Banking

  • September 1, 2015

    Payment Processors Can't Escape Phantom Debt Robocall Suit

    A Georgia federal judge on Tuesday blocked payment processors from escaping a closely watched case in which the Consumer Financial Protection Bureau accuses them of violating debt collection rules and facilitating illegal payments, finding reasonable cause for a trial to proceed.

  • September 1, 2015

    JPMorgan, Citi Mortgagors Seek Cert. In Inspection Fees Row

    Citibank NA and JPMorgan Chase & Co. mortgage borrowers urged a California federal judge on Tuesday to certify a nationwide class of millions of homeowners whom the banks allegedly charged unnecessary fees for property inspections when their loans were in default.

  • September 1, 2015

    ABA Pairs With BakerHostetler To Offer Cyberinsurance

    Bank and small business insurer ABA Insurance Services announced Tuesday that it is partnering with the privacy and data protection team at BakerHostetler to provide its bank policyholders with a new cyberinsurance coverage product that would help them prepare for and respond to data security incidents. 

  • September 1, 2015

    NFL Player Almost Loses Jury Rights In BB&T Fraud Trial

    The jury portion of a group of National Football League players' federal negligence trial against Branch Banking & Trust Co. resumed Tuesday in Miami, but one plaintiff almost saw his jury rights stripped before the day was over.

  • September 1, 2015

    Visa Says Atty Misconduct Shouldn't Kill $7.25B MDL Deal

    MasterCard Inc., Visa Inc. and other banks tangled up in multidistrict litigation over credit card transaction fees fought Tuesday to keep a $7.25 billion settlement alive after a number of major retailers pushed a New York federal court to trash the deal over attorney misconduct.

  • September 1, 2015

    BB&T, Assurant Unit Facing Suit Over Force-Placed Insurance

    Branch Banking & Trust Co. charged mortgage holders inflated premiums for force-placed insurance and took kickbacks from an Assurant Inc. unit in exchange for exclusively using their services, according to a putative class action filed Tuesday in Florida federal court by two homeowners.

  • September 1, 2015

    NC Court Clamps Down On Native-Owned Payday Lender

    North Carolina’s attorney general said Tuesday that the state will keep fighting online consumer finance company Western Sky Financial LLC and others after a state court rejected the companies’ claims of Native American tribal immunity and barred them from making and collecting loans in the state.

  • September 1, 2015

    PTAB Invalidates Pair Of Credit Card Security Patents

    The Patent Trial and Appeal Board invalidated two credit card-related patents Monday that MasterCard International Inc. had been accused of infringing, ruling each of their claims were unpatentable.

  • September 1, 2015

    Real Estate Rumors: LaserShip, Capital One, Hayes Properties

    Amazon.com contractor LaserShip has reportedly leased nearly 41,000 square feet in New York, Capital One is said to have loaned $80 million for a Maryland hotel construction project, and Hayes Properties is said to have dropped $31 million on a Chicago residential tower.

  • September 1, 2015

    Dentons Launches Greek Desk In Brussels

    Dentons has launched a Greek desk in the firm's Brussels office, which will act as a one-stop shop for its clients already active in the Greek market, as well as those considering entering it for the first time.

  • September 1, 2015

    BofA, Others Can't Dodge Miami's Discriminatory Lending Suit

    The Eleventh Circuit said Tuesday that the city of Miami has standing to sue Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. over alleged racially discriminatory lending practices that cost the city tax revenue, overturning a lower court's ruling to the contrary.

  • September 1, 2015

    Puerto Rico Muni Bond FINRA Claimants Awarded $3M

    A Financial Industry Regulatory Authority arbitration panel in Puerto Rico awarded more than $2.9 million on Monday to three claimants that alleged fraud against UBS Financial Services Inc. of Puerto Rico in connection with borrowing secured by investments in the bank's closed-end funds and other municipal bonds.

  • September 1, 2015

    Deals Rumor Mill: BG Group, GE Capital, Ajinomoto

    BG Group will sell a Thailand offshore gas field stake for around $1.2 billion, three finalists are vying for GE Capital's Australian commercial lending and leasing businesses, worth $1.8 billion, and Ajinomoto will spend up to $1.7 billion on deals over the next year.

  • September 1, 2015

    Gov't Fights Ex-CEO's Leniency Claims In $18M Bank Fraud

    Prosecutors have asked a New York federal judge to reject a retail design CEO’s request for a lenient sentence after he pled guilty to conspiracy to commit wire fraud, saying he defrauded lenders of more than $18 million solely out of greed.

  • September 1, 2015

    Banks Say CFPB Complaints Must Be Verified To Be Useful

    Banking industry groups on Tuesday said that the Consumer Financial Protection Bureau should be careful to use only verified complaints when it moves forward with plans to provide more context around raw complaint data.

  • September 1, 2015

    Iran Bank Says $1.7B Is Out Of Bombing Victims' Reach

    Iran’s central bank asked the Second Circuit on Monday to uphold a ruling that families of victims of the 1983 bombing of a U.S. Marine Corps barracks in Beirut can’t collect $1.68 billion from it, saying the money is out of reach in Luxembourg.

  • September 1, 2015

    Madoff Trustee Granted Access To Cohmad Agent's Bank Docs

    A New York bankruptcy judge on Tuesday granted Madoff brokerage trustee Irving H. Picard's request to access bank records of a former Cohmad Securities Corp. agent involved in a $245 million clawback suit accusing Cohmad of steering clients and money to Madoff's firm.

  • September 1, 2015

    Anti-Bribery Odd Couple Takes Its Show On The Road

    It’s not unusual for cooperating witnesses to reach out to prosecutors or other investigators long after their cases are finished. What is unusual is for a cooperating witness and a former prosecutor to join forces and go on the road to educate companies on the type of conduct that brought them together in the first place.

  • August 31, 2015

    OIG Calls For Improvements To CFPB Hiring Practices

    The Federal Reserve’s inspector general has said that while the Consumer Financial Protection Bureau has made some changes to its recruitment and hiring processes, hiring controls weren’t always followed and more improvements can be made.

  • August 31, 2015

    BofA's $9M, $3.6M Deals OK'd Despite 'Vexatious' Objector

    Bank of America Corp. has won final approval of a $9 million settlement with part-time employees and a $3.6 million deal in another class action over pay stubs, despite the objections of a nonclass member who injected himself into both cases, prompting the bank to call him “vexatious.”

Expert Analysis

  • Tips For Responding To An FTC Subpoena

    Julie A. Flaming

    A subpoena from the Federal Trade Commission can be unnerving and may appear daunting in the scope of its requests. Negotiations with the FTC regarding scope of discovery, time frames and even format of production can assist in reducing the burden for companies, say Julie Flaming and Katie Smith of Nelson Mullins Riley & Scarborough LLP.

  • Key Online Lending Takeaways As Regulators Assess Industry

    Christopher L. Allen

    Regulators are assessing what a well-calibrated online lending regulatory framework may look like — one that balances greater access to credit with appropriate risk management and borrower protections. This may impact investments relating to online lending and the M&A opportunities available to strategically acquisitive bank and nonbank lenders, say attorneys with Arnold & Porter LLP.

  • Equitable Mootness May Be Alive And Well In 3rd Circ.

    Bruce D. Buechler

    In a recent Third Circuit opinion in the case of Tribune Media Co., Judge Thomas Ambro authored a concurrence that appears to imply that Third Circuit Judge Cheryl Krause’s opinion in One2One Communications LLC calling for the overturning of the equitable mootness doctrine is not shared, says Bruce Buechler of Lowenstein Sandler LLP.

  • CFPB Underplays Consumers' Right To Sue Debt Collectors

    Sergei Lemberg

    While the sheer volume of debt collection complaints is staggering, it is more alarming that the Consumer Financial Protection Bureau appears reluctant to fully educate consumers about their right to sue debt collection agencies for violations of the Fair Debt Collection Practices Act, says Sergei Lemberg of Lemberg Law LLC.

  • A Useful Case For Directors Of Failed Banks

    Kevin M. LaCroix

    In an interesting opinion that takes a close look at exculpatory bylaw issues and the business judgment rule under North Carolina law, the Fourth Circuit recently affirmed in part and reversed in part the dismissal of a failed bank lawsuit against former directors and officers. Former directors facing Federal Deposit Insurance Corporation lawsuits in other jurisdictions will likely seek to use the court’s rulings to their advantage... (continued)

  • The Political Implications Of UK's Tom Hayes Verdict

    Elly Proudlock

    The conviction and sentencing of Tom Hayes for his part in the manipulation of the London interbank offered rate is an important win that will undoubtedly embolden the U.K. Serious Fraud Office and may help ensure that a proposal to abolish the SFO does not resurface anytime soon, say Elly Proudlock and David Rundle of WilmerHale.

  • Beware False Positives In Statistics-Based SEC Actions

    Tiago Duarte-Silva

    The U.S. Securities and Exchange Commission recently charged an investment adviser with illegal allocation of trades based on statistical results, implying that statistically eliminating chance for certain profitable trades proves a fraudulent motive. However, that is not always the case, and one should not base “intent” on statistical analyses, say members of Charles River Associates and Zaccaro Morgan LLP.

  • Top 5 Ways To Help A Law Professional Land A Job

    Mark Newall

    It is a hard truth, but a law degree is a tough thing to have nowadays. Overloaded with thousands of dollars in debt and only a few job prospects that require a law license, many law graduates are looking for ways to manage their careers. We suggest some proven methods to amplify and accelerate your job search, says Mark Newall of Essex Partners Legal.

  • SEC's Dating Advice For Internet Platforms And Its Impact

    Jeffrey A. Clopeck

    For Internet platforms offering private placements and eager to keep the momentum with potential investors they meet online, the U.S. Securities and Exchange Commission’s recent recognition that a 30-day waiting period is not necessary for forming substantive, pre-existing relationships will be welcome news. At the same time, many platforms will have to step up their game, say attorneys with Day Pitney LLP.

  • The Compliance Officer Sanctions Debate Heats Up

    Thomas K. Potter III

    A U.S. Securities and Exchange Commission judge’s decision to dismiss the SEC’s case against a former Wells Fargo Advisors LLC compliance officer was unusual. The opinion, which bears some slight resemblance to another recent ruling by an in-house judge, indicates that administrative law judges are weighing in on the debate over the appropriate line for enforcement actions against compliance personnel, says Thomas Potter of Burr & Forman LLP.