Banking

  • September 22, 2014

    Alibaba IPO Breaks $25B After Underwriters Snap Up Shares

    The underwriters for Alibaba Group Holding Ltd.’s already-historic initial public offering grabbed another 48 million shares of the Chinese e-commerce giant, a Monday statement said, officially making it not only the largest-ever U.S. IPO, but also the largest-ever globally.

  • September 22, 2014

    UBS Can't Shake $1.4B Bail In French Tax Evasion Probe

    A French appeals court says UBS AG must pay a €1.1 billion ($1.41 billion) bond for a French investigation into claims that the Swiss bank helped wealthy clients dodge French taxes, a decision UBS will appeal to France's highest court, a company spokesperson said Monday.

  • September 22, 2014

    EU Issues Draft Intervention Guidelines For Failing Banks

    The European Banking Authority on Monday released draft guidelines for how European Union member countries should determine if a bank is headed toward failure and needs early intervention or resolution, saying the proposal is intended to ensure EU regulators’ practices are consistent with each other.

  • September 19, 2014

    Accountant Gets 40 Months For Texas Lender Takeover Plot

    A Pennsylvania accountant was sentenced on Friday to 40 months in prison for conspiring with reputed members of the Lucchese organized crime family to takeover a Texas-based mortgage lender through extortion and drain it of $12 million, forcing the lender into bankruptcy.

  • September 19, 2014

    RE Rumor Mill: Hines, Goldman, Claremont

    St. Thomas Church has gotten $71 million from Hines and Goldman Sachs, while the San Pablo Casino may buy an adjacent hospital and Claremont is turning a Wall Street office building into condos with the help of a $52 million loan.

  • September 19, 2014

    FINRA Floats Rules On Recruitment Disclosure, Transparency

    The Financial Industry Regulatory Authority on Friday said it plans to propose a new set of rules requiring firms to provide educational information to customers of brokers they recruit from competitors, alongside a wide array of regulations aimed at increasing the transparency of the equity and fixed-income markets.

  • September 19, 2014

    Gov't Derides BofA Challenge Of Mortgage Fraud Verdict

    Bank of America Corp.'s attempt to overturn a New York federal jury's verdict that it defrauded Fannie Mae and Freddie Mac through an expedited mortgage-issuing program — prompting a $1.3 billion fine — defies "the evidence, the law and common sense," the government argued Friday.

  • September 19, 2014

    IBRC Can Remarket Blackrock Loans After €24M Sale Fails

    A Delaware bankruptcy judge Friday denied a bid from a shareholder of Ireland's Blackrock Clinic to be declared the purchaser of Irish Bank Resolution Corp. loans secured by shares in the hospital after the €24 million sale failed to close in connection with a dispute with his financial backer.

  • September 19, 2014

    NY Man Arrested For $36M Bailout Loan Fraud Scheme

    New York authorities on Thursday arrested a Westchester County businessman after investigators concluded he had fraudulently obtained more than $36 million in commercial real estate loans from Capital One Financial Corp. and engaged in a decade-long tax evasion scheme.

  • September 19, 2014

    Morgan Stanley Can't Boot $32M Securities Suit Out Of NY

    A New York judge has refused Morgan Stanley's bid to dismiss on jurisdictional grounds a lawsuit alleging it sold a Singaporean financial services corporation $72 million worth of doomed securities and profited off their failure, ruling that the case has sufficient ties to the state.

  • September 19, 2014

    2nd Circ. Tosses Citibank Appeal Of Argentina Bond Ruling

    The Second Circuit on Friday dismissed Citibank NA's appeal of a New York federal judge's order preventing it from processing an upcoming payment on $8.4 billion in Argentine sovereign debt, a day after the bank's lawyer argued that the lower court's ruling has "put a gun to our head."

  • September 19, 2014

    JPMorgan Demands $35M In Refunds For Chrysler First-Liens

    JPMorgan Chase Bank NA asked a New York bankruptcy court to force Chrysler's old bankruptcy trustee to pay out $35 million in 2009 tax refunds, saying the money is fair game as proceeds from the few assets that Fiat SpA didn't purchase in the bankruptcy.

  • September 19, 2014

    DOJ Says It Proved AmEx Steering Rules Harm Competition

    The U.S. Department of Justice told a New York federal judge Thursday that it successfully proved at trial that American Express Co.'s rules preventing merchants from steering customers to alternative credit card products are anti-competitive and flout the Sherman Act, ahead of closing arguments next month.

  • September 19, 2014

    Bank Groups Tell High Court Only Suit Can Rescind Mortgage

    A coalition of financial industry groups has urged the U.S. Supreme Court to rule that borrowers must file suit, and not merely a notice of intent to rescind, in order to cancel a mortgage under the Truth in Lending Act, saying a looser standard would hurt both the industry and borrowers.

  • September 19, 2014

    Putin Blasts Western Sanctions As Blatant WTO Violations

    Russian President Vladimir Putin on Thursday chided the U.S. and European Union for escalating sanctions on Moscow's financial, defense and energy industries in response to the crisis in Ukraine, alleging those measures violate the most basic rules underpinning the World Trade Organization.

  • September 19, 2014

    BofA Gets Nod On $31M Flood Insurance Class Settlement

    An Oregon federal judge gave final approval on Thursday to a $31 million settlement resolving seven proposed class actions alleging Bank of America NA illegally forced homeowners to buy excessive amounts of flood insurance, overruling objections that a 25 percent class counsel fee is too high. 

  • September 18, 2014

    BMO Harris Socked With $24B Suit Over Petters Ponzi Scheme

    A trustee for two bankrupt Florida investment firms on Thursday hit BMO Harris Bank NA with a $24 billion adversary suit, alleging its Marshall & Illsley Bank helped convicted Ponzi scammer Thomas Petters bilk investors out of $3.7 billion.

  • September 18, 2014

    Senate Gives Final OK To ISIS Fight Aid, Avoids Shutdown

    The U.S. Senate on Thursday overwhelmingly approved funding for Syrian rebels to battle the Islamic State militant group, as part of a short-term spending bill that will fund the federal government through early December and avert another shutdown.

  • September 18, 2014

    Arab Bank Tells Jury States, Not Lenders, Name Terrorists

    Arab Bank PLC on Thursday urged a New York jury to find it never knowingly aided the financing of terrorism, since it closely adhered to government blacklists of known offenders, as the trial over the Jordanian lender’s alleged connections to the Palestinian Islamist group Hamas entered the homestretch.

  • September 18, 2014

    CFPB Auto Loan Rule Revs Up Scrutiny On Nonbanks

    Nonbank auto lenders should expect to face an unprecedented compliance burden as a new Consumer Financial Protection Bureau rule seeks to put them on equal oversight footing with banks, with careful scrutiny of practices ranging from debt collection to consumer credit reporting, attorneys say.

Expert Analysis

  • The CFPB's 'UDAAPification' Of Consumer Protection Law

    Jonice G. Tucker

    The Consumer Financial Protection Bureau has significant latitude to pursue infractions it asserts are unfair, deceptive or abusive acts or practices, a pursuit it is now using to push its jurisdictional limits over perceived legal violations it might not otherwise have authority over, say Jonice Tucker and Aaron Mahler of BuckleySandler LLP.

  • Bandfield Confirms Aggressive FATCA Enforcement Tactics

    Miriam L. Fisher

    The scheme detailed in the U.S v. Robert Bandfield indictment follows a well-worn path of prior offshore financial frauds, but the prosecutors’ focus on the defendants’ alleged attempt to avoid compliance with the Foreign Account Tax Compliance Act sends a strong message to the global financial community, say Miriam Fisher and Brian McManus of Latham & Watkins LLP.

  • A Look At The New US And EU Sanctions On Russia

    Triplett Mackintosh

    While the latest U.S. and EU sanctions do not cut off entire sectors of the Russian economy, they come close, say attorneys with Holland & Hart LLP.

  • Next Possible CFPB Targets: Foreclosures And Law Firms

    Richard B. Benenson

    Currently, the Consumer Financial Protection Bureau stands at the threshold of a circuit split regarding the scope of the Fair Debt Collection Practices Act, with foreclosure entities — for now — enjoying an exemption from FDCPA enforcement, say Richard Benenson and Emily Renwick of Brownstein Hyatt Farber Schreck LLP.

  • 2nd Circ. Ruling Clears FINRA Arbitration Confusion

    Jeff Kern

    The Second Circuit’s decision in Citigroup Global Markets Inc. v. Abbar provides an efficient framework for determining whether the Financial Industry Regulatory Authority’s mandatory arbitration rule is applicable to investor-initiated claims, and should serve to diminish the sort of “sprawling litigation” that transpired there, say Jeff Kern and Manuel Gomez of Sheppard Mullin Richter & Hampton LLP.

  • OPINION: Pro Bono May Help Diversity Recruiting Efforts

    David A. Lash

    A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.

  • How Volcker Rule Affects Subscription Credit Facilities

    Michael C. Mascia

    It is highly unlikely that a subscription facility lender, absent unusual control or profit-sharing mechanics, could be deemed to hold an ownership interest in a private equity fund under the Volcker Rule solely as a result of the typical facility lending relationship, say attorneys with Mayer Brown LLP.

  • Esquenazi In Korea: Identifying Instrumentalities Abroad

    Samantha Dreilinger

    Efforts to apply the Esquenazi definition in Korea — a country where the government plays a significant yet often obscured role in several important industries — reveal that the definition leaves important questions unresolved and provides little comfort to companies trying to determine whether a potential business partner may be subject to the Foreign Corrupt Practices Act, say attorneys with Cadwalader Wickersham & Taft LLP and Kim & Chang.

  • How Research Efficiency Impacts Law Firm Profitability

    David Houlihan

    For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.

  • OPINION: SEC’s Pay-To-Play Rule Should Be Upheld

    Raymond M. Sarola

    The strict liability and broad scope of the U.S. Securities and Exchange Commission’s pay-to-play rule is an important and necessary aspect of a prophylactic approach designed to prevent and deter pay-to-play activities, says Raymond Sarola of Cohen Milstein Sellers & Toll PLLC.