HSBC, UBS and other mortgage originators, facing a potentially hefty liability for an $8.7 billion settlement over residential mortgage-backed securities sold to Residential Capital LLC, cannot review the confidential communications that precipitated the massive deal, a New York bankruptcy judge said Thursday.
The Third Circuit on Wednesday affirmed the certification of a nationwide litigation class of individuals suing PNC Bank NA, which acquired a smaller bank accused of helping facilitate an illegal home equity lending scheme, finding PNC's challenge to issues of commonality and other certification criteria unpersuasive.
Global regulators on Thursday said they would delay any decisions on designating large asset management firms as systemically important financial institutions, but added that they would continue to study the potential risks such firms presented to the financial system.
As Native American tribes and businesses have increasingly run up against federal and state regulatory authorities in recent decades, federal courts have issued a number of rulings that cramp tribal sovereignty and create uncertainty about the right method of assessing its reach. Here, Law360 looks at five decisions showing the tightening scope and heightened confusion around tribal sovereignty that have accompanied the closer scrutiny on tribal activities.
Paul Hastings LLP said Thursday it represented several global banks in a $850 million loan to Mexico City-based real estate investment trust Fibra Uno Administracion SA de CV, described as the largest-ever bank loan to a Latin American real estate company.
A New York federal judge on Wednesday rejected an accused Russian spy’s claim that he was protected by diplomatic immunity because the U.S. government knew he worked for a state-sponsored bank.
A Florida federal judge on Thursday rejected Branch Banking and Trust Co.'s call for split jury and nonjury trials on a group of National Football League players' claims of unauthorized transactions, saying the bank's arguments of potential prejudice fell short of a need for judicial economy.
Subsidiaries of Colony Capital Inc. have scored $165.75 million in refinancing from Prudential Mortgage Capital Co. for a five-city, 4 million-square-foot industrial property portfolio, according to an announcement on Thursday from Holliday Fenoglio Fowler LP, which brokered the deal for the borrowers.
Amazon.com Inc., Starbucks Corp. and Wal-Mart Stores Inc. have objected to the $7.25 billion antitrust settlement Visa Inc. and MasterCard Inc. reached over their interchange fees, arguing the plaintiffs were inadequately represented by an attorney who allegedly exchanged confidential information with a now-indicted lawyer representing their adversary.
The Consumer Financial Protection Bureau on Thursday said that a mortgage servicing company will pay $1.6 million in restitution and fines for a variety of violations, including failing to honor loan modifications and falsely treating consumers as though they had defaulted.
Easterly Acquisition Corp., a Massachusetts-based blank check company formed by Easterly Capital LLC for effecting mergers or similar deals in the financial services sector, topped its target on Thursday by raising $180 million in an initial public offering steered by Skadden Arps Slate Meagher & Flom LLP.
Families of 9/11 terrorist attack victims scored a symbolic victory in multidistrict litigation over the attacks Wednesday with a default judgment in New York federal court against Iran after the Islamic republic failed to respond to allegations that it sponsored al-Qaida.
Stock exchange operator BATS Global Markets Inc. on Thursday said it would seek a new rule to more swiftly stop market manipulations such as spoofing and layering, filing a proposal with the U.S. Securities and Exchange Commission.
The U.K. Financial Conduct Authority said Thursday that it has banned a former trader at Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, better known as Rabobank, from working in the United Kingdom’s finance industry due to his conviction in U.S. Libor litigation.
Lloyds Banking Group PLC is selling a portfolio of Ireland commercial loans to a Goldman Sachs Group Inc. entity, the Bank of Ireland and an entity affiliated with CarVal Investors LLC for £827 million ($1.29 billion), according to a filing with the London Stock Exchange on Thursday.
Holland & Knight LLP has recruited a former Troutman Sanders LLP corporate partner experienced in advising technology, telecommunications and banking companies in securities offerings and mergers and acquisitions to bolster its public companies and securities practice group in Atlanta, the firm said on Wednesday.
The automotive finance arm of Santander Consumer USA Inc. was accused in a Wednesday putative class action of using local dealerships to skirt usury laws and exploit vulnerable, low-income consumers in New York by financing auto loans with abusively high interest rates.
Texas on Tuesday urged the Fifth Circuit to affirm a federal judge's determination that the state's anti-surcharge law regulates only the prices of consumer goods, which it says is an economic activity within the state's police power that doesn’t implicate merchants' First Amendment rights.
Another Lucchese crime family member convicted by a federal jury in New Jersey on racketeering and fraud charges for his role in a $12 million extortion takeover that forced a Texas mortgage lender into bankruptcy was sentenced to 30 years in prison Tuesday, the Department of Justice announced.
Nearly 25 financial institutions, including Barclays Capital Inc., Goldman Sachs & Co. and UBS Securities LLC were hit with a proposed class action by investors in New York federal court on Tuesday, a suit that claims they colluded to manipulate the U.S. Treasury securities market.
In light of the U.S. Department of Labor's proposed best interest contract exemption guidance, a broker-dealer might decide to exclude transactions in retirement investor accounts from incentive or bonus programs offered to its brokers, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.
Opportunities for distressed debt funds to buy attractively priced distressed corporate assets have been few and far between in recent terms, but do not expect activity levels to be quiet forever. One market that funds have been eyeing closely is Italy, say attorneys with Orrick Herrington & Sutcliffe LLP.
Highway funding remains at an impasse this week, as House and Senate debates continue. Iran also remains a major focus, with only 60 days for Congress to review the nuclear agreement reached earlier this month. Meanwhile congressional leaders have finally acknowledged what has been clear all along — efforts to fund the government past Sept. 30 have failed, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.
Manipulating gender disparity in the service of hawking a flawed investment product does nothing but trivialize a serious and important issue. The tortured logic in Burford Capital LLC’s recent plug for third-party litigation financing is nothing more than a marketing ploy to boost revenues, says Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform.
A closer look at the U.S. Department of Labor's proposed best interest contract exemption for financial institutions and their advisers reveals that the elements are very different from existing requirements. Proposed transaction fee and cost requirements not only conflict with existing broker-dealer rules but also would require an operational platform that does not currently exist, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.
There is a clear split in authority among the departments of New York's Appellate Division on whether a standing defense is waived upon a borrower defaulting in a foreclosure action. The potential impact of how the split is ultimately resolved by the New York Court of Appeals cannot be understated, says Christopher Gorman of Westerman Ball Ederer Miller Zucker & Sharfstein LLP.
Although the attorney exclusion and attorney involvement issues apply to debt collection attorneys specifically, nonattorney debt collectors and other enforcement targets of the Consumer Financial Protection Bureau can point to CFPB v. Frederick J. Hanna & Associates PC as a rejection of the bureau's claim that statutes of limitations don't apply to its enforcement actions, say attorneys at Troutman Sanders LLP.
A Third Circuit decision in IP theft case Aleynikov v. Goldman Sachs Group Inc. and the Delaware Chancery Court’s ruling in insider trading suit Holley v. Nipro Diagnostics Inc. have raised important issues regarding fee advancement bylaws. For one, a litigant will not be considered an “officer” simply based on his or her title, say attorneys with Katten Muchin Rosenman LLP.
After the financial crisis, governments are acutely aware of the potential domino effect of triggering a credit event, and they are desperate — and able — to avoid doing so. Credit default swaps may therefore be of diminishing utility as a hedging tool, says Ryan Michael Wilson of Lowenstein Sandler LLP.
Fisher and Romaine’s well-known article, “Janis Joplin’s Yearbook and the Theory of Damages,” argues that commercial damages should be measured as of the time the challenged act occurred, an approach that has generally been favored. However, their argument is somewhat contrived, says Paul Godek, principal at MiCRA and a former economic adviser at the Federal Trade Commission.