• September 28, 2016

    Yellen Says Fed, FDIC Ready To Act If Living Wills Are Weak

    Federal Reserve Chair Janet Yellen said Wednesday that regulators will be prepared to mete out penalties to five giant banks scheduled to file revised resolution plans later this week if there are not significant improvements to the so-called living wills.

  • September 28, 2016

    Goldman Sachs Pumping $70M Into Red Planet Hotels

    Goldman Sachs Group Inc. has invested $70 million in budget hotel chain Red Planet Hotels, according to an announcement from Bangkok-based Red Planet on Wednesday.

  • September 28, 2016

    FINRA Fines NY Firm Over $2.5B Venezuelan Bond Sales

    The Financial Industry Regulatory Authority has reached a settlement with a New York-based brokerage firm over claims that it failed to implement anti-money-laundering safeguards in the sale of over $2.5 billion in Venezuelan bonds.

  • September 28, 2016

    Trial Set For Ex-Deutsche Bank Traders In Libor Fraud Case

    Two former Deutsche Bank traders accused of manipulating the London Interbank Offered Rate will go to trial on Jan. 8, 2018, a New York federal judge said Wednesday morning, after one of the men pled not guilty to 11 federal criminal charges.

  • September 27, 2016

    Wells Fargo CEO To Forfeit $41M Amid Internal Probe

    Wells Fargo on Tuesday said CEO John G. Stumpf will forfeit $41 million in unvested stock and announced an internal investigation amid a growing scandal over the opening of millions of unauthorized customer accounts that has already spawned a $185 million fine, a congressional hearing, and shareholder and employment class actions.

  • September 27, 2016

    DOJ Loss In AmEx Case Could Imperil Hospital Steering Suit

    The U.S. Department of Justice has touted the similarities between its antitrust cases against American Express and a North Carolina hospital system, but that comparison could come back to haunt it now that the Second Circuit has found that AmEx's anti-steering rules are not anti-competitive.

  • September 27, 2016

    Pa. Bank Fined By SEC Over Faulty Loan Accounting

    Pennsylvania-based bank holding company Orrstown Financial Services Inc. agreed to pay a $1 million fine to settle allegations it failed to disclose nearly $70 million in impaired loans when facing a decline in real estate values, the U.S. Securities and Exchange Commission announced Tuesday.

  • September 27, 2016

    Royal Bank Of Scotland To Settle MBS Suits For $1.1B

    The Royal Bank of Scotland will pay the National Credit Union Administration $1.1 billion to settle legal claims over the sale of allegedly faulty mortgage-backed securities to two corporate credit unions that caused them to fail, the administration announced on Tuesday.

  • September 27, 2016

    11th Circ. Says Ex-Fla. Mayor Can't Escape Fraud Conviction

    The Eleventh Circuit ruled Tuesday that former North Miami Mayor Lucie Tondreau can't escape a conviction and over-five-year prison sentence for an $8 million scheme in which she and others used a radio show to recruit straw borrowers for fraudulent mortgage loans, saying it found no error in the lower court's decision.

  • September 27, 2016

    Wells Fargo To Pay $400K To Settle CFTC Reporting Claims

    The U.S. Commodity Futures Trading Commission on Tuesday slapped Wells Fargo NA with a civil penalty for submitting inaccurate reports for trading positions on physical commodity swaps over a two-and-a-half-year period.

  • September 27, 2016

    Greenberg Downplays AIG Losses At Fraud Trial

    Former American International Group Inc. CEO Maurice “Hank” Greenberg took the witness stand on Monday in the New York Attorney General’s fraud case against him over two purportedly sham transactions, and said losses he’s accused of trying to cover up were immaterial to AIG’s bottom line.

  • September 27, 2016

    Auto Lending Bias Claims Already Settled, Ally Says

    Ally Financial Inc. asked a New York federal court on Tuesday to dismiss a lawsuit by a proposed class of auto loan borrowers alleging the company charged them higher interest rates because of their ethnicity, saying a 2013 deal with the U.S. government already settled the case

  • September 27, 2016

    Ex-RMBS Trader Pays SEC $100K Fine For Misleading Sales

    Former Morgan Stanley & Co. trader Nicholas M. Bonacci agreed to pay a $100,000 fine Monday to settle U.S. Securities and Exchange Commission charges he deceived customers into paying inflated prices for residential mortgage backed securities in order to increase revenue for the bank.

  • September 27, 2016

    Standard Charter Reports Possible Indonesian Bribery

    London-based bank Standard Chartered PLC said on Tuesday it had “proactively” alerted authorities when it learned of potential corruption at its portfolio company Maxpower Group Pte. Ltd., after reports the U.S. is investigating the bank over conduct at the Southeast Asian power plant operator.

  • September 27, 2016

    FTC Refunds $20M After Credit Monitoring Scheme

    Consumers who fell victim to a fraudulent credit monitoring scheme allegedly perpetrated by One Technologies LP and its business partners will receive this week the nearly $20 million in total compensation won in a 2014 settlement, the Federal Trade Commission said Tuesday.

  • September 27, 2016

    Argentina Holdouts In 2nd Circ. Target Bank Trustee Loot

    Holdout Argentina bondholders who say the country's massive settlement offer isn't good enough appeared to have an uphill fight in the Second Circuit on Tuesday, although one judge asked if it would be appropriate to allow them to take discovery in an effort to force Bank of New York Mellon to cough up $56 million plus interest.

  • September 27, 2016

    JPMorgan Can Bring Soccer Club CEO Into Contract Suit

    JPMorgan Chase Bank NA can name the CEO of a girls' soccer club as a third party in a suit alleging the bank wrongly closed the club’s accounts over a sports betting investigation, a Texas federal judge ruled Tuesday amid a trial.

  • September 27, 2016

    InfoSpan Asks 9th Circ. To Toss Emirati Bank's Appeal

    A U.S. financial technology company urged the Ninth Circuit on Monday not to disturb a federal judge's ruling compelling arbitration in California of a portion of its contract dispute with an Emirati bank, saying the appeal is just the bank's latest avoiding tactic.

  • September 27, 2016

    SEC Seeks Bank Records In Life Time Fitness Insider Probe

    The U.S. Securities and Exchange Commission asked an Illinois federal judge on Tuesday to give it 90 days before it has to notify certain Life Time Fitness Inc. securities buyers that the agency has sought their financial records as part of an insider trading investigation.

  • September 27, 2016

    3rd Circ. Won’t Revisit Citigroup FINRA Arbitration Win

    The Third Circuit on Monday declined to reconsider an elderly couple’s bid to vacate a Financial Industry Regulatory Authority arbitration ruling in favor of Citigroup Global Markets Inc., despite the couple’s claim the panel’s ruling was “erroneous” and unfair.

Expert Analysis

  • Overhauling Law Firm Records Departments For A New Reality

    Raymond Fashola

    As automation increases, so do business challenges that impact overall law firm operations. Records departments are facing roadblocks associated with antiquated processes, ever-changing regulatory requirements, and emerging technologies. As a result, firms are reassessing the needs of their records department staffing models, says Raymond Fashola of HBR Consulting.

  • What’s In Your Obligations Inventory?

    Conway Dodge

    While entities regulated by the U.S. Securities and Exchange Commission are familiar with their compliance obligations, many of them haven't gone through the inventory-mapping process that banking regulators are signaling is now needed. To serve as a useful compliance tool rather than a laundry list of rules and regulations, the obligations inventory must be tailored to the financial institution’s business and risk profile, say for... (continued)

  • New York Sets Uncomfortable Cybersecurity Precedent

    Brian E. Finch

    New York's recently proposed cybersecurity regulations for financial institutions are very broad and expose senior officers and board members to all manner of penalties. One can expect that other states will follow with similar regulations, says Brian Finch, co-chairman of Pillsbury Winthrop Shaw Pittman LLP's privacy practice.

  • A Compelling Case For Uniform Wage Garnishment Laws

    William H. Henning

    Employers often have a Herculean task complying with the welter of current wage garnishment laws that differ from state to state. The newly proposed Uniform Wage Garnishment Act aims to solve this challenge by creating a more consistent approach that largely removes the garnishment process from the courts, says William Henning, executive professor of law at Texas A&M University School of Law.

  • FDIC Plan To Improve Appeal Process Doesn't Go Far Enough

    Pinchus Raice

    Current Federal Deposit Insurance Corp. guidelines contain numerous deficiencies that significantly curtail a bank’s access to the intra-agency appeal process. While recently proposed amendments address some of the long-standing failings, they have significant shortfalls, say attorneys with Pryor Cashman LLP.

  • In Congress: A Continuing Resolution?

    Richard Hertling

    The finish line for Congress could come this week as House and Senate leaders negotiate a continuing resolution to keep the government running into December, though major points of contention over possible provisions were still unresolved as of Friday evening, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • The Rogue Insider: Protecting Against Trade Secret Theft

    Mark S. Sidoti

    Advances in information storage and transmission technology have made financial services companies increasingly susceptible to the misappropriation or theft of critical proprietary assets. With the click of a mouse, rogue employees from the C-suite to the mailroom can download and disseminate hundreds of thousands of documents, lines of computer code, and other data containing a company’s most prized trade secrets. Mark Sidoti and ... (continued)

  • CFTC Raises The Bar For Clearinghouses

    Dan Ryan

    The U.S. Commodity Futures Trading Commission’s extensive new recovery and resolution planning guidance for central counterparty clearinghouses goes materially beyond comparable bank guidance. Planning under the new rules holds the potential to unearth the need for CCPs to hold more capital or liquidity, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.

  • 3 Steps To Successful Judgment Enforcement

    Craig Weiner

    Judgment enforcement is typically governed by the law of the state where collection is sought, which frequently means collection efforts are controlled by an arcane body of law replete with debtor-friendly roadblocks. Fortunately, there are a number of actions a judgment creditor can take to secure satisfaction of a claim, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.

  • Government’s Brief In Salman Urges A Bright-Line Test

    Joseph McLaughlin

    The government’s brief in the closely watched Salman insider trading case, to be argued in the U.S. Supreme Court on Oct. 5, claims that the defendant in that case wants to depart from the Supreme Court’s 1983 decision in Dirks. However, it’s the government that wants to depart from Dirks, says Joseph McLaughlin of Sidley Austin LLP.