Banking RSS

  • April 23, 2014

    Chartis Can't Dodge Suit Over Losses On $103M Hotel Loan

    A New York judge on Friday refused to dismiss a suit accusing Chartis Specialty Insurance Co. of failing to cover an investment firm for losses from a $103 million loan to a Mexican hotel venture that went belly-up, saying she suspects the Mexican borrowers are shielding themselves through a sham bankruptcy proceeding.

  • April 23, 2014

    Conservative Groups Urge Rejection Of Senate Housing Bill

    Conservative activist groups on Wednesday launched a broadside attack against a U.S. Senate bill that would reshape the United States housing finance system and eliminate Fannie Mae and Freddie Mac, saying that it would simply increase government intrusion in the housing market.

  • April 22, 2014

    MetWest Loses $12.5M Wilshire Bank Deal, Suit And Appeal

    A California appeals court upheld a lower court's decision that MetWest Ventures LLC can't enforce Wilshire State Bank's letter of intent to sell seven subperforming loans to MetWest for $12.5 million, ruling Monday that the letter lacks essential terms including for interest and repayment.

  • April 22, 2014

    Ex-BofA Worker Avoids Prison In Bid-Rigging Scandal

    A former Bank of America Corp. official who became a U.S. government witness in its crackdown on alleged municipal contract bid-rigging escaped punishment at his sentencing hearing Tuesday in New York federal court.

  • April 22, 2014

    $281M RMBS Suit Against Morgan Stanley Beats Dismissal Bid

    A New York judge on Tuesday refused to throw out a $281 million fraud suit brought by Israeli megabank Bank Hapoalim BM brought against several Morgan Stanley & Co. Inc. units over misrepresentations about risky residential mortgage-backed securities, but trimmed two claims from the action.

  • April 22, 2014

    MERS Can't Kill Pa. Deed Recorders' Class Action

    A Pennsylvania federal judge on Monday upheld the constitutionality of a statute requiring the registration of deeds, in a ruling that keeps alive a class action brought by Pennsylvania counties alleging that Mortgage Electronic Registration Systems Inc. violated the law.

  • April 22, 2014

    The Accidental Advocate: Judge John E. Jones III

    Pennsylvania Middle District Judge John E. Jones III talks to Law360 about the surreal aftermath of his divisive ruling against intelligent design as he prepares for yet another potentially explosive trial over Pennsylvania's same-sex marriage ban.

  • April 22, 2014

    Fannie, Freddie Reform Bill Has A Shot, HUD Chief Says

    A bill that could transform the housing finance system and stave off years of continued dependence on government backing will face a tough political test next week during a scheduled Senate markup, but U.S. Housing and Urban Development Secretary Shaun Donovan said Tuesday he's optimistic that reform is on the horizon.

  • April 22, 2014

    Regions Bank Hit With FLSA Suit Over Investigator OT Pay

    Regions Financial Corp. and Regions Bank were hit with a putative collective action in Alabama federal court Tuesday alleging they failed to pay overtime wages to the bank's anti-money laundering investigators in violation of the Fair Labor Standards Act.

  • April 22, 2014

    Payout Battle Over $7.25B Visa Swipe-Fee Deal Rages On

    Merchants with a claim to the $7.25 billion settlement over Visa Inc. and MasterCard Inc.'s alleged plot to fix credit card swipe fees continued their efforts to root out allegedly dicey claim-recovery services, urging a New York federal judge on Monday to ban the servicer for allegedly duping class members seeking a payout.

  • April 22, 2014

    Adams & Reese Launches Privacy, Data Security Practice

    Adams & Reese LLP recently formed a privacy and data security practice group, bringing together attorneys with experience in the employment, intellectual property, banking and health care industries.

  • April 22, 2014

    Cybercriminals Outpacing Security Measures, Report Says

    Although retailers, banks, law firms and other companies have worked hard to bolster their cyberdefenses, a new report set for release Wednesday found that cybercriminals and so-called hacktivists have become even better at cracking those defenses in 2013.

  • April 22, 2014

    Deals Rumor Mill: Carlyle, Red Lobster, Citigroup

    Carlyle and TPG continue to welcome interest from eager suitors around the world vying for their jointly owned, $4 billion Australian health care provider, while flagging restaurant company Darden's shareholders are tipping toward vocal activist critics to force the company into a vote that could upend its Red Lobster spinoff plans.

  • April 22, 2014

    Investment Firm Ducks RICO Suit Over Misleading Lower Court

    The Tenth Circuit on Tuesday rejected a borrower's attempt to revive her suit against Mooring Capital Fund LLC — the firm handling her mortgage on a shopping center — alleging it violated the Racketeer Influenced and Corrupt Organizations Act by misleading a district court, ruling that the issue had already been decided. 

  • April 22, 2014

    UBS, Life Insurers Strike Deal Over MBS Row

    Union Central Life Insurance Co. and UBS AG on Monday said they have reached a settlement to end a dispute over junked mortgage-backed securities the Swiss bank allegedly sold to the insurer and its affiliates.

  • April 22, 2014

    SunTrust Can Reopen Case To Enforce Sanctions, Judge Says

    A Florida federal judge on Monday reopened a putative class action against SunTrust Bank over suspensions of home equity lines of credit for the purpose of enforcing the court’s sanctions award against counsel for the plaintiffs.

  • April 22, 2014

    2nd Circ. Questions 'Amorphous' Insider Trading Law

    The U.S. government's years-long insider trading crackdown hit a potential snag on Tuesday, as a Second Circuit panel sharply questioned its legal theory that recipients of inside tips can be found guilty even if they didn’t know that the tipper received a personal benefit.

  • April 22, 2014

    Citi CEO Says Bank Won't Resubmit 2014 Capital Plan To Fed

    Citigroup Inc. Chairman and CEO Michael Corbat on Tuesday told investors that the company does not plan to take the Federal Reserve up on its offer to resubmit a capital plan that the central bank rejected last month.

  • April 21, 2014

    CFPB Zeroes In On Student Loan 'Auto Default' Complaints

    The Consumer Financial Protection Bureau released a consumer and industry advisory on the issue of “auto defaults” for a private student loan that are triggered by the death or bankruptcy of a co-signer, saying Tuesday the bureau has received a growing number of borrower complaints on the issue.

  • April 21, 2014

    Alaska Air Says Unpaid Incentive Class Action Doesn't Fly

    Alaska Airlines and FIA Card Services NA urged a California federal judge on Monday to toss a putative class action alleging the companies shortchanged Alaska employees who were promised incentive payments for recruiting credit card customers, saying the suit can't survive without alleging breach of contract.

Expert Analysis

  • Roadblocks To D&O Coverage For Subpoena Response Costs

    Benjamin D. Tievsky

    While it must be emphasized that a policyholder’s entitlement to coverage is dependent upon the precise language of the policy at issue and the specific facts of each case, the recognition by many courts that a subpoena is a “claim” under D&O policies opens the door for potential recovery in a variety of circumstances, says Benjamin Tievsky of Orrick Herrington & Sutcliffe LLP.

  • Light On The Horizon For 'Bad Boy' Guarantors

    Janice Mac Avoy

    In keeping with commercial real estate guarantors’ expectations of what it means to sign a “bad boy” guaranty, the Southern District of New York’s ruling in CP III Rincon Towers v. Cohen has turned the tide against recent decisions that purport to apply “plain language” in a way that causes commercially unreasonable and absurd results, say Janice Mac Avoy and Gregg Weiner of Fried Frank Harris Shriver & Jacobson LLP.

  • The 6 Most Important Changes To Russian Pledge Rules

    Alexey Kukharev

    Among the most significant changes being made to the Russian Civil Code is the introduction of the security trustee concept, which will strengthen syndicated lending and asset-backed security structures involving Russian collateral, and will bring the Russian legal system into harmony with the most developed legal systems in the world in this area, says Alexey Kukharev of Orrick Herrington & Sutcliffe LLP.

  • Know Your Red Flags For The Identity Theft Red Flag Rule

    John S. Servidio

    With data privacy and identity theft being a top issue for the national media and federal regulators, even organizations not subject to the Fair Credit Reporting Act’s Red Flags Rule should consider implementing an identity theft prevention program to manage business and legal risk due to data breaches, say John Servidio and Amy Worley of McGuireWoods LLP.

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.

  • Reading Between The Whistleblower Headlines

    Shanti Atkins

    The meteoric media rise of the “celebrity” whistleblower has shone a spotlight on the practice, with personalities such as Chelsea Manning and Edward Snowden dividing public opinion on the ethics of spilling secrets. But organizations should pay close attention to the surge in this trend beyond the headlines. Remember, whistleblowers don’t need to be popular to be effective, and opinions on their motives and morality are entirely secondary to the critical issues they potentially uncover, says Shanti Atkins of Navex Global.

  • Heartbleed Rains On The Legal Cloud Parade

    David Houlihan

    While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.

  • The Lessons And Limitations Of Chadbourne V. Troice

    Fred Isquith

    The U.S. Supreme Court's ruling in Chadbourne & Parke LLP v. Troice is unlikely to have a sweeping effect on securities or class action litigation. However, professions engaged in assisting clients obtain financing will likely change their internal controls to avoid potential problems in the future — we may even see law and accounting firms called into court to justify their actions, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • EU Sanctions May Criminalize Some US Business Activity

    Peter McMaster

    Given the extra-territorial character of the European Union's new financial sanctions against targeted Russians and Ukrainians, a person can aid and abet the commission of an offense by taking steps whose only effect is to facilitate a transaction. This places law firms, investment businesses and others engaged in international transactions at risk of accessory liability through their everyday work, says Peter McMaster of Appleby Global Group Services Ltd.

  • 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.