Banking

  • July 29, 2014

    11th Circ. OKs $67M TD Bank Verdict Over Rothstein Fraud

    The Eleventh Circuit on Tuesday said that investors in jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme had standing to pursue claims against TD Bank NA and affirmed a $67 million verdict against the bank for aiding the scheme.

  • July 29, 2014

    EU Imposes Arms Embargo, Tougher Sanctions On Moscow

    The European Union ramped up its sanctions against Russia, reducing the country's access to oil technology, further decreasing Russian access to EU capital markets and imposing an arms embargo and a ban on goods that have both civilian and military uses.

  • July 29, 2014

    Chase Beats Rocker Rundgren's Mortgage Suit In 9th Circ.

    The Ninth Circuit on Tuesday tossed '70s rocker Todd Rundgren's suit contending JPMorgan Chase Bank NA is liable for defunct Washington Mutual Bank FA's allegedly fraudulent handling of his $3 million mortgage, saying the musician failed to exhaust his administrative remedies before suing.

  • July 29, 2014

    2 KPMG Units Dodge Madoff Investor Suits

    A New York state judge has dismissed allegations that auditing houses KPMG International and KPMG U.K. committed derelictions of duty while working with Madoff Securities International Ltd., ruling on Monday that investors failed to convince him New York courts had any jurisdiction over the non-U.S. entities.

  • July 29, 2014

    CFPB Should Boost Civil Penalty Fund Transparency: GAO

    The Consumer Financial Protection Bureau needs to improve the data it collects regarding how it allocates money from its Civil Penalty Fund to financial education projects in order to bring more transparency to those decisions, a Monday report from the Government Accountability Office said.

  • July 29, 2014

    House Votes To Clarify Financial Industry Data Protections

    The U.S. House of Representatives on Tuesday passed a pair of bills clarifying protections on data shared with financial regulators, including mortgage lender licensing data and information provided to regulators by nonbank financial companies.

  • July 29, 2014

    Suit Over Deutsche Bank Takeover Bid To Get A Closer Look

    Deutsche Bank AG’s long-simmering bid to take over Deutsche Postbank AG hit a snag Tuesday when Germany’s high court declined to give it final approval and instead referred a lawsuit brought by an investor over the deal to an appeals court for further consideration.

  • July 29, 2014

    FDIC Should Develop More Enforcement Tools, IG Report Says

    The Federal Deposit Insurance Corp. should try to increase the number of cease-and-desist orders against bank officers and directors and provide firmer guidance on when bankers can be banned from the industry, according to a Tuesday report analyzing regulators' enforcement response to the financial crisis.

  • July 29, 2014

    UBS, Deutsche Bank Latest Targets In Dark Pool Inquiries

    When announcing quarterly results Tuesday, two of Europe’s biggest banks revealed that they are cooperating with U.S. regulators in an investigation of their so-called dark pool and high-frequency trading units — two hot spots for regulators in recent months. 

  • July 29, 2014

    Soldiers' Consumer Debt Cleared In Rome Finance Shutdown

    Rome Finance Co., which financed purchases for some 18,000 soldiers across the country, has been shuttered by regulators for a slew of abuses in an action that returns service members $92 million in value, New York's attorney general said Tuesday after joining state and federal authorities in an investigation.

  • July 29, 2014

    CFTC Hits JPMorgan Unit Over 'Large Trader' Violations

    The U.S. Commodity Futures Trading Commission on Tuesday charged J.P. Morgan Securities LLC with violating rules to accurately report positions held by large traders, even after the agency warned the firm to fix the problems.

  • July 29, 2014

    Dealmakers Q&A: Morris Manning’s David Calhoun

    I anticipate that the M&A deal flow will continue to be strong, especially in the middle-market and growth company market areas, as long as private equity funds and strategic buyers remain flush with cash and the cost of capital remains low, says David Calhoun of Morris Manning & Martin LLP.

  • July 29, 2014

    Dealmakers Q&A: Troutman Sanders' Larry Cerutti

    There should be a re-examination of regulation to ensure that boards of directors are able to make what they believe to be the best decision for the company and its stockholders without the fear that they may be second-guessed by the U.S. Securities and Exchange Commission or stockholder activist groups, says Larry Cerutti of Troutman Sanders LLP.

  • July 28, 2014

    Kodak Joins Aluminum Price-Fixing Suits Against Banks

    Eastman Kodak Co. on Monday became the latest plaintiff in a slew of antitrust lawsuits across the nation alleging Goldman Sachs Group Inc., JPMorgan Chase and Co., the London Metal Exchange and others schemed to inflate the value of aluminum by stockpiling huge amounts of the metal.

  • July 28, 2014

    Lehman Can't Subordinate CMBS Fraud Claims In Ch. 11

    A New York bankruptcy judge on Monday ruled that Lehman Brothers Holdings Inc. cannot de-prioritize a number of securities fraud claims relating to certain collateralized mortgage-backed securities in its Chapter 11 bankruptcy, saying the MBS are not securities "of the debtor or of an affiliate of the debtor."

  • July 28, 2014

    US, EU Poised To Hit Russia With Fresh Round Of Sanctions

    The White House said Monday that the United States and the European Union are preparing to implement new sanctions targeting Russia's economic, financial and defense sectors, amid concerns that it is increasingly destabilizing the Ukraine by aiding separatists fighting the government there.

  • July 28, 2014

    Argentina Gets OK For Bond Payments On Technicality

    With less than 56 hours left to solve a debt-repayment impasse, Argentina got permission Monday evening to make interest payments on certain bonds because of a newly discovered technicality — but the clock will keep ticking, and the special master for the country's debt crisis announced a new round of talks for Tuesday.

  • July 28, 2014

    Developer Goes After Attys For Bungled Foreclosure Defense

    A Florida property management company on Monday sued its former counsel claiming the firm botched a foreclosure proceeding that ended in a $5.8 million judgment and drove the company into Chapter 11 protection.

  • July 28, 2014

    House Passes Bills Upping DHS Cybersecurity Efforts

    The U.S. House of Representatives on Monday passed a trio of bills designed to improve cybersecurity for critical infrastructure like power plants and financial markets, variously enabling greater public-private cooperation and directing the U.S. Department of Homeland Security to further advance its cybersecurity efforts.

  • July 28, 2014

    Fontainebleau Lenders Say D&O Deal Will Harm BofA Suit

    A proposed bankruptcy court settlement of Fontainebleau Las Vegas casino and resort executives’ liability surrounding the failure of the $2.9 billion project came under renewed attack on Friday as mortgage lenders owed more than $700 million complained that it would impair a forthcoming lawsuit against Bank of America NA.

Expert Analysis

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • High Court Will End Circuit Split With Libor MDL Case

    Stacey Slaughter

    The U.S. Supreme Court's acceptance of Gelboim v. Bank of America Corp. will resolve a circuit split on whether a plaintiff can immediately appeal the district court’s dismissal of a lawsuit that has been consolidated with other suits that are still pending, but it is merely the first of several steps needed to revive the bondholder plaintiffs' antitrust claim, say Stacey Slaughter and Thomas Berndt of Robins Kaplan Miller & Ciresi LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • OPINION: CFPB Should Not Weaponize Consumer Complaints

    Brett M. Kitt

    The Consumer Financial Protection Bureau's cavalier attitude toward the privacy risks associated with publishing consumer complaint narratives in their raw form is particularly troublesome given that, in a prior policy statement, it committed to refrain from doing so without a proper study, says Brett Kitt, of counsel with Greenberg Traurig LLP and former senior counsel for the CFPB.

  • How To Respond To CFPB Civil Investigative Demands

    Alice S. Fisher

    Since the Consumer Financial Protection Bureau became operational its initial enforcement actions have focused on mortgages, credit cards, auto loans and debt relief organizations, however more recent actions show the bureau is expanding its reach toward other industries and products — a trend we expect to continue, say attorneys at Latham & Watkins LLP.

  • Protections Remain In Place For Ga. Officers, Directors

    J. Timothy Mast

    The Georgia Supreme Court’s highly anticipated decision in Federal Deposit Insurance Corp. v. Loudermilk clarifies the protections afforded by the business judgment rule to directors and officers of banks and corporations, and proves that the “wisdom” of corporate decisions continues to be shielded from claims of ordinary negligence, say attorneys with Troutman Sanders LLP.

  • 5 Takeaways From Latest US Sanctions Against Russian Cos.

    Alexandra Lopez-Casero

    The latest round of U.S. sanctions against Russia’s oil, natural gas and financial industries is a dramatic departure from how the United States has applied targeted sanctions in the past, and raises several questions, say Alexandra Lopez-Casero and D. Grayson Yeargin of Nixon Peabody LLP.

  • Separate Classification Gone Too Far

    Scott M. Grossman

    A district court decision in CWCapital Asset Management v. Burcam Capital II may bolster the arguments of secured creditors in opposing cramdown efforts by debtors who may have been emboldened by other recent decisions supporting creative classification schemes, say Scott Grossman and Ari Newman of Greenberg Traurig LLP.

  • Beyond Citigroup: A Look At Corporate Settlements

    Kirsten Mayer

    A decision in Better Markets Inc. v. United States Department of Justice may provide more clarity on the scope of Executive Branch discretion in resolving corporate cases and whether there is any role for “public interest” litigation in such matters, say attorneys with Ropes & Gray LLP.

  • Powerful Tools For Discovery And Litigation Strategy

    Nathalie Hofman

    Analytics offer opportunities for refining both discovery strategy and overall litigation strategy by providing information to support better informed decisions. As an added bonus, they can result in significant cost savings, say Nathalie Hofman and Carolyn Southerland of Huron Consulting Group Inc.