Banking

  • May 4, 2016

    5th Circ. Pushed To Award Fees In Failed Stanford Clawback

    A Dallas precious metals wholesaler that did business with a coin and bullion company linked to Ponzi fraudster Robert Allen Stanford asked the Fifth Circuit on Tuesday for about $278,000 in legal fees after prevailing against the Stanford receiver's $5 million clawback attempt.

  • May 4, 2016

    Pershing Sued Again Over $7.2B Stanford Ponzi Scheme

    Pershing LLC was hit in New Jersey federal court Tuesday with another putative class action from victims of convicted fraudster Robert Allen Stanford’s $7 billion Ponzi scheme who say the clearing firm facilitated and profited from Stanford’s bilking of thousands of investors.

  • May 4, 2016

    Willkie Farr Snags Ex-Kirkland Financing Pro In London

    A former Kirkland & Ellis LLP partner with experience handling complex debt financing transactions for borrowers and lenders has joined Willkie Farr & Gallagher LLP in its London office, the firm announced.

  • May 4, 2016

    Seyfarth, PwC, Others Promoted Illegal Tax Shelter, Suit Says

    A defunct cellphone company’s president who was found liable for more than $21 million in taxes and penalties has sued PricewaterhouseCoopers LLP, Seyfarth Shaw LLP, Cooperatieve Rabobank UA and others alleging they promoted an illegal tax shelter scheme that resulted in the massive rap.

  • May 4, 2016

    HSH Nordbank Misled Developers On $200M Loan, Jury Told

    A Philadelphia jury heard opening arguments Wednesday in a case accusing HSH Nordbank AG of dangling a nearly $200 million loan in front of a proposed retirement community's now-bankrupt developers despite knowing the bank was not financially positioned to commit to new lending.

  • May 4, 2016

    3rd Circ. Nixes Le-Nature's Exec's Appeal Of 15-Year Sentence

    The Third Circuit on Wednesday refused to vacate the 15-year prison term handed down to a onetime executive at defunct soft drink company Le-Nature’s Inc. for orchestrating a $660 million swindle of banks and investors, saying an appeal had already been lodged and rejected.

  • May 4, 2016

    Libor Traders Say 11th Circ. Decision Boosts Class Claims

    A group of futures market traders urged a New York federal judge Tuesday not to let Rabobank move to toss their class action claims from a suit over its alleged Libor manipulation, saying a recent Eleventh Circuit decision bears out their argument that dismissing the claims before discovery would be premature.

  • May 4, 2016

    SEC Says Timbervest Case Should Return To In-House Court

    The U.S. Securities and Exchange Commission on Tuesday told the D.C. Circuit that Timbervest LLC’s challenge to the agency’s in-house court will have to return there if the investment adviser submits new evidence about its sanctions, potentially putting the constitutional arguments on hold.

  • May 4, 2016

    Investors Want Final Approval Of $150M 'London Whale' Deal

    Investors who sued JPMorgan Chase & Co. over alleged fraud tied to the bank’s “London Whale” trading disaster asked a New York federal judge to finalize their $150 million settlement on Tuesday, saying that the class overwhelmingly supports the deal.

  • May 4, 2016

    Ex-JPMorgan Trader's Dad Gets Probation For Insider Trading

    The father of a former JPMorgan investment banker accused of illegally trading on inside tips about health care industry mergers involving clients of the bank and the son's subsequent employer on Wednesday was sentenced to four years' probation.

  • May 4, 2016

    UK Softens Accountability For Top Finance Execs

    The British Parliament passed an act Wednesday reversing a controversial measure that would have forced senior financial sector managers to prove they weren’t responsible for misconduct by employees.

  • May 4, 2016

    SIFMA Blasts FINRA Mortgage Market Margin Proposal

    The Securities Industry and Financial Markets Association has blasted a Financial Industry Regulatory Authority proposal to establish margin requirements for the "to-be-announced" market, which facilitates forward-trading of certain mortgage-backed securities, saying FINRA has not meaningfully addressed its cost concerns about the proposal.

  • May 4, 2016

    SEC, Ex-Fannie Mae CEO Experts Blocked In Subprime Suit

    A New York federal judge on Tuesday blocked several experts, including a former U.S. Securities and Exchange Commission commissioner, from testifying at trial in an SEC suit accusing the former CEO of Fannie Mae of hiding the size of the mortgage lender’s subprime portfolio.

  • May 4, 2016

    Member Of $5M ATM-Skimming Scheme Gets 7-Plus Years

    A high-level member of an extensive ATM-skimming scheme that stole more than $5 million from ATM users was sentenced to more than seven years in prison on Tuesday, about two months after a New Jersey jury found him guilty.

  • May 4, 2016

    Ponzi Schemer Can't Handle Own Case, 8th Circ. Affirms

    The Eighth Circuit on Wednesday agreed with two Arkansas federal judges that a convicted Ponzi schemer had previously lost the right to represent himself at his trial by giving the court shifty answers and filing unsolicited documents full of irrelevant legal jargon.

  • May 4, 2016

    Ex-Trader Hayes Plans New Libor-Rigging Conviction Appeal

    Former UBS Libor trader Tom Hayes has hired a high-profile human rights lawyer to push a U.K. commission for a new appeal of his conviction and 11-year sentence for rigging Libor, his attorney confirmed Wednesday.

  • May 4, 2016

    Real Estate Rumors: Normandy, Fla. Polo Club, Nugent

    Normandy Real Estate is said to be buying a Greenwich Village retail and medical office property for $100 million, the International Polo Club in Florida has reportedly sold for $72 million and the Nugent Organization is said to have sold a New York office condo to Economic Growth Group for $10.8 million.

  • May 4, 2016

    TPG Unit Pays $1.27B For Credit Suisse Debt Asset Portfolio

    Credit Suisse Group AG has agreed to sell a portfolio of distressed debt assets to a branch of private equity firm TPG Capital for roughly $1.27 billion, the companies said Tuesday, as the Swiss banking giant to tries to decrease its distressed credit holdings.

  • May 4, 2016

    3 Firms Steer $238M Park Avenue Deal

    Kasowitz Benson Torres & Friedman LLP and Allen & Overy represented a Deutsche Asset Management division and MRP Realty in connection with their roughly $238 million purchase of an office and retail property on Park Avenue in New York from Kelley Drye & Warren LLP-counseled Donerail Corp. NV, according to an announcement on Wednesday from the buyers and additional information from Donerail.

  • May 4, 2016

    Brexit A 'Daunting' Legal Task, UK Lawmakers Say

    The U.K. faces a “complex and daunting” legal task lasting several years if the country votes to leave the European Union in a June 23 referendum, a U.K. parliamentary committee said in a report issued Wednesday.

Expert Analysis

  • Spoofing And The Limit-Order Book

    John Montgomery

    Given the importance of “intent” in the statutory language outlawing “spoofing,” expert analysis of a defendant’s trading patterns may contribute evidence regarding the defendant’s intentions. An exchange’s limit-order book inevitably reflects the strategic behavior of many traders, says economist John Montgomery of Navigant Consulting Inc.

  • Using The New Federal Rules To Rein In Discovery

    Martin J. Healy

    The 2015 amendments to the Federal Rules of Civil Procedure present a fertile opportunity for defendants to leverage the rules' renewed focus on reasonableness and proportionality to rein in rampant discovery abuse. Courts' application of the amended rules has already shown promise in this regard, say Martin Healy and Joseph Fanning of Sedgwick LLP.

  • Dentons: A New Kind Of Network?

    MarkACohen.jpg

    Dentons is two different law firm networks in one. So even if the Swiss verein structure should eventually fail and Dentons is forced to operate as a network of independent law firms, it could still be a significant market force, says Mark A. Cohen, a recovering civil trial lawyer and the founder of Legal Mosaic LLC.

  • From The Book Of Jargon: Tree

    In the latest excerpt from the "Book of Jargon," Michèle Penzer, managing partner of Latham & Watkins LLP's New York office, defines the finance term "tree."

  • A New Perspective On Seated Work For Calif. Employers

    Jason Brown

    In Kilby v. CVS Pharmacy, the California Supreme Court made three core holdings, but none tracked the arguments made by either the defendant or plaintiff in the case. The court instead adopted the conclusions of a case decided by the California Department of Labor Standards Enforcement, which shows how persuasive the DLSE is to the court on issues of statutory interpretation and application, says Jason Brown at Fisher & Phillips LLP.

  • Why Investors Are Suing Under Antitrust, Futures Laws

    Carol V. Gilden

    Having diversified their portfolios beyond U.S. stocks and bonds, today’s institutional investors are now diversifying their legal tools and increasingly using the antitrust laws and the Commodity Exchange Act to protect their investments. And recent cases highlight an important benefit of suing under these laws, say Carol Gilden and Michael Eisenkraft of Cohen Milstein Sellers & Toll PLLC.

  • Gov't Hiring Private Attys Is Proper As A Matter Of Law

    Linda Singer

    Various corporate defendants have vigorously fought, lost and refought challenges to the government’s ability to hire outside counsel on a contingent-fee basis. These failed efforts show why the use of outside counsel by government agencies, rather than being wrong, is entirely right, says Linda Singer, former District of Columbia attorney general now with Cohen Milstein Sellers & Toll PLLC.

  • Madden In The Supreme Court: 4 Possible Outcomes

    David L. Beam

    The worst outcome for the financial industry of the Madden v. Midland Funding U.S. Supreme Court petition for a writ of certiorari would be if the court grants certiorari and then affirms the Second Circuit. The degree of damage inflicted by such a decision will depend on the court’s rationale, say attorneys with Mayer Brown LLP.

  • What To Expect In CFPB's New Debt Collection Rule

    Craig Nazzaro

    While the Consumer Financial Protection Bureau's new debt collection rule isn't expected until later this year or early 2017, based on some of the bureau's recent actions we can guess that the rule will likely address concerns such as time-barred debts, unfair, deceptive and abusive acts and practices, and first-party collectors, says Craig Nazzaro at Baker Donelson Bearman Caldwell & Berkowitz PC.

  • Design, Privacy Considerations For A CFPB Arbitral Archive

    Xiaoling Ang

    If a submission system for consumer financial arbitral claims and awards — under consideration by the Consumer Financial Protection Bureau — is put into place, the arbitral archive should be easy to mobilize for both legal and economic analysis and provide balance between submission burden and privacy considerations, say Dr. Xiaoling Ang of Edgeworth Economics LLC and Thomas Kearney of Akerman LLP, both of whom formerly worked at the CFPB.