Banking

  • October 23, 2014

    Citigroup, Argentina Gird For New Court Date In Bond Fight

    A New York federal judge has set a court date for Argentina's fight to make payments on $8.4 billion in Argentine law-governed bonds — payments whose blockage custodian Citigroup Inc. says could expose it to criminal sanctions in the South American nation.

  • October 23, 2014

    Ex-Colleague Says Weil Aware Of UBS' Role In Tax Fraud

    As head of UBS AG's wealth management business, Raoul Weil insisted every decision run through him and knew the vast majority of the Swiss bank's nearly 20,000 American accounts were not disclosed to U.S authorities, the former head of UBS' Americas operations testified Thursday in Florida federal court.

  • October 23, 2014

    Credit Suisse CEO Says Forex Probe Won't Be A Problem

    Credit Suisse Group AG’s CEO does not see any material issues coming from the ongoing investigations into manipulation of the $5.3 trillion foreign exchange market, he said in an investor call on the Swiss bank’s third-quarter earnings Thursday.

  • October 23, 2014

    2nd Circ. Pauses Aluminum Case Until Justices Rule On Libor

    The Second Circuit agreed Thursday to put an appeal from consumers suing the London Metal Exchange Ltd. and several major banks over aluminum warehousing pricing on hold until the U.S. Supreme Court has ruled on a question of appellate procedure in the Libor manipulation litigation.

  • October 23, 2014

    2nd Circ. Sinks Iraqis’ Alien Tort Suit Against Chevron, BNP

    The Second Circuit on Thursday affirmed a lower court's ruling tossing five Iraqi nationals' attempt to sue Chevron Corp. and BNP Paribas SA for allegedly financially supporting Saddam Hussein's regime in Iraq, saying the plaintiffs failed to connect the companies' actions with Hussein's human rights violations.

  • October 23, 2014

    2nd Circ. Blocks Collection Of $378M Terrorism Judgment

    The Second Circuit ruled Thursday that the families of people killed in a 1972 terrorist attack are barred under a federal insurance law from collecting on a $378 million judgment against North Korea using blocked electronic transfers held by JPMorgan Chase Bank NA and eight other banks.

  • October 23, 2014

    HP Settles With Visa, Mastercard In Swipe Fee MDL

    Hewlett Packard Co. on Thursday became the latest company to settle with Visa Inc. and MasterCard Inc. in litigation over an alleged conspiracy to fix credit card swipe fees, marking its exit from a New York federal court case filed with other merchants that had opted out of last year's $7.25 billion antitrust settlement.

  • October 23, 2014

    Bank Of England Shields Taxpayers In Failed-Bank Plan

    The Bank of England laid out a plan to handle future bank failures Thursday, saying it would act unilaterally over a “resolution weekend” to replace management and initiate stabilization transactions — a regime aimed at shielding taxpayers and the broader financial system from bearing the costs of the collapse. 

  • October 23, 2014

    Calif. Court Stops Firm's Wells Fargo OT Row $5M Fee Grab

    A California appeals court on Wednesday refused to allow Initiative Legal Group APC to collect nearly $5 million that it said it believed were attorneys’ fees obtained in a settlement over Wells Fargo Bank NA mortgage consultants’ claims that the bank denied them overtime.

  • October 23, 2014

    HSBC Faces New Retaliation Suit Over Alleged Harassment

    HSBC Securities (USA) Inc. was hit with yet another suit in New York federal court Tuesday alleging it fired an employee who reported a colleague's alleged sexual harassment.

  • October 23, 2014

    Fed Wants Banks To Test For Severe 2015 Recession

    The Federal Reserve on Thursday said that banks will have to show how a severe global recession featuring a steep rise in the unemployment rate, soaring gas prices and, for the largest institutions, a large corporate default would affect their balance sheets in their 2015 stress tests.

  • October 23, 2014

    Small-Cap Research Firm Sidoti To Underwrite Own IPO

    Equity research firm Sidoti & Company Inc. kicked off plans for a modest initial public offering on Thursday, outlining plans to raise roughly $35 million in a share sale run in part by its investment bank arm to support its budding asset management platform, according to a regulatory filing.

  • October 23, 2014

    Top NY Court Says Money In Foreign Bank Branches Off-Limits

    New York’s top court on Thursday ruled that a state legal doctrine which treats banks' foreign branches as distinct legal entities barred Motorola Solutions Inc. from recovering billions of dollars in damages owed by a fugitive Turkish family because the funds are held in foreign bank accounts.

  • October 23, 2014

    CFPB Lets Lenders Refund Mortgage Fee Overcharges

    The Consumer Financial Protection Bureau on Wednesday said that mortgage lenders who exceed a 3 percent cap on points and fees required for so-called qualified mortgages will now be able to refund the difference to borrowers in a move that could ease a crunch lenders face.

  • October 22, 2014

    New Mortgage Rules Complicate Fannie, Freddie Endgame

    Recent moves by federal regulators to increase sales of mortgages to Fannie Mae and Freddie Mac could further dampen hopes for a resurgence of private capital in the U.S. housing market, and make it more difficult to wind Fannie and Freddie down, policymakers and experts said.

  • October 22, 2014

    FDIC, Citi Settle 9th Circ. Appeal Over Colonial Bank Failure

    Citigroup Global Markets Inc. has reached a settlement agreement with the FDIC in a Ninth Circuit appeal alleging a number of banks spurred on Colonial Bank's failure by selling it poor-quality mortgage-backed securities, and the bank insurer said Wednesday it expects Bank of America Corp. to exit the suit shortly as well.

  • October 22, 2014

    Key Witness Takes Stand In Ex-UBS Exec's Tax Fraud Trial

    Martin Liechti, who as ex-head of UBS AG's Americas business unit is expected to be a key witness in the $20 billion tax evasion conspiracy case against the Swiss bank's former No. 3, Raoul Weil, said at the beginning of testimony Wednesday that Weil was a friend and peer.

  • October 22, 2014

    SEC Plans To Reject BlackRock's Request For New ETFs

    The U.S. Securities and Exchange Commission said Tuesday that it plans to deny requests by BlackRock Inc. and Precidian Investments to introduce a new type of actively managed exchange-traded fund that wouldn't be required to disclose its portfolio holdings on a daily basis.

  • October 22, 2014

    Jones Day Hires Spanish Banking Pro From Bird & Bird

    Jones Day on Wednesday said it lured a partner away from Bird & Bird LLP to join its banking and finance practice in Madrid, Spain, where he will advise international clients on financing and capital markets. 

  • October 22, 2014

    Stanford Files Pro Se Appeal In $7B Ponzi Scheme Conviction

    Disgraced Texas tycoon Robert Allen Stanford on Tuesday urged the Fifth Circuit to overturn his 110-year prison sentence for a $7 billion Ponzi scheme, arguing in an appeal in which he is representing himself that federal authorities didn't have jurisdiction over his bank.

Expert Analysis

  • New Lessons From Rural/Metro II For M&A Parties, Advisers

    Peter J. Rooney

    The Delaware Court of Chancery’s decision this month in the case of Rural/Metro Corp. Stockholders Litigation awarding nearly $76 million in damages against a seller’s financial adviser highlights the difficult strategic questions nonsettling defendants face by proceeding alone to trial, including whether to put on trial the conduct of the settling defendants, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • New Calif. Data Breach Rules Bring Obligations And Debate

    Ellen Giblin

    The new law regarding the California breach notification requirement related to identity theft prevention and mitigation services has already spurred debate on two issues, say attorneys with Edwards Wildman Palmer LLC.

  • Know The Collateral Consequences Of Financial Reg Action

    Eben P. Colby

    Understanding the collateral consequences of enforcement proceedings at the hands of the U.S. Securities and Exchange Commission or any other financial industry regulator can provide a valuable tool for proactively negotiating with the regulator and avoiding pitfalls arising from a failure to disclose, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • A Ban On Ban-The-Box?

    Natasha B. Dorsey

    In a regulatory landscape of ban-the-box laws and increased EEOC scrutiny of criminal history questions during the hiring process, employers in industries such as health care and finance are often put in the position of acting unlawfully because they are required to conduct background checks for certain positions. The Certainty in Enforcement Act could clarify things, but it also leaves the door open for trouble, says Natasha Dorse... (continued)

  • Talking The Talk: Nuclear Energy Lingo For Bankers

    George Borovas

    Three and a half years after the accident at the Fukushima Daiichi nuclear power plant, the nuclear industry is experiencing somewhat of a revival, however the apparent disconnect between its rhetoric and the mindset of financiers must be overcome to stimulate the successful development of new plants, say George Borovas and Helen Cook of Shearman & Sterling LLP.

  • The Cayman Way Of Identifying, Enforcing Against Assets

    Christopher Russell

    Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.

  • Takeaways From Broker-Dealers’ Section 5 Inadequacies

    Daniel A. Nathan

    The U.S. Securities and Exchange Commission has issued letters of deficiency for Section 5 compliance to 80 percent of the firms examined. Meanwhile, broker-dealers are continually confronted with the decision whether the revenue from accepting and selling large quantities of lower-priced stocks is worth the risks, say Daniel Nathan and Michael Sorrell of Morrison & Foerster LLP.

  • 5 Takeaways From The New Cybersecurity Executive Order

    Lisa Ledbetter

    President Obama signed an executive order on Friday that requires federal agencies to apply enhanced security features to government payment cards. The administration views chip-and-PIN technology as a significant step forward, but such technology does not provide protection in online, mail and telephone order purchases, and does not eliminate the risk of a security breach, say attorneys with Jones Day.

  • Lessons From Recent DOJ Probes Of Large Banks

    Jacqueline M. Arango

    The U.S. Department of Justice is focusing on large financial institutions for not only failing to comply with federal laws but also for willfully violating laws that were meant to protect the sanctity of the U.S. financial markets. These recent prosecutions, particularly with respect to U.S. embargo violations, provide guidance on what not to do, say Jacqueline Arango and Christine Bautista of Akerman LLP.