Banking

  • July 30, 2015

    Lenders Refused Confidential Docs Behind $9B ResCap Deal

    HSBC, UBS and other mortgage originators, facing a potentially hefty liability for an $8.7 billion settlement over residential mortgage-backed securities sold to Residential Capital LLC, cannot review the confidential communications that precipitated the massive deal, a New York bankruptcy judge said Thursday.

  • July 30, 2015

    3rd Circ. Upholds Class Cert. In PNC Lending Scheme Suit

    The Third Circuit on Wednesday affirmed the certification of a nationwide litigation class of individuals suing PNC Bank NA, which acquired a smaller bank accused of helping facilitate an illegal home equity lending scheme, finding PNC's challenge to issues of commonality and other certification criteria unpersuasive.

  • July 30, 2015

    Regulators Back Down On Asset Manager SIFI Designations

    Global regulators on Thursday said they would delay any decisions on designating large asset management firms as systemically important financial institutions, but added that they would continue to study the potential risks such firms presented to the financial system.

  • July 30, 2015

    5 Rulings That Have Sown Confusion Over Tribal Sovereignty

    As Native American tribes and businesses have increasingly run up against federal and state regulatory authorities in recent decades, federal courts have issued a number of rulings that cramp tribal sovereignty and create uncertainty about the right method of assessing its reach. Here, Law360 looks at five decisions showing the tightening scope and heightened confusion around tribal sovereignty that have accompanied the closer scrutiny on tribal activities.

  • July 30, 2015

    Paul Hastings Guides Record $850M Fibra Uno Loan

    Paul Hastings LLP said Thursday it represented several global banks in a $850 million loan to Mexico City-based real estate investment trust Fibra Uno Administracion SA de CV, described as the largest-ever bank loan to a Latin American real estate company.

  • July 30, 2015

    Judge Rejects Alleged Russian Spy's Immunity Plea

    A New York federal judge on Wednesday rejected an accused Russian spy’s claim that he was protected by diplomatic immunity because the U.S. government knew he worked for a state-sponsored bank.

  • July 30, 2015

    NFL Players Will Have Single Trial In $53M Suit Versus BB&T

    A Florida federal judge on Thursday rejected Branch Banking and Trust Co.'s call for split jury and nonjury trials on a group of National Football League players' claims of unauthorized transactions, saying the bank's arguments of potential prejudice fell short of a need for judicial economy.

  • July 30, 2015

    Colony Capital Scores $166M Refinance From Prudential

    Subsidiaries of Colony Capital Inc. have scored $165.75 million in refinancing from Prudential Mortgage Capital Co. for a five-city, 4 million-square-foot industrial property portfolio, according to an announcement on Thursday from Holliday Fenoglio Fowler LP, which brokered the deal for the borrowers.

  • July 30, 2015

    Amazon, Wal-Mart Want $7B Deal Scrapped Over Misconduct

    Amazon.com Inc., Starbucks Corp. and Wal-Mart Stores Inc. have objected to the $7.25 billion antitrust settlement Visa Inc. and MasterCard Inc. reached over their interchange fees, arguing the plaintiffs were inadequately represented by an attorney who allegedly exchanged confidential information with a now-indicted lawyer representing their adversary.

  • July 30, 2015

    CFPB Hits Mortgage Servicer For $1.6M Over Bad Practices

    The Consumer Financial Protection Bureau on Thursday said that a mortgage servicing company will pay $1.6 million in restitution and fines for a variety of violations, including failing to honor loan modifications and falsely treating consumers as though they had defaulted.

  • July 30, 2015

    Skadden-Led Blank Check Co. Beats Target With $180M IPO

    Easterly Acquisition Corp., a Massachusetts-based blank check company formed by Easterly Capital LLC for effecting mergers or similar deals in the financial services sector, topped its target on Thursday by raising $180 million in an initial public offering steered by Skadden Arps Slate Meagher & Flom LLP.

  • July 30, 2015

    9/11 Families Win Default Judgment Against Iran

    Families of 9/11 terrorist attack victims scored a symbolic victory in multidistrict litigation over the attacks Wednesday with a default judgment in New York federal court against Iran after the Islamic republic failed to respond to allegations that it sponsored al-Qaida.

  • July 30, 2015

    BATS Eyes New Rule To Fight Market Manipulators

    Stock exchange operator BATS Global Markets Inc. on Thursday said it would seek a new rule to more swiftly stop market manipulations such as spoofing and layering, filing a proposal with the U.S. Securities and Exchange Commission.

  • July 30, 2015

    UK Bans Trader Convicted Of Libor Rigging

    The U.K. Financial Conduct Authority said Thursday that it has banned a former trader at Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, better known as Rabobank, from working in the United Kingdom’s finance industry due to his conviction in U.S. Libor litigation.

  • July 30, 2015

    Lloyds Sells Commercial Loans To Goldman, Others For $1.3B

    Lloyds Banking Group PLC is selling a portfolio of Ireland commercial loans to a Goldman Sachs Group Inc. entity, the Bank of Ireland and an entity affiliated with CarVal Investors LLC for £827 million ($1.29 billion), according to a filing with the London Stock Exchange on Thursday.

  • July 30, 2015

    Holland & Knight Nabs Troutman Corp. Pro For Atlanta Office

    Holland & Knight LLP has recruited a former Troutman Sanders LLP corporate partner experienced in advising technology, telecommunications and banking companies in securities offerings and mergers and acquisitions to bolster its public companies and securities practice group in Atlanta, the firm said on Wednesday.

  • July 30, 2015

    Chrysler Capital Exploits Low-Income Customers, Suit Says

    The automotive finance arm of Santander Consumer USA Inc. was accused in a Wednesday putative class action of using local dealerships to skirt usury laws and exploit vulnerable, low-income consumers in New York by financing auto loans with abusively high interest rates.

  • July 29, 2015

    Texas Urges 5th Circ. To Uphold Credit Card Surcharge Law

    Texas on Tuesday urged the Fifth Circuit to affirm a federal judge's determination that the state's anti-surcharge law regulates only the prices of consumer goods, which it says is an economic activity within the state's police power that doesn’t implicate merchants' First Amendment rights.

  • July 29, 2015

    Philly Mobster Gets 30 Years For $12M Extortion Scheme

    Another Lucchese crime family member convicted by a federal jury in New Jersey on racketeering and fraud charges for his role in a $12 million extortion takeover that forced a Texas mortgage lender into bankruptcy was sentenced to 30 years in prison Tuesday, the Department of Justice announced.

  • July 29, 2015

    Investors Hit 24 Banks With Market Manipulation Class Action

    Nearly 25 financial institutions, including Barclays Capital Inc., Goldman Sachs & Co. and UBS Securities LLC were hit with a proposed class action by investors in New York federal court on Tuesday, a suit that claims they colluded to manipulate the U.S. Treasury securities market.

Expert Analysis

  • The Proposed Best Interest Contract Exemption: Part 2

    Susan Krawczyk

    In light of the U.S. Department of Labor's proposed best interest contract exemption guidance, a broker-dealer might decide to exclude transactions in retirement investor accounts from incentive or bonus programs offered to its brokers, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Mid-2015 Restructuring Review: Europe And Emerging Markets

    Stephen Phillips

    Opportunities for distressed debt funds to buy attractively priced distressed corporate assets have been few and far between in recent terms, but do not expect activity levels to be quiet forever. One market that funds have been eyeing closely is Italy, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • This Week In Congress: Continuing Resolution Looms

    Richard A. Hertling

    Highway funding remains at an impasse this week, as House and Senate debates continue. Iran also remains a major focus, with only 60 days for Congress to review the nuclear agreement reached earlier this month. Meanwhile congressional leaders have finally acknowledged what has been clear all along — efforts to fund the government past Sept. 30 have failed, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • REBUTTAL: The Problem With 3rd-Party Litigation Financing

    Lisa Rickard

    Manipulating gender disparity in the service of hawking a flawed investment product does nothing but trivialize a serious and important issue. The tortured logic in Burford Capital LLC’s recent plug for third-party litigation financing is nothing more than a marketing ploy to boost revenues, says Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform.

  • The Proposed Best Interest Contract Exemption: Part 1

    Susan S. Krawczyk

    A closer look at the U.S. Department of Labor's proposed best interest contract exemption for financial institutions and their advisers reveals that the elements are very different from existing requirements. Proposed transaction fee and cost requirements not only conflict with existing broker-dealer rules but also would require an operational platform that does not currently exist, says Susan Krawczyk of Sutherland Asbill & Brennan LLP.

  • Stage Is Set For NY High Court Review Of Standing Waiver

    Christopher A. Gorman

    There is a clear split in authority among the departments of New York's Appellate Division on whether a standing defense is waived upon a borrower defaulting in a foreclosure action. The potential impact of how the split is ultimately resolved by the New York Court of Appeals cannot be understated, says Christopher Gorman of Westerman Ball Ederer Miller Zucker & Sharfstein LLP.

  • Do Statutes Of Limitation Apply To The CFPB After All?

    David N. Anthony

    Although the attorney exclusion and attorney involvement issues apply to debt collection attorneys specifically, nonattorney debt collectors and other enforcement targets of the Consumer Financial Protection Bureau can point to CFPB v. Frederick J. Hanna & Associates PC as a rejection of the bureau's claim that statutes of limitations don't apply to its enforcement actions, say attorneys at Troutman Sanders LLP.

  • Recent Lessons In D&O Fee Advancement And Indemnification

    David L. Goldberg

    A Third Circuit decision in IP theft case Aleynikov v. Goldman Sachs Group Inc. and the Delaware Chancery Court’s ruling in insider trading suit Holley v. Nipro Diagnostics Inc. have raised important issues regarding fee advancement bylaws. For one, a litigant will not be considered an “officer” simply based on his or her title, say attorneys with Katten Muchin Rosenman LLP.

  • Hedging Western European Debt With CDS? Not So Fast

    Ryan Michael Wilson

    After the financial crisis, governments are acutely aware of the potential domino effect of triggering a credit event, and they are desperate — and able — to avoid doing so. Credit default swaps may therefore be of diminishing utility as a hedging tool, says Ryan Michael Wilson of Lowenstein Sandler LLP.

  • Ex Ante Vs. Ex Post: Janis Joplin’s Yearbook Revisited

    Paul E. Godek

    Fisher and Romaine’s well-known article, “Janis Joplin’s Yearbook and the Theory of Damages,” argues that commercial damages should be measured as of the time the challenged act occurred, an approach that has generally been favored. However, their argument is somewhat contrived, says Paul Godek, principal at MiCRA and a former economic adviser at the Federal Trade Commission.