Goldman Sachs Group Inc. was sued for fraud on Wednesday by a Singaporean investor who claims he lost over $34 million after the investment bank conned him into executing two exotic currency option trades by lying about the terms, while it reaped millions of dollars in commissions and fees.
Miami-based broker-dealer Atlas One Financial Group LLC last week sued its former executive director for allegedly jumping ship to competitor ED&F Man Capital Markets Inc. and luring away another Atlas One employee in violation of their employment agreements.
Valley National Bancorp, its top brass and the law firm Genova Burns Giantomasi Webster LLC were hit with a $90 million racketeering suit in New Jersey federal court Tuesday alleging they ran a decadelong scheme to take advantage of mortgage borrowers and profit off of foreclosed properties.
A pair of investment firms on Thursday slapped Barclays Bank PLC, UBS AG and others with a $100 million lawsuit in New York Supreme Court, claiming the banks breached contracts with investors by conspiring to rig the London Interbank Offered Rate for their own gain.
The former chief financial officer of Manhattan brokerage firm Needham & Co. pled guilty Thursday in New Jersey federal court to stealing $1 million from Needham by paying fraudulent invoices submitted by accomplices, operating as vendors, for services that had never taken place.
JPMorgan Chase & Co. and its top executives were hit with a lawsuit in California federal court on Wednesday, by a shareholder who said that the execs harmed the company through subprime mortgage practices and that a recent $13 billion settlement showed the “true extent and seriousness of the misconduct.”
Mendocino County, Calif., on Thursday sued Bank of America Corp., Barclays Bank PLC, Citigroup Inc. and more than a dozen other banks in California federal court, becoming the latest municipal body to allege that the banks' manipulation of the London Interbank Offered Rate caused it to lose money on investments tied to the benchmark.
During the past two years, hotel properties have nabbed a significant chunk of the commercial mortgage-backed securities market and are on track for another record year. But some experts expect the fast-growing market to contract in the near future as the deals flow tightens and other rebounding sectors siphon away funds.
Two Bear Stearns & Co. Inc. hedge fund liquidators sued Standard & Poor’s, Moody’s Investors Service Inc. and Fitch Ratings Inc. on Monday in New York Supreme Court, saying they artificially boosted securitized debt ratings, causing the funds to lose more than $1 billion after the housing market crashed.
Grocery chain Schnuck Markets Inc. on Friday asked a federal court to order the release of payment-card revenue its transaction processing servicers First Data Merchant Services Corp. and Citicorp Payment Services Inc. have earmarked for losses from a data breach affecting 2.4 million Schnuck customers.
A wealthy Saudi family on Thursday sued the reorganized Arcapita Bank BSC in New York bankruptcy court over $3.5 million the family says it invested with the bank for a rights offering that never occurred and that it says should now be returned.
The U.S. on Wednesday sought a court's permission to gather information from Citibank NA and Bank of New York Mellon that might reveal the identities of individuals who have stashed their money in Swiss bank accounts to evade U.S. taxes.
Agfa Corp., which distributes analog and digital imaging systems and information technology solutions, hit the Goldman Sachs Group Inc., JPMorgan Chase & Co. and others with a proposed antitrust class action in Michigan federal court on Wednesday, saying they colluded to manipulate prices for aluminum.
JPMorgan Chase Bank NA funneled insurance referrals to a group of mortgage insurance businesses in exchange for kickbacks, in violation of the Real Estate Settlement Procedures Act, according to a putative class action filed Monday in Pennsylvania federal court.
Barclays Bank PLC, Citigroup Inc. and others were slapped Friday with a New York federal class action by investors claiming the big banks' alleged manipulation of foreign exchange rates diminished their returns on trades, pension plans and savings accounts.
Sixteen current and former National Football League players sued Branch Banking and Trust Co. Thursday in Florida federal court, accusing it of allowing a financial management firm to open accounts in their names and withdraw nearly $53 million without their permission or knowledge.
Morgan Stanley Smith Barney LLC on Thursday sued one of its former financial advisers in Connecticut federal court, alleging he falsified telephone numbers for more than 100 clients the day before he left to join another firm.
U.S. Bank National Association, as trustee, hit Citigroup Global Markets Realty Corp. with a lawsuit in New York state court on Thursday, seeking at least $157 million for Citigroup’s alleged failure to live up to contractual obligations related to purchases of residential mortgage-backed securities.
A former Huntington National Bank employee who managed the bank's investment program for low-income housing tax credit development projects scammed $2.7 million from the program by diverting development advisory fees to an outside account, says a lawsuit filed Thursday in Ohio federal court.
Fannie Mae launched an $800 million suit in New York federal court Thursday against nine major banks suspected of manipulating the benchmark interest rate Libor, marking the latest legal salvo in the global rigging scandal.
Any bank that interacts with a municipal entity should review the new municipal adviser rules to ensure that its activities are in compliance. Advice to a municipal entity or obligated person, for example, about the purchase of guaranteed investment contracts, municipal derivatives or investment strategies, could cause a bank to be deemed a municipal adviser, say attorneys with Goodwin Procter LLP.
A Georgia federal court recently ruled in Metro Brokers Inc. v. Transportation Insurance Co. that an all-risk insurance policy did not provide coverage for online fraudulent withdrawals from the company’s bank account. This decision offers guidance as to how a court may treat a policyholder’s claim under a traditional all-risk policy and the effect of broad computer fraud exclusions, says James Kitces at Robins Kaplan Miller & Ciresi LLP.
While capital call facilities for true open-end funds have been relatively rare, the opportunity is ripe for new market entrants. A traditional facility would not be feasible for an open-end fund, but a few structural tweaks should do the trick, say attorneys with Mayer Brown LLP.
Two important events this year make clear that California's anti-deficiency statutes not only protect borrowers in nearly all circumstances when dealing with a residential loan but also trump any separate agreement the lender may have with a borrower for the payment of any deficiency following either a foreclosure or a short sale, say Sylvia Arostegui and Eunice Majam-Simpson of Nossaman LLP.
Following the financial crisis of 2008, regulations were put in place to enact transparency and protect individual investors in complex financial markets. Although this has left many to believe that financial instruments have become more transparent and that there will likely be less securities litigation going forward, the reality is likely to be more complex than that, says Ilan Guedj of ARPC.
Even if the European economic recovery remains constrained, the global real asset rotation and navigation of the commercial real estate debt gap should continue to propel real estate investment up the risk curve in 2014. The growing participation of larger institutional players also signals larger deals in core markets, says Eric Rosedale, co-chairman of Dentons real estate group in Europe.
The New York State Department of Financial Services is “requiring” about 200 banks “to answer questions in real time on Dec. 12 to assess their cybersecurity policies and processes.” But the DFS will not necessarily learn anything new from the Web-based, real-time surveys, nor is that the stated intent, say Ronald Sarachan and Zoe Wilhelm of Drinker Biddle & Reath LLP.
A new law in Mongolia dramatically alters the investment landscape in the country, eliminating the broad restrictions on private foreign investment in the minerals, communication and financial sectors that previously existed, removing the parliament from the approval process, and ending the distinction between foreign and domestic investors, says Stewart Diana of DLA Piper LLP.
Three recent cases applied the economic substance doctrine, with quite different results, to the "structured trust advantaged repackaged securities" transaction, one of several foreign tax credit generators the IRS is aggressively challenging. These decisions likely foreshadow a fight in the circuit courts over STARS and the economic substance doctrine, say Robert Probasco and Lee Meyercord of Thompson & Knight LLP.
Recently, the Federal Deposit Insurance Corporation advised regulated financial institutions to be wary of “an increase in exclusionary terms or provisions” in insurance policies covering directors and officers liability. While this advice was directed to financial institutions regulated by the FDIC, much of it is good advice to follow for all corporations and their boards of directors, say Brian Scarbrough and Daniel Johnson of Jenner & Block.