Morgan Stanley did not err in terminating a financial adviser after his election as supervisor of a California county, the Ninth Circuit ruled Thursday, finding he was fired for a "legitimate, apolitical reason."
Allied Irish Banks PLC urged Delaware’s Chancery Court on Thursday to reject a private investment fund’s claim to Delaware court "forum deference" in its tender offer dispute with the bank, arguing that alleged forum-shopping efforts by the fund in Illinois justify dismissal.
The U.S. and HSBC Bank USA NA both told the Second Circuit to vacate a lower court’s decision to partially unseal a report into the bank's failures to combat money laundering, saying the document is irrelevant to any judicial function.
A public works contractor seeking an $800 million arbitral award from the Republic of the Congo must be granted access to a bank’s documents on a Boeing jumbo jet it holds in trust for Congo’s state-owned airline, whether or not it can actually seize the plane, a Utah federal judge has ruled.
Compliance professionals at banks and other financial firms have faced a whiplash-inducing array of regulatory changes and a stomach-churning uptick in enforcement over the last 15 years as the government has responded to terror attacks and financial crises, and even with those changes, they should prepare for more, KPMG LLP’s top experts say.
Gibson Dunn apparently missed a relationship with a Second Circuit judge when it agreed to represent private equity magnate Lynn Tilton, a slip experts said was likely an honest mistake but shows the difficulties of recognizing conflicts decades after a former partner has moved on but retains firm ties.
The Consumer Financial Protection Bureau asked a California federal judge Friday to ignore the recent filings of two lawyers ordered to pay $5.3 million for their alleged roles in the $173 million Morgan Drexen debt-settlement fee scam, saying the filings “regurgitate” already rejected arguments and are procedurally infirm.
Bradley Arant Boult Cummings LLP grabbed two partners for its corporate and securities team and a partner for its real estate and banking team in Birmingham, Alabama, the firm said Tuesday, adding that all three of the new additions hail from Maynard Cooper & Gale PC.
Capital One Financial Corp.’s directors urged the Delaware Chancery Court on Friday to throw out derivative claims that the bank holding company had weak internal controls to stop money laundering, arguing the suing shareholder is cherry picking information from compliance reports and is nowhere near alleging bad faith.
Federal securities regulators on Friday defended civil verdicts against two brokers who traded on a $1.2 billion IBM deal before it was public, citing a jury's unanimity and the volume of evidence around each link of a complicated chain as reasons for a New York federal judge not to grant a new trial.
Novation Cos. Inc., a former subprime mortgage lender once known as NovaStar Financial Inc., filled for Chapter 11 bankruptcy protection, according to papers filed Wednesday in federal bankruptcy court in Maryland.
A Pennsylvania appeals court partially revived a suit brought by real estate company Telwell Inc. against a loan servicing company on Thursday, ruling that the lower court prematurely got rid of certain tort claims in the suit over an interest rate discrepancy on a $2.6 million loan.
A New York state judge has ruled that Bear Stearns did not necessarily trigger an exclusion to its insurance policy by entering a settlement with the U.S. Securities and Exchange Commission in 2006 without its insurers' permission, as the insurers had already made clear they were denying the claim.
The U.S. Chamber of Commerce on Thursday said that a proposed rule to regulate incentive compensation for senior bank executives, traders and other financial services employees is fraught with problems and has the potential to chill the kind of risk-taking that spurs economic growth and job creation.
A Chicago lawyer moved to sanction Pennsylvania-based PNC bank for filing a federal lawsuit that he says is completely uncalled for because the bank knew about the assets it now claims he was hiding to avoid paying a $5 million judgment.
The U.K.’s Prudential Regulatory Authority proposed clarifications Friday to guidelines that set out how banks are supposed to calculate the amount of capital they have to hold to protect against market downturns.
The U.S. Securities and Exchange Commission's Enforcement Division urged the agency to give a former Barclays trader a lifetime industry ban Friday, arguing that an administrative judge's one-year bar for stock-parking would send a "perverse" message.
A group of financial institutions that includes JPMorgan Chase Inc., Merrill Lynch Pierce Fenner & Smith Inc. and Citigroup Global Markets Inc. urged the Second Circuit on Thursday to toss out a class certification in a New York shareholder suit against Petroleo Brasileiro SA, saying that it's impossible to determine who is in the class.
The European Union Committee of the U.K.’s House of Lords issued a report Friday calling for the committee to have an oversight role in all stages of the Brexit negotiations.
The U.S. Patent Trial and Appeal Board on Wednesday found non-practicing entity Mitek Systems Inc. had shown a Rothschild digital images patent was invalid, after a yearslong infringement battle over claims it flouted patents on technology that allows customers to deposit checks by taking pictures with their phones.
The significant sanctions imposed recently against Merrill Lynch for violations of customer and whistleblower protection rules, and the accompanying announcement of a customer protection initiative, demonstrate the U.S. Securities and Exchange Commission’s serious focus on these areas. The situation of compliance staff, however, remains uncertain in the wake of Merrill, say attorneys with King & Spalding LLP.
While the U.S. Securities and Exchange Commission’s cybersecurity playbook is just coming to light, it has clues about how the SEC views cybersecurity issues and, in particular, breaches. With adequate preparation, there should be no need to throw a Hail Mary pass or to deflate the SEC’s tires in the parking lot, say attorneys with Sutherland Asbill & Brennan LLP.
The nonpracticing entities that threaten financial institutions typically focus on the sweet spot of accepting a payment by the bank that would be slightly less than what the bank would be willing to pay in legal expenses to fight a suit for patent infringement. Addressing six questions can enhance the bank’s bargaining position, both to lower the potential settlement amount and potentially also to dissuade future targeting by NPEs... (continued)
With an estimated 80 percent of the world’s illicit money flow stemming from trade-related activities, anti-money laundering regulators and prosecutors are progressively turning their enforcement focus to trade-based money laundering, and scrutinizing financial institutions’ trade-finance compliance programs for potential violations of the Bank Secrecy Act, say William Sullivan Jr. and Fabio Leonardi of Pillsbury Winthrop Shaw Pittman LLP.
Although recent publications from the Consumer Financial Protection Bureau do not provide direct guidance, auto lenders should keep the CFPB’s findings in mind when designing consumer-facing materials, as it's expected the CFPB will use the information from its study and consumer complaints to identify places where lenders engage in potentially unfair, deceptive or abusive acts or practices, say Ori Lev and Anjali Garg at Mayer Brown LLP.
The Dodd-Frank Act gave the Consumer Financial Protection Bureau the opportunity to think broadly about dispute resolution. Unfortunately, instead it decided to reinstitute a class action regime that its own study indicates poorly serves consumers’ interests, says Eric Mogilnicki, a partner at Covington & Burling LLP.
Following the U.S. Supreme Court’s denial of certiorari in Madden v. Midland Funding, the focus on online marketplace lenders spawned by the Second Circuit’s decision has only intensified. As potential issues crystallize through lawsuits and regulations, the opportunity exists for lenders to adjust their practices and steer away from unintended consequences, say Joseph Cioffi and Massimo Giugliano of Davis & Gilbert LLP.
Last month, the Consumer Financial Protection Bureau released its long-awaited proposed rule covering payday loans. With the heavy regulation this rule will place on these types of products, and the strong divide it creates, the bureau finds itself stuck between two competing agendas, say Courtney Gilmer and Craig Nazzaro at Baker Donelson Bearman Caldwell & Berkowitz PC.
The Second Circuit's recent decision in 136 Field Point Circle v. Invar International sets aside a whole body of case law with regard to absolute and unconditional guarantees and permits liquidated damages provisions, even if violative of public policy, to be enforced against guarantors, say Bonnie Lynn Chmil and Matthew Parrott at Katten Muchin Rosenman LLP.
New York's final anti-money laundering rule imposes a burden on financial institutions unlike ever before, which should cause regulated entities to evaluate whether it makes business sense to remain a New York-regulated institution, say attorneys with Arnold & Porter LLP.