Banking

  • March 5, 2015

    NFL's Gore Takes $1,000 Settlement From BB&T In $53M Case

    National Football League running back Frank Gore has accepted a $1,000 settlement offer from Branch Banking & Trust Co., well under the millions he individually sought in a $53 million suit he and other players brought against the bank for allegedly unauthorized transactions.

  • March 5, 2015

    Banks Say Judge Can't Split Up Libor Suit Over Jurisdiction

    Bank of America Corp., Barclays PLC and other major lenders on Thursday told a New York federal judge presiding over multidistrict litigation regarding allegations the banks colluded to rig the Libor that she couldn’t transfer cases that lacked jurisdiction, citing high court precedent.

  • March 5, 2015

    US Bank Can't Revive $1.8B RMBS Suit Against Credit Suisse

    A New York state judge on Thursday refused to revive a settled $1.8 billion residential mortgage-backed securities lawsuit against a Credit Suisse unit brought by Assured Guaranty Corp., saying U.S. Bank NA’s attempt to intervene is too late.

  • March 5, 2015

    Brokerage Not Covered For Online Theft, 11th Circ. Affirms

    A Georgia real estate brokerage firm isn't entitled to insurance coverage for fraudulent online bank withdrawals under a Transportation Insurance Co. policy, the Eleventh Circuit affirmed Thursday, finding that the transfers at issue don't fall within a forgery provision of the policy.

  • March 5, 2015

    BPI Directors Urge Shareholders To Nix $1.2B Takeover Bid

    Portuguese lender Banco BPI SA’s board of directors is recommending shareholders reject a takeover bid by CaixaBank SA, already BPI’s largest shareholder, saying Thursday the Spanish bank’s €1.09 billion ($1.2 billion) offer undervalues the company.

  • March 5, 2015

    Bank Leumi Shareholder Says Brass Aided Tax Evasion

    An Israeli shareholder of Bank Leumi has filed a suit in New York state court against the bank and its U.S. subsidiary seeking damages from bank officials over their roles in an alleged tax evasion scheme that cost the bank $400 million in penalties.

  • March 5, 2015

    DLA Piper Snags Ex-O’Melveny Star Litigator In Los Angeles

    DLA Piper said Wednesday it has tapped a former partner at O’Melveny & Myers LLP specializing in high-stakes and complex litigation across a number of industries including health care, insurance, entertainment, technology, finance, energy and environmental, and professional services and accounting.

  • March 5, 2015

    NY AG Says Credit Card Surcharge Ban Fights Price-Gouging

    A New York statute prohibiting merchants from tacking surcharges onto credit card transactions protects consumers from price-gouging and doesn't violate free speech principles, the state attorney general's office told the Second Circuit on Thursday, urging it to reverse a lower court's striking down the law.

  • March 5, 2015

    Caesars Bond Trustee Sues To Enforce $750M Guarantee

    A bond trustee accused Caesars Entertainment Corp. of illegally repudiating $750 million in junior debt to ease the restructuring of its bankrupt operating unit, filing a lawsuit in New York that strikes at the heart of a carefully constructed $10 billion deleveraging strategy.

  • March 5, 2015

    Ex-Barclays Director Claims National Origin, Sex Bias In Suit

    Barclays Capital Inc. has been hit with a discrimination suit in New York state court by a former director who says she was fired after complaining that she had been subjected to derogatory comments about her national origin and passed over for promotions in favor of white colleagues.

  • March 5, 2015

    NY Appeals Court Approves $8.5B BofA MBS Deal

    The New York Supreme Court Appellate Division approved Bank of America Corp.’s $8.5 billion settlement with investors who purchased mortgage-backed securities investors in its entirety Thursday after finding that The Bank of New York Mellon Corp. was entitled to exclude loan modification claims as the trustee in the settlement.

  • March 5, 2015

    Big Banks All Pass Stress Test, Fed Says

    The Federal Reserve on Thursday said that all 31 of the largest banks operating in the U.S. passed its annual stress tests, which are used to examine their ability to withstand a severe economic downturn.

  • March 5, 2015

    Winston & Strawn Adds Ex-Pillsbury Finance Pro In NY

    Winston & Strawn LLP has shored up its structured finance practice in New York by tapping a former partner at Pillsbury Winthrop Shaw Pittman LLP specializing in structured finance and derivatives for banks, insurance companies and asset managers, the firm announced Tuesday.

  • March 5, 2015

    Judge OKs LBO $590M Settlement Distribution Plan

    A Massachusetts federal judge who has already approved $590 million in settlements and a $200 million attorneys' fee gave the green light Monday to an allocation plan in an antitrust class action claiming Goldman Sachs Group Inc., Carlyle Group LP and other private equity firms teamed up to keep leveraged buyout prices low.

  • March 5, 2015

    Picard Pushes $54M Clawback Suit Against Madoff Pal

    The trustee charged with digging up money for victims of Bernard Madoff's Ponzi scheme pressed a judge Thursday to order a trial against longtime Madoff family friend Stanley Shapiro for allegedly reaping $54 million in fictitious profits while turning a blind eye to the fraud.

  • March 5, 2015

    SEC's Asset Manager Stress Tests Won't Copy Bank Model

    A senior U.S. Securities and Exchange Commission official said Thursday that the stress tests his agency plans to eventually run on the largest asset management firms won't be like the ones that banks currently undergo.

  • March 5, 2015

    Goldman Critic Urges 2nd Circ. To Revive Shareholder Case

    An Ohio plaintiff argued to the Second Circuit on Thursday that he has properly asserted claims that seven Goldman Sachs Group Inc. board members breached their duty to investors in failing to disclose now-infamous bets against $3.5 billion in bad mortgage-backed securities the megabank sold to clients.

  • March 5, 2015

    Market Rumors: HKBN, Huarong, 1MDB

    Private equity-backed broadband Internet provider HKBN has priced its Hong Kong IPO at the top of its targeted range, while bad-loan bank Huarong is mulling a Hong Kong IPO that could bring in more than $2.5 billion.

  • March 5, 2015

    Schwab Founder Slips Suit Over Alleged $25M RE Fraud

    A California judge on Thursday tossed claims that Charles Schwab Corp. founder Charles Schwab Jr. conspired with his son to force a former business partner out of an eco-friendly real estate investment venture worth more than $25 million, ruling the plaintiff didn’t connect Schwab to the alleged fraud.

  • March 5, 2015

    Europe’s Top Court Upholds Iranian Bank Sanctions

    The European Court of Justice on Thursday handed the European Union a victory over economic sanctions triggered by Iran’s nuclear program, upholding restrictions imposed on a Hamburg, Germany-based Iranian bank that allegedly carried out transactions involving a number of blacklisted banks.

Expert Analysis

  • Law Firm Tensions Mount In Africa — What Does It Mean?

    Steve Blundell

    Tensions are perhaps inevitable in a fast-growing market such as Africa where international law firms are gearing up for a greater level of market entry, and where the independent firms remain highly reliant on referrals from these same firms. But the questions facing both types of firms go to the heart of short-term expedient versus long-term strategy, says Steve Blundell of Redstone Consultants.

  • A Close Look At Recent UDAAP Actions: Part 2

    Stephanie Robinson

    In 2014, the Federal Trade Commission was increasingly active in pursuing “cramming” cases as unfair or deceptive acts or practices, and the Consumer Financial Protection Bureau entered the field by filing its first cramming case. The consumer finance industry also saw continued UDAAP enforcement at the state level, say attorneys with K&L Gates LLP.

  • Crunching The Numbers In NYDFS' Cybersecurity Report

    Mary Jane Wilson-Bilik

    While all insurers surveyed in the New York Department of Financial Services' cybersecurity report claimed to have engaged in penetration testing of their systems, the NYDFS noted that the results of this testing can become quickly outdated as new threats emerge, say Mary Jane Wilson-Bilik and John Pruitt of Sutherland Asbill & Brennan LLP.

  • A Close Look At Recent UDAAP Actions: Part 1

    Soyong Cho

    In the last few years, consumer financial services companies have increasingly faced the new darling tool of government enforcers — the prohibition of unfair, deceptive, or abusive acts or practices. The challenge of UDAAP compliance is that its standards are intentionally broad and inherently flexible, and regulators have expressly stated that compliance with a consumer financial services law is no defense to a UDAAP claim, say at... (continued)

  • Swipe Fee Litigation Isn’t Over Yet

    Barkley Clark

    It is premature for U.S. bank issuers to claim a complete victory in the debit card swipe fee litigation based on the U.S. Supreme Court’s recent denial of certiorari in NACS v. Board of Governors of the Federal Reserve System. The D.C. Circuit left one bone to pick with the Federal Reserve Board, say Barkley Clark of Stinson Leonard Street LLP and Barbara Clark of the Commercial Law Institute.

  • Lawsky Speech Portends Strict NY Cybersecurity Standards

    Alexander H. Southwell

    In a Feb. 25 speech, Superintendent Benjamin Lawsky of the New York Department of Financial Services advanced his view that states can play a “catalytic” role in raising cybersecurity practices, and he appears to be seeking regulation that could require third-party vendors in sectors far from the regulatory purview of the DFS — including law firms — to effectively comply with stringent cybersecurity requirements, say attorneys with... (continued)

  • Key Employment And Immigration Issues Facing Banks Today

    James R. Wiley

    Many banks are facing class actions for not compensating nonexempt employees for compensable work. These lawsuits are costly and hard to defend. Meanwhile, foreign nationals create a potential new client base, but the issue is whether to offer services to undocumented individuals, say attorneys with Carlton Fields Jorden Burt LLP.

  • From .Com To .Bank: What Financial Institutions Need To Know

    Eleanor Yost

    Trademark and brand owners can leverage the new .bank Internet domain as yet another way to build a company’s brand online. Importantly, however, the anticipated flood of new “real estate” that will become available as part of the .bank release will be tempered by mandated security measures, say attorneys with Goodwin Procter LLP.

  • Lenity And Deference On A Collision Course

    Michael Y. Kieval

    It is clear that at least two U.S. Supreme Court justices are willing to address the issue of deference to the agency interpretation of criminal or hybrid statutes. It is less clear whether the court is interested in curbing the use of administrative adjudication to make law. Both of these trends carry particular importance for the financial services industry, say attorneys with Weiner Brodsky Kider PC.

  • Recent Lessons In Anti-Money Laundering Compliance

    Emily P. Gordy

    Chief compliance office liability continues to be one of the hottest topics in the regulatory community. Two recent enforcement actions against anti-money laundering compliance officers not only highlight the issue but also offer a number of lessons for any current or prospective AMLCO, say Emily Gordy and Renée Kramer of Shulman Rogers Gandal Pordy & Ecker PA.