Banking RSS

  • April 16, 2014

    Morgan Stanley Can't Shake Oligarch's Securities Action

    A New York federal judge has refused to dismiss an insider trading and market manipulation lawsuit brought against Morgan Stanley and affiliates by a Russian oligarch-owned firm, ruling the issues raised in the case are not identical to those decided by a related arbitration, according to court documents unsealed Wednesday.

  • April 16, 2014

    NY AG's High-Speed Trading Probe Heats Up, Report Says

    New York Attorney General Eric Schneiderman’s office has sent subpoenas to at least a half-dozen New York- and Chicago-based firms specializing in high-frequency trading, the latest step in his investigation into whether those firms have an unfair advantage in the market, according to a report Wednesday.

  • April 16, 2014

    Money Centers Decries Ch. 11 Trustee Bid, Wants Auction

    Money Centers of America Inc. and its senior secured lender pushed back against attempts to have a Chapter 11 trustee appointed in its Delaware bankruptcy case, arguing Thursday that do so would scuttle the proposal to sell the debtor's assets in a bankruptcy auction.

  • April 16, 2014

    5 Ways Banks Can Defend Against Cyberattacks

    Regulators and customers are putting pressure on banks to increase their vigilance against cyberattacks even as they try to get a handle on the amount of damage caused by the recently revealed “Heartbleed” online security hack.

  • April 16, 2014

    Capital One Escapes Patent Co.'s Online Banking Patent Suit

    A Virginia federal judge on Wednesday found in favor of Capital One Financial Corp. in a patent lawsuit brought by a patent holding company over technology for a budgeting database, holding that the two patents-in-suit are invalid because they claim only abstract ideas.

  • April 16, 2014

    FDIC Trumps Jackson Walker In Row Over Bank's Legal Fees

    A Minnesota federal judge on Wednesday found that Jackson Walker LLP must return to the Federal Insurance Deposit Corp. the remaining amount on a retainer paid by a Minnesota-based bank that collapsed after it tried to convert to a Texas state savings bank.

  • April 16, 2014

    Deutsche, UBS Overcome $166M UK Tax Scheme Suit

    Deutsche Bank and UBS scored a $166 million victory on Wednesday in a United Kingdom court battle over an alleged scheme to avoid paying taxes on employee bonuses.

  • April 16, 2014

    TD Bank, Class Get Approval Of $6M Deal Over FLSA Suit

    A Pennsylvania federal judge on Monday gave his first green light to a $6 million deal to settle a class action against TD Bank NA alleging that the bank stiffed its employees payments for duties they had performed prior to the start of their shifts in violation of the Fair Labor Standards Act.

  • April 16, 2014

    Saudi Co.'s Bribery Suit Shouldn't Be In NY, Swiss Bank Says

    Private Swiss bank Pictet & Cie on Wednesday sought to extinguish a Saudi Arabian oil investment company's lawsuit alleging it aided employees in a kickback scheme that cost it $350 million, saying the action clearly doesn’t belong in New York.

  • April 16, 2014

    UK Court Rejects Madoff Feeder Fund's Clawback Suit

    A U.K. appeals court decided Wednesday that Fairfield Sentry Ltd., which fed billions of investor dollars into Bernard Madoff's notorious Ponzi scheme, couldn't recover payments made to investors who redeemed their shares before the scheme collapsed because certificates documenting the transactions were binding.

  • April 16, 2014

    Lucchese Associate Asks For Mistrial Due To Court Ejection

    A reputed Lucchese crime syndicate associate on Monday sought a mistrial in his prosecution for allegedly draining $12 million from a mortgage lender and forcing its bankruptcy, claiming a New Jersey federal judge infringed his rights and tainted the jury by ejecting him from court.

  • April 16, 2014

    CFTC Demands $645M Penalty For Peregrine Fraud

    The U.S. Commodity Futures Trading Commission asked an Illinois federal court on Wednesday to hit bankrupt Peregrine Financial Group Inc. with a monetary penalty of $645 million, nearly three times the amount of total investor losses from the brokerage firm’s nearly 20-year fraud and embezzlement scheme. 

  • April 16, 2014

    Deals Rumor Mill: Ahli, Michael Foods, SodaStream

    Bahrain's largest lender is considering a $5 billion sale or merger with a rival bank that could be the largest banking transaction in the region for the past 20 years, while SodaStream is considering selling a minority stake to one of three major beverage companies.

  • April 16, 2014

    Legal Costs Drive BofA To $276M Quarterly Loss

    A series of settlements related to housing bubble-era mortgages and mortgage-backed securities drove up Bank of America Corp.'s litigation expenses to $6 billion for the first quarter of 2014, and led the bank to a $276 million loss for the quarter, Bank of America announced Wednesday.

  • April 16, 2014

    MF Global Brass Must Face Some Customer Claims

    An MF Global Inc. customer seeking at least $100 million in damages over the brokerage firm’s collapse may pursue some claims against Jon Corzine and five other top executives, a New York federal judge ruled Wednesday.

  • April 16, 2014

    BNY Mellon Escapes Madoff Feeder Fund Class Action

    A New York state judge dismissed a class action against BNY Mellon on Tuesday, saying the plaintiffs had failed to prove the investment bank showed gross negligence in ignoring key warning signs in Bernard Madoff's notorious $65 billion Ponzi scheme that caused investors massive losses.

  • April 16, 2014

    BofA Ponies Up $950M To End Insurer's RMBS Row

    Saddled with costly legal woes since its troubled takeover of Countrywide Financial Corp. in 2008, Bank of America Corp. said Wednesday it will pay as much as $950 million to settle Financial Guaranty Insurance Co.'s claims over residential mortgage-backed securities that went bust during the financial crisis.

  • April 16, 2014

    Russia Considering WTO Suit Over US Sanctions

    Russia is weighing a potential World Trade Organization challenge of U.S. sanctions imposed on Russian banks following Russia's attempts to annex Crimea, the country's Economic Development Minister Alexei Ulyukayev said on Wednesday, according to Russian news reports.

  • April 16, 2014

    Rising Star: Sullivan & Cromwell's C. Andrew Gerlach

    Making billion-dollar banking deals happen in a post-financial crisis world, such as helping Ally Financial Inc. get out from under the thumb of the U.S. Treasury Department, has made Sullivan & Cromwell LLP partner C. Andrew Gerlach one of Law360's top banking lawyers under 40.

  • April 16, 2014

    Citic Pacific Puts Up $36.5B To Buy Parent Co.'s Assets

    Citic Pacific Ltd. on Wednesday said it will buy the assets of its state-owned parent company, Citic Group, for about 227 billion yuan ($36.5 billion) in a deal that will see the Chinese conglomerate — which boasts businesses in sectors including financial services, real estate and energy — publicly listed for the first time. 

Expert Analysis

  • The British (Financial Regulatory Principles) Are Coming!

    Manley Williams

    Regulation of financial products and services in the United States historically has relied on rules-based regulatory policy, governing business processes including disclosures relating to terms, pricing, structure and marketing. The U.K. has been a leader in applying principles-based regulation, which governs conduct at a higher level of generality. It is clear that strands of the British approach are gaining hold in the U.S., say attorneys with BuckleySandler LLP.

  • Will Dodd-Frank’s Diversity Mandates Go Far Enough?

    Doreen E. Lilienfeld

    Section 342 of the Dodd-Frank Act and recent diversity standards proposed by regulated agencies may impact employment and recruiting practices, but it is unclear whether they will actually lead to greater diversity and inclusion at financial services institutions. To begin with, there is no enforcement mechanism under Section 342, and the proposed standards do not mandate reporting, disclosure or other specific actions, say Doreen Lilienfeld and Amy Gitlitz Bennett of Shearman & Sterling LLP.

  • Keep Your Audience From Checking Email: 5 Legal Talk Tips

    Michael H. Rubin

    Why do the majority of speakers get polite claps at the end of their talks while a few select others receive rousing applause? Having given more than 375 presentations to legal groups, bar associations, Fortune 500 companies and corporate gatherings, I’ve learned a few things about what not to do. Remember, great speakers don’t tell “war stories.” They don’t even give examples from their own practice, says Michael Rubin of McGlinchey Stafford PLLC.

  • Participation Loans Get Even More Complicated

    Chris Riley

    As a result of the broad protections given to the Federal Deposit Insurance Corporation, banks acquiring a lead interest from the FDIC in a participation loan generally have been protected from ipso facto provisions in participation agreements that permit minority interest holders to remove the lead bank. However, the Georgia Court of Appeals recently issued a decision that could significantly affect the rights of the acquiring banks, as well as the FDIC, says Chris Riley of Alston & Bird LLP.

  • The Stop Payment Notice: Construction Lenders Beware

    Kevin R. Brodehl

    While construction lenders generally have no direct contractual relationship with their borrowers’ contractors, those contractors can wield a powerful weapon — the stop payment notice — if they are not paid for their work, as seen in California's recent Brewer Corp. v. Point Center Financial. Lenders’ efforts to sidestep the requirements of a stop payment notice through careful crafting of the loan are unlikely to succeed, says Kevin Brodehl of Wendel Rosen Black & Dean LLP.

  • Own 10% Of A Foreign Business? Don't Neglect BEA Surveys

    Amy E. D'Agostino

    Last month, I received a stack of express mail over a foot deep from the Bureau of Economic Analysis, which has statutory authority to collect vast amounts of data on certain international investments in the U.S. and abroad. The girth of the envelopes highlights the need for a compliance update — especially since the potential penalties for noncompliance include fines and potential jail time for officers, directors, employees or agents, says Amy D'Agostino of Chadbourne & Parke LLP.

  • 7 Tips To Help Compliance Programs Withstand DOJ Scrutiny

    M. Scott Peeler

    In my experience, one of the early questions the U.S. Department of Justice asks is, “What is your budget for office supplies?” followed by, “Now tell me your budget for compliance.” The exercise is overly simplistic, of course, but it demonstrates a telling ideological inconsistency. It also reinforces that the compliance department needs a meaningful level of resources to get the job done right, says M. Scott Peeler of Stroz Friedberg.

  • Why Putting Shareholder Interests First Is A Good Idea

    James W. Thomas

    In recent weeks, Delaware courts have issued two decisions that are reminders to board members and their advisers about the importance of placing shareholder interests first in the mergers and acquisitions process by conducting unconflicted strategic merger processes that the board (or a special committee) actively oversees and that are structured to incentivize the board and its advisers for obtaining the best result for shareholders, say James Thomas Jr. and Veronica Rendon of Arnold & Porter LLP.

  • Pros And Cons Of Trial Presentation Software Programs

    David Russell

    The last thing lawyers want to worry about is fumbling with trial exhibits once they get to the courtroom. Luckily, there are a wide variety of options for using technology to facilitate trial presentation. Each has benefits and drawbacks, but the most important thing is finding software that the trial lawyer is comfortable and confident running, say David Russell and Jeffrey Atteberry of Jenner & Block LLP.

  • SEC Threats Don't Help In-House Bar Prevent Retaliation

    Amar D. Sarwal

    Confidentiality provisions are standard in severance agreements across the business community. Do they all need to be amended to insert an exception for Dodd-Frank-covered activity? It would be nice to know that and, even better, for the voice of the in-house bar to be heard on that front before the U.S. Securities and Exchange Commission files creative lawsuits in an attempt to crack down on whistleblower retaliation, says Amar Sarwal, chief legal strategist at the Association of Corporate Counsel and former counsel at the U.S. Chamber of Commerce.