Banking

  • September 23, 2014

    2nd Circ. Won't Rehear $4B Lehman-Barclays Asset Fight

    The Second Circuit on Tuesday declined to rehear The Lehman Brothers Inc. liquidating trustee’s bid to reclaim $4 billion in Lehman trading collateral that was picked up by Barclays PLC after the collapse of Lehman’s parent company.

  • September 23, 2014

    Arab Bank Verdict Injects New Risk Into Compliance Landscape

    A New York federal jury's landmark decision to hold Arab Bank PLC liable for terror attacks will be subject to a lengthy appeal, but its immediate impact will be to force a financial sector already obsessed with governmental regulatory compliance to redouble internal control efforts with private lawsuits in mind, experts said Tuesday.

  • September 23, 2014

    Sen. Durbin Tells High Court Fed Got Swipe Fees Wrong

    Sen. Dick Durbin, D-Illinois, has urged the U.S. Supreme Court to undo the Federal Reserve's debit card swipe fee rules, saying the agency caved to the banking industry when it allowed for fee regulations that are more lax than what is called for under the legislative amendment bearing his name.

  • September 23, 2014

    6th Circ. Clears Wells Fargo In Fuel Spill Coverage Feud

    A Wells Fargo Insurance-Indiana agent was not obligated to recommend pollution coverage to a Kentucky fuel distribution company that was later left holding the bag after a spill at one of its facilities, the Sixth Circuit ruled Monday, affirming the dismissal of a negligence suit against the insurance firm.

  • September 23, 2014

    Max Azria Says It Owes No Commission Over $238M Debt Deal

    Fashion house BCBG Max Azria Group Inc. on Tuesday urged a New York judge to quash a lawsuit brought by the Carlton Group Ltd. over a disputed commission on a $238 million debt refinancing, arguing that the real estate investment bank never presented a concrete counteroffer that would warrant payment.

  • September 23, 2014

    Booming Hotel Sector Spurs High-Stakes CMBS Deals

    An increasingly hotel-friendly commercial mortgage-backed securities market has begun embracing riskier mezzanine debt and even floating-rate deals as investors bet on the booming lodging sector’s long-term prospects, experts say.

  • September 23, 2014

    4th Liberty Reserve Worker Pleads Guilty In $6B Scheme

    A former Liberty Reserve technology worker pled guilty on Tuesday to a conspiracy charge as part of the government's $6 billion money laundering prosecution of the digital currency firm, marking the fourth plea in the case.

  • September 23, 2014

    Deals Rumor Mill: Standard Chartered, Aditya Birla, Pfizer

    Standard Chartered PLC is on the verge of selling its Hong Kong consumer finance business to Pepper Australia Pty Ltd. for between $500 million and $700 million, while L Capital, Temasek Holdings Pte. Ltd. and International Finance Corp. could pay up to $500 million for a 30 percent stake in the retail branch Aditya Birla Group.

  • September 23, 2014

    MERS Escapes Claims It Was An Unlicensed Debt Collector

    Two Illinois courts have upheld foreclosure suits brought by a Deutsche Bank AG unit and Mortgage Electronic Registration Systems Inc., ruling MERS had not operated as an unlicensed debt collector when initiating the foreclosures, the company announced Monday.

  • September 23, 2014

    Market Rumors: Alibaba, BNP Paribas, Elementia

    The finance arm of e-commerce giant Alibaba is working to create a $163 billion marketplace for small business and individual loans while BNP Paribas' Chairman is preparing to step down three months after the French bank plead guilty to violating U.S. sanctions.

  • September 23, 2014

    Banking Groups Protest CFPB Complaint Narrative Proposal

    Financial industry groups came out Monday against a Consumer Financial Protection Bureau proposal to expand its consumer complaint database to include detailed consumer narratives, saying it goes beyond the bureau’s statutory mandate, creates privacy risks and will lead to the spread of inaccurate information.

  • September 23, 2014

    Barclays Pays $15M To Settle SEC Claim Over Lehman Business

    Barclays Capital Inc. on Tuesday agreed to pay $15 million to settle U.S. Securities and Exchange Commission claims that it had widespread compliance failures in the investment advisory business it acquired at the collapse of Lehman Brothers Holdings Inc.

  • September 23, 2014

    Colombia's Largest Bank Group Draws $1.1B In US IPO

    Grupo Aval Acciones y Valores SA, Colombia’s largest banking group, raked in $1.1 billion in its U.S. initial public offering on Tuesday to boost capital at its banking units, after pricing its American depository shares at $13.50 apiece, according to a statement.

  • September 23, 2014

    Deutsche Bank Execs Charged In Germany

    German prosecutors charged a top Deutsche Bank executive and two former CEOs on Tuesday with attempted fraud over testimony concerning a television interview that allegedly helped push a former client, media company Kirch Group, into bankruptcy.

  • September 23, 2014

    Dealmakers Q&A: Carlton Fields' Greg Null

    While the trend for people to migrate into more urban live, work and play environments has been apparent for some time, development and investment in this area will continue to intensify in this cycle, says Greg Null, chairman of Carlton Fields Jorden Burt LLP's commercial finance practice.

  • September 23, 2014

    Dealmakers Q&A: Holland & Knight's Norberto Quintana

    We are living in very exciting times in terms of the diversification of the sources of investment in the Americas, from the continuing inflow of investment from Asian countries to a wide array of financing structures in use, says Norberto Quintana of Holland & Knight LLP.

  • September 22, 2014

    JPMorgan Units Evade $1.15B Fraud Suit Thanks To Early Deal

    Virginia's attorney general on Monday dropped two JPMorgan Chase & Co. units from a $1.15 billion suit accusing them of selling toxic residential mortgage-backed securities to Virginia's retirement fund after he discovered that his predecessor had approved a confidential settlement precluding the claims.

  • September 22, 2014

    BNY Mellon Resists $539M Argentina Bond Payments

    The Bank of New York Mellon Corp. asked a New York federal judge on Monday to prevent a group of creditors from tapping into the $539 million in Argentina bond payments to satisfy money judgments against the republic, arguing it should continue maintaining control of the funds.

  • September 22, 2014

    British Regulator Fines Barclays $62M For Mingling Funds

    Barclays PLC was hit with a record fine Tuesday of nearly £38 million ($62 million) by the U.K. Financial Conduct Authority after failing to keep its clients’ funds adequately separated from the bank’s investment money, the British regulator said.

  • September 22, 2014

    FDIC Chairman Says Banks Face 'Urgent' Hacking Threats

    Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Monday told a group of bankers that U.S. banks need to prepare themselves against online cyberattacks and that federal regulators are in the process of evaluating them on their efforts.

Expert Analysis

  • Taking Stock Of The Legal Cloud: Opportunities And Pitfalls

    David Houlihan

    Like "big data" and other effective software marketing buzzwords, “cloud” makes something that is very complex sound simple — and even friendly. Most attorneys are not prepared to dig into the distinctions between public, private and hybrid cloud models, or the niceties of how or where their data is transmitted and stored, says David Houlihan of Blue Hill Research Inc.

  • In 7th Circ., Parties Are Held To The Terms Of A Bargain

    Stephen M. Proctor

    In the recent case of Southern Financial Group LLC v. McFarland State Bank involving a purchase of distressed loans secured by 19 real properties, the Seventh Circuit took advantage of a "straightforward case" to display its freedom of contract philosophy, particularly for sophisticated commercial parties that are expected to know what they are getting into, says Stephen Proctor of Masuda Funai Eifert & Mitchell Ltd.

  • The Emergence Of P2P Loan Securitizations

    John Timperio

    As more peer-to-peer commercial loan securitization transactions take place, the banks, bondholders and rating agencies involved will likely begin to expect more standardization of the loans themselves, as well as metrics for assessing risk on individual loans that are more quantifiable, standard and transparent, say John Timperio and Mary Bear of Dechert LLP.

  • A General Counsel's Top 10 Billing Tips

    Francis M. Drelling

    Nothing makes an in-house counsel feel like they are being nickeled-and-dimed more than receiving a $3.50, stand-alone invoice. Forcing anyone to spend time on a $3.50 invoice is, quite frankly, just not cool, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.

  • Reverse Due Diligence — A New Trend In Financial M&A

    Excerpt from Lexis Practice Advisor
    Elizabeth A. Raymond

    Concerns around regulatory uncertainty is starting to be reflected in the merger and acquisition process of specialty finance businesses, and some of the tactics of the immediate post-credit crisis period — selling assets and businesses quickly for a discounted price with no strings attached — are now less likely to pass muster, say Elizabeth Raymond and Jeffrey Taft of Mayer Brown LLP.

  • The EU General Court Gets A Rap On Its Knuckles

    James Webber

    In a case involving a French association of banking institutions, the EU Court of Justice severely reprimanded the General Court for its failure to properly analyze a restriction of competition "by object," thus reminding both the European Commission and the General Court that not all agreements between undertakings can be presumed to harm competition, say attorneys with Shearman & Sterling LLP.

  • Equity Cure Rights In Middle-Market Deals — A Primer

    Mark M. Oveson

    The equity cure right has gained significant acceptance in all ranges of the middle market for sponsor-backed deals, and lenders are adapting equity cure provisions for the middle-market risk profile by including tighter controls on the use of proceeds and limits on the borrower’s ability to exercise the cure right, say attorneys with Brownstein Hyatt Farber Schreck LLP.

  • Resurgence Of 'Negligent Loan Servicing' Theory In Calif.

    Luke Sosnicki

    California’s First District Court of Appeal recently doubled-down on its 2013 ruling in Jolley v. Chase Home Finance LLC, again holding that a residential mortgage servicer owed a borrower a duty of care when reviewing a loan-modification application. In doing so, however, the court did not address other — and perhaps more basic — questions, say Luke Sosnicki and Stephanie Yu of Dykema Gossett PLLC.

  • What The EU MasterCard Ruling Means For Banks, Retailers

    Irene Fraile

    The EU Court of Justice recently dismissed MasterCard Inc.’s final appeal against a 2007 antitrust infringement decision. This judgment finally puts an end to a seven-year legal battle over interbank card fees and will have a profound impact on banks, merchants and, ultimately, consumers, says Irene Fraile of Constantine Cannon LLP.

  • Scotland — The 'Succession Event' Question

    James Duncan

    A vote for an independent Scotland will have many consequences for the United Kingdom. Unsurprisingly, the implications for U.K. sovereign credit default swaps have not featured prominently in the public debate, say attorneys with Shearman & Sterling LLP.