Banking

  • July 31, 2015

    Bahamanian Judge Delays $3.5B Baha Mar Liquidator Hearing

    A Bahamanian judge on Friday stalled a key hearing for the unfinished $3.5 billion Baha Mar resort, granting the government until Aug. 19 to name a new liquidator to handle the beleaguered resort’s restructuring after its original candidate, PricewaterhouseCoopers, was nixed over a conflict of interest.

  • July 31, 2015

    Goldman To Drop $270M To Settle $6B RMBS Suit

    Goldman Sachs Group & Co. has tentatively agreed to pay $270 million to resolve a putative class action brought by a union pension fund accusing the investment banking giant of selling $6 billion in shoddy residential mortgage-backed securities, according to multiple media reports published Friday.

  • July 31, 2015

    High Court Urged To Allow Collection Of $378M Terror Award

    Families of people killed or injured in a 1972 terrorist attack have urged the U.S. Supreme Court to revisit the Second Circuit's ruling that they are barred under a federal insurance law from collecting on a $378 million judgment against North Korea using blocked electronic transfers held by JPMorgan Chase Bank NA and others.

  • July 31, 2015

    Cohen Milstein Lands $73M For MBS Settlement With Banks

    A New York federal judge signed off Friday on a $73.4 million fees and costs award to Cohen Milstein Sellers & Toll PLLC in a $235 million settlement ending a class action brought by a pension fund against three financial giants over Residential Capital LLC mortgage-backed securities.

  • July 31, 2015

    Attys Tell Justices 6th Circ. Wrongly Revived FDCPA Suit

    Zwicker & Associates PC asked the Supreme Court to quash a class action claiming the firm violated the Fair Debt Collection Practices Act by asking for attorneys fees in a separate debt collection suit, saying allowing liability under the law tramples lawyers' constitutional rights.

  • July 31, 2015

    Bryan Cave Accused Of Misconduct In Fraud Probe Of Ex-Atty

    A former Bryan Cave LLP attorney has accused the firm of serious ethical violations during a criminal investigation into his alleged role in a scheme to fraudulently obtain bank financing to acquire Maxim magazine, according to New York federal court filings.

  • July 31, 2015

    Forex Suit Adds Japanese, Canadian, French, UK Banks

    Four foreign banks have been added as defendants to a class action that claims a number of banks orchestrated a conspiracy to rig the foreign exchange market, class counsel Scott & Scott LLP told a New York federal court on Friday.

  • July 31, 2015

    Legacy Wants $213M Madoff Trustee Suit Dismantled

    Legacy Capital Ltd. urged a New York bankruptcy judge Thursday to gut a trustee's suit seeking to claw back more than $213 million in transfers it received from Bernard Madoff’s fraudulent investment fund, saying it had no knowledge of his colossal Ponzi scheme.

  • July 31, 2015

    Visa, MasterCard Win Antitrust Suit Over WikiLeaks Blockade

    Visa Inc. and MasterCard Inc. didn’t violate federal antitrust laws when they suspended donations to WikiLeaks after the site released hundreds of thousands of classified government documents, a Virginia federal judge ruled Thursday.

  • July 31, 2015

    Schwab Urges High Court To Quash Risky CMO Class Action

    Schwab Investments has petitioned the U.S. Supreme Court to review a Ninth Circuit decision that revived a proposed class action accusing it of making risky bets on collateralized mortgage obligations despite policies outlined in investment guidelines, arguing the plaintiffs had no standing to sue in the first place.

  • July 31, 2015

    Credit Union's Suit Could Open Up Banking For Pot Business

    A Colorado credit union’s lawsuit against the Federal Reserve Bank of Kansas City over the denial of a vital account could help bring more clarity for financial institutions interested in providing services to legal marijuana businesses if it can survive early hurdles, experts say.

  • July 31, 2015

    SEC Says It's Likely To Win Appeal of In-House Court Freeze

    The U.S. Securities and Exchange Commission on Thursday further urged a Georgia federal judge to stay the injunction she granted in June to an accused insider trader in the SEC’s administrative court, arguing that it is very likely to win its appeal of that injunction in the Eleventh Circuit.

  • July 31, 2015

    BofA, Merrill Lynch Can't Shake OT Action By Adviser Trainees

    A New York federal judge on Friday refused to dismiss a suit accusing Bank of America Inc. and subsidiary Merrill Lynch & Co. Inc. of stiffing financial adviser trainees on overtime pay and agreed to conditionally certify the case as a class action.

  • July 31, 2015

    GE Mortgage Can't Escape BNY Mellon's $900M RMBS Suit

    A Manhattan federal judge on Thursday denied General Electric Mortgage Holding LLC’s bid to exit Bank of New York Mellon’s suit accusing it and another mortgage company of falsely representing a $900 million mortgage-backed security trust with poor performance.

  • July 31, 2015

    Real Estate Rumor Mill: China, HSBC, NorthStar

    Chinese regulators are reportedly considering letting state-owned real estate investment trusts trade in the onshore interbank market, while HSBC Holdings PLC is said to have provided a £200 million loan for a trophy London tower and NorthStar Realty Finance affiliates are buzzed to have scored a $98.5 million loan for a trio of Miami hotels.

  • July 31, 2015

    Simpson Thacher, JPMorgan Sued Over $1.5 Billion GM Loan

    JPMorgan Chase Bank NA and Simpson Thacher & Bartlett LLP were slapped with a pair of suits Thursday by putative classes of more than 400 lenders in New York federal court, claiming they negligently authorized the termination of security interest in a $1.5 billion bankruptcy loan to General Motors LLC.

  • July 30, 2015

    Settlement Monitor Says BofA Picked Up Consumer Relief Pace

    Bank of America Corp. put itself on pace to complete its consumer relief requirements from last August’s $17 billion mortgage settlement by distributing nearly $1.2 billion in mortgage refinancing and community assistance through the first quarter of 2015, the settlement’s monitor said Friday.

  • July 30, 2015

    AmEx Faces Investor Suit Over Loss Of Costco Partnership

    American Express Co. investors hit the credit card company with a proposed class action in New York federal court Thursday over its failure to renew a co-branding agreement with Costco Wholesale Corp., with a pension fund accusing the company of hiding the financial importance of the partnership.

  • July 30, 2015

    Texas Men Get Prison In $12M Scarfo-Led Scheme

    Two Texas brothers convicted for their roles in a $12 million Mafia-led extortion takeover that forced a mortgage lender's bankruptcy were sentenced to prison Tuesday in federal court in New Jersey, U.S. Attorney Paul Fishman announced.

  • July 30, 2015

    JPMorgan Execs Knock Out Derivative Suit Over $2B In Fines

    A Delaware Chancery judge tossed a shareholder derivative complaint Wednesday that accused JPMorgan Chase & Co. officers and directors of overseeing ineffective money-laundering and sanction controls that led to more than $2 billion in fines, finding the suit raised claims previously dismissed in other venues.

Expert Analysis

  • Inside Sweeping Changes To DOD's Military Lending Act Rules

    Obrea Poindexter

    While few, if any, would question the need to ensure that servicemembers are protected from predatory lending practices, the U.S. Department of Defense's final rule implementing the Military Lending Act goes far beyond such practices and may ultimately restrict servicemember access to traditional credit products, say Leonard Chanin and Obrea Poindexter of Morrison & Foerster LLP.

  • Ex-Im Bank Closes And The Path Forward Is Challenging

    David T. Ralston

    In the wake of the U.S. Export-Import Bank’s closure stakeholders and politicians on all sides of the debate have been contemplating what the absence of the bank means for American exporters, say David Ralston and Anna Ross at Foley & Lardner LLP.

  • 7 Keys To Improving Your Direct Examination

    James Murray

    Trial lawyers should approach direct examination with the same excitement as cross-examination. If you do not, the jury will notice and your case will suffer. An effective direct examination backs the lawyer out of the action and puts the witness front and center to tell the story in a conversational, comforting, interesting fashion, says James Murray of Dickstein Shapiro LLP.

  • Cuba, Si! Trade With Cuba, Not Quite Yet

    Burt Braverman

    There has been much fanfare surrounding the re-establishment of diplomatic relations with Cuba, but for U.S. businesses anxious to establish commercial beachheads for the sale of goods and technology, the reality is much the same as it has been since 1982 when Cuba was first designated as a State Sponsor of Terrorism, says Burt Braverman at Davis Wright Tremaine LLP.

  • Lessons From 5th Circ. Application Of Scienter Standard

    David Dodds

    The Fifth Circuit’s recent dismissal of a federal securities fraud class action that arose out of the failure of Guaranty Bank serves as a reminder that even where some specific allegations tend to support an inference of scienter, they may not invariably lead to a finding of the required “strong inference,” says David Dodds of Haynes and Boone LLP.

  • A Potential Basis For Objecting To Certain CFPB Sanctions

    Jennifer L. Sutton

    Much like the U.S. Securities and Exchange Commission bar at issue in SEC v. Koch, a number of the Consumer Financial Protection Bureau’s enforcement actions address violations premised on conduct that, at least in part, predates Dodd-Frank. The D.C. Circuit’s ruling in Koch rejecting retroactive Dodd-Frank application could provide a basis for institutions to object to certain CFPB sanctions, say attorneys with Sullivan & Cromwell LLP.

  • Understanding Pre-Award Interest Rates In Arbitration

    Dan Harris

    Pre-award interest rates in international arbitration can lead to very significant differences in final award amounts, yet the debates on interest often reveal misunderstandings about the economic fundamentals, say principals of The Brattle Group Inc.

  • Fracking Risks To Secured Oil And Gas Lenders

    Matthew D. Clark

    The biggest legal and regulatory challenges for oil and gas industry participants and their lenders relate to the hot-button issue of hydraulic fracturing, where a number of recent developments put credit risk front and center. A lender could easily find itself with a borrower unable to pay and collateral that evaporated, say Matthew Clark and Colin Deihl of Faegre Baker Daniels LLP.

  • The Proposed Best Interest Contract Exemption: Part 3

    Susan Krawczyk

    Some broker-dealers may choose to develop a separate customer platform for retirement investor accounts in order to comply with the U.S. Department of Labor's proposed best interest contract exemption, rather than subject all of their retail customer accounts to the same rules. The more formidable challenge, though, will likely be the fee and compensation disclosure requirements, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Mass. Has New Requirements For Foreclosing Mortgagees

    Darian Butcher

    Massachusetts law regarding which terms of a mortgage require strict compliance in order for a mortgagee to validly exercise its power of sale continues to develop. In a recent decision, the state high court acknowledged that its jurisprudence on this point has “taken a more flexible approach,” say attorneys with Day Pitney LLP.