• September 23, 2016

    Wells Fargo Hit With $2.6B Suit Over Scam-Related Firings

    Wells Fargo was slapped with a $2.6 billion putative class action in Los Angeles County Superior Court Thursday on behalf of the bank’s California workers who were allegedly fired or demoted for refusing to participate in the company’s recently revealed unauthorized account scam.

  • September 23, 2016

    Ex-Tribe Leaders Knock Judgment Bid In Embezzlement Row

    Four former Paskenta Band of Nomlaki Indians officials accused by the tribe of a sprawling embezzlement scheme blasted current tribal leaders’ request to finalize their escape from the dispute in California federal court Thursday.

  • September 23, 2016

    2nd Circ. Flubbed 'London Whale' ERISA Suit, Workers Say

    Current and former employees of JPMorgan Chase & Co. on Thursday asked the Second Circuit to rehear their claims that bank insiders could have prevented the $6 billion “London Whale” debacle from hurting their retirement plans, saying that the court misunderstood facts to be legal conclusions.

  • September 23, 2016

    CFPB Sues Credit Repair Co. Over Advanced Fees, Deceptions

    Los Angeles-based credit repair company Prime Marketing Holdings LLC illegally charged advanced fees and misrepresented how effective and expensive its services were, the Consumer Financial Protection Bureau alleged Thursday in a federal lawsuit.

  • September 23, 2016

    Stay In Ex-Goldman Coder's Suit Against FBI Is Clarified

    A New Jersey federal judge clarified an opinion staying malicious prosecution claims brought by a former Goldman Sachs Group Inc. programmer who beat a federal conviction over stolen source code, saying Thursday that the accused FBI agent can raise immunity defenses pending the outcome of a related state court appeal.

  • September 23, 2016

    CFPB Can’t Back Contempt Push In Debt Scam Suit, Firm Says

    Seila Law LLC on Thursday urged a California federal court to dismiss contempt proceedings initiated by the U.S. Consumer Financial Protection Bureau as part of litigation over bankrupt Morgan Drexen Inc.’s $133 million debt-settlement fee scam, arguing there's no evidence that the firm deserves such action.

  • September 23, 2016

    San Francisco Boots Wells Fargo From Consumer Program

    San Franciso's Treasurer on Friday took on Wells Fargo off a list of banks where the city recommends low-income residents open bank accounts amid allegations that the bank opened accounts under its customers' names without their consent.

  • September 23, 2016

    DC Circ. Urged To Rethink SEC In-House Constitutionality

    An investment adviser claiming the U.S. Securities and Exchange Commission’s in-house judges require presidential appointment asked the D.C. Circuit on Friday to reconsider its decision rejecting his petition for review, saying the appellate court has clearly misinterpreted the Appointments Clause of the U.S. Constitution.

  • September 23, 2016

    GOP Rep. Proposes Bill To Ease FinTech Regulations

    A Republican congressman introduced a bill on Thursday that he claims will create a regulatory framework encouraging greater innovation in financial services technology, as the United States faces more overseas competition from entrepreneurs in the growing fintech sector.

  • September 23, 2016

    Fed Proposal Would Limit Banks' Commodity Business

    The Federal Reserve Board wants the public’s opinion on a proposed rule governing requirements and limitations on the physical commodity activities of financial holding companies, one that aims to reduce the various legal, reputational and financial risks these activities pose to such companies, the board said Friday.

  • September 23, 2016

    Deals Rumor Mill: Twitter, CBOE Holdings, Carlos Slim

    Salesforce is mulling a Twitter takeover that could value the social media company at around $13 billion; U.S. options exchange CBOE is in discussions to buy Bats Global, which is valued at about $2.6 billion; and Mexican billionaire Carlos Slim has acquired a $112 million stake in CaixaBank.

  • September 23, 2016

    PE-Backed Danish Payments Co. Gets $4.5B Valuation In IPO

    Nordic digital payments processor Nets AS priced its initial public offering on the Nasdaq Copenhagen on Friday, pulling in a total of 15.75 billion Danish kroner ($2.4 billion) for the company and its private equity backers and earning a valuation of 30 billion Danish kroner ($4.5 billion).

  • September 23, 2016

    Dems Want Wells Fargo To Halt Arbitral Clause Enforcement

    Democratic senators said Friday that mandatory arbitration clauses on Wells Fargo & Co. customer accounts prevented consumers from suing to stop the creation of unauthorized accounts, and asked the bank to stop enforcing the clauses as a show of good faith after the bank's $185 million settlement over those actions.

  • September 23, 2016

    Wendy's Can't Exit Data Breach Suit, Financial Institutions Say

    A crew of financial institutions led by First Choice Federal Credit Union told a Pennsylvania federal judge Thursday that Wendy’s can’t escape a proposed class action seeking reimbursements for costs sustained after customer payment data was stolen from the fast-food giant, saying Wendy’s can’t blame hackers for not properly securing its card data.

  • September 23, 2016

    Top Fed Official To Discuss Evolution Of Bank Stress Tests

    A top Federal Reserve official on Monday is expected to provide an update on how the central bank’s stress-testing process for the largest banks will evolve amid a push by the industry and legislators to ease up on smaller financial institutions and even questions about the tests’ legality.

  • September 23, 2016

    Madoff Feeder Fund Managers Escape Investor Class Action

    A New York federal judge has rejected a class action brought by investors in two funds that funneled billions of dollars into Bernie Madoff’s fraudulent securities firm, clearing two hedge funds that managed the funds of liability for not detecting the Ponzi scheme before it was exposed in 2008.

  • September 23, 2016

    CFTC Must Defend Use Of Deutsche Bank Monitor, Judge Says

    A Manhattan federal judge has ordered the U.S. Commodity Futures Trading Commission to show why its agreement with Deutsche Bank AG to appoint an independent monitor in response to alleged problems with the bank’s swaps data reporting system is fair and reasonable.

  • September 23, 2016

    Investors Blast Barclays' 2nd Circ. Case Use In Libor Row

    A class of bank investors in New York federal court has blasted Barclays PLC’s bid to toss claims of interbank benchmark rate manipulation based on a recent Second Circuit decision in a terrorism case, saying the decision doesn't apply because the instant claims involve domestic misconduct.

  • September 23, 2016

    Rothstein Feeder Fund Agrees To Hutchison & Steffen Deal

    The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme asked a Florida bankruptcy court Thursday to approve a $1.3 million settlement with Hutchison & Steffen LLC and its liability insurer, releasing the Las Vegas firm from a malpractice suit.

  • September 22, 2016

    Israeli Diamond Dealers Arrested In HSBC Tax Evasion Case

    The Israel Tax Authority has arrested four brothers who sold diamonds and allegedly had unreported accounts holding millions of dollars in the Swiss arm of HSBC Holdings PLC, the agency announced Wednesday.

Expert Analysis

  • Voluntary Self-Identification Of Virtual Currency Users?

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    Our view is that a system of voluntary self-identification of virtual currency users could be a ground-breaking development in the world of virtual currency. Is it something that is coming further down the line or maybe a significant opportunity is being missed here? ask members of Locke Lord LLP.

  • OPINION: CFPB Payday Loan Rule Ignores Existing Research

    Dennis Shaul

    In its new regulations covering payday loans the Consumer Financial Protection Bureau asserts that compelled reborrowings associated with these types of loans are harmful to consumers. However, a careful review of the economic literature shows that this concept is manufactured in order to support what appear to be the CFPB’s prejudices about how this market should operate, says Dennis Shaul, CEO of the Community Financial Services ... (continued)

  • SDNY's 1st Post-Newman Insider Trading Conviction

    Alexis Yee-Garcia

    Because of Newman, prosecutors in the Southern District of New York are required to show that a tipper of inside information received a personal benefit “that is objective, consequential, and represents at least a potential gain of a pecuniary or similarly valuable nature” to trigger liability. The Sean Stewart case now helps define that standard, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Overhauling Law Firm Records Departments For A New Reality

    Raymond Fashola

    As automation increases, so do business challenges that impact overall law firm operations. Records departments are facing roadblocks associated with antiquated processes, ever-changing regulatory requirements, and emerging technologies. As a result, firms are reassessing the needs of their records department staffing models, says Raymond Fashola of HBR Consulting.

  • What’s In Your Obligations Inventory?

    Conway Dodge

    While entities regulated by the U.S. Securities and Exchange Commission are familiar with their compliance obligations, many of them haven't gone through the inventory-mapping process that banking regulators are signaling is now needed. To serve as a useful compliance tool rather than a laundry list of rules and regulations, the obligations inventory must be tailored to the financial institution’s business and risk profile, say for... (continued)

  • New York Sets Uncomfortable Cybersecurity Precedent

    Brian E. Finch

    New York's recently proposed cybersecurity regulations for financial institutions are very broad and expose senior officers and board members to all manner of penalties. One can expect that other states will follow with similar regulations, says Brian Finch, co-chairman of Pillsbury Winthrop Shaw Pittman LLP's privacy practice.

  • A Compelling Case For Uniform Wage Garnishment Laws

    William H. Henning

    Employers often have a Herculean task complying with the welter of current wage garnishment laws that differ from state to state. The newly proposed Uniform Wage Garnishment Act aims to solve this challenge by creating a more consistent approach that largely removes the garnishment process from the courts, says William Henning, executive professor of law at Texas A&M University School of Law.

  • FDIC Plan To Improve Appeal Process Doesn't Go Far Enough

    Pinchus Raice

    Current Federal Deposit Insurance Corp. guidelines contain numerous deficiencies that significantly curtail a bank’s access to the intra-agency appeal process. While recently proposed amendments address some of the long-standing failings, they have significant shortfalls, say attorneys with Pryor Cashman LLP.

  • In Congress: A Continuing Resolution?

    Richard Hertling

    The finish line for Congress could come this week as House and Senate leaders negotiate a continuing resolution to keep the government running into December, though major points of contention over possible provisions were still unresolved as of Friday evening, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • The Rogue Insider: Protecting Against Trade Secret Theft

    Mark S. Sidoti

    Advances in information storage and transmission technology have made financial services companies increasingly susceptible to the misappropriation or theft of critical proprietary assets. With the click of a mouse, rogue employees from the C-suite to the mailroom can download and disseminate hundreds of thousands of documents, lines of computer code, and other data containing a company’s most prized trade secrets. Mark Sidoti and ... (continued)