Banking

  • November 25, 2014

    Ampal CEO's Suit Says Bondholder Defamation Sunk Company

    The CEO of bankrupt energy investment holding company Ampal-American Israel Corp. sued bondholders in New York bankruptcy court on Monday claiming their "immoral, unconscionable conduct" in defaming the company and its leaders stalled a key ethanol project and drove the company toward insolvency.

  • November 25, 2014

    Texas Court Rejects Morgan Stanley Bid To Exit MBS Suit

    A Texas appeals court on Tuesday rebuffed Morgan Stanley's attempt at exiting a lawsuit brought by the Federal Deposit Insurance Corp. alleging the financial giant made false statements and misled investors when it underwrote bad mortgage-backed securities, finding that the appellate court had no jurisdiction.

  • November 25, 2014

    Leveraged Lending Group Wants Risk Retention Rule Tossed

    A Wall Street interest group on Monday asked a federal appeals court to overturn federal regulations mandating that investment firms retain an interest in debt securities they issue, saying the rules will have a damaging effect on the leveraged loan market.

  • November 25, 2014

    HSBC Unit Admits Registration Miscue In $12.5M SEC Pact

    HSBC’s Swiss private banking unit has reached a $12.5 million settlement with the U.S. Securities and Exchange Commission after admitting that it failed to register with the agency before providing investment advice to U.S. clients, according to a Tuesday order.

  • November 25, 2014

    Deutsche Trust Wins Time To Refute Quicken In Bad Loan Suit

    A Manhattan judge on Tuesday gave Deutsche Bank National Trust Co. time to address evidence that Quicken Loans Inc. says proves the trust sued too late in its bid to win repayment for allegedly defective Quicken loans that went into investment securities.

  • November 25, 2014

    BofA Escapes $56M Mortgage Bond Suit In 2nd Circ.

    The Second Circuit on Tuesday refused to revive a German bank's suit alleging Bank of America Corp. duped it into investing $56 million in shoddy mortgage bonds before the 2008 financial crisis.

  • November 24, 2014

    MF Global Execs Seek To Tap $7.5M More In E&O Coverage

    Executives of bankrupt MF Global Inc. asked a New York bankruptcy judge Friday to give them access to an additional $7.5 million worth of errors and omissions insurance coverage for legal bills from lawsuits connected to their involvement in the company’s downfall.

  • November 24, 2014

    Synovus Bank Paying $3.9M To Exit Overdraft Fee Litigation

    Synovus Financial Corp. has agreed to pay $3.9 million to end its part in litigation alleging banks acted in bad faith by processing transactions in an order that would net them the most in overdraft fees, according to a deal filed in Florida federal court Monday.

  • November 24, 2014

    Feds Focused On Controlling AIG In Bailout, Expert Testifies

    The federal government recognized the value of taking control of American International Group Inc. and muscling out their voting shareholders and pursued that goal as part of the terms of the 2008 bailout, a plaintiffs' expert testified on Monday as Starr International Co. closed out its $55 billion shareholder suit over the bailout terms.

  • November 24, 2014

    FHFA Keeps Size Of Loans For Fannie, Freddie Steady

    The Federal Housing Finance Agency on Monday announced that the maximum loan that Fannie Mae and Freddie Mac can guarantee in 2015 will remain, for the most part, unchanged from this year.

  • November 24, 2014

    Mortgage Appraiser Reaches $9.9M Deal In Inflation Suit

    A mortgage appraisal firm and a class of plaintiffs alleging the firm engaged in a scheme with the failed Washington Mutual Bank to inflate home values on homes reached a $9.9 million agreement Friday to end their litigation.

  • November 24, 2014

    Aluminum MDL Plaintiffs May Refer To Critical Senate Report

    Aluminum buyers seeking to revive claims that JPMorgan Chase & Co., Goldman Sachs Group Inc. and others manipulated supply to inflate prices can reference recent U.S. Senate findings about the banks' roles in commodities markets in upcoming briefings, a Manhattan federal judge said Monday.

  • November 24, 2014

    CFPB Developing Debt Collection Consumer Survey

    The Consumer Financial Protection Bureau on Friday said that it is developing a consumer survey on debt collection practices as it works to develop first-of-their-kind federal regulations for the industry.

  • November 24, 2014

    FINRA Fines Citigroup $15M For Analyst Supervision Failures

    The Financial Industry Regulatory Authority on Monday said it has fined Citigroup Global Markets Inc. $15 million for failing to adequately supervise its equity market research analysts, whom the regulator said gave improper tips at so-called “idea dinners” with clients but weren’t adequately punished for violating the bank’s policies.

  • November 21, 2014

    Phoenix Seeks To Cap $10M Software Claim At $500K

    Phoenix Payment Systems Inc. told a Delaware bankruptcy judge Thursday that a $10 million claim lodged by a rival card transaction company over old software code should be capped at $500,000, saying it should not be forced to set aside the full sum while litigation plays out.

  • November 21, 2014

    RE Rumor Mill: BofA, TIAA-CREF, Carlyle

    Bank of America Corp. is said to have reached a deal in a mortgage bond case with regulators to complete a stalled $16.7 billion settlement, while TIAA-CREF has reportedly made a $295 million apartment buy in Washington, D.C., and a Carlyle Group joint venture is said to be planning a condominium in Queens, New York.

  • November 21, 2014

    Bondholders Assert Appeal Rights In Libor Fixing Case

    Bondholders seeking to revive antitrust claims in multidistrict litigation against several major banks for allegedly rigging the London Interbank Offered Rate told the U.S. Supreme Court that a district court’s dismissal of their claims allows them the right to an immediate appeal without waiting for broader MDL litigation to conclude.

  • November 21, 2014

    Market Rumors: Richemont, Jasper Technologies, BNP Paribas

    Luxury goods group Richemont may float its online retailer, while California-based software company Jasper Technologies is working with bankers on a roughly $150 million IPO.

  • November 21, 2014

    Convicted Hacking Ring Member Gets 3.5 Years

    A man convicted of participating in a fraud ring’s alleged attempt to hack $15 million from customer accounts at banks like JPMorgan Chase Bank NA and Citibank NA and file false tax returns was sentenced Friday to almost three and a half years in prison, according to New Jersey federal prosecutors.

  • November 21, 2014

    AmFin Asks High Court To Review $170M Tax Refund Dispute

    AmFin Financial Corp. has asked the U.S. Supreme Court to review a Sixth Circuit reversal that rescinded a $170 million tax refund sought by the Federal Deposit Insurance Corp., saying the ruling created a circuit split over what property is excludable from a bankruptcy estate.

Expert Analysis

  • Principles Of Eligibility Criteria For Asset-Based Loans

    Excerpt from Lexis Practice Advisor
    David W. Morse

    While a company wants to be certain as to the amount it will be able to borrow, the asset-based lender needs the ability to respond to changing circumstances in order to manage its risk properly. This issue may be addressed in the eligibility criteria in different ways, says David Morse of Otterbourg PC.

  • Checking In On The CFPB: Part 2

    Jon Eisenberg

    While credit card cases produced by far the largest recoveries for the Consumer Financial Protection Bureau, mortgages produced the most cases, which is not surprising since the CFPB receives roughly three times as many complaints about mortgages as it does about any other product, says Jon Eisenberg of K&L Gates LLP.

  • The Print Room: How To Spend Less And Get More

    Senthil Rajakrishnan

    Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.

  • Has NYC Added A 4th Test For Determining Combined Group?

    Jessica L. Kerner

    In the matter of the petition of Astoria Financial Corp. & Affiliates, an administrative law judge determined that the federal savings and loan association was not required to include a subsidiary in its combined New York City bank tax return. It appears, however, that in addition to focusing on the three statutory criteria for requiring a combined return, the city audit also raised a fourth criterion, say Jessica Kerner and Leah R... (continued)

  • Checking In On The CFPB: Part 1

    Jon Eisenberg

    Credit card and mortgage-related enforcement actions account for well over 90 percent of the Consumer Financial Protection Bureau's recoveries to date and industry should expect continued focus here — the level of consumer complaints in these areas is a strong predictor of where the CFPB will focus its enforcement resources, says Jon Eisenberg of K&L Gates LLP.

  • MBS Investors Entitled To Increased Bankruptcy Recoveries

    Shan A. Haider

    In addition to securities litigation, the financial crisis yielded many bankruptcy filings by parties connected to the issuance of mortgage-backed securities. MBS investors, however, have found some solace through increased recoveries in decisions reached in the Washington Mutual and Lehman Brothers bankruptcy cases, says Shan Haider of Perkins Coie LLP.

  • Dewey Partner Clawback Ruling May Hurt New York Law Firms

    Evan C. Hollander

    Unless the recent ruling in the Dewey & LeBoeuf LLP bankruptcy case is overturned on appeal or the New York Legislature amends the state’s fraudulent transfer and partnership laws, partners of New York firms will bear greater risk if their firms fail than will members of many non-New York partnerships. This risk factor might even affect decisions by prospective lateral partners about which firms to join, say attorneys with Arnold & Porter LLP.

  • Key Tools For Monitoring Vendor Data Security

    Gregory Stein

    The common denominator of most of the recent high-profile breaches is that they are retail businesses that accept credit cards. Accordingly, as recent guidance from the Payment Card Industry Security Standards Council reminds us, companies that process credit cards should be scrutinizing vendors’ security practices as closely as they review and manage their own practices, says Gregory Stein of Ulmer & Berne LLP.

  • Is Disparate Impact Protection For Lenders On The Horizon?

    Michael R. Pennington

    A district court recently tossed the Department of Housing and Urban Development’s adoption of the disparate impact rule — a decision that serves as a significant stumbling block to the Obama administration’s efforts to regulate the banking and mortgage industries, and a significant weapon for those wishing to resist any application of the disparate impact theory in the context of Fair Housing Act claims, say attorneys with Bradley... (continued)

  • Proposed Prepaid Rule Unlikely To Stem Growth

    Franca Harris Gutierrez

    While the Consumer Financial Protection Bureau’s proposed prepaid card rule will increase compliance costs for the issuer and provide the CFPB another rule for enforcement, it is unlikely to stem the growth of the prepaid industry. Consumers are increasingly opting for prepaid products, and increased oversight and disclosure may, in fact, prompt additional customers to use a physical or virtual prepaid card, say attorneys with WilmerHale.