The Second Circuit ruled Wednesday that criminal defendants must show they have insufficient assets to hire counsel of choice before being awarded a pretrial hearing to recover frozen assets for that purpose, denying a Bernard Madoff associate’s bid for such a hearing.
Senior bankers must be held more accountable for their actions, including facing the risk of criminal charges for particularly reckless behavior, a U.K. parliamentary commission said Wednesday in a report proposing a banking system overhaul that also calls for stronger controls on payment practices.
An attorney for the city of Chicago told an Illinois federal judge Wednesday that the Federal Housing Finance Agency's suit challenging a local vacant-property ordinance should be axed because the ordinance is not preempted by federal law and the agency lacks authority to bring the case.
A U.S. unit of Netherlands-owned state lender ABN Amro Bank NV has agreed to cough up $1 million in fines to settle allegations it failed to segregate or secure customer funds in violation of the Commodity Exchange Act.
Some of the world's largest national economies threw their weight behind the African Development Bank in a Wednesday note ahead of their upcoming Group of Eight summit, lauding the investor for efforts to improve infrastructure and ensure fairness in contracts for natural resource developments.
A California federal judge on Tuesday granted Citibank NA’s bid to compel arbitration in a proposed class action accusing the bank of violating the Telephone Consumer Protection Act by repeatedly calling student loan holders, finding the dispute fell within the scope of an arbitration provision.
The Federal Deposit Insurance Corp. launched suit Monday in Pennsylvania federal court to recover $219 million from two top executives of the failed Advanta Bank Corp. who allegedly crippled the bank and alienated customers by increasing credit card interest rates to unprecedented levels.
The five largest U.S. mortgage servicers still have work to do before they’re fully compliant with the terms of last year’s $25 billion national mortgage settlement deal, the federal monitor overseeing the settlement said in a report released Wednesday.
The U.K.'s highest court on Wednesday overturned the country's sanctions on an Iranian bank that was allegedly linked to Iran's pursuit of nuclear weapons, ruling it was unfair for the government to single out the company for punishment.
Mayer Brown LLP has agreed to pay an undisclosed amount to Refco Inc.’s bankruptcy trustee to settle claims the law firm aided a $1.5 billion fraud scheme that produced a flurry of criminal convictions, the parties said Tuesday in a Second Circuit filing.
U.S. Securities and Exchange Commission Chairman Mary Jo White reportedly reiterated on Tuesday a recently announced change to the agency's controversial no-admit, no-deny policy, in which defendants will be required to admit guilt in order to settle some civil lawsuits.
Verizon Communications Inc. on Tuesday defeated a $9 billion fraudulent transfer suit that targeted its spinoff of the former Idearc Inc., when a Texas federal judge ruled that the bankrupt phone directory company’s creditors couldn't prove that Verizon had intended for the spinoff to fail.
The trustee overseeing the liquidation of Ponzi schemer Scott Rothstein's law firm asked a Florida bankruptcy court Monday to exclude evidence from investors objecting to a provision in the exit plan that bars suits against TD Bank NA.
Role-playing gamers who exchange virtual currency for real money or products should have to pay taxes for those transactions, but the Internal Revenue Service shouldn't implement a stringent compliance system just yet, according to a Government Accountability Office report issued Monday.
New York Attorney General Eric Schneiderman on Monday defended his case alleging Credit Suisse Securities USA LLC's misrepresentations of its residential mortgage-backed securities caused investors to lose $11.2 billion, saying his case was timely filed and doesn’t conflict with the banks’ previous settlement with securities regulators.
Republican members of a House finance committee Tuesday blasted a top Consumer Financial Protection Bureau official over what they called the agency's lack of accountability, excessive spending and poor retention rates, while committee Democrats criticized Republicans for stonewalling agency director Richard Cordray.
Rep. Maxine Waters, D-Calif., told President Barack Obama on Tuesday that next month's free trade agreement negotiations between the U.S. and the European Union shouldn't tackle financial reform issues because the discussion could harm financial reforms that Congress has passed.
Commerce Bancorp LLC founder Vernon Hill II asked a New Jersey federal judge Monday for a new trial over a $17.2 million severance payment he sought after an investigation into real estate dealings led to his resignation, saying a jury instruction made jurors believe the payment was legally prohibited.
A former executive for Citicorp Services Inc. was sentenced Tuesday in Tampa, Fla., to two years in federal prison and ordered to pay more than $824,000 in restitution for a wire fraud scheme she conducted for more than six years.
A Pennsylvania woman hit a McDonald’s franchisee with a putative class action in state court on Thursday, alleging that the employer violated state laws by paying employees solely via debit cards.
Alternative investments, while attractive for their potentially higher returns, may incorporate complex strategies that are hard to understand. Increasingly, regulators have raised issues where registered representatives cannot explain how a product works in a way a customer can appreciate, say attorneys with Sutherland Asbill & Brennan LLP.
The increasing number of bankruptcy and district court decisions in favor of estates demonstrates the importance of understanding the bankruptcy implications of a tax allocation agreement entered into by any consolidated tax group, especially bank-holding companies. As shown by the Southern District of California ruling in In re Imperial Capital Bancorp Inc., the TAA terms could affect a significant estate asset: tax refunds, says Matthew Riopelle of Foley & Lardner LLP.
In Whyte v. Barclays Bank PLC, the Southern District of New York recently dismissed the complaint of the trustee for the SemGroup estate seeking to avoid a novation made to Barclays pre-bankruptcy under a swap agreement. This is one of a number of cases in recent years that treats the safe harbors — particularly the section 546 safe harbors — as broadly protective of nondebtor transferees in financial transactions, say Jonathan Guy and Douglas Mintz of Orrick Herrington & Sutcliffe LLP.
What should be at the forefront of the mind of any in-house counsel or compliance officer whose company operates in joint ventures is section 7 of the U.K. Bribery Act, which holds that an organization does not even need to be aware of corrupt conduct in order to be guilty of an offense, say attorneys with Dechert LLP.
When Californians first passed an initiative precluding the charging of “usurious” interest in 1918, they could hardly have imagined the ever-more sophisticated schemes and exceptions allowing lenders to charge interest exponentially higher than the stated maximum rate of 10 percent. In Bock v. California Capital Loan Inc., a California Court of Appeal recently introduced yet another exception to a seemingly simple prohibition, say Brian Lauter and Mark Madnick of Robins Kaplan Miller & Ciresi LLP.
The market’s attention is fixed firmly on the future of derivatives. Questions about the Dodd Frank requirements, and to what extent the use of swaps in structured finance and other transactions will return, are front and center. And yet, there are also lessons to be learned from the past use of these somewhat esoteric financial instruments, which continue to be tested in litigation — with more to come on the Lehman front, say attorneys with Orrick Herrington & Sutcliffe LLP.
Dark pool operators readying for new governance might give advance thought to the trading system build-outs that may be necessary to comply with a price improvement rule. Additionally, they may take an introspective look at how they use their customer’s trading information and what they disclose to customers about such use, as well as their surveillance systems to identify areas warranting improvement, says Christina Davilas of Bingham McCutchen LLP.
There are several critical decision factors to weigh to assess whether Technology Assisted Review is right for a discovery project — for example, the nature of the case, internal capabilities, production considerations and overall comfort with this technology, say Michele Lange and Joseph White of Kroll Ontrack Inc.
You are sitting at your desk when your client calls to tell you that his or her customer breached an agreement. As you do your intake, you ask where the customer resides. You learn that the potential defendant has recently moved to “Country X.” Suddenly, what first appeared to be a simple breach of contract case has become a venture into the exotic world of international service of process and jurisdiction, say attorneys with Nossaman LLP.
Arbitrators can still interpret contracts pretty much any way they want, according to the U.S. Supreme Court’s unanimous ruling in Oxford Health Plans LLC v. Sutter. The holding should come as no great surprise as it reflects decades of federal arbitration law, yet the unanimous ruling is a surprise, given what preceded it, says Christopher King of Homer Bonner Jacobs.