Banking

  • August 23, 2016

    Shareholder Can’t Inspect Freddie Mac Records, Judge Says

    A Virginia federal judge on Tuesday dismissed a suit brought by a Freddie Mac shareholder seeking to inspect its corporate records, saying that right was lost when the Federal Housing Finance Agency took over conservatorship of the home loan agency during the 2008 housing crisis.

  • August 23, 2016

    RI, Banks Strike $25M Deal In Row Over MLB Star's Start-Up

    Rhode Island's economic development agency has entered into a $25.6 million dollar settlement with Wells Fargo Securities LLC and Barclays Capital Inc. in exchange for dropping claims against the banks over a financing deal for a now-defunct video game company started by a former Major League Baseball star.

  • August 23, 2016

    Credit Suisse, Others Freed From ERISA-Tied Forex Suit

    Credit Suisse, Deutsche Bank and Morgan Stanley escaped a proposed class action accusing them of violating the Employee Retirement Income Security Act with deals tied to alleged rigging of the foreign exchange market when a New York judge ruled Tuesday the banks didn’t have a say in the plans’ investments.

  • August 23, 2016

    MetLife Gets Support In DC Circ. Appeal Over SIFI Label

    State insurance regulators, the Chamber of Commerce and other organizations threw their support behind MetLife on Monday, urging the D.C. Circuit to uphold a lower court’s ruling axing the insurance giant’s designation as a systemically important financial institution whose collapse could threaten the U.S. economy.

  • August 23, 2016

    GE Account In Class Share Flip Fight Called 'Unsatisfying'

    Some General Electric Co. explanations for a multistep, $5 billion stock conversion that saw investors unknowingly sell off holdings and lose appeal rights just before company actions that restored their share’s eroded values appear “unsatisfying,” a Delaware vice chancellor said Tuesday.

  • August 23, 2016

    Biz Groups Dispute Gov’t Claim In $234M Foreign Tax Suit

    Business groups and a public interest law firm urged the First Circuit on Monday to reject the federal government’s interpretation of an economic substance doctrine in a $234 million foreign tax credits dispute, saying that the government’s meaning could lead to double taxation.

  • August 23, 2016

    Natixis Says Suit Over $400M In RMBS Losses Is Too Late

    Natixis Real Estate Holdings LLC asked a New York state judge Tuesday to toss a suit by IXIS Real Estate Capital Trust, saying the statute of limitation has expired on the claim that Natixis refused to buy back defective loans it had pooled into residential mortgage-backed securities after they lost almost $400 million in value.

  • August 23, 2016

    2nd Circ. Rebuffs Lynn Tilton Again On SEC In-House Fight

    The Second Circuit on Tuesday refused to rehear private equity magnate Lynn Tilton’s challenge to the constitutionality of the U.S. Securities and Exchange Commission’s administrative court proceedings.

  • August 23, 2016

    2nd Circ. Declines To Stay $542M Triaxx CDO Default Sale

    The Second Circuit refused Tuesday to stay a New York federal judge's order requiring the sale of $542 million of defaulted residential mortgage-backed securities in a $2.7 billion Triaxx collateralized debt obligation, denying junior noteholder Goldentree Asset Management's bid to halt what it called a fire sale that would wipe out its investment.

  • August 23, 2016

    Ex-College Athlete Can't Bring FCA Claims, 5th Circ. Told

    A former University of Northern Texas student-athlete’s claim he was wrongfully issued loans are both barred by time and the law, the state told the Fifth Circuit on Monday.

  • August 23, 2016

    5th Circ. Won't Order $6M Ponzi Clawback From Golf Channel

    The Fifth Circuit on Tuesday declined to overturn a lower court’s finding that refused to allow a clawback of $5.9 million paid to the Golf Channel Inc. from now-convicted Ponzi schemer Robert Allen Stanford's businesses, after receiving guidance from the Supreme Court of Texas.

  • August 23, 2016

    Real Estate Rumors: Wurzak, MarketAxess, Newmark

    A venture of Wurzak Hotel Group and DoveHill is said to have scored $56.1 million in financing for a Florida hotel project, securities trading platform MarketAxess has reportedly leased 83,000 square feet at 55 Hudson Yards in New York and Newmark Holdings is said to have received $30 million in refinancing for a New York building.

  • August 23, 2016

    Sanctions Denied On Tribe's Payday Lender Partners

    A Vermont federal judge on Monday rejected a bid by borrowers pursuing a proposed class action that levels Racketeer Influenced and Corrupt Organizations Act claims against affiliates of Chippewa Cree payday lender Plain Green LLC for sanctions against two of the companies.

  • August 23, 2016

    Wendy's Seeks To Exit Data Breach Aftermath Suit

    Wendy’s asked a Pennsylvania federal judge on Monday to dismiss a class action aimed at recouping costs borne by financial institutions after customer payment data was stolen from the fast-food giant.

  • August 22, 2016

    GOP Senator Calls For Iran Payment Hearing

    Sen. Mark Kirk, R-Ill., on Sunday pledged to investigate the $400 million the Obama administration paid to Iran in January, which coincided with the release of three American prisoners.

  • August 22, 2016

    Bank Of America To Pay $1.9M To Settle Calif. OT Claims

    Bank of America NA reached a settlement for $1.9 million with a class of 100 employees in California federal court on Monday, potentially putting an end to a case filed last fall over customer service representatives getting shorted on pay.

  • August 22, 2016

    BofA Collection Firm Unjustly Enriched By Suits: Consumer

    A consumer accusing Bank of America NA and collections law firm Blatt Hasenmiller Leibsker & Moore of improperly suing credit card owners over unpaid debt urged a Pennsylvania federal judge Monday not to grant the firm's request for claims against it to be dropped, saying its lawyers were unjustly enriched by the financial giant’s scheme.

  • August 22, 2016

    Wells Fargo Pays $4M To End CFPB Student Loan Action

    Wells Fargo has agreed to pay $4 million to end a Consumer Financial Protection Bureau action over the bank's alleged practice of unfairly penalizing borrowers of private student loans, the agency said Monday.

  • August 22, 2016

    3rd Circ. Upholds Dismissal Of FINRA Arbitration Suit

    A “drive-by jurisdictional ruling” in a footnote to an earlier decision in the Third Circuit is not binding on district courts and does not allow the lower courts to “look through” a motion to vacate an arbitration award to examine the underlying subject matter, the appeals court ruled Monday.

  • August 22, 2016

    Calif. Investment Firm Stuck In FCRA Row, Equifax Escapes

    A California federal judge declared Monday that Armored Investment Group and two of its principals can be sued in a putative class action alleging they illegally bought consumer reports from Datamyx LLC, which was selling them on behalf of Equifax Information Services LLC, but dismissed the latter two from the case.

Expert Analysis

  • A Debt Collection Overhaul Is Upon Us

    Steven M. Kaplan

    The Consumer Financial Protection Bureau recently released an outline of proposals that offers some insight on its plans for issuing rules under the Fair Debt Collection Practices Act. The proposed rules would require significant changes to how industry participants collect on, buy, sell and place debts, and would have a significant impact on how consumers interact with debt collectors, say attorneys at Mayer Brown LLP.

  • From BigLaw To Your Own Firm: 4 Tips For Legal Startups

    Russell Shinsky

    Highly successful attorneys who are thinking about leaving the safe haven of a large law firm to go out on their own face a number of issues specific to the legal profession. Russell Shinsky, chairman of Anchin Block & Anchin LLP's law firms industry group, shares four pillars of a successful startup law firm.

  • 4 Ways SBA Lenders Can Avoid FCA Traps

    Steven M. Kaufmann

    Recent False Claims Act enforcement as applied to Small Business Administration lenders presents a number of themes that can provide insight into strategies for lenders to mitigate their risk, says Steven Kaufmann of Morrison & Foerster LLP.

  • Energy Finance Attys Are Shifting Focus In Tough Times

    Kraig Grahmann

    In the boom years of 2011 through 2014, energy lenders were directing their attorneys to “loosen up” credit agreements. Today’s distressed environment has seen lenders and their attorneys turn 180 degrees to shift their focus to a range of new issues, say Kraig Grahmann and Buddy Clark of Haynes and Boone LLP.

  • 4 Communications Fundamentals For High-Stakes Litigation

    Michael J. Gross

    The court of public opinion can mete out judgments as harsh as those rendered by a court of law, which is why communications professionals and attorneys should be working together to protect their clients’ reputation and advance their legal objectives as litigation proceeds, as well as when decisions or settlements are reached, say Michael Gross and Walter Montgomery at Finsbury.

  • Impact Of Pay-To-Play Rules In 2016 Election Cycle

    Clifford J. Alexander

    Vice presidential candidate Mike Pence’s authority over the Indiana Public Retirement System and the Indiana Education Savings Authority as governor of Indiana may limit political contributions to the Donald Trump presidential campaign from a wide spectrum of financial institutions. Investment advisers, brokers, dealers and municipal advisers, among others, are potentially affected, say attorneys with K&L Gates LLP.

  • High Court Inclusive Communities Ruling: 1 Year Later

    Franca Harris Gutierrez

    The U.S. Supreme Court’s recognition of disparate impact liability in Texas Department of Housing and Community Affairs v. Inclusive Communities Project last summer was consistent with the position long held by federal regulators. As the impact of Inclusive Communities continues to make its way through the courts and regulatory enforcement, two ongoing developments are worth highlighting, say attorneys at WilmerHale.

  • Is Bank Debt A Security? GM's Dangerous Implications

    Thomas Moers Mayer

    Borrowers, agent banks, syndicate members and secondary market purchasers incur, syndicate, sell and buy bank debt on the assumption that bank debt is not a “security.” However, a recent New York bankruptcy court opinion in the General Motors preference litigation shows that such an assumption may no longer be valid, says Thomas Moers Mayer, co-chairman of the corporate restructuring and bankruptcy department at Kramer Levin Naftal... (continued)

  • Risk Management Tips For Attys Serving As Local Counsel

    Patrick S. (Sean) Ginty

    Often, the lead counsel in a case maintains sole contact with the client and makes substantive decisions, relying upon the local counsel only to serve in the requisite capacity to satisfy jurisdictional procedures. Therein lies the problem — absent appropriate precautionary measures, the local attorney faces equal malpractice exposure for the substantive, strategic decisions of the lead counsel, say Patrick (Sean) Ginty of CNA Glob... (continued)

  • Blockchain: Why It Matters For Financial Services Lawyers

    Excerpt from Lexis Practice Advisor
    John Servidio

    Blockchain's innovative potential is being embraced as a way to improve efficiencies, lower transactional costs, and manage and reduce risk. If widely adopted by the financial industry, distributed ledger technology would touch several different areas of law governing capital markets, say Bo Harvey and John Servidio of McGuireWoods LLP.