Banking

  • October 1, 2014

    JPMorgan Says It's Paid Out Fifth Of Required Consumer Aid

    JP Morgan Chase & Co. says it has doled out $869 million of the $4 billion in consumer aid it is required to provide under the terms of its $13 billion deal with the Justice Department over its alleged faulty lending during the housing boom years, according to an independent monitor hired to track the bank’s progress.

  • October 1, 2014

    2nd Circ. Asked To Revive Facebook Insider Trading Suit

    A Facebook Inc. shareholder on Wednesday said he was appealing to the Second Circuit a New York federal judge's May decision to dismiss an insider trading suit against Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley & Co. over Facebook's initial public offering.

  • September 30, 2014

    Treasury, FHFA Duck Suits Over Fannie, Freddie Profit Sweep

    A District of Columbia federal judge on Tuesday threw out a class action and three individual lawsuits brought against the U.S. Department of the Treasury and the Federal Housing Finance Agency for altering stock purchasing agreements and sweeping profits from Fannie Mae and Freddie Mac to the Treasury.

  • September 30, 2014

    Citibank, Chase Borrowers' RICO Class Actions In Jeopardy

    A California federal judge on Tuesday cast doubt on a pair of proposed class actions accusing Citibank NA and JPMorgan Chase & Co. of violating the Racketeer Influenced and Corrupt Organizations Act by charging property-inspection fees to mortgage borrowers in default, saying she didn't think their inspection fee policies amounted to racketeering.

  • September 30, 2014

    UBS, Others Buck $113M MBS Suit As Judge Changes Course

    A Texas federal judge on Tuesday reversed his prior ruling and dismissed a $113 million complaint that accused Merrill Lynch & Co., UBS Financial Services Inc. and others of failing to disclose risks in their mortgage-backed securities, saying his further review of the case showed the claims can’t move forward.

  • September 30, 2014

    Investors In $10B JPMorgan MBS Suit Get Partial Cert.

    A New York federal judge on Tuesday partially certified a class of investors accusing JPMorgan Chase & Co. of falsely representing underwriting standards for $10 billion worth of mortgage-backed securities, but ruled the plaintiffs failed to show that their damages could be determined on a classwide basis. 

  • September 30, 2014

    High Court Ducks Thorny Tolling Clash In IndyMac Reversal

    When the U.S. Supreme Court on Monday reversed its decision to hear a long-anticipated appeal over whether a tolling provision should apply to certain securities class actions, it left in place a potentially damaging circuit split over the timing of investor opt-out rights and caused many observers to scratch their heads.

  • September 30, 2014

    Fed Had ‘No Limit’ For AIG Bailout Terms, Atty Says

    A senior Federal Reserve System attorney said on Tuesday that the Fed effectively had “no limit” on the terms it could demand for a bailout loan once lending had been authorized, including taking equity, as a trial continued over claims that American International Group Inc.’s bailout deal had stiffed shareholders.

  • September 30, 2014

    Citigroup Secures SEC Waiver To Keep WKSI Status

    The U.S. Securities and Exchange Commission on Friday waived some of the securities restrictions on Citigroup Inc. following its $285 million settlement in August over its marketing of a $1 billion collateralized debt obligation, finding the company had shown good cause that the restrictions were unnecessary.

  • September 30, 2014

    Revolving-Door Roundup: Simpson, Sidley, DLA Piper

    The U.S. Department of Justice takes the spotlight in this month's roundup of high-profile moves to and from the public sector, as four leaders and three assistant U.S. attorneys left the agency for BigLaw firms, including Sidley Austin LLP and Simpson Thacher & Bartlett LLP. But it wasn't all departures for the DOJ, which also picked up a new Criminal Division deputy assistant attorney general from Schulte Roth & Zabel LLP.

  • September 30, 2014

    FINRA Offers Revised Plan For Risk Data Program

    The Financial Industry Regulatory Authority on Tuesday took the first step in finalizing a controversial plan to gather more data about the thousands of brokerage firms it oversees with a formal, and significantly changed, proposal for CARDS, or Comprehensive Automated Risk Data System.

  • September 30, 2014

    Goldman, Others Get Initial Approval For $590M LBO Deals

    A Massachusetts federal judge on Monday granted initial approval to $590 million in settlements with a class of shareholders who claim Goldman Sachs Group Inc., Carlyle Group LP and several other private equity firms teamed up to keep leveraged buyout prices low.

  • September 30, 2014

    Blackstone Mortgage Trust Nets $252.6M In Public Offering

    Blackstone Mortgage Trust Inc. said Tuesday it reaped a total of $252.6 million in proceeds after underwriters exercised an option to buy an additional 1.2 million shares in the New York-based real estate finance company’s recent public offering.

  • September 30, 2014

    3rd Circ. Won't Rehear Ex-Goldman Coder's $2.3M Fee Case

    Goldman Sachs Group Inc. need not pay the $2.3 million legal bill of a former computer programmer facing charges for stealing high-frequency-trading code, the Third Circuit said Monday, denying his bid to have the full appeals court reconsider his argument that Goldman's officer insurance covered all vice presidents like him.

  • September 30, 2014

    Germany Seeks Ringleaders In $171M Carbon Tax Scheme

    German officials on Tuesday sought help tracking down two Pakistani men suspected of leading a tax evasion scheme that bilked Germany of €136 million ($171 million) in taxes through the fraudulent trading of carbon emission rights, widening a probe that has also drawn in Deutsche Bank AG.

  • September 30, 2014

    Market Rumors: Vivint, BP, European Central Bank

    Private equity-backed Vivint Solar Inc.'s $371 million initial public offering could close any day now, while BP PLC hopes to raise up to $232.5 million by offering 32 million ordinary shares at $7.27 per share.

  • September 30, 2014

    Credit Suisse Wins Court Confirmation Of $1.3M FINRA Award

    A Florida federal judge on Monday blessed a $1.3 million arbitration award handed to Credit Suisse Securities (USA) LLC in a breach of contract action over a disputed trade with CRL Management LLC, finding the Financial Industry Regulatory Authority panel had justifiable grounds for its decision.

  • September 30, 2014

    Deals Rumor Mill: SoftBank, Novo Banco, OTP Bank

    Talks between Japanese telecom giant SoftBank Corp. and DreamWorks Animation SKG have ceased, with SoftBank now shifting its focus to buying Legendary Pictures Productions LLC, while Portugal has begun approaching a number of Spanish banks to gauge their interest in buying the country's recently established bank Novo Banco.

  • September 30, 2014

    Argentina Deposits $161M With Local Trustee, Defies NY Judge

    The Republic of Argentina on Tuesday deposited $161 million in a local bank to make interest payments to bondholders who agreed to debt restructurings, a step designed to skirt a New York federal judge's ruling that those bondholders can only be paid if holdout hedge funds are also compensated.

  • September 30, 2014

    Ex-Traders Call On Barclays To Keep Picking Up Legal Bills

    Three former derivatives traders for Barclays Capital Inc. alleged on Tuesday in New York federal court that the bank wrongly stopped paying legal fees for their defense of regulators' allegations that they were part of a scheme to manipulate the London interbank offered rate.

Expert Analysis

  • Important Considerations In Loan Payoff Agreements

    Jason G. Beckham

    While most lawyers and bankers agree that a payoff letter is generally a routine matter, there are several aspects that warrant more thorough consideration. For example, consider limiting the scope of carveouts from “obligations,” says Jason Beckham of Sutherland Asbill & Brennan LLP.

  • DOJ Proposal Shows Focus On Individuals In Corporate Crime

    Helen Cantwell

    The U.S. Department of Justice's proposal to import Park liability to financial crimes would require legislative action and is unlikely to gain traction for other reasons. Nevertheless, it is significant that the attorney general considers such liability for financial executives to be desirable, say attorneys with Debevoise & Plimpton LLP.

  • Should FIRREA Whistleblower Bounties Be Higher?

    Andrew W. Schilling

    The Financial Institutions Reform, Recovery, and Enforcement Act’s whistleblower bounties at False Claims Act levels could lead to absurdly high and wastefully excessive awards. At the same time, U.S. Attorney General Eric Holder may be right when he suggests that awards capped below annual bonuses may not be enough to encourage confidential reporting by well-placed Wall Street insiders, says Andrew Schilling of BuckleySandler LLP.

  • Liquidity Coverage Ratio Rule: Is Opaqueness Intended?

    Richard D. Jones

    The new liquidity coverage ratio rule doesn’t really clarify some key interpretative issues — such as what’s a sponsor? And what in heaven is an implicit obligation? Why kill the trees necessary to print a 400-page missive and be that obscure? asks Richard Jones of Dechert LLP.

  • Beware CFPB Scrutiny Of Promotional Credit Card Offers

    William M. McSwain

    Companies that run afoul of the Consumer Financial Protection Bureau’s guidelines on promotional offers should expect the same scrutiny that the bureau has applied to descriptions of add-on productions and other credit card practices — which has resulted in a number of high-dollar settlements, say William McSwain and Richard Haggerty of Drinker Biddle & Reath LLP.

  • What Happens To Lenders' Collateral During Bankruptcy?

    Michael J. Venditto

    Lenders and their attorneys are conditioned to believe that being oversecured is as good as life gets for a creditor. But post-closing confidence in a job well done can quickly evaporate if the borrower files a bankruptcy case intending to sell the collateral, say Michael Venditto and Sarah Kam of Reed Smith LLP.

  • The Great Digital Bank Robbery: Are You Ready?

    Daniel Garrie

    At some point, cybercriminals will strike a truly critical blow to American banks. The U.S. does not currently have the legal framework in place to efficiently handle a large-scale financial breakdown, but it is critically important that law firms engage client financial institutions in open dialogue concerning cybersecurity, says Daniel Garrie of Law & Forensics LLC.

  • When Administrative Changes Require Notice And Comment

    Brian A. Bodansky

    Until the U.S. Supreme Court decides Mortgage Bankers Association v. Harris and whether the U.S. Department of Labor needed to allow notice and comment before changing who qualifies for the administrative exemption under the Fair Labor Standards Act, there may be an increase in litigation over the exempt status of mortgage loan officers, says Brian Bodansky of Wigdor LLP.

  • IP Exchange International — The Good, The Bad, The Ugly

    Rodney Miller

    Intellectual Property Exchange International Inc. offers a novel approach for monetizing and licensing a patent portfolio. But with only three offerings available to date, uncertainties remain over its ultimate success in balancing the competing interests of patentees and potential purchasers, say Mitch Stockwell and Rodney Miller of Kilpatrick Townsend & Stockton LLP.

  • Opportunities And Pitfalls In The Legal Cloud

    David Houlihan

    Like "big data" and other effective software marketing buzzwords, “cloud” makes something that is very complex sound simple — and even friendly. Most attorneys are not prepared to dig into the distinctions between public, private and hybrid cloud models, or the niceties of how or where their data is transmitted and stored, says David Houlihan of Blue Hill Research Inc.