Banking

  • April 24, 2015

    SEC Alleges Farm Loan Scam, Freezes Investment Co's Assets

    A $160 million Indiana investment company's assets are frozen after the SEC accused the company Wednesday of grossly misleading clients about the actual uses of $15 million raised to provide operating funds for farmers.

  • April 24, 2015

    Class Action Over Barclays 'Dark Pool' Moves Forward

    A New York federal judge didn't toss but did trim a securities class action Friday accusing Barclays PLC and its executives of covering up, and even encouraging, aggressive high-frequency trading practices in an off-exchange “dark pool.”

  • April 24, 2015

    ResCap Slams Cadence Bank's Attempt To Exit Mortgage Suit

    Residential Capital LLC's liquidating trust urged a Minnesota federal judge Thursday not to dismiss its suit against Cadence Bank NA over financial harm that occurred when Cadence sold it 35,000 residential mortgages, many of which it says were toxic.

  • April 24, 2015

    Jury In Goldman IP Trial Mired In Confusion Over Obscure Law

    The jury in the trial of a former Goldman Sachs Group Inc. programmer accused of stealing computer code for the bank’s high-frequency trading platform was unable to reach a verdict Friday, despite more than two days of deliberations, and appeared perplexed by the charges.

  • April 24, 2015

    Morgan Stanley Wanted A Dark Pool 'Feast,' Suit Says

    A company formed to create the intellectual property behind an off-exchange spread trading system has filed suit in New York state court accusing Morgan Stanley & Co. LLC. of fraud and breaching contracts in a dispute stemming from the investment firm’s alleged refusal to protect institutional investors from high-frequency traders.

  • April 24, 2015

    Lynch’s Skills Could Help Mend DOJ Rift With Lawmakers

    Incoming U.S. Attorney General Loretta Lynch is unlikely to make radical changes to the Justice Department's focus on issues such as cyber- and financial crime, but her strong relationship-building skills could still help mend a rift between Congress and the DOJ, former colleagues say.

  • April 24, 2015

    High Court Urged To Hear Suit Over Student Loan Servicing

    A California attorney defending himself in a battle over $35,000 in student loans is urging the Supreme Court to take up the case, saying the loan service providers’ “dirty little secret” of inflating debt must be exposed.

  • April 24, 2015

    PREPA Creditors Fed Up With Restructuring Tug-Of-War

    After months of radio silence, the Puerto Rico Electric Power Authority’s wrangling with well-heeled hedge funds spilled into an unusual public war of words that underscores creditor impatience with restructuring negotiations unfolding outside of a binding legal framework.

  • April 24, 2015

    Jurisdiction Is Solid In Tribal Foreclosure Row, Gov't Says

    The U.S. fought the Oglala Sioux Tribe's bid to dismiss a mortgage disclosure complaint against two leaseholders of tribal trust land, arguing Friday that the government’s purported failure to offer to transfer the mortgage to tribal entities didn't deprive the court of jurisdiction.

  • April 24, 2015

    US Bank Settles Suit Over Force-Placed Flood Insurance

    A California federal judge on Thursday granted preliminary approval to a class action settlement between U.S. Bank NA, American Security Insurance Co. and plaintiffs who claim the bank charged homeowners lender-placed flood insurance rates inflated by kickbacks and policy backdating.

  • April 24, 2015

    HUD Aims To Delay Foreclosures In Mortgage Sales

    The U.S. Department of Housing and Urban Development on Friday said that it would require mortgage servicers that purchase nonperforming home loans to delay foreclosure for one year and take other measures to keep people in their homes.

  • April 24, 2015

    Calif. Fast Food Mogul Charged With $20M Loan Fraud

    A federal grand jury hit a California property developer with a 21-count indictment Thursday accusing the former owner of dozens of fast food franchises of defrauding banks of more than $20 million in overinflated commercial loans.

  • April 24, 2015

    Davis Polk Advises Morgan Stanley On $2B Notes Offering

    Davis Polk & Wardwell LLP guided Morgan Stanley on a $2 billion note offering that marked the investment bank's latest bid to tap debt markets amid historically low rates through an issue aided by 21 underwriters, the firm said Friday.

  • April 24, 2015

    TIAA Henderson Scores $607M Debt Deal

    TIAA Henderson Real Estate has scored £400 million ($607 million) in debt financing on behalf of its U.K. retail fund from a consortium led by Well Fargo & Co., TIAA Henderson announced on Friday.

  • April 24, 2015

    PTAB Nixes Intellectual Ventures Website Patent Under Alice

    The Patent Trial and Appeal Board on Friday ruled that a web-related business method patent that patent aggregator Intellectual Ventures Management LLC asserted against Bank of America NA and PNC Bank NA was invalid under the high court’s Alice standard on abstract inventions.

  • April 24, 2015

    German Watchdog Winding Down Deutsche Bank Libor Probe

    Germany’s financial regulator will complete its investigation into alleged manipulation of the London Interbank Offered Rate and other key benchmarks by Deutsche Bank AG traders by the end of June, according to media reports.

  • April 24, 2015

    Feds Slam Ex-BankAtlantic CEO's New Trial Bid

    Federal prosecutors on Thursday slammed former BankAtlantic Bancorp Inc. CEO Alan Levan’s argument that a Florida district court should reconsider his case in light of the U.S. Supreme Court’s Omnicare decision, saying the decision does not alter the legal landscape under which he was found to have misled investors.

  • April 23, 2015

    JPMorgan Investor's Bid Axed For 'London Whale,' RMBS Docs

    A Delaware Chancery judge on Thursday rejected a JPMorgan Chase & Co. shareholder's request for books and records relating to the bank's residential mortgage-backed securities operations and “London Whale” trading fiasco, finding the action was barred by the failure of suits brought by other investors.

  • April 23, 2015

    Cyber Sharing Bills Head To Senate On Stronger Footing

    The U.S. House of Representatives gained substantial bipartisan support for a pair of recently passed cybersecurity information-sharing bills by beefing up privacy protections and more clearly defining the scope of liability, but further enhancements to the provisions — including a narrower definition of what constitutes a cyberthreat — are likely to be necessary for the legislation to pass in the Senate, where it has previously stalled.

  • April 23, 2015

    DC Court Keeps Native American Class Reps In USDA Suit

    A D.C. federal judge on Thursday rejected a bid to remove two Native American class representatives in a suit over discrimination by the U.S. Department of Agriculture’s farm loan program, saying the effort came too late and the class members making the request didn’t have a right to $380 million in unclaimed settlement funds.

Expert Analysis

  • 5 Issues Financial Services Industry Employers Must Face

    John F. Fullerton III

    Employers in the financial services industry face a growing number of employment law challenges, among them being whistleblower complaints on the heels of more aggressive action from regulatory agencies, a more unpredictable arbitration process courtesy of the Financial Industry Regulatory Authority and labyrinth-like immigration hurdles, say attorneys at Epstein Becker & Green PC.

  • Court Has Broad Authority Over Assets To Satisfy Restitution

    Daniel W. Levy

    The Second Circuit recently affirmed the government’s sweeping authority over a defendant’s assets in the face of unpaid restitution obligations. This authority includes the power to restrain assets prior to the entry of a restitution order, and — as exemplified by U.S. v. Bengis — this authority extends to assets held overseas, says Daniel W. Levy, a principal at McKool Smith PC and former federal prosecutor.

  • BSI Provides Road Map For Future Swiss Bank Agreements

    Matthew D. Lee

    The BSI SA nonprosecution agreement is the first public declaration of how the U.S. Department of Justice will treat banks looking to resolve their potential tax evasion-related criminal liabilities. Swiss banks that fail to make the kind of full and complete disclosures that BSI appears to have made do so at their peril, says Matthew Lee, partner at Blank Rome LLP and a former DOJ trial attorney.

  • NJ Borrowers Under HAMP May Pursue State Law Claims

    Wayne Streibich

    The New Jersey Appellate court recently held that the language of a Home Affordable Modification Program trial period plan or forbearance agreement may require a lender to modify the loan if a borrower complies with its terms, which qualifies the long-standing principle that a borrower does not have a right to a loan modification and a lender is not required to offer one, say attorneys from Blank Rome LLP.

  • A New Tool For Extraterritorial Sanctions Enforcement

    Christopher LaVigne

    Recent sanctions enforcement actions have focused on overseas financial institutions and U.S. dollar clearing and associated “stripping.” The Schlumberger Oilfield Holdings Ltd. case, however, reflects a break from this trend. Relying on a theory of “facilitation,” the U.S. Department of Justice dramatically expanded the scope of prior criminal enforcement actions in this arena, say Christopher LaVigne and Danforth Newcomb of Shear... (continued)

  • NY Financial Compliance Landscape May Get Treacherous

    Michael H. Huneke

    The Dodd-Frank Act whistleblower program has garnered much attention, but a less-noticed New York financial fraud whistleblower proposal could likewise have a significant impact, because New York regulators and enforcement agencies have been very active in bringing some of the largest investigations and enforcement actions in the financial sector, say John Wood and Michael Huneke of Hughes Hubbard & Reed LLP.

  • Class And Collective Actions In A Post-Dukes World

    Geoffrey C. Westbrook

    Citibank NA v. Ruiz represents a growing movement among federal courts after the U.S. Supreme Court's ruling in Wal-Mart Stores Inc. v. Dukes seeking to bridge the analytical differences between class and collective actions. One result of this trend is a greater uniformity in wage-and-hour decisions based on parallel theories, says Geoffrey Westbrook of Seyfarth Shaw LLP.

  • CFPB's Consumer Database Could Prove Counterproductive

    Gerald S. Sachs

    The Consumer Financial Protection Bureau's minimal procedures for verifying the accuracy of information alleged in complaints on its consumer database and the limited opportunity afforded to providers to respond may compromise the CFPB's efforts in enabling consumers to make informed decisions and identify trends in the consumer financial market, say attorneys at Paul Hastings LLP.

  • Inside Florida's Mortgage Lender Licensing Law

    Howard Allen Cohen

    It can be hard to tell what is or is not covered by Florida's complicated mortgage licensing law. Buchanan Ingersoll & Rooney PC's Howard Allen Cohen explains the ambiguities of the law and the ways in which it intersects with the federal SAFE act.

  • A Look At The 1st Criminal 'Spoofing' Prosecution: Part 2

    Clifford C. Histed

    Given a recent decision in the first “spoofing” criminal case involving futures trader Michael Coscia, as well as recent regulatory guidance, it is fair to say that there is now a regulatory dragnet set for spoofers. One of the most effective ways rule enforcers prove intent is through the use of a trader’s own admissions, says Clifford Histed, partner at K&L Gates LLP and former federal prosecutor who supervised the investigation ... (continued)