Banking

  • July 29, 2015

    Texas Urges 5th Circ. To Uphold Credit Card Surcharge Law

    Texas on Tuesday urged the Fifth Circuit to affirm a federal judge's determination that the state's anti-surcharge law regulates only the prices of consumer goods, which it says is an economic activity within the state's police power that doesn’t implicate merchants' First Amendment rights.

  • July 29, 2015

    Philly Mobster Gets 30 Years For $12M Extortion Scheme

    Another Lucchese crime family member convicted by a federal jury in New Jersey on racketeering and fraud charges for his role in a $12 million extortion takeover that forced a Texas mortgage lender into bankruptcy was sentenced to 30 years in prison Tuesday, the Department of Justice announced.

  • July 29, 2015

    Investors Hit 24 Banks With Market Manipulation Class Action

    Nearly 25 financial institutions, including Barclays Capital Inc., Goldman Sachs & Co. and UBS Securities LLC were hit with a proposed class action by investors in New York federal court on Tuesday, a suit that claims they colluded to manipulate the U.S. Treasury securities market.

  • July 29, 2015

    CFTC Urges 11th Circ. To Affirm Ponzi Funder's Judgment

    A Georgia man who allegedly funneled investor cash into a $13.5 million Ponzi scheme cannot escape a federal court’s summary judgment against him simply by saying he didn’t know he was contributing to a fraud, the U.S. Commodity Futures Trading Commission told the Eleventh Circuit on Wednesday.

  • July 29, 2015

    Feds Held Liable For Mismanaging Tribe Members' Money

    The U.S. Court of Federal Claims said Tuesday that members of an Oklahoma tribe could recover lost profits from the U.S. government for the mismanagement of their trust accounts prior to the passage of a 1994 law, saying the Bureau of Indian Affairs had a decades-old obligation to invest Native Americans’ trust money prudently.

  • July 29, 2015

    US Must Curb Spending Or End Up Like Greece, Expert Says

    Though the U.S. economy dwarfs Greece's, lessons from the Greek financial crisis show that the U.S. needs to rein in debt and spending to avoid becoming mired in a perpetually sluggish economy, an expert told a Senate panel Wednesday.

  • July 29, 2015

    House GOP Signals Customs Bill Will Slip Past Recess

    House Ways and Means Committee Chairman Paul Ryan, R-Wis., said Wednesday that a bicameral conference to settle differences between two versions of a customs enforcement bill, including on currency manipulation and duty evasion, will have to wait until after the August legislative recess.

  • July 29, 2015

    House Panel Votes To Cancel Fannie, Freddie CEO Pay Raise

    The House Financial Services Committee on Wednesday voted nearly unanimously to cap the compensation for Fannie Mae and Freddie Mac’s top executives after the Federal Housing Finance Agency approved large pay increases earlier this year.

  • July 29, 2015

    Morgan Stanley Owes $2.5M Over Trader Supervision

    A Financial Industry Regulatory Authority arbitration panel has awarded $2.5 million to a group of physicians who claim their Morgan Stanley & Co. Inc. trader in Jackson, Mississippi, was able to commit unauthorized trades and falsify business returns because of a lack of supervision.

  • July 29, 2015

    AmEx Class Says Atty Doc Sharing Doesn't Hinder MDL Deal

    Gary Friedman of Friedman Law Group LLP and two other class plaintiff attorneys in the American Express anti-steering antitrust multidistrict litigation told a New York federal court Wednesday that the recently disclosed communications between Friedman and a now-indicted former MasterCard attorney should have no bearing on the proposed settlement.

  • July 29, 2015

    Feds Want AIG, Prudential, GE Capital To Improve Living Wills

    Federal regulators on Tuesday told American International Group Inc., Prudential Financial Inc. and General Electric Capital Corp. to make improvements that will better show how to take them apart without endangering the broader financial system should they fail.

  • July 29, 2015

    Filed Rate Doctrine Axes Kickback Claims, Mortgage Cos. Say

    A recent Second Circuit decision invoking the filed rate doctrine is fatal to two suits claiming mortgage servicers accepted kickbacks from insurers in exchange for requiring customers to buy force-placed insurance, a New York federal judge was told Tuesday.

  • July 29, 2015

    Accountants 'Conspired' With Madoff To Fool SEC: Trustee

    The liquidating trustee of Bernie Madoff's phony investment firm told a New York bankruptcy judge Wednesday that two accountants targeted in a $900 million clawback suit “conspired” with Madoff to conceal the fraud when the U.S. Securities and Exchange Commission came knocking in the early 1990s.

  • July 29, 2015

    US Exchanges Say Dodd-Frank Delays Drive Away Business

    U.S. derivatives exchanges told a congressional committee Wednesday that they're losing business to their European counterparts because the implementation of the five-year-old Dodd-Frank Act has so far failed to match a G-20 push to align international financial regulations.

  • July 29, 2015

    FDIC Backstop Needed For Failing Banks, Experts Say

    Bankruptcy and restructuring experts told a Senate panel Wednesday that retaining the Federal Deposit Insurance Corp.’s power to unwind a global financial firm was vital even if lawmakers change the Bankruptcy Code to make wind-downs through a court process easier.

  • July 28, 2015

    NFL Players Suing BB&T For $53M Get Their Ranks Cut

    What started as a group of 16 National Football League players who brought a $53 million suit against Branch Banking and Trust Co. over unauthorized transactions is down to six plaintiffs after a Florida federal judge ruled for the bank Monday on breach of contract claims.

  • July 28, 2015

    2nd Circ. Affirms Convictions In $21M Fraud Case

    The Second Circuit has affirmed the sentences of former GDC Acquisitions LLC CFO Rodney Watts and CEO Courtney Dupree in a $21 million bank fraud, saying Tuesday that their arguments were weak.

  • July 28, 2015

    Watchdog Fines RBC, KCG For Mass Trade Reporting Errors

    RBC Capital Markets LLC and KCG Americas LLC have joined a Goldman Sachs unit in paying the Financial Industry Regulatory Authority large fines for allegedly failing to accurately report billions of order events to the regulator, according to newly released documents.

  • July 28, 2015

    Creditors Fight Bad Faith Ruling In Involuntary Bankruptcy

    DVI Financial Services Inc. and US Bank NA urged the Eleventh Circuit to vacate a Florida jury verdict finding the companies liable for filing a bad faith bankruptcy petition, arguing Monday that the debtor failed to show they acted maliciously.

  • July 28, 2015

    TD Bank Scores Partial Win Over Ex-Commerce CEO’s Book

    A New Jersey federal judge on Monday handed TD Bank NA a partial win in its copyright infringement suit against Commerce Bancorp LLC founder Vernon Hill, saying Hill’s 2012 book lifted verbatim entire paragraphs from an earlier manuscript written by Hill, but owned by TD Bank.

Expert Analysis

  • DC Circ. Dodd-Frank Ruling May Help Against CFPB Sanctions

    Jennifer L. Sutton

    Much like the U.S. Securities and Exchange Commission bar at issue in SEC v. Koch, a number of the Consumer Financial Protection Bureau’s enforcement actions address violations premised on conduct that, at least in part, predates Dodd-Frank. The D.C. Circuit’s ruling in Koch rejecting retroactive Dodd-Frank application could provide a basis for institutions to object to certain CFPB sanctions, say attorneys with Sullivan & Cromwell LLP.

  • Understanding Pre-Award Interest Rates In Arbitration

    Dan Harris

    Pre-award interest rates in international arbitration can lead to very significant differences in final award amounts, yet the debates on interest often reveal misunderstandings about the economic fundamentals, say principals of The Brattle Group Inc.

  • Fracking Risks To Secured Oil And Gas Lenders

    Matthew D. Clark

    The biggest legal and regulatory challenges for oil and gas industry participants and their lenders relate to the hot-button issue of hydraulic fracturing, where a number of recent developments put credit risk front and center. A lender could easily find itself with a borrower unable to pay and collateral that evaporated, say Matthew Clark and Colin Deihl of Faegre Baker Daniels LLP.

  • The Proposed Best Interest Contract Exemption: Part 3

    Susan Krawczyk

    Some broker-dealers may choose to develop a separate customer platform for retirement investor accounts in order to comply with the U.S. Department of Labor's proposed best interest contract exemption, rather than subject all of their retail customer accounts to the same rules. The more formidable challenge, though, will likely be the fee and compensation disclosure requirements, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Mass. Has New Requirements For Foreclosing Mortgagees

    Darian Butcher

    Massachusetts law regarding which terms of a mortgage require strict compliance in order for a mortgagee to validly exercise its power of sale continues to develop. In a recent decision, the state high court acknowledged that its jurisprudence on this point has “taken a more flexible approach,” say attorneys with Day Pitney LLP.

  • The Proposed Best Interest Contract Exemption: Part 2

    Susan Krawczyk

    In light of the U.S. Department of Labor's proposed best interest contract exemption guidance, a broker-dealer might decide to exclude transactions in retirement investor accounts from incentive or bonus programs offered to its brokers, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Mid-2015 Restructuring Review: Europe And Emerging Markets

    Stephen Phillips

    Opportunities for distressed debt funds to buy attractively priced distressed corporate assets have been few and far between in recent terms, but do not expect activity levels to be quiet forever. One market that funds have been eyeing closely is Italy, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • This Week In Congress: Continuing Resolution Looms

    Richard A. Hertling

    Highway funding remains at an impasse this week, as House and Senate debates continue. Iran also remains a major focus, with only 60 days for Congress to review the nuclear agreement reached earlier this month. Meanwhile congressional leaders have finally acknowledged what has been clear all along — efforts to fund the government past Sept. 30 have failed, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • REBUTTAL: The Problem With 3rd-Party Litigation Financing

    Lisa Rickard

    Manipulating gender disparity in the service of hawking a flawed investment product does nothing but trivialize a serious and important issue. The tortured logic in Burford Capital LLC’s recent plug for third-party litigation financing is nothing more than a marketing ploy to boost revenues, says Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform.

  • The Proposed Best Interest Contract Exemption: Part 1

    Susan S. Krawczyk

    A closer look at the U.S. Department of Labor's proposed best interest contract exemption for financial institutions and their advisers reveals that the elements are very different from existing requirements. Proposed transaction fee and cost requirements not only conflict with existing broker-dealer rules but also would require an operational platform that does not currently exist, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.