Banking

  • September 28, 2016

    House GOP To Take CFPB To Task Over Wells Fargo Scandal

    The House Financial Services Committee is expected to blast Wells Fargo & Co. Chairman and CEO John Stumpf on Thursday over the more than 2 million unauthorized accounts his employees created, but committee Republicans will also attempt to turn up the heat on regulators for not stepping in sooner.

  • September 28, 2016

    SEC Reluctantly Adopts New Clearing Agency Standards

    The U.S. Securities and Exchange Commission voted Wednesday to adopt rules to strengthen regulations of systemically important clearing agencies and propose changes to clearing settlement cycles, even though two of the agency’s commissioners expressed reservations with the new standards.

  • September 28, 2016

    Greenberg Scolded For Lack Of 'Direct Answers' At Fraud Trial

    A New York state court judge overseeing former American International Group Inc. CEO Maurice “Hank” Greenberg's civil fraud trial told him on Wednesday to stop pointing to his reliance on “lawyers and accountants” in answer to questions about a challenged reinsurance deal.

  • September 28, 2016

    New Rules Proposed For 'Zombie Properties' In New York

    New York Democratic Gov. Andrew Cuomo on Tuesday said that the state’s Department of Financial Services has proposed a new regulation that will require banks and mortgage servicers to inspect delinquent properties and secure any so-called zombie properties that they find are abandoned.

  • September 28, 2016

    Investors Seek Final OK For $58M HSBC, Citi Libor Deals

    The investors suing HSBC and Citibank over the Libor scandal asked a New York court Tuesday for final approval of their $58 million settlements with the banks.

  • September 28, 2016

    US Bank Trusts Settle RMBS Suit With Ex-GE Loan Originator

    Two U.S. Bank NA trusts and General Electric’s former loan originator have settled a 4-year-old suit accusing the ex-GE unit of not upholding guarantees it made regarding subprime residential mortgages it sold to UBS AG, which  transferred the loans to the trusts that issued securities, the parties have said.

  • September 28, 2016

    UK Financial Co. Fined For Sending 7 Million Spam Texts

    A United Kingdom-based financial service provider has been fined £130,000 ($169,000) by the country’s Information Commissioner’s Office for sending more than 7 million texts marketing a new credit card on behalf of a company that didn’t have consumers’ permission, the agency said Wednesday.

  • September 28, 2016

    SEC Credits Big Data In $15M UBS Deal Over Sales Staff

    The Securities and Exchange Commission said a big-data-driven investigation has led to a $15 million settlement with a UBS AG unit over allegations that it failed to properly train sales staff to make sound recommendations about highly complex financial products sold to retail investors.

  • September 28, 2016

    Ditech Pays $1.4M For Alleged Abusive Debt Collection

    National mortgage servicer Ditech Financial LLC has paid $1.4 million in a settlement related to its alleged abusive debt collection practices that affected more 5,000 borrower accounts in Massachusetts, state Attorney General Maura Healey said on Wednesday.

  • September 28, 2016

    Deutsche Bank Sells Abbey Life Unit To Phoenix for $1.2B

    Deutsche Bank AG agreed to sell its Abbey Life insurance business to Phoenix Group Holdings in a £935 million ($1.22 billion) deal on Wednesday, as the bank gears up for a fight with U.S. regulators over a $14 billion settlement stemming from its mortgage-backed securities sales practices.

  • September 28, 2016

    Jones Day Adds Ex-Credit Suisse Compliance Pro In Miami

    Jones Day has strengthened its financial institutions, litigation and regulation practice by adding as a partner in its Miami office a former legal and compliance department director at Credit Suisse with a strong background in cross-border regulatory matters involving private banking markets, the firm announced recently.

  • September 28, 2016

    Yellen Says Fed, FDIC Ready To Act If Living Wills Are Weak

    Federal Reserve Chair Janet Yellen said Wednesday that regulators will be prepared to mete out penalties to five giant banks scheduled to file revised resolution plans later this week if there are not significant improvements to the so-called living wills.

  • September 28, 2016

    Goldman Sachs Pumping $70M Into Red Planet Hotels

    Goldman Sachs Group Inc. has invested $70 million in budget hotel chain Red Planet Hotels, according to an announcement from Bangkok-based Red Planet on Wednesday.

  • September 28, 2016

    FINRA Fines NY Firm Over $2.5B Venezuelan Bond Sales

    The Financial Industry Regulatory Authority has reached a settlement with a New York-based brokerage firm over claims that it failed to implement anti-money-laundering safeguards in the sale of over $2.5 billion in Venezuelan bonds.

  • September 28, 2016

    Trial Set For Ex-Deutsche Bank Traders In Libor Fraud Case

    Two former Deutsche Bank traders accused of manipulating the London Interbank Offered Rate will go to trial on Jan. 8, 2018, a New York federal judge said Wednesday morning, after one of the men pled not guilty to 11 federal criminal charges.

  • September 27, 2016

    Wells Fargo CEO To Forfeit $41M Amid Internal Probe

    Wells Fargo on Tuesday said CEO John G. Stumpf will forfeit $41 million in unvested stock and announced an internal investigation amid a growing scandal over the opening of millions of unauthorized customer accounts that has already spawned a $185 million fine, a congressional hearing, and shareholder and employment class actions.

  • September 27, 2016

    DOJ Loss In AmEx Case Could Imperil Hospital Steering Suit

    The U.S. Department of Justice has touted the similarities between its antitrust cases against American Express and a North Carolina hospital system, but that comparison could come back to haunt it now that the Second Circuit has found that AmEx's anti-steering rules are not anti-competitive.

  • September 27, 2016

    Pa. Bank Fined By SEC Over Faulty Loan Accounting

    Pennsylvania-based bank holding company Orrstown Financial Services Inc. agreed to pay a $1 million fine to settle allegations it failed to disclose nearly $70 million in impaired loans when facing a decline in real estate values, the U.S. Securities and Exchange Commission announced Tuesday.

  • September 27, 2016

    Royal Bank Of Scotland To Settle MBS Suits For $1.1B

    The Royal Bank of Scotland will pay the National Credit Union Administration $1.1 billion to settle legal claims over the sale of allegedly faulty mortgage-backed securities to two corporate credit unions that caused them to fail, the administration announced on Tuesday.

  • September 27, 2016

    11th Circ. Says Ex-Fla. Mayor Can't Escape Fraud Conviction

    The Eleventh Circuit ruled Tuesday that former North Miami Mayor Lucie Tondreau can't escape a conviction and over-five-year prison sentence for an $8 million scheme in which she and others used a radio show to recruit straw borrowers for fraudulent mortgage loans, saying it found no error in the lower court's decision.

Expert Analysis

  • The Courtroom Where It Happened: Hamilton As A Lawyer

    Randy Maniloff

    Often lost in discussions about Alexander Hamilton is that he was an extremely important New York lawyer. He had an extensive law practice until his death in 1804 and he wrote what is considered to be the first treatise in the field of private law. Ultimately, Hamilton certainly did get a lot farther "by working a lot harder, by being a lot smarter, by being a self-starter," says Randy Maniloff of White and Williams LLP.

  • Could Gold-Plating Be The Key To Post-Brexit Stability?

    Jonathan New

    Although many fear that Brexit may be disruptive and create great uncertainty for many businesses in the United Kingdom, paradoxically, the U.K.’s occasionally controversial practice of gold-plating financial and corporate governance regulations may provide a measure of stability and continuity, say Jonathan New and Elizabeth McCurrach of BakerHostetler LLP.

  • When CFPB Finds Deception Regardless Of A Lender’s Intent

    Leonard N. Chanin

    There is a tendency to think of consumer fraud and misrepresentation as intentional acts that deceive consumers into engaging in transactions that they would not otherwise engage in. However, a California federal court's recent decision in Consumer Financial Protection Bureau v. CashCall demonstrates that the CFPB takes a much different view, say Leonard Chanin and Oliver Ireland of Morrison & Foerster LLP.

  • Why Have Lawyers Forgotten About The Middle Class?

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    Sorry, fellow lawyers, judges and legislators, but the jig is up. It’s time to show the public the cards up our sleeves and give them a chance to weigh in on the fairness of a system that touches so many aspects of their everyday lives, says Chas Rampenthal, general counsel of LegalZoom.

  • A Few Things To Consider Before Patenting Blockchain Tech

    Paul Keller

    Many companies involved in blockchain research projects are filing patent applications to protect their innovations, and many are leveraging software code that is governed by various open-source licenses. The variety of these licenses and the particular uses by companies of the code that is licensed under them raise a host of issues that, to the uninitiated, could result in significant consequences, say Paul Keller and Sue Ross of ... (continued)

  • You Don’t Need A Data Breach To Face Regulatory Scrutiny

    Kim Peretti

    One side effect of the rise in bug bounty programs, and disclosures by security researchers and others, is a commensurate increase in publicly known security vulnerabilities that can lead to increased scrutiny from regulators and the plaintiffs bar, says Kim Peretti, co-leader of Alston & Bird LLP's cybersecurity preparedness and response team.

  • In Congress: Ticktock

    Richard Hertling

    With five days to go before a government shutdown, the parties are not that far apart, but those differences have proven difficult to resolve, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • Voluntary Self-Identification Of Virtual Currency Users?

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    Our view is that a system of voluntary self-identification of virtual currency users could be a ground-breaking development in the world of virtual currency. Is it something that is coming further down the line or maybe a significant opportunity is being missed here? ask members of Locke Lord LLP.

  • OPINION: CFPB Payday Loan Rule Ignores Existing Research

    Dennis Shaul

    In its new regulations covering payday loans the Consumer Financial Protection Bureau asserts that compelled reborrowings associated with these types of loans are harmful to consumers. However, a careful review of the economic literature shows that this concept is manufactured in order to support what appear to be the CFPB’s prejudices about how this market should operate, says Dennis Shaul, CEO of the Community Financial Services ... (continued)

  • SDNY's 1st Post-Newman Insider Trading Conviction

    Alexis Yee-Garcia

    Because of Newman, prosecutors in the Southern District of New York are required to show that a tipper of inside information received a personal benefit “that is objective, consequential, and represents at least a potential gain of a pecuniary or similarly valuable nature” to trigger liability. The Sean Stewart case now helps define that standard, say attorneys with Orrick Herrington & Sutcliffe LLP.