Banking

  • July 23, 2014

    CFPB Sues 3 Law Firms In National Foreclosure Fraud Sweep

    The Consumer Financial Protection Bureau on Wednesday sued three law firms accused of scamming struggling homeowners, part of a nationwide sweep by federal and state regulators of allegedly fraudulent foreclosure prevention outfits.

  • July 23, 2014

    CFTC's O'Malia To Leave Agency For Wall Street Group

    The U.S. Commodity Futures and Trading Commission's Scott O'Malia will soon take the top position at the International Swaps and Derivatives Association, a Wall Street lobbying group that is currently suing the CFTC.

  • July 23, 2014

    SEC Approves Money Market Fund Reforms

    A divided U.S. Securities and Exchange Commission on Wednesday voted 3-2 to pass a series of long-awaited reforms to the operations of money market mutual funds.

  • July 23, 2014

    Dealmakers Q&A: Goodwin Procter's John Haggerty

    As dealmakers become more sophisticated, I suspect we will see an increase in more complicated multitransaction deals, essentially sidecar-type arrangements, where a merger could also become a restructuring, says John Haggerty of Goodwin Procter LLP.

  • July 22, 2014

    Club Owner Sues Deutsche For $1M Over Broken Loan Pact

    A businessman whose endeavors include a pair of strip clubs sued Deutsche Bank Securities Inc. for $1 million in New York state court on Monday, claiming the bank unfairly reneged on a $17 million refinance loan based on his involvement in the adult entertainment business, despite the fact he disclosed that information up front.

  • July 22, 2014

    4 Years In, Debate Rages Over Dodd-Frank's Systemic Risk Tag

    One of the Dodd-Frank Act's key aims was preventing the failure of a huge bank or other financial institution from damaging the broader economy, but four years after the law's passage, the definition of a systemically important financial institution remains in dispute. This is Part 3 of a five-part series on the four-year anniversary of the Dodd-Frank Act.

  • July 22, 2014

    Regulators Want Real Transactions Used In Libor Math

    A global panel of regulators on Tuesday called for using real transactions and, where possible, risk-free benchmark rates as part of a broader plan to overhaul the way the London Interbank Offered Rate and other financial benchmarks are set.

  • July 22, 2014

    'We Don't Compete On Price,' AmEx Exec Testifies

    An American Express executive testified Tuesday during the government’s antitrust trial against the credit card company that the company does not compete on cost and seeks a premium rate from merchants for the additional business it brings them.

  • July 22, 2014

    Hedge Fund Facing IRS Probe Says It Acted Legally

    Executives for the hedge fund Renaissance Technology Corp. LLC told a Senate subcommittee on Tuesday that they believed the company acted appropriately under current law in purchasing complex, structured financial products from financial institutions that lawmakers say allowed the funds to evade federal leverage limits and billions in capital gains taxes.

  • July 22, 2014

    Judge Pleads With Argentina, Funds To Settle Bond Dispute

    The New York federal judge overseeing Argentina’s fight with investment firms holding around $1.5 billion in government bonds on Tuesday pled with both sides to reach a settlement of the dispute ahead of an end-of-the-month deadline that will cause Argentina to default on its debt.

  • July 22, 2014

    Citigroup Safe From FINRA Arbitration After $590M Settlement

    A New York federal judge ruled Tuesday that Citigroup Inc. is not subject to a Financial Industry Regulatory Authority arbitration over claims its stock plummeted after it concealed securitized-loan losses, saying the arbitration would violate an existing $590 million federal court settlement over the claims.

  • July 22, 2014

    Lehman's Swiss Arm Demands $71M Under Citi Trading Pacts

    The liquidator for Lehman Brothers Holdings Inc.'s Swiss subsidiary sued three Citigroup Inc. units on Monday to invalidate set-off provisions in derivatives trading contracts that they are allegedly using to withhold $71 million, saying that enforcing the terms would violate U.S. bankruptcy law.

  • July 22, 2014

    Nomura Still On Hook Over $764M Of RMBS

    A New York state judge has refused to dismiss a suit against Nomura Credit & Capital Inc. over $764 million worth of failed mortgage-backed securities, saying a key clause in the purchase agreement supports damages claims Nomura had disputed.

  • July 22, 2014

    WTO Dispute Roundup: Russia-EU Feuds Advance, GPX Intact

    In Law360's latest roundup of proceedings before the World Trade Organization's Dispute Settlement Body, two import policy fights between the European Union and Russia head for adjudication, members formally adopt WTO findings on a controversial U.S. trade law, and the U.S. and China continue sparring over banking regulations.

  • July 22, 2014

    Wells Fargo Loses Round In $164M IRS Refund Suit

    A special master on Monday denied Wells Fargo & Co.'s bid for summary judgment in its suit claiming the Internal Revenue Service owes it a $164 million tax refund because a complex transaction known as STARS was not a tax shelter, saying there is a clash in the factual record.

  • July 22, 2014

    $2M Deal OK’d Between JPMorgan Unit And NJ Borrowers

    A New Jersey federal judge has approved a roughly $2.25 million settlement between a JPMorgan Chase & Co. subsidiary and a class of consumers who alleged the company charged them late fees on their mortgage payments even when they were on time.

  • July 22, 2014

    Ex-CFTC Commish Joins High-Frequency Trading Firm's Board

    Former Commodity Futures Trading Commissioner Jill E. Sommers is joining Allston Holdings LLC's board of managers to help guide Chicago's Allston Trading, one of the top electronic trading firms in the United States, Allston said Tuesday.

  • July 22, 2014

    Ballard Spahr Snags Ally Financial Auto Finance Pro In NY

    Ballard Spahr LLP has lured a former Ally Financial Inc. in-house counsel with years of experience in auto financing and leasing, to join its consumer financial services group in New York, the firm said Tuesday.

  • July 22, 2014

    Wachtell Reps CIT Group In $3.4B OneWest Bank Buy

    New Jersey-based financial holding company CIT Group Inc., run by former Merrill Lynch head John Thain, announced on Tuesday that it will pay $3.4 billion to acquire OneWest Bank NA parent company IMB Holdco LLC.

  • July 22, 2014

    Goldman Asks For 2nd Circ. Review Of Abacus Class Action

    Goldman Sachs Group Inc. on Monday urged a New York federal judge to let the Second Circuit weigh in on its bid to reconsider a 2012 decision not to dismiss a consolidated class action over the bank’s infamous Abacus collateralized debt obligation that caused $1 billion in investor losses.

Expert Analysis

  • PRISM Scatters Attorney-Client Privilege

    Any attorney sending or storing confidential client information or privileged communications via the cloud may be knowingly exposing those communications to scrutiny by the U.S. government via programs such as the National Security Agency’s PRISM — and arguably, even waiving any claim of privilege as a result, say attorney Thomas Mullaney and Vaultive CEO Elad Yoran.

  • Mild Financial Fallout From Uganda Anti-Homosexuality Act

    Stephanie Keene

    Despite the withholding of funds by many Western donors and initial suspicions that foreign investors might boycott Uganda in response to the Anti-Homosexuality Act, the broader economic implications of the act appear to be less significant, say attorneys at Covington & Burling LLP.

  • First MCDC Settlement Leaves Much To Be Desired

    Paul S. Maco

    The U.S. Securities and Exchange Commission’s settlement with a California school district — the first under the new Municipalities Continuing Disclosure Cooperation initiative — is significant for what it does not do, say attorneys with Bracewell & Giuliani LLP.

  • OPINION: Let's Financially Reward Law Firm Diversity

    Patricia K. Gillette

    It only took the threat of a 10 cent cost increase to make people bring their own bags to Bay Area grocery stores. What if we gave partners an extra $10,000 for increasing diversity in their firms? asks Orrick Herrington & Sutcliffe LLP partner Patricia Gillette.

  • Crucial Predictive Coding Case Law: Progressive V. Delaney

    Emily Cobb

    Any practitioner considering predictive coding should fully consider Magistrate Judge Peggy Leen’s reasoning in Progressive Casualty Insurance v. Delaney and the potential pitfalls associated with failure to consistently cooperate, say Emily Cobb and Annamaria Enenajor of Ropes & Gray LLP.

  • Takeaways From 6th Circ.'s AmFin Tax Refund Ruling

    Steven Wilamowsky

    The concurring opinion in the Sixth Circuit’s AmFin Financial Corp. ruling may have been correct in its conclusion that the majority was too quick to dismiss as disfavored “federal common law” the Ninth Circuit rule that would give AmFin’s loss-generating subsidiary the benefit of the tax refund it created, say Steven Wilamowsky and Amelia Joiner of Bingham McCutchen LLP.

  • OPINION: Advance Conflict Waivers Send Wrong Message

    Eric L. Lane

    If there is anything that would convince big law firms to ditch the advance conflict waiver, it is the financial bottom line. And I can assure you firms are losing new client opportunities because of these waivers, says Eric Lane of Green Patent Law.

  • The Frustratingly Elusive Nature Of Relatedness

    Kevin M. LaCroix

    The difficulty in the recent Westernbank case, as in all coverage cases involving relatedness issues, was determining what degree or quantum of relatedness is sufficient to make alleged wrongful acts interrelated, says Kevin LaCroix of RT ProExec.

  • NJ Tax Lien Ruling Good For Municipalities, Bad For Banks

    George J. Kroculick

    The New Jersey Supreme Court ruling in Princeton Office Park v. Plymouth Park Tax Services makes tax sale certificates more attractive, but it may greatly reduce nontax lien holders' interest rates during bankruptcy, say George Kroculick and Meredith Carpenter of Duane Morris LLP.

  • How Junior Creditors Can Protect Themselves In Downturn

    Nicholas F. Kajon

    Junior creditors who are proactive can minimize their losses and may even be able to garner significant returns if the right debt in overleveraged companies can be purchased at an appropriate discount, says Nicholas Kajon of Stevens & Lee PC.