Banking

  • August 1, 2014

    SEC Wins Nearly $70M In Judgments Against Financial Firms

    A Tennessee federal judge ordered a brokerage and a financial holding company on Friday to disgorge $9.4 million and pay $55.9 million in penalties after a jury agreed with the U.S. Securities and Exchange Commission that they ran a Ponzi-style scheme targeting unsophisticated investors.

  • August 1, 2014

    9th Circ. Punts Add-On Suits Against Banks To Hawaii Court

    The Ninth Circuit on Friday ruled that six lawsuits claiming JPMorgan Chase & Co., Citigroup Inc., and several financial institutions tricked customers into paying for add-on services could proceed in Hawaii state court, finding the state attorney general's claims weren't completely preempted by federal banking laws.

  • August 1, 2014

    Estate Of Ex-First State Bank CEO Fights $20M Tax Bill

    The estate of the deceased former CEO of First State Bank is protesting an Internal Revenue Service determination that it owes nearly $20 million in estate tax liability and penalties, according to a petition in U.S. Tax Court made public on Friday.

  • August 1, 2014

    Trustee To Oversee Wind-Up Of Comerica-Global Direct JV

    A Delaware Chancery Court judge decided Friday to intervene in the wind-up of a soured card processing joint venture between Comerica Bank and Global Payments Direct Inc. that has become the subject of a bitter legal dispute, granting Comerica’s request to appoint a liquidating trustee to oversee the process.

  • August 1, 2014

    Barclays Can't Duck $94M Thornburg Trustee Suit

    A Maryland federal judge on Friday refused to free Barclays Capital Inc. from a $94 million suit brought by the trustee for defunct Thornburg Mortgage Inc. over a $2.7 billion mortgage-backed securities liquidation that allegedly undervalued Thornburg's assets and contributed to the real estate trust’s crisis-era collapse.

  • August 1, 2014

    Senate Passes Bill To Help Treasury Regulate Nonbanks

    The U.S. Senate on Friday passed a bill that would allow the U.S. Department of the Treasury to use state examinations for small, nonbank financial businesses, such as money services businesses, instead of federal reporting requirements when gauging compliance, sending the bill to President Barack Obama.

  • August 1, 2014

    Fontainebleau Term Lenders Want Info On Ex-Principal's Worth

    Term lenders fighting a settlement of director and officer litigation in the failed $2.9 billion Fontainebleau Las Vegas resort and casino project and on Thursday asked a Florida bankruptcy judge to force real estate mogul and Fontainebleau principal Jeffrey Soffer to cough up his financial information.

  • August 1, 2014

    2nd Circ. Clarifies Barriers To FINRA Arbitration

    The Second Circuit demarcated a barrier to Financial Industry Regulatory Authority Inc. arbitration on Friday, drawing sharp lines around the term “customer” and ending a Saudi family's bid to recoup $383 million from Citigroup Inc.

  • August 1, 2014

    Workers Warn Calif. High Court On Seating Class Actions

    Former workers behind seating suits against CVS Pharmacy Inc. and JPMorgan Chase Bank NA told the California Supreme Court on Thursday that the companies are pushing for courts to take an approach to the state's suitable seating requirements that would preclude class actions.

  • August 1, 2014

    10th Circ. Takes Narrow View Of Liability In Investor Suits

    The Tenth Circuit on Friday ruled that an action brought under Section 11 of the Securities Act of 1933 must show a defendant knew opinions in public statements were false when they were being made, joining the Second, Third and Ninth circuits in a question set to be answered by a high-profile Supreme Court case next term.

  • August 1, 2014

    Barclays Hit With Another Investor Suit Over Dark Pool

    Barclays PLC was hit with another investor proposed class action in California federal court on Thursday challenging its operation of secret trading “dark pools” that cater to predatory high-frequency traders, following a major securities fraud suit by the New York Attorney General bringing the issue to light.

  • August 1, 2014

    Miami Litigation Boutique Adds 2 From Fowler Rodriguez

    Miami boutique litigation firm Levine Kellogg Lehman Schneider Grossman LLP announced it has reeled in two attorneys from Fowler Rodriguez Counselors at Law who will help grow the firm's arbitration and Latin American offerings while bringing litigation experience in product liability, real estate, banking and trademark disputes, among other areas.

  • August 1, 2014

    Regulators Put Off Asset Manager SIFI Designations, For Now

    U.S. financial regulators on Thursday shifted their focus on the risks giant asset management firms posed to the economy from the firms themselves to the products they offer, giving BlackRock Inc., Fidelity Investments and other firms a temporary reprieve from enhanced oversight as systemically important financial institutions.

  • August 1, 2014

    Ex-Evercore Banker Gets 30 Months For Insider Trading

    A former Evercore Partners Inc. banker was sentenced Friday to 30 months in prison after pleading guilty earlier this year to an insider trading scheme that authorities have said partly went to pay child support for his young child.

  • August 1, 2014

    Church Attys Say Fraud Suit Subpoenas Are 'Gamesmanship'

    Lee Hong Degerman Kang & Waimey PC attorneys on Friday fought the Evangelical Christian Credit Union's bid to depose them in a Los Angeles church's $400 million fraud suit against the financial institution, calling the move unnecessary "gamesmanship" at odds with California law.

  • August 1, 2014

    Deals Rumor Mill: CorePharma, Awas, SMBC

    RoundTable Healthcare Partners is looking to end its nine-year ownership of generic-drug maker CorePharma in a deal potentially worth $1 billion, while Asia's richest man may snap up planes being sold by aircraft leasing company Awas.

  • August 1, 2014

    Kutak Rock Reps Bank Of The Ozarks In $228M Intervest Buy

    Bank of the Ozarks Inc. on Thursday announced an agreement to buy Intervest Bancshares Corp. in a $228.5 million deal that will increase its foothold in Florida’s banking sector.

  • August 1, 2014

    Citi To Sell Bulk Of $1.5B Metalmark Stake To Lexington

    Citigroup Inc. said Friday it will sell 80 percent of its $1.5 billion limited partnership interest in Metalmark Capital Partners II to secondary private equity firm Lexington Partners, the bank’s latest effort to shed alternative holdings to comply with post-financial crisis regulations.

  • August 1, 2014

    Deutsche Bank, HSBC Accused Of Manipulating Silver Futures

    Deutsche Bank AG, HSBC USA Bank NA and The Bank of Nova Scotia were hit Thursday with a class action in a New York federal court alleging they engaged in a scheme to manipulate the price of silver futures.

  • August 1, 2014

    Capital One, 3 Others Settle TCPA Action For Record $75M

    Capital One Financial Corp. and three collections agencies have agreed to pay almost $75.5 million to settle a consolidated class action alleging they used an automated dialer to call customers’ cellphones without consent, a settlement attorneys say is the largest ever under the Telephone Consumer Protection Act.

Expert Analysis

  • The Crisis: The More We Know, The Less We Understand

    Kathryn Judge

    Many of the early narratives about the causes of the recent financial crisis — for example, securitization — were woefully incomplete, raising significant doubts about the advisability of reforms based on them. It turns out that the investors buying mortgage-backed securities were not dupes, says Kathryn Judge, associate professor at Columbia Law School.

  • OPINION: Lawyers Should Think In Terms Of Big Data

    James H. Wendell

    The vast majority of civil cases in the United States settle before trial. Knowing how many on a particular topic were filed, how many settled, when they settled, and on what terms clearly would be useful to a lawyer advising a client. Big Data could make it possible — yet this type of research is generally ignored by lawyers, says James Wendell of Riddell Williams PS.

  • Tardiness Does Not Warrant Equitable Subordination

    Michael L. Cook

    The Delaware District Court’s July 21 ruling reversing the bankruptcy court in the case of Franklin Bank Corp. shows that equitable subordination of a lender’s claim will require a strong factual showing of “egregious” misconduct — and that tardiness in filing claims is not enough, says Michael Cook of Schulte Roth & Zabel LLP.

  • What Bitcoin Can Learn From International Arbitration

    Jaime D. Guttman

    International trade was successful in creating a completely private dispute resolution system outside of the courts but widely recognized and accepted by governments across the world. Bitcoin needs to follow a similar path, says Jaime Guttman of Private Advising Group PA.

  • CFPB Enforcement Action Casts Shadow On Debt Collectors

    Jeffrey P. Taft

    In light of the ACE Cash Express Inc. enforcement action, financial institutions and other businesses engaging in first-party debt collection should assume the Consumer Financial Protection Bureau will attempt to impose Fair Debt Collection Practices Act standards on them through the unfair, deceptive and abusive acts or practice provisions of Dodd-Frank, say attorneys at Mayer Brown LLP.

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • A Novel Suit: Cities Try On The FHA For Size

    Mary B. Hogan

    Recent lawsuits brought by municipalities under the Fair Housing Act, which feature a novel theory of damages, have the potential to significantly expand the scope of fair lending liability for mortgage lenders, however whether their claims survive at the appellate level remains to be seen since there is still no coherent judicial view on statutory standing under the FHA, say attorneys at Debevoise & Plimpton LLP.

  • No Breach Of Fiduciary Duty, No Atty Fees

    Stewart D. Aaron

    The Delaware Chancery Court, with its recent decision in Raul v. Astoria Financial Corp., has properly limited plaintiff firms’ abilities to extract attorneys’ fees from public companies under the guise of protecting stockholders, say Stewart Aaron and Robert Azarow of Arnold & Porter LLP.

  • Watch Out For The 'Man In The Email'

    Susan Linda Ross

    Retailers, when is the last time you spoke with your bank about security? Now may be a good time, according to the FBI and the Internet Crime Complaint Center. A new email scam has been targeting CTOs, CFOs and comptrollers in particular, says Sue Ross of Norton Rose Fulbright.

  • Affiliated Vendors Are Popular Targets For Regulators

    Richard B. Benenson

    Lawsuits against large foreclosure law firms over their involvement with affiliated vendors in Colorado are not isolated, rather they seem to be the next front in the regulatory war against the foreclosure industry — a significant development given the pervasive use of affiliates in the industry, say attorneys at Brownstein Hyatt Farber Schreck LLP.