Banking

  • February 11, 2016

    BREAKING: Morgan Stanley To Pay $3.2B To Settle US Mortgage Claims

    Morgan Stanley on Thursday agreed to pay $3.2 billion to resolve claims that it misled investors about mortgage-backed securities before the financial crisis, New York Attorney General Eric Schneiderman said.

  • February 10, 2016

    Judge Skeptical Of CFPB Reach In For-Profit College Probe

    A D.C. federal judge on Wednesday appeared concerned that the Consumer Financial Protection Bureau’s subpoena of a for-profit college accrediting group as part of a probe into the industry's lending practices constitutes a “fishing expedition" and asked why the agency doesn't just target individual schools for consumer violations.

  • February 10, 2016

    Whistleblower Exec Settles Dodd-Frank Suit On Eve Of Trial

    A former executive settled her Dodd-Frank Act claim against COR Clearing in Nebraska federal court just weeks before trial Wednesday, abruptly ending a years-long battle that had briefly raised questions about the Act that the Eighth Circuit shied away from answering.

  • February 10, 2016

    Long Slog To EU-CFTC Clearing Deal May Color Future Talks

    U.S. and European financial regulators on Wednesday dodged a potential market crisis down the road when they announced a major accord covering the $550 trillion global derivatives market. While the agreement on clearing arrangements scored applause, the yearslong process to reach it raised questions about the next time authorities need to resolve differences overseas.

  • February 10, 2016

    NY Court Asked To Revive $289M RMBS Suit Against Nomura

    A unit of HSBC Holdings PLC on Wednesday urged a New York appeals court to revive its lawsuit against a division of Japanese lender Nomura Holdings Inc. over a soured pool of $289 million worth of residential mortgage-backed securities, saying the action was timely brought.

  • February 10, 2016

    SEC Approves New Cross-Border Swaps Reporting Rules

    The U.S. Securities and Exchange Commission on Wednesday approved a rule it said will ensure foreign and domestic security-based swaps dealers are subject to equal scrutiny under the Dodd-Frank Act when they engage in deals here, closing what had been called a loophole left open by the prior framework.

  • February 10, 2016

    Senate Votes To Ramp Up North Korea Sanctions

    The U.S. Senate unanimously passed a bill Wednesday to step up sanctions on North Korea, targeting banks that process certain transactions and other companies that aid the isolated nation after its recent rounds of weapons tests.

  • February 10, 2016

    3rd Circ. Again Revives Arbitration Row In Debt Fraud Suit

    The Third Circuit on Wednesday gave Global Client Solutions LLC and Rocky Mountain Bank and Trust another chance at securing arbitration in a putative class action accusing them of participating in a scheme to defraud indebted consumers that involved fabricated negotiations with creditors.

  • February 10, 2016

    Pro Race Car Driver, Atty Charged With $2B Payday Loan Scam

    Professional race car driver Scott Tucker and one of his attorneys were arrested by the FBI on Wednesday and charged with running a $2 billion illegal payday lending operation involving Native American tribes that charged interest rates as high as 700 percent.

  • February 10, 2016

    8th Circ. Revives Investors' Suit Against Ex-Dolan Execs

    The Eighth Circuit on Wednesday revived a proposed class action claiming former executives of Dolan Co. should have disclosed the loss of Bank of America Corp. business that decimated the company's legal services division, saying the lower court erred in finding the shareholders hadn't alleged recklessness.

  • February 10, 2016

    Payday Lender Charged With $161M Fraud Scheme

    A Missouri man has been indicted by a New York grand jury with running a payday lending scheme that evaded state usury laws and collected over $161 million from hundreds of thousands of customers, Manhattan U.S. Attorney Preet Bharara announced Wednesday.

  • February 10, 2016

    Cravath Takes Lead On Argentina Debt Default Defense

    Cravath Swaine & Moore LLP confirmed Wednesday that Argentina has picked the firm to take over as the country’s lead counsel in long-running bondholder litigation in New York stemming from its 2001 debt default.

  • February 10, 2016

    Cuomo Asks Feds To Block KeyCorp-First Niagara Deal

    New York Gov. Andrew Cuomo on Wednesday asked federal regulators to block the proposed merger of KeyCorp and First Niagara Financial Group, saying the combination of the two banks would harm consumers and upstate New York’s economy.

  • February 10, 2016

    Carrington Coleman Adds Ex-Fortune 500 Co. GC In Dallas

    Carrington Coleman Sloman & Blumenthal LLP on Tuesday announced that it has strengthened its corporate transaction and counseling services with the addition of a former general counsel to BearingPoint and Affiliated Computer Services Inc. as a partner in Dallas, with expertise in the areas of banking, securities, private equity and technology, among others.

  • February 10, 2016

    BofA Should Face Class Claims In Libor MDL, Borrower Says

    A mortgage borrower accusing Bank of America of assigning customers inflated interest rates by way of a Libor-rigging conspiracy asked a New York federal judge Tuesday to bar the bank's bid to strike his class allegations, saying it would waste the court’s time. 

  • February 10, 2016

    Judge Says FSOC Wasn't Neutral In MetLife SIFI Labeling

    A D.C. federal judge criticized the process behind the Financial Stability Oversight Council's decision to designate MetLife a systemically important financial institution subject to stricter rules, noting Wednesday that the agency did not separate staff functions in a way that would have allowed neutrality. 

  • February 10, 2016

    Victims Say HSBC Helped Finance 'Terrorist' Cartel Attacks

    HSBC Holdings PLC is facing claims that it financed terrorism by allowing a number of Mexican drug cartels to launder billions of dollars through its branches, according to the families of victims of three “horrific” attacks, who have sued the bank in Texas federal court.

  • February 10, 2016

    Yellen Says Insurance Capital Rules Likely Coming Soon

    Federal Reserve Chair Janet Yellen on Wednesday told members of Congress that she hopes her agency will release capital rules for insurers that it now oversees sometime in the near future.

  • February 10, 2016

    Banks Seek $20M In Atty Fees After Target Data Breach Deal

    Lead counsel for financial institutions suing Target over its notorious 2013 data breach have urged a Minnesota federal court to grant them $20 million in attorneys’ fees and expenses, a figure they called fair and reasonable after extensive work on the case.

  • February 10, 2016

    CFTC, Europe Hatch Accord On Clearing Rules

    U.S. and European derivatives regulators on Wednesday announced a long-awaited plan to harmonize key regulations concerning the central clearing of swaps agreements and other instruments, settling years of intense negotiations in which the future of cross-border derivatives trading was at stake.

Expert Analysis

  • A Step Toward Greater Transparency In Housing Finance

    Christopher L. Dueringer

    Freddie Mac and Fannie Mae have made various changes over the past few years to reduce the risk lenders face when selling mortgages to Freddie and Fannie, and to provide greater clarity and procedural assurances. The recently announced independent dispute resolution process furthers that effort, say Christopher Dueringer and Jason Stavely of Bryan Cave LLP.

  • CFPB May Seek Penalties For Past UDAAP Violations

    Nicholas F.B. Smyth

    By asserting that claims pursued in administrative enforcement proceedings are not subject to the three-year statute of limitations set forth in the Consumer Financial Protection Bureau's enabling statute, the agency signals it may be willing to target long-ago violations when seeking restitution and penalties, and more significantly, breaks new legal ground, say Nicholas Smyth and D. Patrick Yoest of Reed Smith LLP.

  • Investing In The Marijuana Industry: Where We Stand

    John Bessonette

    Companies — and their investors — continue to face a myriad of risks associated with uncertainty over future regulatory developments concerning the marijuana industry. As large states like California and Ohio prepare for legalization initiatives, however, the trend toward increasing liberalization and associated comfort levels of investors seems likely to continue, say John Bessonette and Tai Aliya of Kramer Levin Naftalis & Frankel LLP.

  • How Does Skadden Stay No. 1?

    Elizabeth Duffy

    Analyzing the reasons why clients choose certain firms reveals a great deal about what is important and valued in the marketplace. Based on interviews with a random sample of over 600 heads of legal in the largest U.S. organizations, Elizabeth Duffy, vice president of Acritas US Inc., identifies the core brand drivers of Skadden Arps Slate Meagher & Flom LLP.

  • Subrogation Claims Aren't 'Consumer Debts' Under Fla. Law

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    Property and casualty insurers using collection agencies to collect subrogation claims in Florida can now cite a Florida district court case to insulate them from consumer claims based on collection activities of their agencies, says Elizabeth Bohn at Carlton Fields.

  • Fannie And Freddie Loans Could Be Next FCA Targets

    Andrew W. Schilling

    The risk of the government applying the False Claims Act to Fannie Mae and Freddie Mac loans is not nearly as remote as it may seem. In fact, the U.S. Department of Justice has already pursued several FCA cases involving government-sponsored enterprise loans, and the number of cases is sure to increase if the government prevails in Adams v. Aurora Loan Services awaiting decision in the Ninth Circuit, says Andrew Schilling, partner ... (continued)

  • OPINION: The Road To Partnership Must Keep Evolving

    Daniel L. Butcher

    In a recent Law360 article it was suggested that promotion to partner was a competition between associates and that taking maternity, paternity or family medical leave could impact an associate's chances at promotion. But this sort of ethos — which may have contributed to law firms’ success in the past — is not the best way to secure the industry's future, says Daniel Butcher, managing partner of Strasburger & Price LLP.

  • 9th Circ. Muddies Loss Causation

    William F. Sullivan

    The Ninth Circuit in Jacksonville Police and Fire Pension Fund v. CVB Financial added another wrinkle to the determination of whether and when the public disclosure of an internal investigation or a government subpoena establishes loss causation under the federal securities laws, say attorneys with Paul Hastings LLP.

  • Securities Law Considerations In Marketplace Lending

    Anthony R. G. Nolan

    The marketplace lending industry continues to mature and the regulatory landscape continues to evolve to address the unique challenges it poses. Anthony Nolan and Edward Dartley of K&L Gates LLP discuss some federal securities law considerations that are critical to the structures and business models of online marketplaces and their interactions with investors.

  • Challenging An Arbitrator Ab Initio: A Primer

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    Where a perceived conflict is identified early in the process, a party may consider asking the forum overseeing an arbitration to determine whether it is appropriate for an arbitrator to serve on the panel. Despite the potential opacity of these kinds of decisions, discussions with practitioners and experience suggest that such challenges can arise from a number of situations, says Kirkland & Ellis LLP partner Matthew Solum.