Banking

  • July 1, 2015

    Banks Seek Class Cert. In Target Data Breach MDL

    Financial institutions suing Target Corp. in multidistrict litigation over the retailer's massive 2013 data breach urged a Minnesota federal judge on Wednesday to grant them class certification amid a settlement that some apparently are still disputing.

  • July 1, 2015

    SEC Clawback Plan To Create Enforcement Nightmares

    In newly unveiled plans to force public companies to recoup executive pay after a restatement, the U.S. Securities and Exchange Commission would force companies to overhaul their current clawback procedures while placing them in a quandary over how to enforce the stiff measures.

  • July 1, 2015

    Goldman Sachs Can't Escape Suit Over $73M RMBS Sale

    A New York state judge on Monday kept intact most of IKB Deutsche Industriebank AG's lawsuit against Goldman Sachs Group Inc. in connection with massive losses suffered by the German lender following its purchase of $73.2 million in residential mortgage-backed securities, finding the case to be timely.

  • July 1, 2015

    Capital One Sued For Quitting Taxi Venture, Backing Uber

    Capital One NA was hit with a lawsuit in the Supreme Court of New York Tuesday claiming that the bank abandoned an $80 million credit facility partnership with Transit Funding Associates LLC, which loans money to Chicagoans seeking taxi medallions, so it could partner with ride-hailing titan Uber.

  • July 1, 2015

    SEC Hasn't Shown CMBS Fraud by S&P Or Exec, Judge Says

    A U.S. Securities and Exchange Commission administrative law judge denied an early attempt to push through mortgage-backed securities fraud claims against former Standard & Poor’s ratings services executive Barbara Duka, saying Wednesday the regulator hadn’t shown that the ratings agency did anything wrong, let alone Duka.

  • July 1, 2015

    Citi, BofA Mortgage Settlements To Fund NY Housing Units

    New York Attorney General Eric T. Schneiderman announced Wednesday plans to provide nearly 3,800 affordable rental units with funding from Citigroup Inc. and Bank of America Corp. as part of multimillion-dollar settlements with the banks for misrepresentations about mortgage-backed securities.

  • July 1, 2015

    Banks Face Pressure To Improve Living Wills

    Big banks are facing pressure to improve the clarity in living wills they submitted Wednesday to federal banking regulators, and are likely to face punishments if the resolution plans do not improve from previous efforts, a former top Federal Deposit Insurance Corp. official said.

  • July 1, 2015

    Paul Hastings Lures Pair Of CLO Partners From Ashurst

    Two leading collateralized loan obligation and structured finance attorneys have joined Paul Hastings LLP's finance and corporate practice as partners in its New York and D.C. offices after making the move from Ashurst LLP, Paul Hastings said Wednesday.

  • July 1, 2015

    Vendors To Pay $10M To Settle CFPB Credit Add-Ons Probe

    Affinion Group Holdings Inc., its subsidiaries and Intersections Inc. will pay a combined $10 million to settle claims with the Consumer Financial Protection Bureau that they unfairly charged credit card holders for add-on benefits they never received, the agency announced Wednesday.

  • July 1, 2015

    Student Debt Relief Co. Shuttered In NY Probe

    A student debt relief company has agreed to close its doors after New York state dug up evidence that the business was charging distressed borrowers hundreds of dollars for government services they can get for free, Gov. Andrew Cuomo’s office said Wednesday.

  • July 1, 2015

    US Backs Jordan's $1.5B Sovereign Bond Offering

    As part of its effort to support the nation of Jordan amid tumult in the region, the U.S. has guaranteed Jordan’s offering of a total of $1.5 billion in sovereign bonds, the U.S. Department of State’s Office of the Spokesperson said on Wednesday.

  • July 1, 2015

    5th Circ. Wants Texas Court's Take On Golf Channel Ponzi Ads

    The Fifth Circuit on Tuesday asked the Texas Supreme Court to clarify a Texas Uniform Fraudulent Transfer Act section, after the Golf Channel urged the circuit to reconsider allowing the R. Allen Stanford Ponzi scheme receiver to sue the channel for about $6 million over advertising payments.

  • July 1, 2015

    Greece Sends Creditors Mixed Messages As Debt Vote Nears

    Greece Prime Minister Alexis Tsipras sent the nation's creditors mixed messages Wednesday, urging citizens to reject a bailout package floated by European Union leaders hours after he said in a letter that the country would accept the basic framework of the deal.

  • July 1, 2015

    China To 'Pick Up The Slack' With Ex-Im Lapse: White House

    The White House warned that American businesses would suffer, falling behind China and other rivals as a result of Congress’ failure to reauthorize the Export-Import Bank on Tuesday for the first time in 81 years.

  • July 1, 2015

    JPMorgan, Insurers Duke It Out Over Ponzi Loss Coverage

    JPMorgan Chase & Co. and three insurers played tug-of-war in a New York court on Wednesday over summary judgment in JPMorgan's suit seeking $55 million in coverage for a settlement with investors in a Ponzi scheme where Bank One Corp., now a part of JPMorgan, was trustee.

  • July 1, 2015

    Accused 'Flash Crash' Trader, CFTC Hammer Out Injunction

    An Illinois federal judge on Tuesday approved a modified asset freeze allowing accused “flash crash” trader Navinder Singh Sarao to pay his legal fees and potentially post bail as part of a preliminary injunction deal between the trader and the U.S. Commodity Futures Trading Commission.

  • July 1, 2015

    Ex-NFLer Says BofA Can't Duck Investment Fraud Suit

    Former NFL player Dwight Freeney on Tuesday blasted Bank of America Corp.’s bid to toss his California racketeering suit alleging bank insiders steered him toward a fraudulent investment scheme run by since-convicted Florida real estate developer Michael A. Stern, insisting his suit is properly pled.

  • July 1, 2015

    Ex-UCB Exec Convicted Of $1B Fraud Denied New Trial

    A California federal judge on Tuesday denied United Commercial Bank's former chief operating officer’s requests for acquittal and a new trial, reaffirming his securities fraud conviction in a scheme that cost taxpayers and the U.S. government $1.1 billion.

  • July 1, 2015

    Santander's Auto Lender Subsidiary Sells $1.9B In Assets

    Automotive finance company Santander Consumer USA Holdings Inc. sold $1.9 billion in assets in June, which included leases and both prime and nonprime retail installment contracts, the Santander Group subsidiary said Wednesday.

  • July 1, 2015

    SEC Proposes Stiff New Exec Pay Clawback Measures

    A divided U.S. Securities and Exchange Commission on Wednesday proposed stiff new requirements that would require publicly traded companies to claw back some bonuses and other incentive-based pay from executives in the event of an accounting restatement, regardless of whether they were at fault.

Expert Analysis

  • HOA Superpriority Litigation Intensifies In Nevada

    Robin Perkins

    For the last three years, Nevada lenders and homeowners’ associations have been battling over the interpretation of Nevada’s version of the Uniform Common Interest Ownership Act, which provides a limited superpriority lien for HOAs to recover past due assessments. Senate Bill 306 — which substantially revised the statute and these new provisions — will likely diminish investor interest in the HOA foreclosure market, say attorneys a... (continued)

  • Don't Discount Disparate Impact After High Court Case

    Michael B. Mierzewski

    The implications of the U.S. Supreme Court's ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project Inc. extends beyond the primary mortgage lending and insurance industries. The ruling almost certainly will embolden private plaintiffs and government agencies to assert claims of disparate impact discrimination, say attorneys at Arnold & Porter LLP.

  • Casinos Can No Longer Gamble On FinCEN Compliance

    Travis Nelson

    The Financial Crimes Enforcement Network's comments at the Nevada Bar Association’s Bank Secrecy Act Conference in Las Vegas and recent enforcement actions against casinos reflect FinCEN’s expectation that casinos and card clubs be held to the same high compliance standards as their much more pervasively regulated bank counterparts, say attorney at Reed Smith LLP.

  • A Fiduciary Standard For Brokerage Firms May Be Inevitable

    Jeffrey Holik

    It seems as if the entire financial services industry has been caught up in a drama, now approaching the end of its fifth year — will regulators adopt rules requiring brokerage firms to act in the best interest of customers when offering investment advice? Our advice for brokerage firms is not to give in to the “wait and see” temptation, say attorneys with Shulman Rogers Gandal Pordy & Ecker PA.

  • What Bankruptcy Trustees Need To Know About Bitcoin

    Andrew M. Hinkes

    Bitcoin and other digital currencies are revolutionary mediums of exchange. Understanding how to identify, trace, analyze and liquidate bitcoin and digital currencies will be a requirement for any bankruptcy trustee in the 21st century, say Andrew Hinkes and Isaac Marcushamer of Berger Singerman LLP.

  • Midpoint 2015: What To Expect From State AGs

    Joseph W. Jacquot

    Whether on competition in the solar energy market, oversight of professional occupations or the safety of electronic payment systems, businesses should proactively engage with state attorneys general as they fulfill their consumer protection role, says Foley & Lardner LLP's Joseph Jacquot, a former Florida deputy attorney general and chief of staff of the attorney general’s office.

  • Madden Has Far-Reaching Implications For Loan Investors

    Scott A. Cammarn

    The Second Circuit's recent decision in Madden v. Midland Funding LLC calls into question the enforceability of bank- and thrift-originated loans that have subsequently been assigned to nonbank entities such as hedge funds, securitization vehicles, whole-loan purchasers and other investors, say Scott Cammarn and Nathan Bull of Cadwalader Wickersham & Taft LLP.

  • The Top 3 New Do’s And Don’ts For Law Firm Websites

    Stephan Roussan

    In legal marketing circles, there are few topics peddled about more than “hot tips” for improving your law firm’s website. Google it. You’ll find more advice than you could ever digest. However, there are larger trends in technology, culture and user behavior that are impacting firms in very significant ways and are not being talked about nearly as much as they should be, says Stephan Roussan, founder of consulting and web developm... (continued)

  • AIG Bailout And Dangers Of Invoking 19th Century Principles

    Kathryn Judge

    Judge Thomas Wheeler’s strategic invocation of Walter Bagehot in the recent decision splitting the baby in the American International Group trial is not unique. Rather, it is representative of the ways Bagehot’s dictum has been abused to preclude meaningful discussion of when and how the Federal Reserve should provide liquidity support to troubled financial institutions, says Kathryn Judge, associate professor of law at Columbia Law School.

  • A Look At Who's Investing In Latin America

    Latin America is open for business and the world is taking notice. Foley & Lardner LLP partner Jeffery Atkin discusses which countries are actively taking on development projects in Latin America and how the culture is affecting their work there.