A New York state appeals court on Tuesday revived CIFG Assurance North America Inc.'s claims that Goldman Sachs & Co. and M&T Bank Corp. duped it into backing up a $275 million portfolio of bad home mortgages, reversing a trial court's finding that the bond insurer's due diligence precluded a fraudulent inducement claim.
Residential Capital LLC on Tuesday won another 30 days to file a Chapter 11 plan without the threat of a rival plan being offered, overcoming a challenge from junior secured noteholders who claim they stand to lose millions if the case continues to be delayed.
A putative class of Bank of America NA customers urged the Ninth Circuit on Tuesday to revive their lawsuit alleging the bank hid service fees for payroll debit cards, arguing that a lower court erroneously ruled that the National Bank Act blocked state law fraud and unfair competition claims.
A divided Second Circuit raised the bar Tuesday for market-manipulation suits against defendants who didn't communicate directly with victims of an alleged fraud, tossing federal securities claims against an A.R. Baron & Co. investor accused of aiding the defunct broker’s pump-and-dump scheme.
An investment entity owned by two Morgan Stanley units asked an Illinois court Friday to dismiss a taxpayer group's lawsuit challenging Chicago's $563 million parking garage lease deal with the company, saying that the group lacks standing and that the deal doesn't improperly restrict the city's powers.
A New York state judge on Monday tossed part of a suit alleging that Chartis Specialty Insurance Co. failed to cover an investment firm for losses after a Mexican court ruled that bankrupt businesses didn’t have to make payments on a $103 million loan to hotel operators.
Warburg Pincus stands to gain big when one of its portfolio companies goes public in an anticipated $10 billion initial public offering, while Carlyle plots out its first Japan-focused fund in more than a half-decade to seize on the country's investment boom.
Federal prosecutors on Tuesday charged a New York debt settlement firm with defrauding over 1,200 customers hobbled by credit card debt in a $2.2 million scheme that also marked the first criminal referral from the Consumer Financial Protection Bureau.
Houston law firm Porter Hedges LLP has landed a former Seyfarth Shaw LLP partner who specializes in corporate counseling, mergers and acquisitions, private equity, health care, and finance, the firm said Monday.
American Express Co., Citigroup Inc. and Discover Financial Services plotted to change their customer agreements to stop consumer class actions against them, a plaintiff’s lawyer said Monday, wrapping up their case in the lengthy antitrust trial against the credit card giants in New York federal court.
Unsecured creditors of mortgage servicer Residential Capital LLC on Monday urged the New York bankruptcy judge overseeing its Chapter 11 proceedings to bar its chief financial officer from testifying at an upcoming trial over a $9 billion residential mortgage-backed securities deal.
Prosecutors have seized on an obscure 1989 law to launch a series of splashy cases against banks in recent years, but a prominent New York federal judge with a penchant for scrutinizing government actions could soon reverse the trend in a $1 billion mortgage fraud suit against Bank of America Corp.
A New Jersey federal judge on Monday remanded to state court a lawsuit alleging Barclays Bank PLC and others duped Prudential Insurance Co. of America into buying $200 million in residential mortgage-backed securities, finding that the case is purely a state matter.
A New York federal judge on Monday rejected a motion from Bank of America NA and U.S. Bank NA to dismiss a putative class action with breach of contract claims alleging they failed to protect investors in their role as trustees of residential mortgage-backed securities.
Ambac Financial Group Inc.'s bond insurance unit can't force Bank of America Corp.'s Merrill Lynch & Co. Inc. affiliate to pay for $856 million in mortgage-backed securities because a loan repurchase is its only remedy, Merrill Lynch told a New York state judge Monday.
The judge overseeing multidistrict litigation accusing Bank of America Corp., JPMorgan Chase & Co. and other top banks of rigging the London Interbank Offered Rate agreed Friday to give investors one last chance to make their antitrust allegations stick.
Bank of America Corp. agreed Monday to pay $1.7 billion to settle claims from the bond insurer MBIA Insurance Corp. over the bank’s allegedly faulty mortgage-backed securities, a major deal that ends litigation for two companies scarred by the 2008 financial crisis.
Deutsche Bank Structured Products sought Friday to dismiss a suit accusing it of misrepresenting the risk of $615 million pool of mortgage loans underlying residential mortgage-backed securities, arguing trustee HSBC Bank USA NA didn't give it an adequate chance to correct possible issues before filing suit.
Residential Capital LLC on Friday sued UMB Bank NA, Wells Fargo Bank NA and a group of junior secured noteholders holding $2 billion in claims against the estate over a dispute concerning the value of their liens securing certain bonds.
MasterCard Inc. and Visa Inc. have agreed to lower certain interbank fees in an effort to allay France's competition concerns over the fees, the country's antitrust authority said Monday.
The Federal Trade Commission's recent CBR Systems Inc. settlement underscores how important it is for companies to honor the promises made in their privacy policies through comprehensive security planning. And yet even companies constantly subject to attacks, like financial services institutions, can find it difficult to have an internal dialogue regarding cybersecurity as a business process. This checklist can help encourage such dialogue, say attorneys with Ballard Spahr LLP.
Under the Foreign Account Tax Compliance Act, U.S. companies will have to withhold 30 percent of payments to foreign companies from U.S. sources under agreements signed after 2013, even in cases where there would not otherwise be any withholding tax. From the standpoint of a U.S. developer, the focus should be on trying to get a foreign lender — such as a foreign bank, private equity fund or insurance company — or other payee to provide proof that it is exempted from FATCA withholding, say Kelly Kogan and John Marciano of Chadbourne & Parke LLP.
While the structure of a letter of credit is more complex than a traditional security deposit, a letter of credit could ultimately prove to be a superior form of security for a landlord over a traditional security deposit and is something a commercial landlord should consider, depending on the subject tenant and the complexity of the underlying transaction, say William Porter and Timothy Haughee of Lowndes Drosdick Doster Kantor & Reed PA.
For practitioners representing lenders and borrowers, the California Court of Appeal ruling in R.E. Loans LLC v. Investors Warranty of America Inc. presents several important lessons. First and foremost, lenders who want security for multiple loans secured by a single deed of trust must recognize that, absent an agreement to the contrary, each loan will be treated separately with regard to the rights of junior lienholders, says Mark Madnick of Robins Kaplan Miller & Ciresi LLP.
Although two new trade secret laws — the Trade Secret Clarification Act and the Foreign and Economic Espionage Penalty Enhancement Act — significantly increase the risks faced by an employee or other person who takes an organization’s trade secrets, neither the government nor the organization will succeed in protecting those secrets unless the organization takes appropriate measures to protect them before they are stolen, say attorneys with Dechert LLP.
In Bank of America NA v. Freed et al., the Illinois Appellate Court upheld a “springing guaranty,” providing that an otherwise partial loan guaranty would become full recourse to the guarantors if the borrower opposed the lender’s exercise of certain of its default remedies. With this decision, Illinois continues a nationwide trend enforcing “bad boy carve-outs” in nonrecourse mortgage loans, says R. Jeffrey Smith of Bingham McCutchen LLP.
More than 400 financial institutions have failed since September 2008, causing hundreds of billions of dollars in losses to the Federal Deposit Insurance Fund. The FDIC has filed a total of 41 professional liability lawsuits against former bank directors and officers of failed institutions. These developments warrant close attention from community bankers, since a majority of the complaints have involved small or medium-size banks, say attorneys with BuckleySandler LLP.
A Florida federal court's recent decision in U.S. v. Halifax Hospital Medical Center demonstrates that organizations need new resolve in order to protect emails with in-house counsel and the compliance department. While this case arose in the health care context, its lessons extend to any organization in a heavily regulated industry, including banking and insurance, that hopes to protect communications with in-house counsel and compliance personnel, say attorneys with Squire Sanders LLP.
Although the facts of an individual case and the corresponding law will always be the most important factors in determining the outcome of any matter, the difference between an efficient and successful Financial Industry Regulatory Authority experience and an unsatisfying one can be found in some practical considerations that may not be readily apparent in FINRA’s rules, says Joseph Pohl of Reed Smith LLP.
What stands out in the analysis by the First Circuit in a recent shareholder derivative action — Union de Empleados de Muelles de Puerto Rico PRSSA Welfare Plan v. UBS Financial Services Inc. of Puerto Rico — is its realism about human motivations and conduct. Practitioners advising public corporations seeking to form truly “independent” boards should take notice — for certain litigators are doing so, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.