Banking

  • October 29, 2014

    JPMorgan, Others Can't Blame Recession In $2B RMBS Row

    A Massachusetts federal judge on Wednesday said JPMorgan Chase & Co. and units of other large banks can’t argue that external economic factors and not the lenders’ purported misconduct caused Massachusetts Mutual Life Insurance Co. losses in $2.3 billion worth of investments in residential mortgage-backed securities.

  • October 29, 2014

    Quicken Fails To Disconnect Claims Of Secret Call Recordings

    A California federal judge on Tuesday wouldn’t let Quicken Loans Inc. skirt a proposed class action accusing the lender of surreptitiously recording sales calls to prospective customers, rejecting the lender’s arguments that the state’s Invasion of Privacy Act was ambiguous or overbroad.

  • October 29, 2014

    Detroit Buys 77 Public Schools, Welcomes Fifth Third Bank

    Detroit, which is nearing the end of its historic municipal bankruptcy proceedings, said Tuesday it was purchasing dozens of vacant public school properties, and the city has also been chosen by a Michigan division of Fifth Third Bank as its new headquarters.

  • October 29, 2014

    Wells Fargo Must Pay $203M Overdraft Award, 9th Circ. Says

    Wells Fargo Bank NA can't escape a $203 million class action penalty for misrepresenting the way it processed debit cards in order to maximize overdraft fees, a Ninth Circuit panel ruled Wednesday, saying the bank's false statements support the lower court's decision.

  • October 29, 2014

    Barclays Hit With $10B Fraud, Bribery Suit Over Saudi Scheme

    Barclays Bank PLC was hit Tuesday with a Saudi Arabian real estate and construction company’s $10 billion complaint in New York state court alleging the bank fraudulently settled a suit against the Saudi government over unpaid lease payments in exchange for a share in $925 million and a lucrative banking license.

  • October 29, 2014

    51 Countries Ink OECD Tax Information Exchange Agreement

    Fifty-one countries on Wednesday inked an agreement to automatically share financial account information by 2017 or 2018 about foreign nationals who hold bank accounts in their countries in a global effort to stomp tax evasion, the Organization for Economic Cooperation and Development said.

  • October 29, 2014

    Experienced Litigator Joining Berger Singerman In Miami

    Michael J. Higer will join Berger Singerman LLP in 2015 as a partner and member of its dispute resolution team, bringing nearly 30 years of experience in business and insurance litigation as well as real estate, banking and intellectual property work, the Florida law firm announced on Wednesday.

  • October 29, 2014

    NAB Pares Great Western Stake In Push To Exit US Market

    National Australia Bank Ltd. sold off nearly 32 percent of its stake in Great Western Bancorp Inc. earlier this month as part of its plan to divest itself of all interest in its former U.S. subsidiary, Great Western said in a Wednesday securities filing.

  • October 29, 2014

    Bank Leumi, NY Regulators Eye Deal In Tax Evasion Probe

    Israel’s Bank Leumi said in a statement Wednesday that it was in talks with New York banking regulators to settle allegations that the bank helped U.S. customers hide money from the Internal Revenue Service and evade taxes.

  • October 29, 2014

    New Zealand Inks Timeline For Tax Information Exchange

    New Zealand's banks have until 2019 to fully comply with an automatic tax information exchange championed by the G-20 and Organization for Economic Cooperation and Development, the nation's revenue minister said Wednesday.

  • October 29, 2014

    McGraw-Hill Takes $60M Charge To Cover SEC Probe Of S&P

    McGraw-Hill Financial Inc. is in talks to end a Securities and Exchange Commission investigation into its Standard & Poor's Ratings Services unit, taking a $60 million charge this quarter to cover potential costs in a resolution there, it said Wednesday.

  • October 29, 2014

    HSBC's $40M TCPA Deal Goes To Judge For Final Approval

    A Nevada federal judge was asked on Tuesday to grant final approval to a $40 million settlement that would resolve class action allegations that HSBC Bank NA violated the Telephone Consumer Protection Act, and to quash the efforts of so-called “professional objectors” to scuttle the deal.

  • October 28, 2014

    Key Government Witness Wraps Testimony In Weil Case

    Wrapping up his testimony in the tax fraud conspiracy case of ex-UBS AG executive Raoul Weil, key government witness Martin Liechti on Tuesday tackled the Swiss bank's deliberations on exiting the undisclosed portion of its U.S. business, which he said top officers had come to call a “nightmare.”

  • October 28, 2014

    Bank Exec Who Faked Death Gets 30 Years For $72M Fraud

    A former Montgomery Bank & Trust executive who faked his own death but was later found alive and arrested on charges of conning the Georgia bank and investors out of $72 million was sentenced to 30 years in prison Tuesday in federal court, according to prosecutors.

  • October 28, 2014

    Banker Helped Iranian Exiles Hide Cash From IRS, Gov’t Says

    A Beverly Hills banker for an Israeli bank played on his Iranian Jewish exile clients' distrust of government, helping them hide millions from the Internal Revenue Service in overseas accounts, prosecutors told jurors at the start of a tax fraud trial Tuesday.

  • October 28, 2014

    Bank Trustee Says Squire Patton Boggs Lied About Legal Fees

    The trustee for First Place Financial Corp. on Tuesday hit Squire Patton Boggs LLP with an adversary suit seeking up to $1.9 million the bank paid the firm before and during its bankruptcy, alleging the firm failed to disclose $360,000 it received from First Place.

  • October 28, 2014

    Morgan Stanley Ducks Suit Over Timing Of ARS Redemptions

    A New York state judge has dismissed derivative suits against Morgan Stanley Investment Advisors Inc. and various Invesco Van Kampen-branded trusts, saying the trust officers exhibited fair business judgment — not a breach of fiduciary duty — when they declined to sue over allegedly ill-timed auction-rate securities redemptions.

  • October 28, 2014

    CFPB Says Student Lenders Still Skirting The Rules

    The Consumer Financial Protection Bureau raised concerns Tuesday about ongoing illegal activity in the student loan and mortgage lending industries, releasing a report suggesting that some servicers are flouting federal regulations by harassing and deceiving borrowers.

  • October 28, 2014

    Dairy Farm Blames Lender For Debt Woes In Ch. 11 Bid

    Arizona dairy farms owner D&E Dairy Farms LLC has filed for Chapter 11 bankruptcy, blaming its financial woes on the 2011 milk crisis and on allegedly aggressive lending practices by its lender Farm Credit Services Southwest, which it has also sued in Arizona state court.

  • October 28, 2014

    Phoenix Hit With Rival Card Processor’s $10M Software Claim

    A fight over whether bankrupt Phoenix Payment Systems Inc. had and was using old software code that another card transaction company claims it owns was primed to move forward Tuesday, after the firm lodged a $10 million claim and a Delaware bankruptcy judge set some ground rules.

Expert Analysis

  • New Calif. Data Breach Rules Bring Obligations And Debate

    Ellen Giblin

    The new law regarding the California breach notification requirement related to identity theft prevention and mitigation services has already spurred debate on two issues, say attorneys with Edwards Wildman Palmer LLC.

  • Know The Collateral Consequences Of Financial Reg Action

    Eben P. Colby

    Understanding the collateral consequences of enforcement proceedings at the hands of the U.S. Securities and Exchange Commission or any other financial industry regulator can provide a valuable tool for proactively negotiating with the regulator and avoiding pitfalls arising from a failure to disclose, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • A Ban On Ban-The-Box?

    Natasha B. Dorsey

    In a regulatory landscape of ban-the-box laws and increased EEOC scrutiny of criminal history questions during the hiring process, employers in industries such as health care and finance are often put in the position of acting unlawfully because they are required to conduct background checks for certain positions. The Certainty in Enforcement Act could clarify things, but it also leaves the door open for trouble, says Natasha Dorse... (continued)

  • Talking The Talk: Nuclear Energy Lingo For Bankers

    George Borovas

    Three and a half years after the accident at the Fukushima Daiichi nuclear power plant, the nuclear industry is experiencing somewhat of a revival, however the apparent disconnect between its rhetoric and the mindset of financiers must be overcome to stimulate the successful development of new plants, say George Borovas and Helen Cook of Shearman & Sterling LLP.

  • The Cayman Way Of Identifying, Enforcing Against Assets

    Christopher Russell

    Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.

  • Takeaways From Broker-Dealers’ Section 5 Inadequacies

    Daniel A. Nathan

    The U.S. Securities and Exchange Commission has issued letters of deficiency for Section 5 compliance to 80 percent of the firms examined. Meanwhile, broker-dealers are continually confronted with the decision whether the revenue from accepting and selling large quantities of lower-priced stocks is worth the risks, say Daniel Nathan and Michael Sorrell of Morrison & Foerster LLP.

  • 5 Takeaways From The New Cybersecurity Executive Order

    Lisa Ledbetter

    President Obama signed an executive order on Friday that requires federal agencies to apply enhanced security features to government payment cards. The administration views chip-and-PIN technology as a significant step forward, but such technology does not provide protection in online, mail and telephone order purchases, and does not eliminate the risk of a security breach, say attorneys with Jones Day.

  • Lessons From Recent DOJ Probes Of Large Banks

    Jacqueline M. Arango

    The U.S. Department of Justice is focusing on large financial institutions for not only failing to comply with federal laws but also for willfully violating laws that were meant to protect the sanctity of the U.S. financial markets. These recent prosecutions, particularly with respect to U.S. embargo violations, provide guidance on what not to do, say Jacqueline Arango and Christine Bautista of Akerman LLP.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.