Los Angeles launched two suits Thursday accusing Wells Fargo & Co. and Citigroup Inc. of flooding minority neighborhoods with discriminatory mortgage loans that decimated local property values, sending property tax revenues down and government services costs soaring.
PNC Financial Services Group Inc. on Friday announced an $89 million settlement with Freddie Mac, making it the latest bank and the second within a week to bring to a close mortgage repurchase claims with the government-controlled firm.
Lloyds Banking Group PLC said Friday that it has unloaded a portfolio of nonperforming Irish retail mortgages in a £257 million ($420.4 million) sale to an affiliate of New York private equity firm Apollo Global Management LLC, another step in its sprawling divestment plan.
A federal judge signaled Thursday he might fine Bank of America Corp. more than $1 million, a penalty amount favored by the institution, for defrauding Freddie Mac and Fannie Mae through a mortgage program.
A former New Jersey fire commissioner was hit with an embezzlement suit in state superior court last week that accuses him of stealing $700,000 in taxpayer funds by allegedly using transactions that went undetected due to the negligence of TD Bank NA and Bank of America Corp.
A married couple sued Bank of America NA and Nationstar Mortgage on Tuesday in New Jersey federal court, accusing them of unfair and deceptive business practices that forced the couple into default and damaged their credit scores.
The Travelers Indemnity Co. recently fired off a lawsuit against Legal & General Group PLC and its affiliates in Connecticut federal court demanding that the U.K. financial services and insurance company stop using a logo the insurer says infringes the iconic Travelers umbrella mark.
The American Civil Liberties Union hit the Federal Housing Finance Agency with a suit alleging Freedom of Information Act violations in California federal court Thursday, claiming the agency has collaborated with the financial industry to block cities from using eminent domain to prevent foreclosures.
The Federal Reserve on Thursday told banks that they would be held responsible for any violations of federal banking regulations committed by third-party service providers, including compliance consultants.
Credit Suisse Group AG on Thursday said it is selling its German banking business to Dutch state-owned ABN Amro Bank NV, as the financial services giant increasingly focuses on services for the ultrarich.
Big changes could be coming to the Office of the Comptroller of the Currency after a review by international regulators found there was often a “material lag” between when examiners identified emerging risks and when the agency addressed them in new guidance.
Russian banking consortium VTB Group sold a 50 percent stake in Russian telecommunications company Tele2 AB for 40.4 billion rubles ($1.2 billion), the company said in third-quarter account statements released Thursday.
Investors can't get any discovery yet for their $450 million mortgage-backed securities lawsuit against Goldman Sachs Group Inc., a New York state judge ruled during a hearing Thursday, saying he first needed a better idea of if he'd dismiss it.
The Internal Revenue Service needs to improve an information technology service that will help the agency implement the Foreign Account Tax Compliance Act in order to ensure FATCA’s success, says a report released Thursday by the Treasury Inspector General for Tax Administration.
Treasury Secretary Jack Lew on Thursday said that a "tough" ban on proprietary trading that regulators are set to begin voting on next week will be a key part of a broad package of financial reforms that have brought to an end the era of "too-big-to-fail" banks.
The Judicial Panel on Multidistrict Litigation was slated to hear oral arguments on Thursday on whether to combine pretrial proceedings on a host of cases accusing Goldman Sachs Group Inc., JPMorgan Chase & Co. and others of striking anti-competitive warehousing agreements to artificially inflate the cost of storing aluminum.
BNP Paribas SA agreed to buy Poland's Bank Gospodarki Zywnosciowej SA from rival Rabobank for 4.2 billion zloty ($1.37 billion), the companies said Thursday.
The government of Canada announced Wednesday that it will tighten financial sanctions on North Korean trade and banking activity, following through on a resolution it helped to pass through the United Nations earlier this year.
Bank of America Corp. agreed Wednesday to pay $20 million to settle part of a multidistrict litigation accusing it and other financial institutions of bid-rigging in the municipal bond derivatives market.
The U.S. House of Representatives passed a measure Wednesday that would undo a Wall Street reform established through the Dodd-Frank Act by exempting nearly all private equity fund advisers from registration requirements with the U.S. Securities and Exchange Commission.
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.