Banking

  • April 17, 2015

    Alibaba-Backed E-Commerce Co. Baozun Eyes $200M IPO

    Baozun Inc., which joins with brands such as Microsoft Corp. and Nike Inc. to provide e-commerce services in China, filed with U.S. regulators on Friday to raise up to $200 million in an initial public offering, making it the latest technology company to dip into the public markets.

  • April 17, 2015

    Ch. 11 Reform Plan Seen Pushing Restructurings Out Of Court

    Commercial creditors will pursue more debt restructurings that don't require stepping foot in bankruptcy court if lawmakers heed an influential reform commission's calls to cut back secured lender rights, experts said at a Friday discussion.

  • April 17, 2015

    FHFA Leaves Guarantee Fees For Fannie, Freddie Untouched

    The Federal Housing Finance Agency on Friday said it would not raise the fees Fannie Mae and Freddie Mac charge for guaranteeing new mortgages, known as g-fees, reversing an earlier plan that called for a 10 basis point increase.

  • April 17, 2015

    Ex-Goldman Coder Seeks Mid-Trial Dismissal Of IP Theft Case

    Attorneys for a former Goldman Sachs Group Inc. programmer accused of stealing source code for the firm’s high-frequency trading platform on Thursday asked a New York court to quash the criminal trial before it reaches a jury, saying there’s no evidence to support the charges.

  • April 17, 2015

    11th Circ. Won't Rehear Stock Certificate Loss Case

    The Eleventh Circuit on Thursday denied an Alabama bank’s request for a rehearing of the court’s decision that a Travelers Cos. Inc. financial institution bond didn’t cover losses the bank suffered when a customer defaulted on loans backed in part by a bogus stock certificate.

  • April 17, 2015

    Banks Lose Ground In Revolving Door Race

    Former Federal Reserve Chairman Ben Bernanke's decision to join hedge fund Citadel LLC makes him the latest former government official to choose the alternative investment sector over work at a bank, a reflection of both the stigma on banks and the funds' growing needs for regulatory expertise.

  • April 17, 2015

    11th Circ. Tosses Wells Fargo Bid To Dismiss FCA Suit

    The Eleventh Circuit on Thursday tossed Wells Fargo Bank NA Inc.’s bid to dismiss a whistleblower False Claims Act suit accusing it of defrauding veterans with excessive loan fees after a media leak by the relators, ruling the court lacked jurisdiction over the case.

  • April 17, 2015

    NY Lawmakers Target Zombie Properties With New Bill

    New York State lawmakers have finished putting together a promised update to legislation proposing to lob new disclosure requirements and stiffer penalties at lenders in an effort to cut down on so-called zombie properties that go unmaintained after foreclosures, according to a Friday announcement by New York Attorney General Eric T. Schneiderman.

  • April 17, 2015

    Deals Rumor Mill: Cirque du Soleil, Vessel, Deutsche Bank

    A TPG Capital Management-led consortium is nearing a deal to buy a majority stake in Cirque du Soleil Inc. valuing the theatrical circus company at about $1.5 billion, while online video service and hopeful YouTube rival Vessel has closed its second fundraising round after raising $57.5 million.

  • April 17, 2015

    SEC's Freddie Mac Letdown Underscores Discovery Risks

    The ho-hum conclusion to the U.S. Securities and Exchange Commission's once high-flying case against former Freddie Mac executives offers the agency a painful lesson on how a once clearly stated fraud claim can become muddied and imprecise after years of discovery take their toll.

  • April 17, 2015

    Seyfarth Shaw, Banks Ran Tax Shelter Scam, Suit Says

    Seyfarth Shaw LLP, Northern Trust Corp. and Christiana Bank & Trust Co. were sued Friday for allegedly hawking an illegal tax shelter scheme that cost Applied Underwriters Inc.'s founder millions of dollars in back taxes on his $64 million stock sale to Berkshire Hathaway Inc.

  • April 17, 2015

    Winston & Strawn Lures Another Ex-Pillsbury Finance Partner

    Winston & Strawn LLP said Thursday it has added to its New York office a structured finance partner with experience in private equity and banking from Pillsbury Winthrop Shaw Pittman LLP as part of a wave of attorneys leaving Pillsbury to join Winston & Strawn's ranks over the past couple months.

  • April 17, 2015

    7 Cos. Rake In $1.3B In Week's Flood Of IPO Activity

    Seven companies rumbled onto the public markets to raise nearly $1.3 billion during the week of April 13, rocking the lackluster initial public offering activity recorded at the beginning of 2015 as an online crafts marketplace, a private equity-backed retailer, a high-frequency trading firm and four biotechnology companies priced their debuts.

  • April 17, 2015

    Sullivan, Davis Polk Guide ING's $2.25B Bond Sale

    Dutch bank ING Groep NV is offering $2.25 billion in convertible corporate bonds to strengthen its capital base, part of an ongoing restructuring taken up after the financial crisis, in a deal completed Thursday that was guided by Sullivan & Cromwell LLP and Davis Polk & Wardwell LLP.

  • April 17, 2015

    Former Tullett Prebon Broker Denies Libor Rigging In London

    A former Tullett Prebon PLC broker pled not guilty in London on Friday on charges of manipulating the London Interbank Offered Rate, joining three former ICAP PLC brokers with whom he is slated to stand trial in denying the allegations.

  • April 17, 2015

    Wells Fargo Exec Wants Gov’t Docs In $189M Fraud Suit

    A Wells Fargo Bank NA executive asked a New York federal judge on Thursday to make the government release 179 withheld documents in a $189 million mortgage insurance suit against the bank, saying the government has failed to show a lawful rationale for withholding them.

  • April 17, 2015

    Chicago Developer Denies Role In $23M Mortgage Plot

    After initially refusing to return to the U.S. last year to face an indictment alleging he scammed a group of banks in a $23 million mortgage fraud scheme, Chicago condominium developer Warren Barr III pled not guilty on Friday to the charges in Illinois federal court.

  • April 17, 2015

    Real Estate Rumor Mill: Tokyo Olympics, Madison, Murdoch

    Hotel operator APA Group reportedly plans to build Japan's largest-ever hotel for the 2020 Olympics, while Madison Capital is rumored to have nabbed a downtown Manhattan retail complex for $400 million, and Rupert Murdoch is reportedly looking to sell a downtown New York City apartment for a record $72 million.

  • April 17, 2015

    DOJ Official Warns Against Anti-Steering In Contracts

    A top official from the U.S. Department of Justice's Antitrust Division urged leading suppliers Friday to analyze anti-competitive market impacts before referencing rivals in merchant contracts lest they face antitrust liability, as evidenced in a recent ruling against American Express Inc. over anti-steering agreements.

  • April 17, 2015

    China Suspends Controversial Banking Tech Rules

    Chinese regulators have reportedly told banks to suspend the implementation of controversial cybersecurity rules covering the banking sector that created trade tensions between the U.S. and China. 

Expert Analysis

  • 5 Steps To Data Breach Coverage For Card Issuer Liability

    Roberta D. Anderson

    Target’s $19 million settlement with MasterCard underscores very significant sources of potential exposure that often follow a data breach, including claims from financial institutions seeking to recover losses associated with credit and debit cards. These potential sources of data breach and payment brand liability may, however, be covered by commercial general liability insurance, which most companies have in place, says Roberta ... (continued)

  • Volcker Underwriting: It’s Simple, No Need To Overanalyze

    Dan Ryan

    While all banks are in the same boat in that they have yet to fully operationalize their underwriting desk-level compliance programs, closing the implementation gap for underwriting Volcker compliance should be one of the few relatively easy wins for banks, says Dan Ryan, chairman of PricewaterhouseCoopers LLP’s financial services regulatory practice.

  • Why Marketplace Lenders Should Consider Securitization

    Thomas S. Gallagher

    The securitization process is complicated and does require an upfront investment, but the economic benefits to the equity owners of the platform sponsor or loan originator could be significant, say Thomas Gallagher and Richard Eckman of Pepper Hamilton LLP.

  • Bank Of New York Mellon Decision A Win For Trustees

    Andrew I. Silfen

    A New York state appellate court decision approving a settlement agreement involving a large group of certificate holders for mortgage-backed securities, for which Bank of New York Mellon serves as trustee, reinforces that a trustee’s discretionary acts should not be second-guessed provided that the trustee acted in good faith, reasonably and prudently, say attorneys with Arent Fox LLP.

  • 2 Routes To Hourly Rates For Lawyers

    Gerald G. Knapton

    If we were developing a system to determine legal fees from a clean slate, we would price our professional services according to quality, efficiency and results — tasks and team would be agreed upon. Instead, we have an hourly system that discourages tight management, can lead to padded bills and includes time for work that may not have been necessary, says Gerald Knapton of Ropers Majeski Kohn & Bentley PC.

  • A 'Winning' Strategy: Redefine The Term

    Noah Hanft

    When I first came to MasterCard in the mid-80s, I brought with me both a litigator’s skill set and mindset. However, over my 13 years as general counsel, my mindset evolved. Often, the results we achieved by utilizing dispute resolution were more finely nuanced and tailored to our needs than any a judge could have handed us, says Noah Hanft, former general counsel of MasterCard Inc. now with the Institute for Conflict Prevention & Resolution Inc.

  • Cybersecurity In Asia Pacific: Planning For A Crisis

    Kyle Wombolt

    Organizations in the Asia-Pacific region were expected to spend more money dealing with cybersecurity breaches last year than any region in the world. Yet surveys found that few organizations had rehearsed for cyberattacks, and that many executives in Asia did not account for cyberattacks in their crisis management exercises, say attorneys with Herbert Smith Freehills LLP.

  • 9th Circ. Comes Around On CAFA

    Sean D. Unger

    Taken together, three recent cases demonstrate the Ninth Circuit’s new fidelity to Congress’ stated intent that Class Action Fairness Act cases be heard in federal courts. However, they also confirm that, where Congress limited CAFA, the Ninth Circuit will not ignore that limitation, say attorneys at Paul Hastings LLP.

  • How Long Is The ESA's Arm On LNG Projects?

    Barry M. Hartman

    If the plaintiffs in Center for Biological Diversity v. Export-Import Bank of the U.S. are successful in presenting evidence that shipping on the high seas is part of the liquefied natural gas projects, then the extraterritorial application of the Endangered Species Act may be broadened considerably, say attorneys at K&L Gates LLP.

  • Using The New York FCA To Combat Offshore Tax Evasion

    Adam Pollock

    For every sophisticated and illegal tax shelter, there is someone, in addition to the tax dodger, who knows about the scheme. Under the New York False Claims Act, those in the know — accountants, bankers, information technology staff, colleagues, competitors — can do the right thing, step forward and blow the whistle, say Adam Pollock and Teige Carroll of the Office of the Attorney General of the State of New York.