Banking

  • July 2, 2015

    Rakoff To Gupta: Newman No Escape Hatch For You

    The conviction of former Goldman Sachs Group Inc. board member Rajat Gupta will stand despite a December decision that redrew the lines for insider-trading prosecutions, New York federal judge Jed Rakoff ruled Thursday, calling Gupta's arguments “too late and too little.”

  • July 2, 2015

    GOP Sens. Call For Ex-Im To Release Liquidation Plan

    Six Republican senators on Wednesday called on the Export-Import Bank to release a timeline for its orderly liquidation, a day after Congress failed to reauthorize the agency for the first time in 81 years.

  • 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.

Expert Analysis

  • 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.

  • It's Mid-2015 — The Repurchase Demands Continue

    Robert M. Siegel

    It is troubling, but sadly not surprising, that big bank aggregators that entered into global settlements over mortgage repurchase claims with Fannie Mae and Freddie Mac have of late been making repurchase demands upon mortgage originators. Let’s identify this practice for what it is — a shameless attempt by the aggregator to make a tidy profit, say Robert Siegel and Philip Stein of Bilzin Sumberg Baena Price & Axelrod LLP.

  • Key Points From The Fed’s Foreign Funds Volcker Relief

    Dan Ryan

    The Federal Reserve this month addressed in the form of an FAQ the big question of whether foreign funds would be subjected to Volcker’s proprietary trading restriction as a result of being controlled by an affiliate. However, with only weeks to go before the July 21 deadline, the FAQ does not resolve two other questions that have vexed foreign banks, says Dan Ryan, chairman of PricewaterhouseCoopers LLP’s financial services regulatory practice.

  • What Happens If Greece Defaults?

    Giorgio Bovenzi

    The prospect of Greece's potential default to the International Monetary Fund and European Union lenders and de facto exit from the EU single currency looms larger day by day. Significant consequences such as counterparty defaults, bankruptcies and potential triggering of credit default swaps need to be analyzed, say Dentons partners Thomas Laryea, a former IMF assistant general counsel, and Giorgio Bovenzi.

  • 6 Record Search Lessons From $43M Clydesdale Bank Penalty

    Manley Williams

    Clydesdale Bank PLC was hit with a $43 million-plus fine by the U.K.’s Financial Conduct Authority, largely because it failed to search for documents that should have been subject to its destruction policy, and for misleading consumers and its regulators about the searches. The FCA’s findings contain lessons that will be relevant to U.S. institutions, say Manley Williams and Nadav Ariel of BuckleySandler LLP.

  • How Fintech Is Changing Community And Regional Banks

    Craig D. Miller

    Will community and regional banks become irrelevant over the next decade or two? Definitely not. Convenience and ease of use provided by strict technology service providers will never overwhelm the need for personal customer service and a deep understanding of a client’s business. But those will not be enough to allow banks to continue to grow and thrive, says Craig Miller, co-chairman of Manatt Phelps & Phillips LLP's financial se... (continued)

  • This Week In Congress: Trade And Transportation

    Richard A. Hertling

    The House and Senate will end this month on a high note, as they are expected to send Trade Promotion Authority legislation to the president this week for signature, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.