Banking

  • February 08, 2024

    First Citizens Says HSBC Execs OK'd SVB Poaching Plan

    First Citizens Bank has beefed up allegations that HSBC Holdings stole confidential information and poached employees from the failed Silicon Valley Bank, filing an amended complaint Wednesday in California federal court, claiming HSBC's top executives and chief legal officer knew of the alleged poaching conspiracy.

  • February 08, 2024

    M&T Bank's Freeze 'Crumbled' Fla. Law Firm, $1.5M Suit Says

    A Florida law firm has sued M&T Bank for $1.5 million in Tampa federal court over allegations that the bank "crumbled" the firm's business by unreasonably restricting its trust account during a recent chargeback dispute.

  • February 08, 2024

    SEC, CFTC Jointly Demand More Hedge-Fund Disclosures

    The U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission jointly passed rules Thursday requiring additional disclosures from hedge funds and other private fund advisers, aimed at improving market stability and transparency, despite dissent from Republican commissioners of both agencies who say the requirements are overreaching.

  • February 08, 2024

    Ex-CEO Accused Of Embezzling $5.9M Cops To Wire Fraud

    The ex-CEO of an alternative energy startup he founded pled guilty Thursday to one count of wire fraud in D.C. federal court, after being accused of embezzling $5.9 million.

  • February 08, 2024

    SEC Challenger References Son Of Sam In 'Gag Rule' Row

    Counsel for a financial radio show host referenced Son of Sam as she challenged a so-called gag rule issued by the U.S. Securities and Exchange Commission before the Fifth Circuit on Thursday, telling the panel that even serial killers are afforded First Amendment rights when faced with allegations by the government.

  • February 08, 2024

    Genesis Says Parent Crypto Co. Must Pay For $33M 3AC Deal

    Bankrupt cryptocurrency lender Genesis says its parent company, conglomerate Digital Currency Group, should be on the hook for a $33 million settlement to defunct crypto hedge fund Three Arrows Capital.

  • February 08, 2024

    FSOC 'Very Focused' On Nonbank Mortgage Risk, Yellen Says

    U.S. Treasury Secretary Janet Yellen told lawmakers on Thursday that federal regulators have "concern" about potential nonbank fragility in the mortgage market, and offered encouragement for legislative efforts to guard against artificial intelligence risks to the financial sector.

  • February 08, 2024

    CFPB Takes Restitution Discount To End Mortgage Relief Case

    After a decade of litigation with four bankruptcy attorneys who ran a mortgage relief scam, the Consumer Financial Protection Bureau on Thursday agreed to end an appeal for $12 million in penalties, or about one-fifth of an initial judgment in the case.

  • February 08, 2024

    Real Estate Rumors: HGI, Lion Development, Kushner

    An affiliate of Harbor Group International is believed to be the buyer of two apartment complexes near Denver for $132.5 million, a Lion Development venture has reportedly spent $16.5 million on a Miami development site and Kushner Cos. is said to have sold a pair of multifamily properties for $14.7 million.

  • February 08, 2024

    Leveraged Finance Partner Duo Joins DLA Piper In NY

    DLA Piper announced that it hired a pair of experienced New York-based attorneys from Shearman & Sterling LLP as partners in its leveraged finance practice group.

  • February 08, 2024

    MoFo Brings Bankruptcy Vet From DLA Piper To NY Office

    Morrison Foerster LLP announced the latest addition to its business restructuring and insolvency group on Wednesday, welcoming a former DLA Piper partner to its New York office.

  • February 08, 2024

    NY Judge Scolds Trump Attys For Response To Perjury Query

    The New York state judge overseeing Donald Trump's civil fraud trial on Thursday chastised defense attorneys for their "misleading" response to his demands for information about reports of possible perjury by defendant and key trial witness Allen Weisselberg.

  • February 08, 2024

    High Court Sides With Whistleblower Against UBS

    The U.S. Supreme Court on Thursday found that whistleblowers don't need to show retaliatory intent on the part of their employers in order to be protected under federal law, in a unanimous ruling in favor of a former UBS employee and whistleblower who fought to restore a $900,000 jury verdict he secured in 2017.

  • February 08, 2024

    Justices Rule Gov't Agencies Not Immune From FCRA Suits

    The U.S. Supreme Court ruled Thursday that a person can sue a government agency under the Fair Credit Reporting Act, because the law's 1970 definition of a "person" was sufficient to waive the government's immunity.

  • February 07, 2024

    Ex-Rabobank Exec Comes Out Swinging At OCC In 9th Circ.

    A former Rabobank compliance chief on Tuesday told the Ninth Circuit that the Office of the Comptroller of the Currency is an unlawfully overstaffed, overreaching agency whose now-abandoned administrative proceedings against her were baseless and should be expunged.

  • February 07, 2024

    SEC Inks Deal To End Oppenheimer Muni Bond Disclosure Case

    The U.S. Securities and Exchange Commission has reached a settlement with Oppenheimer & Co., putting to rest a suit that was one of the commission's first-ever enforcement actions accusing underwriters of skirting municipal bond disclosure requirements, according to a letter filed Wednesday.

  • February 07, 2024

    NYCB Faces Investor Suit Over Signature Bank Takeover 

    New York Community Bancorp has been hit with a class action by an investor who claims the bank failed to disclose that it had a deteriorating book of loans which would, in turn, cause major losses and force it to cut its quarterly dividend to preserve capital, following its acquisition of assets from the now-defunct Signature Bank. 

  • February 07, 2024

    Goldman Sachs Fined By FINRA For Trade-Monitoring Failures

    Goldman Sachs agreed to pay over $500,000 to the Financial Industry Regulatory Authority to settle claims that it failed to include certain information in surveillance reports designed to identify potentially manipulative trading.

  • February 07, 2024

    Truist Will Pay $6.3M To End BB&T High-Yield Rate Cut Suit

    Truist Financial Corp. has reached a $6.3 million settlement to resolve claims that it wrongfully lowered the interest rate on high-yield money market accounts that customers opened three decades ago.

  • February 07, 2024

    Fintech Group Wants CFPB To Regulate Earned-Wage Access

    A fintech industry group urged the Consumer Financial Protection Bureau on Wednesday to undertake a formal rulemaking process for the regulation of so-called earned-wage access services, decrying a developing, state-level patchwork of regulations on the industry.

  • February 07, 2024

    Trump Trial Judge Gets Little Info On Exec's Alleged Perjury

    An attorney for Donald Trump and his companies' former chief financial officer Allen Weisselberg told the New York state judge presiding over their civil fraud trial Wednesday that she could not respond to "unsubstantiated" reports that the ex-CFO was in plea negotiations for allegedly lying on the stand, citing her ethical obligations.

  • February 07, 2024

    Judge Says Antitrust Claims Against Suns Owner Fall Short

    A magistrate judge has recommended that a Florida federal court toss a mortgage broker's antitrust case against the owner of the NBA's Phoenix Suns and his company United Wholesale Mortgage, saying the claims fail to allege competition was blocked.

  • February 07, 2024

    3rd Circ. Says Bankruptcy Claim Didn't Break Small Loan Law

    The Third Circuit said Wednesday that a debt collector didn't violate a law prohibiting extortionate rates on small loans by seeking to collect the balance of a man's debts through a claim in his bankruptcy after it had been written off by his original lender.

  • February 07, 2024

    Ill. Atty's Conviction Over Embezzlement Scheme Sticks

    A former attorney who cried "wolf" over the government preventing him from adequately preparing for trial cannot unwind his conviction for misappropriating a now-shuttered bank's embezzled funds and lying about his assets, an Illinois federal judge ruled Tuesday.

  • February 07, 2024

    Bybit Wants $953M FTX Suit Axed For 'Threadbare' US Ties

    Cryptocurrency exchange Bybit Fintech Ltd. has urged a Delaware bankruptcy judge to throw out an FTX lawsuit that aims to recover $953 million that Bybit and affiliates allegedly raced to withdraw before FTX collapsed, arguing that the case has "no connection" to the U.S. and even if it did, FTX's claims all fail.

Expert Analysis

  • Opinion

    Newman Suspension Shows Need For Judicial Reform

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    The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.

  • Consumer Finance Cos. Must Seriously Consider Complaints

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    In light of the Consumer Financial Protection Bureau's recent action against alternative finance company Tempoe for failing to act on consumer complaints, other businesses that offer financial products or services should implement robust complaint response functions to mitigate or avoid similar encounters with the bureau, says Josh Burlingham at Goodwin.

  • How 2 Cases Could Undermine The Anti-ESG Movement

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    A decision from a federal court in Texas and another case currently making its way through Missouri federal court signal an emerging judicial recognition of the link between environmental, social and governance considerations and maximizing financial returns, say Amy Roy and Robert Skinner at Ropes & Gray.

  • Data Furnishers Should Watch CFPB Plans For Class Actions

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    Companies should follow the Consumer Financial Protection Bureau’s rulemaking process as it considers allowing class actions against data brokers that provide incorrect consumer information to credit reporting agencies, a move that could rewrite the legal risks of participating in the consumer reporting ecosystem, say attorneys at Troutman Pepper.

  • Calif. Delete Act Paves Way For Data Broker Accountability

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    California's recent enactment of a law that will allow state residents to delete personal information held by some 500 data brokers shows there is renewed focus on holding an extremely lucrative but underregulated industry accountable — but doing so may require both legislation and litigation, says Karina Puttieva at Cohen Milstein.

  • SEC's Life Sciences Actions Utilize Novel Tools And Theories

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    Recent enforcement actions show that the U.S. Securities and Exchange Commission is employing new forms of data analytics and noteworthy applications of insider trading laws in its scrutiny of fraud within the life sciences and health industries, say Edward Imperatore and Jina Choi at MoFo.

  • Regulators' Focus On AI Highlights Risks For Lenders

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    Recent guidance from the Consumer Financial Protection Bureau and other regulators illuminates potential pitfalls that lenders and other companies should take steps to avoid when leveraging artificial intelligence-based technologies in consumer credit transactions, say attorneys at Sheppard Mullin.

  • Series

    ESG Around The World: Japan

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    Japan is witnessing rapid developments in environmental, social and corporate governance policies by making efforts to adopt a soft law approach, which has been effective in encouraging companies to embrace ESG practices and address the diversity of boards of directors, say Akira Karasawa and Landry Guesdon at Iwata Godo.

  • How And Why Your Firm Should Implement Fixed-Fee Billing

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    Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • Issues Arise As Cos. Shift From Class Actions To Arbitration

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    As corporations like Epson and Samsung move from class action to arbitration, challenges such as a lack of transparency and delay tactics have emerged, leaving a pressing need for legislative reform to ensure accountability and to uphold the rights of consumers and employees, says former Maine Attorney General Andrew Ketterer.

  • Series

    Ill. Banking Brief: All The Notable Compliance Updates In Q3

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    The third quarter of 2023 saw Illinois lawmakers and the state Department of Financial and Professional Regulation focus their attention on expanding access to financial institutions' services and resources, including with increased eligibility for credit union membership and a new data collection regime for licensees, say Mark Svalina and James Morrissey at Vedder Price.

  • What Fed Supervision Letters Mean For Bank-Fintech Collabs

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    Recent Federal Reserve guidance, which creates a program to supervise bank-fintech partnerships and requires banks to obtain advance approval before offering stablecoins, may reflect both regulators’ skepticism of banks engaging in cryptocurrency-related activities and a growing realization that these collaborations require novel supervisory approaches, say attorneys at MoFo.

  • Series

    Conn. Banking Brief: The Notable Compliance Updates In Q3

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    The most notable legal changes affecting Connecticut financial institutions in the third quarter of 2023 included increased regulatory protections for consumers, an expansion of state financial assistance for underserved communities, and a panoply of tweaks to existing laws, says Brian Rich at Barclay Damon.

  • Opinion

    Judicial Independence Needs Defense Amid Political Threats

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    Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.

  • Opinion

    CFPB Circular On AI Credit Denials At Odds With Existing Law

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    The Consumer Financial Protection Bureau's new circular about adverse action notification requirements for lenders that use artificial intelligence contradicts the agency's own official regulatory interpretations, and reveals more about the current bureau than it does about the law, say Eric Mogilnicki and David Stein at Covington & Burling.

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