Banking

  • March 25, 2015

    NY Judge Punts On $30M HSBC Overdraft Deal, Cites Fed. Suit

    A New York judge on Wednesday refused to immediately give preliminary approval for a $30 million settlement between HSBC Bank USA NA and customers suing the lender over allegedly bogus overdraft fees, saying she’ll wait for further action in related multidistrict litigation pending in federal court.

  • March 25, 2015

    Brokers Are Two-Faced On Fiduciary Duty, Bar Group Says

    Brokers like Merrill Lynch and Charles Schwab advertise that they act in customers' best interests, but behind the closed doors of arbitration fights they say they have no such duty, according to a new report released Wednesday by the Public Investors Arbitration Bar Association, which said that without fiduciary duty rules brokers are acting like used-car salesmen.

  • March 25, 2015

    Axis Says PNC Not Covered For $356M Funeral Scam Verdict

    Axis Insurance Co. disclaimed responsibility for a $356 million verdict against PNC Bank NA, saying in a declaratory suit filed in Pennsylvania federal court Tuesday that the verdict — over a predecessor's role in a $600 million insurance scam involving prepaid funeral contracts — isn't covered under Axis' policy.

  • March 25, 2015

    Fees From Leucadia Suit Should Stay In Del., Chancery Told

    Counsel for Delaware shareholders who settled a lawsuit with Leucadia National Corp. over its $3 billion deal for Jefferies Group Inc. pushed the Chancery Court on Wednesday to award them $27.5 million in attorneys’ fees and to deny plaintiffs in related New York litigation a slice of that pie.

  • March 25, 2015

    Lew Says SIFI Factors Are Case-By-Case, Can't Be Quantified

    U.S. Treasury Secretary Jack Lew told a Senate committee Wednesday that factors leading to a company's designation as a systematically important financial institution could not be quantified because the structure of each firm is different.

  • March 25, 2015

    Deals Rumor Mill: Xella, Hellman & Friedman, Borse Dubai

    Goldman Sachs and PAI Partners will either list or sell wall materials producer Xella for up to $2.74 billion, while Hellman & Friedman is the front-runner to nab Italian bank Istituto Centrale delle Banche Popolari Italiane thanks to a $2.25 billion bid.

  • March 25, 2015

    Morgan Stanley, RBS Stuck With FDIC's United Western Suit

    A Colorado federal judge refused Tuesday to dismiss Morgan Stanley & Co. LLC and RBS Securities Inc. from a Federal Deposit Insurance Corp. suit over their alleged role in the demise of United Western Bancorp Inc., saying the FDIC's claims about the nature of the mortgage-backed securities deals are solid enough to be pursued further.

  • March 25, 2015

    NYC Comptroller Calls For Broker Fiduciary Duty Law

    New York City Comptroller Scott M. Stringer on Wednesday threw his support behind nationwide fiduciary duty standards proposed by the U.S. Department of Labor and members of the U.S. Securities and Exchange Commission and proposed a state law to impose fiducuary duty disclosure requirements on all New York financial advisers.

  • March 25, 2015

    FDIC's $140M RMBS Suit Time-Barred Under High Court Ruling

    A New York federal judge on Tuesday dismissed a Federal Deposit Insurance Corp. suit seeking $140 million from RBS Securities Inc. and others over soured residential mortgage-backed securities sold to two banks, ruling a recent U.S. Supreme Court decision rendered the suit time-barred. 

  • March 25, 2015

    Union Fund Wants Class Cert. In $6B Goldman RMBS Suit

    A union pension fund has asked a New York federal judge to certify a class action against Goldman Sachs & Co. over the sale of $6 billion in shoddy residential mortgage-backed securities, arguing that hundreds of investors were similarly misled in several offerings. 

  • March 25, 2015

    MF Global Trustee Floats $461M General Creditor Payout

    The trustee winding down MF Global Inc. sought court approval on Wednesday to return $461 million to unsecured creditors of the failed broker-dealer and boost the recovery rate on their allowed claims to almost three-quarters.

  • March 25, 2015

    Feds Want 'London Whale' Suit Paused Amid Criminal Case

    New York-based federal prosecutors on Tuesday asked for a limited pause on discovery in a lawsuit brought by JPMorgan Chase & Co. investors over the bank’s $6 billion “London Whale” trading fiasco, arguing that two overseas criminal defendants could use the case to improperly gain access to evidence.

  • March 25, 2015

    SEC Floats Rules On High-Frequency Trader Registration

    The U.S. Securities Exchange Commission on Wednesday voted unanimously to propose rules that would require high-frequency proprietary traders to register with a national securities association, a move intended to improve oversight of broker-dealers engaged in off-exchange trading.

  • March 25, 2015

    Fiduciary Standard Won't Cut Out Small Investors, Perez Says

    U.S. Secretary of Labor Thomas Perez on Wednesday said that coming rules requiring a fiduciary duty standard for financial advisers providing retirement services would not squeeze out offerings for small investors.

  • March 25, 2015

    PTAB Axes More Retirement Access Patent Claims Under Alice

    The Patent Trial and Appeal Board ruled in an America Invents Act covered business method patent review on Monday that several claims of Retirement Capital Access Management Co.’s patent on managing Social Security payments are invalid under the U.S. Supreme Court’s Alice ruling for claiming abstract ideas.

  • March 25, 2015

    Shelby Looks For Deals With Dems On Regulatory Fixes

    Senate Banking Committee Chairman Richard Shelby on Wednesday said that he remained hopeful he could find common ground with Democrats on some regulatory tweaks, including a fix that would bar Goldman Sachs Group Inc. and Morgan Stanley from participating in physical commodity markets.

  • March 24, 2015

    NJ Judge Shoots Down Lucchese Fraudster's Recusal Request

    A New Jersey federal judge on Tuesday refused to recuse himself from sentencing a reputed associate of the Lucchese crime family convicted in the $12 million looting of a mortgage lender, rejecting claims that his comments in another case gave the appearance of partiality.

  • March 24, 2015

    Chadbourne, Proskauer Renew Bid For Class Info In Ponzi Suit

    Chadbourne & Parke LLP and Proskauer Rose LLP are redoubling their fight for documents in the possession of the receiver for Allen Stanford's Ponzi scheme that they say will reveal important information about a proposed class of plaintiffs suing the law firms for malpractice.

  • March 24, 2015

    Fed, OCC Close Ranks Around BofA Examination Docs

    The Federal Reserve and the Office of the Comptroller of the Currency urged a New York federal judge Monday not to force Bank of America Corp. to turn over documents in a class action over the bank’s mortgage tracking, arguing they are protected by bank examination privilege.

  • March 24, 2015

    Ex-North Miami Mayor Gets 5 Years For Mortgage Fraud Plot

    Former North Miami Mayor Lucie Tondreau, 54, who was convicted in December of wire fraud for an $8 million scheme in which she and others used a radio show to recruit straw borrowers for fraudulent mortgage loans, was sentenced in federal court Tuesday to 65 months in prison.

Expert Analysis

  • CFPB Wants You To Know 'Responsible Conduct' Has Rewards

    Kevin L. Petrasic

    Recent enforcement actions by the Consumer Financial Protection Bureau demonstrate that there are clear financial and reputational benefits to satisfying criteria set forth in the bureau's so-called Responsible Conduct Bulletin, including reduced penalties and more favorable enforcement outcomes, say attorneys at Paul Hastings LLP.

  • A Test For The Banking Recovery And Resolution Directive

    Peter J.M. Declercq

    One important question a recent decision by Austrian regulators raises is whether the Banking Recovery and Resolution Directive contemplates the application of its very broad and far-reaching resolution tools to so-called "winding-up vehicles" like the Heta Asset Resolution AG. Heta may indeed prove to be the first test case for the BRRD, say Peter Declercq and Sonya Van de Graaff of Schulte Roth & Zabel LLP.

  • An Ongoing Tax Refund Saga For Bank Holding Companies

    Andrew I. Silfen

    The Third Circuit recently waded into the ongoing debate over the ownership of tax refunds generated by a failed bank in FDIC receivership but paid to a failed bank holding company due to the existence of a tax sharing agreement. The decision deepens the circuit court divide regarding this issue, which will likely need to be resolved by the U.S. Supreme Court, say Andrew Silfen and Jeffrey Rothleder of Arent Fox LLP.

  • OPINION: Not All That Is Public Should Be Publicized

    Adam C. Sherman

    Although court decisions are public records, that doesn’t mean they should be publicized by the courts on search engines, such as Google. Access alone isn’t the problem. The issue is that these decisions appear prominently atop search results — even when browsing parties are not looking for them. Courts have opened their doors, but they need not remove them entirely, says Adam Sherman of Vorys Sater Seymour and Pease LLP.

  • New Regulations Will Shake Up M&A Escrow Landscape

    Paul Koenig

    New federal banking and securities regulations present greater challenges to transaction parties than a search for higher yield. Parties may soon find that many of the traditional products to which escrows defaulted may no longer meet the parties’ investment criteria, and may, in the case of some current escrow providers, become unavailable altogether, says Paul Koenig, co-CEO of SRS Acquiom LLC.

  • Protecting O&G Security Interests — Lessons From SemCrude

    Matthew D. Clark

    For some overleveraged operators and service providers, depressed oil and gas prices will inevitably lead to default, foreclosure and bankruptcy, with secured lenders and mineral rights owners finding themselves locked in a priority battle. And the giant SemCrude bankruptcy shows the danger in relying on nonuniform amendments to the UCC without considering all the ramifications, says Matthew Clark of Faegre Baker Daniels LLP.

  • Making The Most Of Insurance When CFPB Comes Calling

    Shelby S. Guilbert Jr.

    The only good news when facing a Consumer Financial Protection Bureau investigation or lawsuit is that most financial institutions have valuable insurance policies that may reimburse — or at least defray — some of the losses. While insurers may argue that such coverage should be unavailable because the damages being requested are “uninsurable,” recent trends show otherwise, say attorneys at King & Spalding LLP.

  • Perez V. MBA Shines A Light On 'Shadow Regulations'

    John L. Longstreth

    The U.S. Supreme Court's ruling in Perez v. Mortgage Bankers Association will eliminate a constraint all agencies have faced in changing interpretations of their rules and has the potential to impact a wide range of activity. At the same time, it may portend greater substantive scrutiny of agency interpretations, say attorneys at K&L Gates LLP.

  • This Week In Congress: Immigration And Net Neutrality

    Richard Hertling

    This week, the Senate will take up the nomination of Loretta Lynch for U.S. attorney general, and debate on the floor is expected to be highly partisan — some conservative senators have stated they will oppose her nomination based on her support of the administration’s immigration policy, say members of Covington & Burling LLP.

  • Execs Name Top Industry Risks In 2015

    Patrick Scott

    To profile the risks many organizations face as they advance into 2015, we conducted a global survey of more than 275 board members and C-suite executives across a broad cross-section of industries in the fourth quarter of 2014. The results paint an interesting picture of the global business environment, specifically highlighting 10 areas of concern, say Jim DeLoach and Patrick Scott of Protiviti Inc.