• October 5, 2015

    Lynn Tilton, Patriarch Partners Sued Over Investor Losses

    A German bank filed a complaint Monday in Manhattan court claiming private equity magnate Lynn Tilton and her Patriarch Partners firms concealed that their investment funds were used for risky equity investments, saying it lost $45 million in the scheme.

  • October 5, 2015

    SEC Fines Former Ocwen Unit HLSS $1.5M

    Home Loan Servicing Solutions Ltd. will pay $1.5 million to settle charges that it misrepresented its relationship with its former parent company Ocwen Financial Corp.,and misreported the value of billions of dollars' worth of mortgage servicing rights it bought from the embattled subprime mortgage loan servicer, the U.S. Securities and Exchange Commission said Monday.

  • October 5, 2015

    Feds To Rethink Insider Trading Strategy After Newman Snub

    Now that the U.S. Supreme Court has shown no interest in taking on a landmark insider trading appeal this term, federal prosecutors have to contend with a remade legal landscape that will force them to cut back on some cases, let go of others and figure out ways around the high standards for proving the crime.

  • October 5, 2015

    Scottrade Hit With 1st Data Breach Suit

    Discount brokerage house Scottrade Inc. on Friday in California federal court was hit with the first proposed class action over a data breach — announced that same day — that targeted 4.6 million users between late 2013 and early 2014 and possibly compromised Social Security numbers and other information.

  • October 5, 2015

    Lawyers Weigh In On Supreme Court's Newman Rejection

    The U.S. Supreme Court declined on Monday to consider the U.S. Department of Justice's appeal of the Second Circuit’s landmark Newman decision on insider trading. Here, attorneys tell Law360 why the cert denial is significant.

  • October 5, 2015

    New MetLife Debt Fund Lends $86M To Cypress For Minn. Mall

    Texas private equity firm Cypress Equities has scored $86 million in financing from a new MetLife Inc. debt fund for a 1.14-million-square-foot Minneapolis-area mall, according to an announcement on Monday from Holliday Fenoglio Fowler LP, which brokered the deal for the borrower.

  • October 5, 2015

    High Court Won't Revive Stanford Victims' Claims Against SEC

    The U.S. Supreme Court on Monday refused to consider an argument by victims of Robert Allen Stanford’s $7 billion Ponzi scheme that the Eleventh Circuit’s decision shielding the U.S. Securities and Exchange Commission from a negligence suit gives the agency blanket immunity.

  • October 5, 2015

    High Court Won't Review Wells Fargo ATM Patent Row

    The U.S. Supreme Court on Monday declined to review a patent infringement case against Wells Fargo Bank NA and other companies after the Federal Circuit last year, following the high court’s Alice decision, invalidated the four ATM technology patents at issue.

  • October 5, 2015

    Swiss Banker Who Testified Against UBS Exec Avoids Prison

    A Swiss banker who cooperated extensively in the United States' unsuccessful prosecution of former high-ranking UBS AG executive Raoul Weil received probation and a $150,000 fine Monday in Florida federal court for his role in helping U.S. clients evade taxes.

  • October 5, 2015

    Schwab's Libor Claims Get No Supreme Court Traction

    The U.S. Supreme Court on Monday refused to consider Charles Schwab Corp.'s attempt to revive its antitrust claims in multidistrict litigation over alleged Libor manipulation by top banks.

  • October 5, 2015

    High Court Splits On Whether Loan Guarantors Are Applicants

    A split appeared to develop on the U.S. Supreme Court during oral arguments Monday on whether the Federal Reserve properly extended the Equal Credit Opportunity Act to include “spousal guarantors” on loan applications.

  • October 5, 2015

    BNY Mellon Can't Dodge RMBS Suit Over Loan Docs

    A New York judge on Friday refused a bid by The Bank of New York Mellon Corp. to quash a lawsuit brought by banks, insurers and other investors against BNY Mellon as the trustee of pools of poor-performing residential mortgage-backed securities, saying dismissal would be premature.

  • October 5, 2015

    Deals Rumor Mill: Suncor, BofA Merrill Lynch, Banpu Power

    Canadian Oil Sands Ltd. will reject Suncor Energy Inc.'s hostile $3.3 billion all-stock bid, several banks have secured $3.37 billion in debt to back Hellman & Friedman's purchase of Bain Capital's Securitas Direct Verisure Group stake and Banpu Power is readying a $600 million initial public offering.

  • October 5, 2015

    NY Grants License To Winklevoss-Backed Bitcoin Firm

    A bitcoin exchange founded by entrepreneur twins Cameron and Tyler Winklevoss on Monday received a license to operate as a trust company under New York law, making it the third firm to receive state approval to operate a virtual currency business.

  • October 5, 2015

    High Court Denies Schwab Appeal In Crisis-Era Class Action

    The U.S. Supreme Court on Monday denied a petition from a unit of Charles Schwab Corp. seeking a review of a Ninth Circuit decision to revive a suit brought over the firm's risky bets on complex mortgage securities that the firm made in 2007.

  • October 5, 2015

    Supreme Court Rejects Newman Insider Trading Appeal

    The U.S. Supreme Court on Monday declined to hear the federal government’s appeal of the Second Circuit’s landmark Newman decision on insider trading, rejecting the opportunity to rule on the thorny and divisive definition of what constitutes the crime.

  • October 2, 2015

    SEC Judge Says Ex-Nursing Home CEO Owes $4.2M For Fraud

    A U.S. Securities and Exchange Commission judge on Friday ordered a former top executive at a private equity-backed assisted living provider to pay $4.2 million after it allegedly listed fake occupants at its residences in order to meet lease requirements.

  • October 2, 2015

    7 Firms Guide NTE Energy's $645M Natural Gas Plant Deal

    Pierce Atwood LLP and three other firms represented an affiliate of NTE Energy in its $645 million financing deal announced Friday for a natural gas-fired electricity project, which Latham & Watkins LLP worked on as counsel to lead lenders and McGuireWoods LLP and Mercer Thompson LLC guided for a pair of equity providers.

  • October 2, 2015

    FBOP Argues It Isn't Subject To Pension Agency's Claims

    Defunct banking company FBOP Corp. on Friday said in Illinois federal court that it should not have to pay a portion of a $265.3 million tax refund to the Pension Benefit Guaranty Corp., arguing the federal government-created retirement income agency is trying to renege on a settlement agreement.

  • October 2, 2015

    Wells Fargo Ordered To Pay $17.8M Over Mismanaged Trusts

    A Missouri judge has ordered Wells Fargo to pay $17.8 million in a breach of trust suit brought by the mother of a former private equity fund manager imprisoned for tax evasion who claimed the bank mismanaged two family trusts.

Expert Analysis

  • Name Game: Designating Lenders For A Loss Payee Clause

    Thomas B. Alleman

    Loan documents generally require a borrower to provide insurance on collateral in favor of the lender, often known as an open mortgage or loss payee clause. But a loss payee clause may not be enough to actually protect a lender, says Thomas Alleman at Dykema Cox Smith.

  • Lehman Ruling Offers Much-Needed Guidance On 'Loss'

    Fred Sosnick

    A Southern District of New York decision in a Lehman Chapter 11 suit, holding that Intel Corp.’s loss calculation resulting from a failed transaction was appropriate, is significant both because of the dearth of judicial interpretation of International Swaps and Derivatives Association closeouts, and because it affirms the general understanding that a nondefaulting party has broad discretion in calculating “loss,” say attorneys wit... (continued)

  • In Congress: Energy, Budget, Boehner's Replacement

    Richard A. Hertling

    Budget negotiations and a House leadership election will consume much of the attention on Capitol Hill this week, following successful enactment of a continuing resolution to fund the government into December. Meanwhile, Speaker Boehner's recent announcement has set off a scramble in the Republican caucus of members eager to assume leadership posts for the remainder of the 114th Congress and beyond, say members of Covington & Burling LLP.

  • It May Not Always Be Safe To Follow Advice Of Counsel

    Steven A. Shaw

    The recent Southern District of New York decision in United States v. Wells Fargo Bank is one of the very few addressing whether an individual civil defendant can present an advice of counsel defense using information his employer asserts to be protected by attorney-client privilege, say Steven Shaw and Luke Meier of Covington & Burling LLP.

  • Inside National Futures Association Cybersecurity Guidance

    Heather Egan Sussman

    New cybersecurity guidance proposed by the National Futures Association is particularly noteworthy for firms that are not currently subject to the cybersecurity rules set forth by the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, say attorneys with Ropes & Gray LLP.

  • The CFPB Is Still Coming For Law Firms

    Richard B. Benenson

    Last year, we wrote that foreclosure law firms and their lawyers might be the Consumer Finance Protection Bureau's next regulatory targets — we were right. Since 2014, the CFPB has filed legal actions against nearly two dozen lawyers, law firms and their affiliated entities and we believe such cases are likely to continue, say Richard Benenson and Emily Garnett of Brownstein Hyatt Farber Schreck LLP.

  • UCC And The Importance Of A Paper Clip

    Christopher A. Gorman

    Never has the margin between victory and defeat been so thin as in HSBC Bank USA v. Roumiantseva, where a paper clip — yes, a paper clip — was the determining factor in a New York state court awarding summary judgment to the defendant-borrowers in a foreclosure action. The significance of the paper clip was rooted in provisions of the Uniform Commercial Code, says Christopher Gorman of Westerman Ball Ederer Miller Zucker & Sharfstein LLP.

  • New Data On Bank M&A Approvals — And Some Takeaways

    Mitchell S. Eitel

    Based on information in the Federal Reserve’s recent Semiannual Report on Banking Applications Activity and our own analysis of application approval data, Federal Reserve approval is obtainable, even for relatively large, complex or protested bank mergers, within six to 12 months in the vast majority of cases, say attorneys with Sullivan & Cromwell LLP.

  • The Problems With SEC’s Cybersecurity Approach

    Brian Rubin

    A recent U.S. Securities and Exchange Commission enforcement action against the victim of a cyberattack suggests that a breach, in and of itself, is prima facie evidence that a firm’s procedures were not reasonable. This strict liability standard and post hoc rationale eliminates the need to establish any causal relationship between the alleged procedural inadequacies and the breach, say Brian Rubin and Charlie Kruly of Sutherland ... (continued)

  • Questions Remain Over Chapter 11 Application Of Bullard

    Derek L. Wright

    Since the U.S. Supreme Court’s opinion in Bullard v. Blue Hills Bank came down in May, lower courts have cited it with, at best, mixed results. While such courts have begun relying on Bullard in Chapter 11 cases, they’ve done little to uniformly answer the question of what effect, if any, Bullard has on the finality of Chapter 11 bankruptcy orders, says Derek Wright of Foley & Lardner LLP.