Banking

  • December 19, 2014

    Ford Credit Gets Calif. Lease Notice Class Action Trimmed

    A California judge on Friday trimmed a putative class action alleging Ford Motor Credit Company LLC collects car lease payments from co-signers without providing a notice required by California law, tossing allegations that the practice violates the state’s unfair competition laws.

  • December 19, 2014

    Former Diplomat Can't Dodge Stanford Receiver's Suit

    A Texas federal judge on Thursday refused to dismiss a fraudulent transfer suit against a former U.S. diplomat accused of aiding Ponzi schemer R. Allen Stanford in a multibillion-dollar fraud, teeing up the case for what will be the first trial against an alleged Stanford insider.

  • December 19, 2014

    Lehman Trustee Seeks To Recover $98M From Wells Fargo

    Lehman Brothers Inc.’s liquidating trustee on Friday filed a $98 million adversary proceeding against Wells Fargo Bank NA in New York bankruptcy court seeking to recover collateral under a swap agreement the bank allegedly ended when Lehman went under.

  • December 19, 2014

    Wells Fargo Owes $55M In Mortgage Late Fee Suit, Jury Says

    A New York federal jury on Friday decided Wells Fargo & Co. owes $54.8 million in a class action accusing mortgage companies previously owned by Wells Fargo’s Wachovia Corp. of slapping borrowers with unlawful fees, defendants’ counsel confirmed, although plaintiffs had sought roughly $629 million.

  • December 19, 2014

    Calif. Panel Says Concepcion Defeats Broughton-Cruz Rule

    A California appellate panel Thursday bolstered the Federal Arbitration Act's preemption in the Golden State, finding the U.S. Supreme Court's Concepcion decision and the state high court's Iskanian ruling defeat a judge's reliance on the Broughton-Cruz rule to deny Citibank NA's bid to arbitrate an insurance consumer class' injunctive-relief claims.

  • December 19, 2014

    MetLife Poses Potential Stability Threat, Regulators Say

    MetLife Inc. is so big that its collapse or major financial troubles could cause significant damage to the broader economy, justifying the life insurance giant's designation as a systemically important financial institution subject to Federal Reserve oversight, a panel of U.S. regulators said in a report released Friday.

  • December 19, 2014

    Volcker Rule Delay Takes Heat Off Some PE Investors

    The Federal Reserve on Thursday gave Wall Street banks an extra two years to comply with the Volcker Rule provision of the massive Dodd-Frank financial industry reform bill, a move that will allow the banks to hold on to billions of dollars in private-equity and hedge-fund investments until mid-2017.

  • December 19, 2014

    Obama Says He Won't Sanction Russia Under New Law

    President Barack Obama on Thursday signed a new law that allows the U.S. to provide weapons and drones to Ukraine and opens the door to further sanctions in the Russian defense, banking and energy sectors in connection with the ongoing conflict in the region — an option he said he didn’t plan to use.

  • December 19, 2014

    Convicted Ex-Jefferies Trader Says Client Had Him Fired

    Convicted former Jefferies & Co. Inc. managing director Jesse C. Litvak on Thursday in New York state court sued AllianceBernstein LP and a former executive who testified against him, claiming they wrongfully caused Litvak to be fired as a condition of continuing to do business with Jefferies.

  • December 19, 2014

    Sallie Mae Borrowers Win Cert. On Late-Fee Claims

    A California federal judge on Friday certified two classes of California student-loan borrowers who say Sallie Mae Inc. illegally charged them late fees, but refused to certify two other classes who say they were charged excessive interest, finding no evidence that Sallie Mae collected that interest.

  • December 19, 2014

    Bitcoin Pioneer Gets 2 Years For Aiding Silk Road Exchange

    Charlie Shrem, the CEO of a bitcoin exchange company that prosecutors say facilitated drug transactions on black market website Silk Road, was sentenced in New York federal court Friday to two years in prison.

  • December 19, 2014

    Walgreen, Kroger Urge 11th Circ. To Kill Fla. Swipe Fee Ban

    Consumer rights groups and major retailers including Walgreen Co. and Kroger Co. joined forces Wednesday and urged the Eleventh Circuit to strike down a Florida law prohibiting merchants from charging “swipe fees” on credit card sales, saying the law’s language is unconstitutionally vague and violated the First Amendment.

  • December 19, 2014

    5 IPOs Reap $1B In Last Full Week Of Record-Busting 2014

    Five companies launched initial public offerings the last full week before Christmas, raking in more than $1 billion combined with two cancer immunotherapy developers and an alternative lender pricing above their ranges, as 2014 locks down a record year for IPOs.

  • December 19, 2014

    Volcker Extension Stokes Fear Of Slipping Regulatory Resolve

    The Federal Reserve’s Thursday decision to grant banks more time to shed investments barred by the Dodd-Frank Act, just days after Congress jettisoned another provision of the law, has raised concerns that banks once again are getting their way in Washington.

  • December 19, 2014

    NY Reaches $12M Settlement With Subprime Auto Lender

    New York’s top financial enforcement agency on Friday announced a settlement that could reach up to $12 million with a subprime auto lender and its owner over an alleged scheme to steal millions of dollars from consumers, among other unfair practices.

  • December 19, 2014

    Market Rumors: Fitbit, Permanent TSB, American Apparel

    Fitbit, a wearable fitness tracker, has reached out to Morgan Stanley about a possible IPO, while Irish lender Permanent TSB Group is said to be mulling whether to double the amount of its anticipated share offering.

  • December 19, 2014

    Ally Hotfoots Out Of TARP With US' $1.3B Stake Sale

    Ally Financial Inc. said Friday that the U.S. Department of the Treasury has sold the rest of its interest in the company, raising $1.3 billion as the once-troubled auto lender exits the Troubled Asset Relief Program.

  • December 19, 2014

    ESMA Publishes Final Guidance On New EU Securities Rules

    The European Securities and Markets Authority on Friday published its final technical guidance on draft regulations that would restrict high-frequency trading, mandate clearing of derivatives trades and increase retail investor protections as part of a major rewriting of the European Union's securities market regulations.

  • December 19, 2014

    Banking MVP: Shearman & Sterling's Barney Reynolds

    Shearman & Sterling LLP partner Barney Reynolds used his regulatory acumen to earn a spot on Law360's list of Banking MVPs, whether it was shepherding IntercontinentalExchange Group Inc.'s $11 billion purchase of NYSE Euronext Inc. or pursuing a novel creditor bail-in of U.K. bank Co-operative Bank PLC.

  • December 19, 2014

    US Bank Settles With CFTC In Suit Over Peregrine Debacle

    An Iowa federal judge on Friday agreed to dismiss a suit brought by the U.S. Commodity Futures Trading Commission against U.S. Bank NA after the two parties agreed to settle claims that the bank aided bankrupt Peregrine Financial Group Inc.’s former CEO in misappropriating $215 million in customer funds.

Expert Analysis

  • Knowing The Borrowing Base For Asset-Based Facilities

    Excerpt from Lexis Practice Advisor
     David W. Morse

    The borrowing base is a fundamental aspect of an asset-based facility, thus the mechanics for the borrower to provide the lender with information — reporting requirements, field examinations and appraisals — concerning the borrowing base are equally fundamental, says David Morse of Otterbourg PC.

  • Inside NY Commercial Mortgage Loan Opinion Practice

    Lawrence J. Wolk

    As a frequent deliverer and recipient of commercial mortgage loan legal opinion letters, I am often asked, “What is the norm?” or “Is this standard or customary practice in New York these days?” Customary practice is, by definition, continuously evolving, but consider these 13 legal opinion practices that appear to be the norm in New York, says Lawrence Wolk of Rosenberg & Estis PC.

  • The Naked Truth: Intricacies Of Naked Short Sales

    Joshua Hamilton

    The California Court of Appeal decision in the Overstock.com Inc. case provides an unusually deep discussion of the interplay between short selling — specifically, naked short selling — and both the California and federal laws designed to prevent market manipulation, say Joshua Hamilton and Ryan Walsh of Paul Hastings LLP.

  • OFAC Compliance: 5 Challenges You May Face In 2015

    Sven Stumbauer

    Criminal penalties for willful violations of Office of Foreign Assets Control sanctions can include fines of up to $20 million and imprisonment of up to 30 years. Worse yet, a single transaction can produce multiple violations. Given those risks, many boards and senior executives have moved OFAC compliance to the top of their agendas, says Sven Stumbauer of AlixPartners LLP.

  • Top 10 Things To Know About Obama’s Cuba Announcement

    Les P. Carnegie

    While signaling a dramatic shift in the U.S.-Cuba relationship, the president’s authority to lift sanctions is limited in several key respects, say attorneys with Latham & Watkins LLP.

  • Proposals To Reform Ch. 11 Target Secured Creditors

    David M. Hillman

    On Dec. 8, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 issued a 400-page report recommending wide-ranging changes to Chapter 11 of the Bankruptcy Code. If enacted, the proposals would significantly impair the rights of secured creditors and materially increase the leverage of debtors and out-of-the-money stakeholders, say David Hillman and Adam Harris of Schulte Roth & Zabel LLP.

  • Spotlight On SFO: Prosecuting In The Regulator’s Shadow

    Aamir Khan

    There remain serious questions on whether the Serious Fraud Office in the United Kingdom is really best equipped to be prosecuting individuals relating to issues such as Libor and forex manipulation, which are already being investigated by the Financial Conduct Authority and other regulators, says Aamir Khan, general counsel and the senior director for the U.K. and Europe at legal services firm Clutch Group.

  • What Happens When Legal Aid Cuts Stimulate Pro Bono?

    Kevin J. Curnin

    The bad news coming out of the European Pro Bono Summit in November was the rising toll of heavy cuts to public legal aid in England. From this crossroad, there is a lot to be learned about the relationship between public and private assistance, the direction of legal help for the poor in the EU, and whether the American legal aid/pro bono experience offers a road map for what’s next in Europe, says Kevin Curnin of the Association ... (continued)

  • Chancery Court Speaks To Underlying Reality of Influence

    John E. Sorkin

    In Zhongpin Inc. Stockholders Litigation, the Delaware Chancery Court found the plaintiffs had pled sufficient facts to raise an inference that company founder, chairman and CEO Xianfu Zhu was a controlling stockholder — even though he owned only 17 percent of the stock and had not controlled the directors’ decision relating to his going-private bid. A greater willingness to cooperate in the transaction would have advantaged Zhu's ... (continued)

  • Pressure Is On For Israeli Banks

    Robert Henoch

    Israeli financial institutions and U.S. holders of Israeli accounts have much to fear as the U.S. government accelerates its enforcement push against alleged U.S. tax evaders and their putative facilitators. However, those who fight back are likely to find that it is significantly easier for U.S. authorities to threaten complex financial prosecutions than to win them at trial, says Robert Henoch, a former assistant U.S. attorney no... (continued)