Banking

  • December 19, 2014

    Judge Slams Symantec's 'Ridiculous' Quash Bid In Target MDL

    A California federal judge on Friday called Symantec Corp.'s bid to avoid handing over documents in multidistrict litigation over a massive breach of Target Corp.'s customer data “ridiculous” and ordered the antivirus software company to cough up details on the software it provided to the retailer.

  • December 19, 2014

    Mortgage Insurer Radian Protests $1B REMIC Tax Bill

    Mortgage insurer Radian Group Inc. has protested about $986.5 million in alleged deficiencies and penalties levied against it by the Internal Revenue Service, arguing in a series of petitions made public Friday that it had properly claimed losses related to real estate mortgage investment conduit interests.

  • December 19, 2014

    BofA Fails To Shake FHFA's MBS Suit

    A New York federal judge has shot down Bank of America Corp.'s latest bid to get rid of a Federal Housing Finance Agency suit over mortgage-backed securities, saying on Thursday that the fact that the sales transaction was hatched before a final prospectus was available is not a deal breaker.

  • December 19, 2014

    Credit Suisse Hit With $40M Verdict In Texas Loan Fight

    A Texas jury on Friday awarded a Highland Capital Management LP-managed entity $40 million, finding the Dallas-based hedge fund was defrauded by Credit Suisse AG units about the value of Las Vegas real estate underlying a $540 million refinancing loan.

  • December 18, 2014

    Ally Gets DOJ Subpoena In Subprime Auto Loan Probe

    Ally Financial Inc. on Thursday disclosed that the U.S. Department of Justice has requested internal documents as part of its ongoing probe into subprime auto lending, months after the lender received a subpoena connected to securities regulators’ investigation into the same practices.

  • December 18, 2014

    Calif. Panel Nixes $82M US Bank Win In Skyscraper Loan Suit

    A California appeals court on Wednesday reversed U.S. Bank NA's nearly $82 million award in a loan dispute with the bankrupt owners of a Los Angeles skyscraper, ordering the trial court to revisit an erroneously calculated $14 million prepayment.

  • December 18, 2014

    Cantor Subpoena Axed In Bank Of China Hamas Funding Case

    A New York federal judge on Wednesday quashed a subpoena that would have required former U.S. House Majority Leader Eric Cantor to testify about his alleged intervention in a lawsuit seeking to hold the Bank of China Ltd. liable for a 2008 attack by Palestinian militant group Hamas.

  • December 18, 2014

    Dodd-Frank Agencies Coordinated Well On Volcker, GAO Finds

    The U.S. Securities and Exchange Commission and other regulators have worked well together under the Dodd-Frank Act, but differences between how the SEC and the U.S. Commodity Futures Trading Commission have approached crafting swaps regulations has led to uncertainty, the Government Accountability Office reported Thursday.

  • December 18, 2014

    US Bank To Pay $6M To Settle MBS Class Action

    U.S. Bank agreed Wednesday to pay $6 million to a class of investors to settle allegations in New York federal court that it didn't cure clear defects in loans bundled into mortgage-backed securities that it trusteed.

  • December 18, 2014

    Banking MVP: Mayer Brown's Matthew Ingber

    Mayer Brown LLP partner Matthew Ingber spent much of the last year helping establish a template for courts to approve settlements in private residential mortgage-backed securities litigation by working on the largest settlement of that kind, earning him a spot on Law360's list of Banking MVPs.

  • December 18, 2014

    Judge Stalls Arbitration Bid In Wells Fargo False Ad Suit

    A California federal judge on Thursday tentatively rejected a bid by Wells Fargo Bank NA to force a Visa-branded gift card purchaser to arbitrate class action claims of deceptive marketing, but asked for additional briefing after the bank showed the product's packaging contained an obvious arbitration provision.

  • December 18, 2014

    Market Rumors: Carige, Carrefour, Romania

    Italy's Banca Carige is boosting its capital raise to help it overcome shortfalls identified by a Europe-wide health check of lenders, while French retailer Carrefour inched closer to an IPO for its Brazil unit.

  • December 18, 2014

    NY Eases BitLicense Rules, But Compliance Worries Remain

    New York’s top financial regulator on Thursday said he would ease the record-keeping requirements in the state’s proposal for a virtual currency licensing regime and provide a transitional license for startups, but concerns remain that the final rule will set too high a bar for anti-money laundering compliance.

  • December 18, 2014

    Polsinelli Grabs DLA Piper Real Estate Finance Expert

    Polsinelli PC has bolstered it real estate, banking and financial services practices by adding a commercial real estate finance expert from DLA Piper, the firm recently announced. 

  • December 18, 2014

    MetLife Deemed Systemically Important By Regulators

    The Financial Stability Oversight Council has issued a final determination that MetLife Inc. is a systemically important financial institution, which will force the insurer to meet higher prudential standards and subject it to Federal Reserve oversight, the company said Thursday.

  • December 18, 2014

    RBC Pays $35M To End CFTC's Wash Trading Case

    Royal Bank of Canada has struck a $35 million deal with the Commodity Futures Trading Commission to settle charges that its extensive “wash trading” on a Chicago futures exchange — an effort to reap tax breaks — was noncompetitive and illegal.

  • December 18, 2014

    Sen. Rubio Promises To Unravel Obama’s Cuba Policy

    Calling President Barack Obama’s historic new policy normalizing relations with Cuba “profoundly disappointing,” first-term Republican Florida senator Marco Rubio vowed to “unravel as many of these changes as possible” in a press conference Wednesday afternoon.

  • December 18, 2014

    FSOC Calls For Input On Asset Management Systemic Risks

    Top U.S. financial regulators agreed on Thursday to seek public input on how they should judge systemic risks stemming from asset managers' activities and products as they continue to consider how they regulate that market.

  • December 18, 2014

    Secret Clients An Issue As Barclays, NY Spar Over Dark Pools

    A decision by the New York attorney general's office not to identify clients allegedly misled by Barclays PLC about the superiority of its dark pool trading operation took center stage Thursday as a trial judge wondered whether withholding the names was legally acceptable in the high-profile fraud case.

  • December 18, 2014

    Top NY Financial Cop Pushes For Faster Payment Clearances

    New York's top financial regulator on Thursday said his agency and its federal counterparts should consider pushing banks to speed up the “disco era” system in place for processing payments.

Expert Analysis

  • Russia Sanctions Bill Will Likely Become Law

    Harry Clark

    While the president’s public remarks indicate his reluctance to take unilateral sanctions action relating to Russia, there is a good chance that he will sign the Ukraine Freedom Support Act into law, given broad bipartisan support of the legislation in both houses of Congress, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • 2015 May Be 'Year Of The Individual' At DOJ

    Timothy Belevetz

    Recent trends, along with seemingly choreographed statements from high-ranking U.S. Department of Justice officials, provide something of a forecast for what may be on deck for 2015. An analysis of that data points to three key areas of focus, all tied to a coordinated effort to shift the spotlight onto individual offenders, says Timothy Belevetz, a partner with Holland & Knight LLP and former federal prosecutor.

  • Deception Concerns Loom Large At CFPB Over Prepaid Cards

    Reed Brodsky

    The Consumer Financial Protection Bureau wants the same rules and regulations for overdrafts in credit cards to apply to prepaid cards. The desire appears to be in response to comments by consumer groups and community organizations that argued prepaid cards with overdraft fees are inherently deceptive, say attorneys at Gibson Dunn & Crutcher LLP.

  • 3 Questions To Ask Yourself Before Hiring Appellate Counsel

    David Axelrad

    In the classic case, a client and his attorney seek appellate counsel after the trial court proceedings are concluded. But these days, “classic cases” are few and far between — more and more, appellate lawyers assist in the trial court with preservation of the appellate record and compliance with the many technical rules of appellate procedure, says David Axelrad of Horvitz & Levy LLP.

  • SEC Enforcement: 2014 Review And 2015 Outlook

    Thomas K. Potter

    The U.S. Securities and Exchange Commission’s recent enforcement policies and actions have been as Chairwoman Mary Jo White promised: aggressive, robust and wide-ranging. The SEC’s enforcement year has sparked equally robust discussion about the proper role and methods of the commission in enforcing the nation’s securities laws. And maybe that robust debate has been a policy objective all along, says Thomas Potter of Burr & Forman LLP.

  • 6 Questions To Ask Before An Internal Investigation

    Ty E. Howard

    Ample literature exists on how to conduct an effective internal investigation and best practices in doing so. Far less common, but equally important, are the questions a company’s decision-makers — whether a CEO, compliance officer or in-house counsel — should ask before the investigation begins, says Ty Howard, a partner with Bradley Arant Boult Cummings LLP and former federal and state prosecutor.

  • 10 Steps To A FINRA-Compliant Social Media Policy

    Michael R. Manley

    One of the challenges with social media is that most networks offer both static displayed content — e.g., a blog posting — and interactive communication features — e.g., real-time communications from third-party end users. The Financial Industry Regulatory Authority rules treat these two functions differently, say attorneys with Venable LLP.

  • What Lawyer-Novelists Learned From Being Lawyers

    Michael H. Rubin

    The consensus that emerged from my discussions with several lawyers who have become best-selling novelists is that the traits it takes to be a great lawyer are invaluable in crafting first-rate mysteries and thrillers. Both thriller authors and lawyers possess a concentrated attention to detail that allows them to create a logical framework for their story, brief or courtroom presentation, says Michael Rubin of McGlinchey Stafford PLLC.

  • Regulators Initiate Thrift Savings Plan Rollover Battle

    Stephen J. Korotash

    Financial firms that have participated in the transfer of client funds from a Thrift Savings Plan account to an individual retirement account should be aware that regulatory scrutiny of that practice is underway. In addition to regulatory action, reputational harm awaits firms that fail to address potential issues now, say Stephen Korotash and Danny Ashby of K&L Gates LLP.

  • How Borrower Got 'Free House' In NJ Bankruptcy Case

    Donna Bates

    A New Jersey bankruptcy court recently held that a mortgagee and mortgage servicer were time-barred under New Jersey state law from enforcing either the note or the accelerated mortgage against the debtor. This decision is particularly relevant considering that New Jersey’s foreclosure practice has undergone recent developments that have contributed to significant delays in foreclosure filings, say Daniel Cozzi and Donna Bates of Blank Rome LLP.