The U.S. Securities and Exchange Commission’s Investor Advisory Committee asked the agency Friday to impose so-called user fees on investment advisers to help fund agency investment adviser examinations, and to impose fiduciary duties on broker-dealers who provide investment advice to retail investors.
The Second Circuit on Friday refused to revive a shareholder class action accusing ING Groep NV of illegally hiding its risky mortgage-backed securities, ruling that the expiration of a statute of limitations prevented the plaintiffs from bringing their claims.
Balboa Insurance Co. on Thursday asked a New York federal judge to let it appeal her ruling barring its argument that government-approved premiums are unassailable in a class action alleging it paid GMAC Mortgage LLC kickbacks for force-placing policies, saying the matter is too important to await a final judgment.
Mortgage lending company Greystone Funding Corp. can't enforce a noncompete agreement against a former employee who launched his own rival lending firm because it fired him without cause before the contract expired, a New York state judge has ruled.
The U.S. Department of Justice on Thursday urged a New York federal judge not to consolidate its antitrust suit against the merchant discount policies of American Express Co. with a related batch of private class actions, arguing that the government case must take precedence because of its implications for the public interest.
A former Merrill Lynch Pierce Fenner & Smith Inc. worker's argument that a $160 million settlement fund in a race bias class action against the company should be hiked up to $250 million is unrealistic, attorneys for the black financial advisers behind the suit told a Chicago federal court Thursday.
Following a series of high-profile, high-dollar settlements with a host of federal and state agencies capped off by a $13 billion mortgage-backed securities deal, JPMorgan Chase & Co.’s top attorney said Thursday that regulators were piling on banks with duplicate enforcement actions.
Time Warner has a clear favorite between the two rival companies vying to merge with it, while a trio of private equity firms are chasing down a drugmaker worth $2 billion.
Lehman Brothers Holdings Inc. on Thursday hit real estate investment company LCOR Alexandria LLC with an adversary complaint in New York bankruptcy court, seeking to recover $83 million it says LCOR owed to one of its subsidiaries upon termination of an interest rate swap transaction.
A proposed $800 million settlement between the bankruptcy trustee recovering funds for Bernard L. Madoff investors and a firm that invested nearly $2 billion in Madoff's Ponzi scheme has fallen through, according to reports Thursday.
Swiss financial services firm UBS AG has reached an immunity deal with antitrust regulators with the European Union that will keep the bank from paying additional fines for market manipulation of financial benchmark interest rates, The Wall Street Journal reported Thursday, citing people familiar with the matter.
The former chief financial officer of Manhattan brokerage firm Needham & Co. pled guilty Thursday in New Jersey federal court to stealing $1 million from Needham by paying fraudulent invoices submitted by accomplices, operating as vendors, for services that had never taken place.
A Florida appeals court on Thursday upheld the dismissal of two Florida residents' effort to get their cut as relators in a False Claims Act action related to claims of unpaid taxes on assignment-of-mortgage notes, saying the state's tax act controls such matters.
New York banks cannot be sued by account holders for violating a law designed to exempt subsistence income from a creditor's account freeze, the state’s high court ruled Thursday, saying the statute was not intended to spawn litigation.
The European Commission's investigation into whether several major banks manipulated two key interbank offered rates used as lending benchmarks is close to yielding results, the watchdog's antitrust chief said Thursday.
The former directors of a collapsed $2.5 billion hedge fund that had invested in commercial mortgage-backed securities said at a hearing in Texas federal court Thursday that the fund investors' class certification should be denied because their claims are too individualized to move forward as a group.
As U.S. banks become more comfortable with the rules of Islamic finance, real estate attorneys are increasingly faced with the unique challenge of structuring deals to comply with those rules. Experts say those deals can best be navigated with patience and an awareness of several legal and financial pitfalls.
Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Thursday that his agency would soon put out a fuller description of its plans for taking apart a failed global financial institution.
A U.S. Senate banking committee on Thursday approved the nomination of economist Janet Yellen to be the next chair of the Federal Reserve, setting the stage for a full Senate vote on the former vice chair of the Board of Governors of the Federal Reserve System.
Federal banking regulators on Thursday issued final supervisory guidance for banks issuing deposit advance loans, setting up a framework for them to address potential risks associated with deposit advance loans and supplementing existing guidelines for payday and subprime loans.
What should an attorney do in the middle of a deposition if her client answers in a way that suggests a misunderstanding of the question or sudden memory loss? She will likely want to confer with her client at the next available opportunity, but her ability to do so without waiving privilege will depend, in part, on where the deposition is taking place, say attorneys with Pillsbury Winthrop Shaw Pittman LLP.
For the second time in less than a month, the Eleventh Circuit has held that a tax refund belongs to the FDIC rather than the bankruptcy estate of a bank's holding company. While the tax-sharing agreements at issue in both cases were in some respects unusual, the Eleventh Circuit also appears to have discredited arguments credited in earlier federal court decisions that tax refunds were the property of the bank, say Philip Anker and Nancy Manzer of WilmerHale LLP.
Just like U.S. Supreme Court Justice Potter Stewart’s observation about pornography, most people cannot explain fiduciary duty but (think) they know a breach when they see it. As is true in many situations, careful drafting of the operative documents is the first step in clarifying whether the parties are in a fiduciary relationship, say Joan Secofsky and Richard Janvey of Diamond McCarthy LLP.
If class action firms advance the regulators’ view that banks may somehow be accountable for deciphering the DNA of every automated clearing house transaction, the strength of compliance management may become as critical to the defense of private litigation as it is to regulatory supervision, say Richard Gottlieb and Valerie Hletko of BuckleySandler LLP.
The collaboration between the Consumer Financial Protection Bureau and the U.S. Department of Justice suggests that federal agencies will continue to focus on enforcing Servicemembers Civil Relief Act protections, including those regarding student loans. Given this increased scrutiny, financial institutions should take steps to ensure their compliance with Section 527 of the act, say attorneys with King & Spalding LLP.
The Federal Circuit's analyses and disagreements in Ultramercial v. Hulu and Accenture v. Guidewire can be more easily understood by focusing on the "mental steps doctrine," which is a subcategory of abstract ideas. In this rubric, purely mental processes are not patentable, and consequently methods that can be performed by a person with a pencil and paper cannot be patented, says Russell Petersen of Hanson Bridgett LLP.
Although the government shutdown and the debt ceiling crisis are occasionally conflated, they have distinct effects on government operations and on parties interacting and transacting with the government, says Boris Bershteyn, of counsel with Skadden Arps Slate Meagher & Flom LLP and former general counsel of the White House Office of Management and Budget.
Since the recent financial crisis, the FDIC as receiver for failed banks has brought suit against former directors and officers of 76 failed institutions. These lawsuits are based on traditional claims of negligence, gross negligence and breach of fiduciary duty — but they present unique challenges to practitioners who represent the former directors and officers due to the special privileges of a governmental entity acting as receiver of a failed bank, say Ashar Ahmed and Jill Jaffe of Nossaman LLP.
While the result in the recent decision of St. Paul Mercury Insurance Co. v. Miller is a noteworthy departure from other decisions ruling that claims brought by the Federal Deposit Insurance Corp. as a receiver do not trigger insured v. insured exclusions, the U.S. District Court for the Northern District of Georgia's opinion is seriously flawed for several reasons, say attorneys with Covington & Burling LLP.
Given that there is no apparent legal requirement to conduct a data breach response investigation in a particular way — and only vague guidance provided by HIPAA and the PCI Data Security Standards — companies may be tempted to reduce the scope of the enterprise impact assessment to what they consider the bare minimum. This approach should be resisted for two important reasons, say Kim Peretti of Alston & Bird LLP and Jason Straight of Kroll Advisory Solutions.