• October 17, 2014

    2nd Circ. Kills $27B Deutsche Bank RMBS Suit

    The Second Circuit on Thursday declined to grant a panel or en banc rehearing of its decision to toss an investor class action alleging Deutsche Bank AG lied about its $27 billion exposure to risky mortgage assets during the financial crisis.

  • October 17, 2014

    Mass Mutual Sues JPMorgan Over 'RetireSmart' Rights

    Massachusetts Mutual Life Insurance Co. on Friday asked a federal judge to cancel JPMorgan Chase & Co.’s trademarks for its “SmartRetirement” services and called for a declaration that the insurer’s own retirement services under the name "RetireSmart" don’t infringe those marks.

  • October 17, 2014

    Pa. Financial Regulator Wants In On Wilmington Trust Suit

    Pennsylvania's financial regulator on Friday sought to intervene in a consolidated class action alleging Wilmington Trust Corp. misled investors about a precarious loan portfolio that fueled the bank's downfall and hasty merger with M&T Bank Corp., asserting that it needs to protect privileged, confidential communications with Wilmington Trust.

  • October 17, 2014

    Ex-AIG CEO Says Only Bailout Alternative Was Failure

    Former American International Group Inc. CEO Edward Liddy argued Friday that the only alternative the company had to accepting the Federal Reserve’s “relatively harsh” 2008 bailout offer was bankruptcy, saying even with its stringent conditions shareholders had ultimately benefited from the deal.

  • October 17, 2014

    Filing Mistake Can End GM Secure Interest, Del. Justices Say

    The Delaware Supreme Court ruled Friday that a secured lending interest is terminated simply by filing the appropriate paperwork, regardless of the party's intent or understanding, answering a question from the Second Circuit over a challenge involving a JPMorgan Chase & Co. unit in the General Motors Corp. bankruptcy case.

  • October 17, 2014

    SEC's Gallagher: We're Tired Of Regulatory 'Hammer Time'

    U.S. Securities and Exchange Commissioner Daniel Gallagher blasted the Dodd-Frank rules in a pop culture-filled Thursday speech before Fordham Law School, saying that being in charge of more enforcement is the last thing the commission needs and that its time should be spent directly ensuring the success of capital markets.

  • October 17, 2014

    MetLife Faces Tough Task In Challenge To SIFI Designation

    MetLife Inc. faces an uphill battle in its challenge to its proposed designation as a systemically important financial institution subject to Federal Reserve oversight, given factors such as the highly deferential standard of review favoring federal regulators, experts say.

  • October 17, 2014

    House Eyes Payday Lender Moves In Operation Choke Point

    The House Oversight and Government Reform Committee is investigating whether U.S. financial regulators, via Operation Choke Point, pressured banks into ending their relationships with payday lenders, saying Friday it found evidence the Federal Deposit Insurance Corp. told a bank to cut off its payday lending clients.

  • October 17, 2014

    5 IPOs Aim To Draw $450M In Coming Week

    Five companies — including an asset manager, an e-cigarette maker, two life sciences firms and a bank — are eyeing initial public offerings the week of Oct. 20, aiming to raise more than $450 million, following a rocky series of debuts that saw companies price below their set range, according to IPO investment firm Renaissance Capital.

  • October 17, 2014

    Top CFTC Official Said To Be Joining Norton Rose Fulbright

    A senior U.S. Commodity Futures Trading Commission attorney is set to join Norton Rose Fulbright LLP after he leaves the agency next month, Law360 has learned.

  • October 17, 2014

    Fed Pinpoints Shortcomings In Bank Stress Test Submissions

    The Federal Reserve on Friday outlined where it would like to see banks improve their submissions to the central bank’s annual stress tests, including better evaluations of their modeling and valuation techniques.

  • October 17, 2014

    Gov't Groups Want Liquidity Rule On Muni Bonds Tweaked

    The National Governors Association, National League of Cities and six other government associations urged federal banking regulators Thursday to revise a liquidity rule for large banks to treat municipal bonds as high-quality assets, saying the change is needed to recognize the value of many of the securities.

  • October 17, 2014

    Virgin Money Pushes Back IPO Plan Amid Bumpy Euro Markets

    U.K. lender Virgin Money Holding PLC, part-owned by English billionaire mogul Richard Branson, became the latest company to suspend its initial public offering plans on Friday citing concerns over the state of the market as worries over Ebola and a trading slowdown continue to spook investors.

  • October 17, 2014

    Ballard Spahr Adds Ex-Nationstar GC To Mortgage Group

    Ballard Spahr LLP on Friday continued its recent string of high-profile hires, this time adding the former general counsel for Nationstar Mortgage Holdings Inc. to its already strong mortgage and consumer financial services practices.

  • October 17, 2014

    Sealing The Deal: Greenberg Traurig Guides ICE In Israel

    Greenberg Traurig helped guide one of the world's largest stock and derivatives trading exchange companies, Intercontinental Exchange Inc., in its first major investment in Israel despite a deal-making process that was sometimes interrupted by the escalation of the country's ongoing war.

  • October 17, 2014

    RE Rumor Mill: JPMorgan, American Realty, Bodour Al Qasimi

    JPMorgan is reportedly in discussions related to a potential $6 billion new Manhattan headquarters, while American Realty is said to have paid $13 million for an AT&T-leased office building and Bodour Al Qasimi and her father have reportedly bought a Manhattan apartment for $14 million.

  • October 17, 2014

    4 Ways Banks Can Keep Enviro Liability Away

    While banks are generally shielded by federal law from having to cover environmental cleanup costs on indebted properties, lenders can inadvertently lose those protections through operational missteps and by failing to add protections to loan documents. Here, attorneys offer up four guidelines for steering banking clients away from the liability cliff.

  • October 17, 2014

    Obama Embraces ‘Chip And Pin’ Cards In Cybersecurity Push

    President Barack Obama on Friday signed an executive order aimed at boosting U.S. cybersecurity, including a requirement that all federally issued credit and debit cards come with so-called “chip and pin” technology and that federal government agencies accept such cards.

  • October 16, 2014

    Ex-UBS Exec Points Blame At Gov't Witness In Tax Trial

    Ex-UBS AG executive Raoul Weil's counsel distanced him from a former colleague's testimony on an alleged conspiracy at the Swiss bank to conceal $20 billion in U.S. client assets from the Internal Revenue Service, instead pointing blame at the government's witness himself Thursday in Florida federal court.

  • October 16, 2014

    Fifth Third Says Simplexity Can't Afford To Stay In Ch. 11

    Simplexity LLC's senior lender squared off with unsecured creditors in Delaware bankruptcy court Thursday, as Fifth Third Bank took another swing at converting the cellphone activator's case to Chapter 7, arguing that the estate can't foot the bill for a Chapter 11 plan.

Expert Analysis

  • Battling On The Front Lines Of Service Member Foreclosures

    Meredith L. Minkus

    Although a somewhat sensitive issue for lenders, foreclosing upon the property of a member of the armed forces does not have to be a costly and frustrating process, as often depicted in the media. The difficulties arise when lenders wait until the last minute to determine whether a defendant is, in fact, a service member, say Meredith Minkus and Steven Ferrell of Burr & Forman LLP.

  • CAFA Removal Procedure At Center Stage In Dart Cherokee

    Archis A. Parasharami

    If Public Citizen's amicus brief in the U.S. Supreme Court case Dart Cherokee Basin Operating Co. v. Owens is correct in arguing that an appellate court can insulate questions arising under the Class Action Fairness Act from Supreme Court review by denying leave to appeal then that will create perverse incentives for lower courts and may hamper the development of uniform rules governing CAFA removals, says Archis Parasharami of Mayer Brown LLP.

  • Clarifying TruPS Holders’ Exercise Of Remedial Rights

    Andrew I. Silfen

    Given a recent bankruptcy court decision in the case of FMB Bancshares Inc., bank-holding companies should be aware that trust-preferred securities holders may have some support for a further or direct power in their efforts to realize a return on their investment, say attorneys with Arent Fox LLP.

  • Will The Wires REIT Become The Next Midstream MLP?

    David C. Wright

    With midstream energy master limited partnerships having dominated the energy and power capital markets in recent years, a question has arisen as to why the real estate investment trust structure has not been more utilized, especially given that the IRS has blessed the ability of REITs to own transmission and distribution systems, say attorneys with Hunton & Williams LLP.

  • A Primer On 'Bad Faith' In Federal Removal Jurisdiction

    Ugo Colella

    The Federal Courts Jurisdiction and Venue Clarification Act grants a federal district court discretion to permit removal after the one-year period if it finds a plaintiff has “acted in bad faith” to prevent removal, but it didn’t come with a clear definition of "bad faith." Recent case law offers some minimal guidance on how the exception should be interpreted, say Ugo Colella and Todd Seaman of Thompson Hine LLP.

  • Spotlight On Make-Whole Provisions In Bankruptcy

    Michael J. Venditto

    In the current low interest rate environment, the enforceability of make-whole provisions in bankruptcy has been the subject of litigation, which has recently produced several decisions regarding the lender's entitlement to early-termination premiums, say Michael Venditto and Sarah Kam of Reed Smith LLP.

  • 'Disparate Impact' Finally Gets Its Due

    Arthur E. Anthony

    The U.S. Supreme Court has signaled its clear determination to resolve the long-debated question concerning the viability of the disparate impact theory under the Fair Housing Act by granting certiorari in a Fifth Circuit case. However, the ruling may result in a substantial reworking of the fair-lending regulatory framework governing financial institutions, say Arthur Anthony and Jennifer Parnell of Locke Lord LLP.

  • Do Capital Markets Need Financial Guaranty Insurers?

    Jeffrey Stern

    Surely the epitaphs for the financial guaranty insurance industry were not penned prematurely. Certainly those insurance companies must have the good grace to comprehend that their day has passed. Yet the expectations — nay the certitude — of market-watchers appears likely to be foiled, says Jeffrey Stern, leader of the structured products group at Pillsbury Winthrop Shaw Pittman LLP.

  • Another Blow Dealt To Restitution, Disgorgement Defense

    Peter Gillon

    Recently, the clear trend has been for courts to narrow insurers’ restitution/disgorgement defense considerably. A Minnesota federal court's decision in U.S. Bank v. Indian Harbor Insurance Co. takes the trend one step further, rejecting the defense outright​, say Peter Gillon and Vernon Thompson Jr. of Pillsbury Winthrop Shaw Pittman LLP.

  • IndyMac Reversal Will Significantly Impact '33 Act Cases

    Kevin M. LaCroix

    The U.S. Supreme Court’s decision to dismiss the writ of certiorari in a case involving the failed IndyMac bank means that the Second Circuit’s ruling that the filing of a class action does not toll the 1933 Securities Act’s statute of repose will remain operative with respect to a very large number of cases, says Kevin LaCroix of RT ProExec.