Banking

  • March 31, 2015

    Nationstar Ducks Suit Over $150M Loan Auction Deal

    The Second Circuit on Tuesday affirmed a lower court's decision to toss Truman Capital Advisors LP's claims that a unit of mortgage service Nationstar Mortgage Holdings Inc. wrongfully killed a $150 million deal when it scrapped an auction of residential loan pools backing certain securities.

  • March 31, 2015

    Global Crowdfunding Soars To $16.2B In 2014, Report Says

    Worldwide crowdfunding volume skyrocketed by 167 percent, reaching $16.2 billion as industry growth continued to accelerate despite flat campaign sizes and unsettled regulatory reforms, according to an industry report Tuesday by research firm Massolution Inc.

  • March 30, 2015

    DH Buys Banking Software Co. Fundtech In $1.25B Cash Deal

    Canadian financial technology provider DH Corp. will shell out $1.25 billion in cash to buy Fundtech Ltd. — which sells payments and transaction banking software — from private equity firm GTCR, the companies said in Monday statements.

  • March 30, 2015

    Sen. Warren To Big Banks: 'Bring It On'

    Speaking to a packed house in a New York City bookstore Monday night, Sen. Elizabeth Warren, D-Mass., responded to reports that America’s unhappily-regulated financial industry was threatening to pull campaign funding from Democrats in Congress by telling the banks to “bring it on.”

  • March 30, 2015

    The 2015 Rising Stars, By Firm

    Law360's Rising Stars recognizes attorneys under 40 who have demonstrated outstanding career accomplishments. This year, King & Spalding LLP and Sidley Austin LLP led the pack with seven Rising Stars each, followed by Gibson Dunn and Sullivan & Cromwell LLP with six Rising Stars each, and Jones Day and Kirkland & Ellis LLP with five Rising Stars apiece.

  • March 30, 2015

    Capital One Will Pay $4.4M To End Car Repo Class Action

    Capital One NA has agreed to pay $4.4 million to resolve a proposed class action lawsuit alleging that borrowers who had vehicles repossessed and sold at auction were given deficient notices regarding the sales in violation of Maryland law, according to documents filed in Maryland federal court Monday.

  • March 30, 2015

    Relators Dispute Atty Fee Bid Over $320M FCA Mortgage Deal

    Two relators in a False Claims Act row involving Taylor Bean & Whitaker Mortgage Corp. and Home America Mortgage Inc. have hit back at their former counsel’s claim to fees stemming from a $320 million settlement, urging a Georgia federal judge to invalidate a lien on their share of the deal.

  • March 30, 2015

    Wells Fargo, Overdraft Counsel To Resolve $51M Fee Spat

    Attorneys who won a $203 million judgment against Wells Fargo NA for reordering customers’ debit transactions to maximize overdraft fees can’t point to “subjective” information to justify their $51 million fee request as the parties enter limited discovery related to the disputed fees, a California federal judge ruled Friday.

  • March 30, 2015

    11th Circ. Shields SEC From Negligence Claims Over Stanford

    The Eleventh Circuit on Monday affirmed a Florida district court’s decision to shield the U.S. Securities and Exchange Commission from a negligence lawsuit by two victims of Robert Allen Stanford’s $7 billion Ponzi scheme, saying the lower court correctly applied exceptions in the Federal Tort Claims Act.

  • March 30, 2015

    CFPB Says Debt Collection Firm Impersonated Prosecutors

    The Consumer Financial Protection Bureau on Monday launched an enforcement action against a California debt collection firm that the bureau says used its connection to law enforcement agencies to improperly threaten debtors with jail time if they did not pay up on bounced checks.

  • March 30, 2015

    Rising Star: Sullivan & Cromwell's Diane McGimsey

    Sullivan & Cromwell LLP’s Diane McGimsey has become one of the firm’s key partners for handling complex litigation, with successes ranging from defending investment firm Thomas Weisel Partners LLC to coordinating JPMorgan Chase & Co.’s defense in a host of mortgage cases, making her one of three attorneys under 40 honored by Law360 as a rising legal star in banking.

  • March 30, 2015

    BSI To Pay $211M As Part Of DOJ Swiss Bank Program

    A major Swiss bank agreed to pay $211 million to the U.S. government to avoid prosecution for helping U.S. citizens create secret accounts and access cash using code words, the U.S. Department of Justice said Monday.

  • March 30, 2015

    Russia, Australia, Others Back China-Led Development Bank

    Russia, Egypt and Finland on Monday became the latest countries to announce their intentions to join the China-backed Asian Infrastructure Investment Bank, according to statements from China’s Ministry of Finance, following Australia and Denmark, which announced their intention to sign on this weekend.

  • March 30, 2015

    Ex-Bank Of Montreal Trader Avoids Prison, Must Pay $14M

    A New York federal judge on Monday sentenced Bank of Montreal’s former lead natural gas options trader to time served and ordered him to pay $14.2 million in restitution for secretly inflating the value of his trading positions.

  • March 30, 2015

    High Court Won't Hear Appeal Over Madoff SLUSA Claims

    The Supreme Court refused Monday to review a ruling finding JPMorgan Chase & Co. and Bank of New York Mellon Corp. not liable for alleged contributions to the Madoff Ponzi scheme under state law.

  • March 30, 2015

    SEC Wins $99M From Convicted McGinn Smith Brokers

    A New York federal judge on Friday granted a request by the U.S. Securities and Exchange Commission to order two former McGinn Smith & Co. brokers accused of a $126 million investment scheme to pay more than $99 million back to investors, and also tapped numerous assets from which to draw the funds.

  • March 30, 2015

    Ex-Wells Fargo Trader Slams SEC's 'Statistical Shenanigans'

    An attorney for an ex-Wells Fargo employee accused of insider trading fired back at the U.S. Securities and Exchange Commission during opening arguments of the agency's administrative suit on Monday, saying the agency's narrative of the alleged events doesn't add up.

  • March 30, 2015

    Ill. Judge Sends Cashcall Payday Loan Suit To Arbitration

    An Illinois federal judge on Friday sent to arbitration a proposed class action targeting Cashcall Inc. for allegedly funding and servicing usurious loans issued by Native American owned-Western Sky Financial Inc., concluding the issue of whether the defendants' arbitration agreement is valid and enforceable could be resolved in that forum.

  • March 30, 2015

    Saudi Aramco Inks $10B Loan With International Banks

    State-owned Saudi Arabian Oil Co. said on Monday said that it had inked new, $10 billion loan agreement with a syndicate of 27 international commercial banks, a move that the world’s largest oil exporter says will help it maintain financial flexibility.

  • March 30, 2015

    S&P, Moody’s Shake Illinois Bank's RMBS Suit

    An Illinois federal judge has dismissed a suit against Standard & Poor’s and Moody's over their residential mortgage-backed securities ratings during and before the financial crisis, saying the suit was not brought in time to meet a five-year statute of limitations.

Expert Analysis

  • A Rising Tide Of AML Reg Actions — And What We Can Learn

    Olivia A. Radin

    As recent settlements demonstrate, regulators will focus on the nuts and bolts of Bank Secrecy Act/anti-money laundering compliance programs, including how transactions are monitored, how information is shared, and what controls are in place to detect, escalate and report suspicious activity, says Olivia Radin of Freshfields Bruckhaus Deringer.

  • Pay Close Attention To High Court ECOA Loan Guarantor Case

    Jeremy C. Sairsingh

    Creditors subject to the Equal Credit Opportunity Act and Regulation B should proceed with caution when requiring a guarantee. This guidance will apply with even greater force if the U.S. Supreme Court, in Hawkins v. Community Bank of Raymore, disagrees with the Eighth Circuit and finds that Regulation B’s expansive definition of “applicant” is a permissible interpretation of the ECOA, say attorneys with Ballard Spahr LLP.

  • Mediation And The Thorny Issue Of Settlement Authority

    Douglas H. Flaum

    Many mediation orders state that attendees must have “full settlement authority” without providing clarity as to what that term actually means. Attendance by just outside counsel or a corporate spokesperson is not enough, even if someone else with full settlement authority is just a phone call or keystroke away, say Douglas Flaum and Kevin Broughel of Paul Hastings LLP.

  • Hedging Contango In The Energy Sector

    Jeffrey Nichols

    With some analysts expecting the crude oil forward price curve to dive into steep contango soon, depending on the rates of production decrease, demand increase and storage availability, this will cause cash-strapped oil and gas companies to explore transactions that are a blend of hedging and financing, says Jeffrey Nichols of Haynes and Boone LLP.

  • A Closer Look At Madoff Victims' PwC, Citco Suit

    Christine Vargas Colmey

    A recent Southern District of New York ruling — bringing Madoff Ponzi scheme victims one step closer to recovery from Citco and PricewaterhouseCoopers — serves as a cautionary reminder to service providers to funds. They ought to be mindful that, even in the absence of contractual privity with investors, their acts and omissions can result in liability to those third parties, say Jonathan Sablone and Christine Vargas Colmey of Nixon Peabody LLP.

  • What Experts Can Say About Inadmissible Facts During Trial

    Jason McDonell

    For reliance material that is not admitted on the stand, consider bolstering the testimony by having the expert describe the evidence generally, but in a way that signals to the jury that the expert has a strong foundation of supporting facts and data. If done well, such testimony can open the door to admitting the evidence, say Jason McDonell and Heather Fugitt of Jones Day.

  • 5 Key Privacy Considerations For All Companies

    Adam Solander

    Privacy and security are closely intertwined, but securing information from outside intrusion may not provide the privacy protections you need, say Adam Solander and Patricia Wagner of Epstein Becker & Green PC.

  • The Difficulties In LIHTC Loan Sales

    Mark V. Bossi

    Because there is currently a very robust market for distressed debt, a lender's first option for dealing with any nonperforming loan is often to look to sell the loan. However, the pool of potential buyers for low-income housing tax credit loans will likely consist only of strategic buyers, says Mark Bossi, co-chairman of Thompson Coburn LLP's financial restructuring group.

  • Operation Choke Point Changing Culture But Not Mission

    Barkley Clark

    Suggestions that regulators are distancing themselves from Operation Choke Point and will be more restrained in holding banks accountable are nice but may not prove to be accurate. While the culture is shifting at the federal banking agencies, expect vigorous continued civil and criminal prosecutions, say Barkley Clark of Stinson Leonard Street LLP and Barbara Clark of Commercial Law Institute.

  • EMIR's Effectiveness Is Doubtful

    Stephen Phillips

    If a “Lehman-like” collapse were to happen again tomorrow or if a central clearing counterparty becomes insolvent, it is questionable whether regulators would glean useful insights from the costly and far-reaching reporting requirements imposed on the derivatives market by the European Market Infrastructure Regulation, say attorneys with Orrick Herrington & Sutcliffe LLP.