Banking

  • January 30, 2015

    FINRA Bars Waiver Of UBS Adviser Class Action, 2nd Circ. Told

    An attorney for a proposed class of financial advisers for UBS AG's broker-dealer unit on Friday urged the Second Circuit to find they cannot be forced to arbitrate their overtime claims, saying waivers of class actions are void under Financial Industry Regulatory Authority rules.

  • January 30, 2015

    JPMorgan To Pay $99.5M To Escape FX Rigging Class Action

    JPMorgan Chase & Co. will pay $99.5 million to exit an antitrust class action alleging the bank was part of a conspiracy to rig the approximately $5 trillion-per-day foreign exchange market, according to court documents filed Friday.

  • January 30, 2015

    Market Rumors: Alibaba, 1MBD, GFI Group

    Alibaba's financial arm, worth an estimated $50 billion, is mulling an initial public offering, while Malaysia's second-richest man might be the key to helping state investor 1MDB move forward with its $3 billion IPO.

  • January 30, 2015

    Pa. Treasurer Admits To Strong-Arming Potential Donors

    Pennsylvania State Treasurer Rob McCord released a video Friday admitting he verbally threatened two potential gubernatorial campaign donors and implying he'll plead guilty to the related charges that are expected to come down, one day after announcing his resignation amid rumors of a federal investigation. 

  • January 30, 2015

    Revolving-Door Roundup: Grant & Eisenhofer, Quinn, Boies

    After a sluggish December, the door between the public and private sectors started spinning again in earnest in January, highlighted by former Delaware Attorney General Beau Biden's move to Grant & Eisenhofer PA and Boies Schiller & Flexner LLP's marquee hiring of three assistant U.S. attorneys from the Southern District of New York.

  • January 30, 2015

    Real Estate Rumor Mill: Emmes, Capital One, Times Property

    An Emmes Asset Management fund has reportedly dropped $76 million on a Brooklyn apartment property, while Capital One is said to have grabbed nearly 40,000 square feet in New York, and Times Property Holdings has reportedly paid $213 million for land parcels in the south of China.

  • January 30, 2015

    CFTC Swaps Reform Seen As Big Plan With Steep Climb

    A recent blueprint for reforming U.S. swap trading rules offers common-sense ways to improve the market for U.S. participants, attorneys say, but the sheer ambition of the proposal by a U.S. Commodity Futures Trading Commission member likely means its impact will be felt mostly at the margins.

  • January 30, 2015

    NY Appeals Court Lets TCW Duck Claim In $128M MBS Suit

    A New York appeals court upheld the dismissal of a negligent-misrepresentation claim in a $128 million suit alleging TCW Asset Management Co. lied to investors about the value of a collateralized debt obligation, ruling TCW was not in a position of trust as collateral manager for the mortgage-backed securities.

  • January 30, 2015

    Revel Creditors Make Peace With $125M Bankruptcy Loan

    Lawyers for the Revel Casino Hotel’s unsecured creditors announced a last-minute settlement Friday with bankruptcy lender Wells Fargo NA that hands them a better return in exchange for their support of a strenuously contested $125 million financing package.

  • January 30, 2015

    Developer Charged In Multimillion-Dollar Fraud Found Dead

    The federal bank fraud case against Michael A. Zimmerman was canceled Friday after the noted Dover, Delaware, developer who was accused of misusing millions of dollars in Wilmington Trust Co. loans was found dead. 

  • January 30, 2015

    BB&T Board Beats Derivative Suit Over ARS Investigation

    A federal North Carolina judge on Thursday granted summary judgment in favor of BB&T Corp. board members who led an investigation into claims that the bank misled investors about auction rate securities, saying plaintiffs failed to show the board members neglected to conduct a proper probe.

  • January 30, 2015

    Fed Eyeing Asset Management Risks, Tarullo Says

    The Federal Reserve’s lead governor for financial regulations on Friday said the central bank was considering new rules for preventing runs in the so-called shadow banking sector, particularly in asset management firms.

  • January 30, 2015

    Fed Rule Would Allow More Banks To Rely On Debt Funding

    The Federal Reserve on Thursday issued a proposed rule that would expand the number of smaller banks allowed to operate using a higher level of debt than other larger institutions, enacting a December law that had the support of key regulators.

  • January 30, 2015

    Liberty Reserve Tech Whiz Gets 3-Year Prison Sentence

    Liberty Reserve tech worker Maxim Chukharev received a three-year prison sentence Friday for his role in aiding the unlicensed money-transmitting business that assisted Ponzi schemers and other criminals, but received no probation, restitution or fine and will be able to return to his family home in Costa Rica upon leaving federal custody.

  • January 30, 2015

    FTC Hits Car Title Lenders For Deceptive Tactics

    The Federal Trade Commission on Friday announced its first ever enforcement actions against car title lenders, alleging that two firms used deceptive tactics to market their loans to vulnerable consumers.

  • January 29, 2015

    Pa. Treasurer Resigns Amid Possible Fed. Campaign Probe

    Pennsylvania state Treasurer Rob McCord announced Thursday he would resign from his post and return to the private sector, while a report published the same day suggested that federal authorities may be investigating his campaign-related actions.

  • January 29, 2015

    MSRB Says Bank Loan Secrecy Harms Bondholders

    The Municipal Securities Rulemaking Board on Thursday criticized the failure of many issuers in the $3.6 trillion municipal debt market to disclose their use of bank financing that can depress credit profiles and subordinate existing bondholders.

  • January 29, 2015

    Manatt Adds Ex-Debevoise Real Estate Pro In NY

    Manatt Phelps & Phillips LLP has recruited a Debevoise & Plimpton LLP attorney with more than 20 years of real estate experience, including advising commercial lenders, pension funds and private equity firms, to bolster its New York office.

  • January 29, 2015

    Deals Rumor Mill: BOC Hong Kong, Sysco, Lions Gate

    BOC Hong Kong Holdings Ltd. is exploring a potential $6 billion sale of Nanyang Commercial Bank, while the Federal Trade Commission is not yet ready to make a decision on whether to allow Sysco Corp.’s $3.5 billion acquisition of private equity-backed US Foods Inc.

  • January 29, 2015

    Ashland Inks $270M Share Buyback With Deutsche, Chase

    Chemical company Ashland Inc. said Thursday that it has reached agreements to buy back approximately $270 million of its shares from Deutsche Bank AG and JPMorgan Chase Bank NA as part of its ongoing $1.35 billion share repurchase program.

Expert Analysis

  • Tackling Energy Loan Defaults At A Time Of Cheap Oil

    Kraig Grahmann

    The sudden and steep drop in oil prices is likely to cause more exploration and production companies to default on debt agreements. While there are different options an E&P company and its lenders can use to address a credit agreement default, ultimately underlying circumstances — such as the severity of default and viability of the company and its assets — will play a key role in which approach is chosen, says Kraig Grahmann of Ha... (continued)

  • Condor Capital Case May Embolden More State Regulators

    Melanie Brody

    Although several state attorneys general have leveraged Dodd-Frank’s state action provisions to enforce and seek remedies under the Consumer Financial Protection Act, Lawsky v. Condor Capital Corp. marks the first time a state regulator has used them and it will likely prompt others to do the same, say Melanie Brody and Anjali Garg of K&L Gates LLP.

  • A General Counsel's Top 10 Tips On Calif. Wage-And-Hour Law

    Francis M. Drelling

    California is a great place to live, but it can be a challenging place to do business, with one of the biggest challenges being the multitude of wage-and-hour class actions filed each day. I never had a "starter kit" when I first began my in-house practice, but I certainly wish someone had given me one, says Francis Drelling, general counsel with Specialty Restaurants Corp.

  • EU’s Russia Sanctions And Tips For The Year Ahead

    Tobias Caspary

    European Union sanctions on Russia are relatively specific — at least where they relate to the access restrictions to EU capital markets and the Russian energy sector. This means businesses have to consider very carefully whether their commercial operations, or specific transactions, are caught by these prohibitions, say Tobias Caspary and Till Vere-Hodge of Fried Frank Harris Shriver & Jacobson LLP.

  • High Court Provides Closure On Durbin Rules — What Now?

    Robert J. Pile

    While merchants’ legal appeals in NACS v. Board of Governors of the Federal Reserve System have been exhausted with the U.S. Supreme Court declining to review the case, continued efforts by both merchant groups and banks are possible to have the Durbin rules modified in their favor, or even to repeal the Durbin Amendment, say Robert Pile and Brian Murphy of Sutherland Asbill & Brennan LLP.

  • Key Questions When Selecting E-Discovery Vendors

    David Houlihan

    While e-discovery remains a critical pain point in litigation, the "solutions" supporting its processes continue to evolve. In order to help organizations navigate the sea of options, we conducted research with 21 organizations across e-discovery market segments to understand the factors involved in successful e-discovery investments, says David Houlihan of Blue Hill Research Inc.

  • 2nd Circ.'s Fairfield Decision Will Be Cited With Fervor

    Ingrid Bagby

    The Second Circuit’s opinion and subsequent denial of en banc review in the case of Fairfield Sentry Ltd. signals a paradigm shift in Chapter 15 jurisprudence. Parties seeking an independent review of a foreign order permitting a transfer or other actions affecting U.S. property may now have a powerful new basis on which to object in a U.S. court, say attorneys with Cadwalader Wickersham & Taft LLP.

  • A Primer On Financial Covenants In Asset-Based Lending

    Excerpt from Lexis Practice Advisor
    David W. Morse

    While cash flow of a business is important in an asset-based facility, particularly as it relates to the real-time liquidity of the borrower based on excess availability, there is significantly less emphasis on financial covenants in an asset-based facility than in a cash flow facility. This is one reason many companies elect to have an asset-based facility rather than other forms of debt, says David Morse of Otterbourg PC.

  • Invoice Intercepted: A New Form Of Wire Fraud

    Jeffrey Rosenfeld

    A new scam has arisen in a sordid line of wire fraud scams. What makes this email scheme particularly pernicious is that the victims often do not realize they have been scammed out of thousands of dollars until days, if not weeks, after the scam has occurred, after they have lost their money, and after the perpetrator is long gone, says Jeffrey Rosenfeld of Kronenberger Rosenfeld LLP.

  • Jesinoski Presents Lenders With Difficult Questions

    Scott A. King

    In Jesinoski v. Countrywide Home Loans Inc., the U.S. Supreme Court broadly read the Truth in Lending Act’s rescission rights and will force lenders to make difficult decisions on requests to rescind a loan made years after it was funded, say Scott King and Richard Freshwater of Thompson Hine LLP.