TCPA?

    Amy Pierce

    Most authorities and courts agree that, under the Telephone Consumer Protection Act, consumers have the right to revoke previously given consent to be called using an autodialer or prerecorded message. More recently, however, courts have been asked to decide whether a consumer is permitted to revoke this consent where it was previously given as part of an independent contractual arrangement, say attorneys with Pillsbury Winthrop Shaw Pittman LLP.