Banking

  • May 4, 2015

    High Court Ruling Will Lead To More Timid Bankruptcy Plans

    The U.S. Supreme Court's decision Monday to limit the ability of individual and corporate debtors to appeal a rejected bankruptcy plan will force many attorneys — without the safety net of a guaranteed second bite at the apple — to pursue less aggressive or legally creative restructuring strategies, experts say.

  • May 4, 2015

    Lawyers React To High Court's Limiting Of Debt Plan Appeals

    The U.S. Supreme Court on Monday ruled that corporations and individuals do not have an absolute right to immediately appeal the rejection of a bankruptcy plan. Here, attorneys tell Law360 why the decision is significant. 

  • May 4, 2015

    Quicken Loans Atty Says DOJ Lending Crusade Went Too Far

    Quicken Loans' recent suit against the U.S. Department of Justice shows it is willing to take a stand to put a stop to the agency's abuse of power in its probe of mortgage lenders, the company's attorney told Law360.

  • May 4, 2015

    FINRA Chips Land In Industry Purse After CARDS Match

    In announcing a pause in its plans to build a vast new risk data pipeline, the Financial Industry Regulatory Authority likely emboldened industry groups that fiercely opposed the project, dubbed CARDS, and left some regulatory advocates worried that FINRA will be skittish for the next showdown with lobbyists and their allies in Congress.

  • May 4, 2015

    Blank Rome Adds 2 Commercial Litigators In Ft. Lauderdale

    Blank Rome LLP has added Berman Kean & Riguera PA attorneys Richard E. Berman and Jose R. Riguera to its commercial litigation group in Fort Lauderdale, where they will bring experience in corporate, bankruptcy, consumer finance and real estate litigation, the firm announced Monday.

  • May 4, 2015

    Athilon Must Prove It Was Solvent To Beat Quadrant Claims

    A Delaware judge refused to dismiss breach of fiduciary duty claims against officers of Athilon Capital Corp. brought by Quadrant Structured Products Co. Ltd., finding Monday the facts must be hashed out as to whether the company was insolvent when the defendants funneled money to a preferred investor.

  • May 4, 2015

    Bank VP Gets 3.5 Years For TARP-Related Fraud

    The former vice president of a Georgia bank has been sentenced to three and a half years in federal prison for using his position to profit off of foreclosed homes in the wake of the housing crisis.

  • May 4, 2015

    Ex-G3, Foot Locker Execs Cop To $18M Fraud Scheme

    Retail design executive Latchmee "Robbie" Mahato and former Foot Locker Inc. In-store Marketing Director Kathleen Smith admitted to conspiracy charges in Manhattan federal court Monday, stemming from what authorities characterized as an $18 million bank-fraud and kickback scheme hatched by Mahato's shuttered G3 Displays business.

  • May 4, 2015

    Saudi Agency Sets Rules For Foreigners In $572B Market

    Saudi regulators finalized terms on Monday for foreign investors, including banks, securities firms, fund managers and insurance companies, to begin trading on its 2 trillion Saudi riyal ($572 billion) stock exchange, Tadawul, setting limits for overall market ownership and the ownership of individual companies.

  • May 4, 2015

    Lancer Consultant Reports To Jail For Reduced Sentence

    A consultant convicted of playing a role in Lancer Group's $200 million securities fraud surrendered to federal custody Monday to serve a sentence just reduced from 3 years to 5 months after the Eleventh Circuit ordered a redo.

  • May 4, 2015

    FBOP Says It Owns Units' $275M In Refunds In FDIC Fight

    FBOP Corp. on Friday maintained that it is entitled to $275.6 million in tax refunds generated by eight failed subsidiary banks, telling an Illinois federal judge that a tax allocation agreement it inked with the banks created ownership over the refunds.

  • May 4, 2015

    JPMorgan Under Fire For FX Dividend Conversions

    JPMorgan Chase Bank NA was hit with a putative class action in Arkansas federal court Friday accusing it of systematically deducting undisclosed charges from dividends and cash distributions from foreign companies owed to American depositary receipt holders.

  • May 4, 2015

    2nd Circ. Renews Forfeiture Challenge In $21M Fraud Case

    The Second Circuit ordered a New York federal court Monday to consider allowing payment of legal fees from a bank account that had been seized by federal prosecutors, saying the billing law firm could have been unaware that an account connected to its client's conviction in a $21 million bank fraud was eligible for seizure.

  • May 4, 2015

    AmEx Wants Stay On Order To Alter Anti-Steering Rules

    American Express Co. asked a New York federal judge Friday to stay an injunction allowing merchants to steer customers to lower-cost credit cards, arguing it could sustain irreparable harm if the order were enforced before it had a chance to appeal.

  • May 4, 2015

    Akerman Nabs Ex-Gibson Dunn Real Estate Pro In LA

    Akerman LLP has recruited a former Gibson Dunn attorney with 15 years of experience in real estate and capital markets transactions with clients in banking and private equity to bolster the firm’s growing real estate practice in Los Angeles, according to the firm.

  • May 4, 2015

    IT Workers Slap Citigroup With OT Suit

    Three current and former information technology contractors for Citigroup Inc. say that the company systematically misclassified them as exempt from overtime wages while requiring them to work more than 40 hours per week, according to a proposed collective action filed in New York federal court.

  • May 4, 2015

    SEC Grants Deutsche Bank WKSI Waiver After Guilty Plea

    A divided U.S. Securities and Exchange Commission voted Friday to allow Deutsche Bank AG to keep its status as a well-known seasoned issuer, following last month’s $2.5 billion settlement in which a unit of the German lender also pled guilty to charges related to Libor manipulation.

  • May 4, 2015

    TCPA Attys Fail To Boost Fees From $32M BofA Settlement

    Attorneys who guided consumers suing Bank of America Corp. to a $32 million settlement, reportedly the largest finalized deal in a Telephone Consumer Protection Act case when it was approved, on Friday were denied in California federal court in their bid to increase their fees to $8 million.

  • May 4, 2015

    Justices Won't Hear Lehman Trustee's $4B Fight With Barclays

    The U.S. Supreme Court declined Monday to review the Second Circuit's ruling that Barclays Capital Inc. is entitled to $4 billion in trading collateral from the collapsed Lehman Brothers Inc.

  • May 4, 2015

    High Court Limits Appeals Of Denied Bankruptcy Plans

    The U.S. Supreme Court on Monday unanimously affirmed that individual and corporate debtors do not have an absolute right to appeal the denial of a proposed bankruptcy plan, ruling against commercial lenders like Bank of America NA that supported granting such appellate rights.

Expert Analysis

  • Flawed Synthetic Lease Definition Infiltrates GM Bankruptcy

    David Burton

    The General Motors bankruptcy raises interesting ancillary issues regarding synthetic leases. First, the bankruptcy court quoted an inaccurate definition of “synthetic lease” that was supplied by a Reuters website, says David Burton of Akin Gump Strauss Hauer & Feld LLP.

  • Chipping Away At The CFPB's Clandestine Activities

    Matthew E. Orso

    The days of the Consumer Financial Protection Bureau's clandestine policymaking and activities may be coming to a close after a bipartisan vote subjecting the CFPB to the Federal Advisory Committee Act. However, beyond this, it is difficult determine what proposals have a realistic chance of avoiding or overriding a veto, say Matthew Orso and Joshua Davey of McGuireWoods LLP.

  • 11th Circ. Wallops Involuntary Bankruptcy Petitioners

    Peter C. Blain

    An Eleventh Circuit opinion in Rosenberg v. DVI Receivables XIV LLC stands as a stark warning to creditors considering using an involuntary bankruptcy petition as a collection strategy. Bankruptcy Code Section 303 provides for sanctions in the event a petition is dismissed, which could result in a very expensive surprise, says Peter Blain of Reinhart Boerner Van Deuren SC.

  • Small Dollar Loans 'Payday' For Banks?

    Nicholas F. B. Smyth

    President Obama recently called attention to a proposal by the Consumer Financial Protection Bureau to overhaul the small dollar lending industry. If the proposal goes forward, payday lenders will have to follow it too, and banks may be able to compete for some of the estimated $12 billion in interest and fees that consumers pay each year for payday and auto title loans, say Nicholas Smyth and Travis Sabalewski of Reed Smith LLP.

  • Display Of FinCEN’s Aggressive Anti-Laundering Approach

    Matthew D. Lee

    The Financial Crimes Enforcement Network’s latest reporting demands on Miami-area electronics exporters, along with similar orders targeted at the Los Angeles Fashion District and California's U.S.-Mexico border, demonstrate FinCEN’s increased attention to trade-based money laundering schemes and confirm that criminals are aggressively using legitimate U.S. businesses to launder the proceeds of their illegal activity, says Matthew ... (continued)

  • M&A Advisers Face Increased Aiding And Abetting Risks

    John E. Sorkin

    The Delaware Chancery Court's new exception to the in pari delicto doctrine in Stewart v. Wilmington Trust — and the court's general expanded view of advisers as “gatekeepers” — increases the potential for aiding and abetting liability for investment bankers, auditors and other third parties for directors’ breach of fiduciary duties, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Cuba Removal From Terrorism List Will Have Limited Impact

    Stephen Propst

    Although the removal of Cuba from the State Sponsors of Terrorism list is an important diplomatic step toward normalizing U.S. relations with Cuba, its immediate impact on trade and financial activity will be rather limited until further presidential or congressional action is taken to fully lift the U.S. embargo, say attorneys with Hogan Lovells US LLP.

  • 4 Takeaways From The ABA Antitrust Spring Meeting

    Colin Kass

    As a deputy assistant director at the Federal Trade Commisision noted during one of the panels at the 63rd ABA Antitrust Section spring meeting, the FTC's investigations into nonmerger conduct typically are triggered by complaints from competitors, customers or suppliers. That means companies are not often aware that they are being investigated until it is too late, say attorneys with Proskauer Rose LLP.

  • Facilitating Access To Italian Nonperforming Loans

    Carl Winkworth

    Regulatory changes, including the introduction of a favorable tax regime, and new market practices do not yet represent a fully formed solution to the current liquidity problem in Italy, but they pave the way for new investors to more easily access the huge inventory of nonperforming loans currently held by Italian banks, say attorneys with Richards Kibbe & Orbe LLP.

  • 5 Issues Financial Services Industry Employers Must Face

    John F. Fullerton III

    Employers in the financial services industry face a growing number of employment law challenges, among them being whistleblower complaints on the heels of more aggressive action from regulatory agencies, a more unpredictable arbitration process courtesy of FINRA, and labyrinth-like immigration hurdles, say attorneys at Epstein Becker & Green PC.