Banking

  • August 28, 2014

    Ex-Barclays Rep Gets SEC's 'Credibility' Filing Axed

    A U.S. Securities and Exchange Commission judge won't consider a filing by SEC enforcement attorneys purporting to show discrepancies in the testimony of a former Barclays Capital Inc. bond trader accused of a fraudulent "parking" scheme, ruling the filing includes legal argument and belonged in the attorneys' post-hearing brief.

  • August 28, 2014

    Banks Are Victims In Fraudulent Loan Suit, 9th Circ. Rules

    The Ninth Circuit has affirmed orders of restitution to CitiGroup Inc. and JPMorgan Chase & Co. by a man convicted of making fraudulent property-loan applications, saying that the crimes infringed on the banks' property rights and so require restitution under the Mandatory Victim Restitution Act.

  • August 28, 2014

    FHFA Defeats Time-Barred Claim In HSBC, Nomura Suits

    A New York federal judge ruled Thursday that a recent U.S. Supreme Court decision narrowing statutes of limitations does not apply to the Federal Housing Finance Agency claims alleging HSBC North America Holdings Inc. and other banks knowingly sold toxic residential mortgage-backed securities to Fannie Mae and Freddie Mac.

  • August 28, 2014

    BofA's Japanese Brokerage Must Pay $140M To Takefuji

    A Japanese court ordered Bank of America Corp.'s Merrill Lynch Japan Securities Co. and others to pay more than 14.5 billion yen ($140 million) in damages to failed credit company Takefuji Corp., now TFK, over losses it suffered in a bond transaction with the brokerage, TFK said Tuesday.

  • August 28, 2014

    Goldman Fights Bid For Review Of Order Trimming MBS Suit

    Goldman Sachs & Co. is seeking dismissal of a union pension fund’s motion to pursue appellate review of an order trimming its putative class action against the banking giant regarding the sale of mortgage-backed securities, arguing Wednesday the Second Circuit has already decided on the disputed claims.

  • August 28, 2014

    UK Fines Deutsche Bank £4.7M Over Swap-Reporting Flaws

    A London-based office of Deutsche Bank AG has agreed to pay £4.7 million ($7.8 million) to settle claims by the U.K. Financial Conduct Authority that, for 5 1/2 years, it misreported critical information about some 29 million equity swap transactions, the regulator said Thursday.

  • August 28, 2014

    Dealmakers Q&A: Bilzin Sumberg's Jay Sakalo

    If challenges to full credit bids from distressed lenders gain traction, we could see an even greater amount of balance sheet restructurings taking place out of court. We have already seen a dramatic downturn in the number of corporate filings around the nation, says Jay Sakalo of Bilzin Sumberg Baena Price & Axelrod LLP.

  • August 27, 2014

    1st Circ. Rules Fannie, Freddie Exempt From Transfer Taxes

    The First Circuit on Wednesday tossed two class actions demanding Fannie Mae and Freddie Mac pay state real estate transfer taxes, affirming the constitutionality of the tax exemptions in the mortgage giants' congressionally authorized charters.

  • August 27, 2014

    SEC's Lauded Securitization Rules Still Pack Big Burdens

    The U.S. Securities and Exchange Commission answered some industry complaints when passing vast new rules over bond deals at the heart of the financial crisis, but broad new disclosure requirements around asset-backed securities could push more of the business to the private market exempted by Wednesday's rulemaking, attorneys said.

  • August 27, 2014

    Arab Bank Blasts Hamas Claims In Terror Funding Trial

    Arab Bank PLC on Wednesday derided the testimony of a Hamas expert who claims the military wing of the Islamist group was responsible for a series of deadly attacks in Israel and the Palestinian territories, in the case accusing the bank of funneling money to terrorists and their families.

  • August 27, 2014

    Gallagher, Piwowar Balk At 'Hasty' Credit Rating Rules

    As they cast their votes Wednesday against the U.S. Securities and Exchange Commission's credit rating agency reform rules, commissioners Michael S. Piwowar and Daniel M. Gallagher sharply criticized a ban on agency employees from being "influenced by" sales and marketing considerations, saying the overly broad rule is unlikely to hold up in court.

  • August 27, 2014

    JPMorgan Chase, Several Other Banks Attacked By Hackers

    JPMorgan Chase & Co. and several other banks have reportedly been hit by coordinated hacker attacks this month, prompting a federal investigation, though the significance of the breaches remained unclear.

  • August 27, 2014

    PwC Stuck With $1B MF Global Euro Debt Malpractice Suit

    A New York federal judge on Wednesday paved the way for the MF Global Holdings Ltd. bankruptcy administrator to take a $1 billion malpractice suit against longtime auditor PricewaterhouseCoopers LLP to trial, ruling it isn't barred by MF Global's liquidation plan.

  • August 27, 2014

    FHA Nixes Post-Payment Interest Charges On Mortgages

    The Federal Housing Administration on Tuesday issued its final rule eliminating post-payment interest charges on mortgages paid in full, allowing mortgage lenders to charge interest only through the date a mortgage is paid and not beyond that.

  • August 27, 2014

    Texas Court Says Banks Can't Make DA Pay For Records

    A Texas appeals court on Tuesday rejected a bank’s argument that it should be compensated for producing account-holder records as part of grand jury subpoenas, holding there was no unconstitutional taking of property.

  • August 27, 2014

    McGuireWoods Snags Chicago Banking And Finance Lawyer

    McGuireWoods LLP has named banking and finance specialist Kay McNab a partner in its Chicago office, arriving from Winston & Strawn LLP, where she served on the firm’s compensation and audit committees, the firm announced on Tuesday.

  • August 27, 2014

    Delta Settles With Visa, MasterCard To Exit Swipe Fee MDL

    Delta Air Lines Inc. on Wednesday reached a settlement in New York federal court with Visa Inc. and MasterCard Inc. over an alleged plot to fix credit card swipe fees, ending its involvement in a case it filed along with a slew of other merchants that opted out of last year's historic $7.25 billion antitrust settlement.

  • August 27, 2014

    Investor Says Santander Unit Put Out False IPO Info

    A Santander auto lending subsidiary was hit with a class action Tuesday alleging it violated securities law by providing false information regarding a January initial public offering, seven months before shares slid after news the federal government was investigating its underwriting of subprime loans.

  • August 27, 2014

    Banks Say They're Entitled To Debtor's Tax Interest

    Defunct financial company FBOP Corp. and two banks it owed money filed motions in Illinois federal court on Tuesday to prevent the Federal Deposit Insurance Corporation from claiming that the bankrupt company's transfers of liens to the banks were fraudulent.

  • August 27, 2014

    SEC Passes Dodd-Frank Securitization, Credit Rating Rules

    The U.S. Securities and Exchange Commission on Wednesday finalized broad new rules covering two outstanding components of the Dodd-Frank Act when it passed extensive new disclosure and reporting requirements for asset-backed securities and imposed new internal controls on credit rating agencies.

Expert Analysis

  • Solvency Drives Dismissal Of Fraudulent Transfer Suit

    Michael L. Cook

    In U.S. Bank National Association v. Verizon Communications, the Fifth Circuit found competing valuations helpful in dismissing a litigation trustee’s $2.5 billion fraudulent transfer suit against a Chapter 11 debtor’s corporate parent. An adversarial system, therefore, not ideology, worked for the defendants, says Michael Cook of Schulte Roth & Zabel LLP.

  • How To Control Risk And Cost Of E-Discovery

    "If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.

  • From Landlord To Locked Up: The Long Arm Of The SCRA

    Kirk D. Jensen

    While financial institutions — including private equity firms — rarely think of themselves as landlords, they may be subject to a narrow window of exposure under the eviction provisions of the Servicemembers Civil Relief Act, violations of which can lead to severe penalties, including incarceration, say attorneys with BuckleySandler LLP.

  • A Review Of The Subscription Credit Facility Market

    Michael C. Mascia

    Despite the nearly uniform positive trending in the data supporting facility credit performance, none of it goes to the heart of the fundamental credit underwriting premise of a facility. And from this vantage point, the 2014 year-to-date trending has been far less beneficial for lenders, say attorneys with Mayer Brown LLP.

  • Foreclosure Sale Purchasers Face New Risks In Illinois

    Simon A. Fleischmann

    A recent Illinois Appellate Court decision in 1010 Lake Shore Association v. Deutsche Bank National Trust Co. has brought to the forefront the ongoing dispute between foreclosure sale purchasers and homeowners associations regarding the extent to which purchasers are responsible for HOA assessments — and the balance appears to have shifted toward the HOAs, say attorneys with Locke Lord LLP.

  • Picard Powerless To Block Independent Madoff Settlements

    Jonathan Sablone

    The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • Inside New York's Proposed Virtual Currency Regulation

    Marcus A. Asner

    New York’s proposed virtual currency rules intended to prevent money laundering and bolster cybersecurity have been met with mixed reactions and will likely trigger a lot of discussion about issues such as rooting out illegal activity without stifling innovation, say attorneys with Arnold & Porter LLP.

  • Congress Asks, CFPB Delivers On SCRA Violations

    John Costello

    A prudent retailer, lender or servicer should avail itself of the online database that provides information regarding the active-duty status of service members. As noted by the Consumer Financial Protection Bureau’s recent actions, Servicemembers Civil Relief Act compliance is regaining focus and attention, says John Costello of Locke Lord LLP.

  • Lessons From SEC Focus On Compliance Officers

    Louis Greenstein

    The two recent U.S. Securities and Exchange Commission proceedings involving Penson Financial Services Inc. and Private Capital Management Inc. illustrate the continued focus of SEC enforcement on the duties and potential liability of compliance officers, say attorneys with McGuireWoods LLP.

  • Yet Another Case Counters 6th Circ.'s Omnicare Reasoning

    John S. Durrant

    As the U.S. Supreme Court gears up to hear Omnicare, the Tenth Circuit has presented yet another case supporting the view that Section 11 claims cannot arise simply from opinions contained in securities offering documents that turn out in hindsight to be false or misleading, say attorneys with Paul Hastings LLP.