Banking RSS

  • April 17, 2014

    SEC Unveils Layout For Cybersecurity Examinations

    The U.S. Securities and Exchange Commission has outlined a plan to conduct a series of examinations of Wall Street firms in order to assess their readiness to prevent and respond to attacks on cybersecurity, according to documents released Wednesday.

  • April 17, 2014

    IBS Investment Bank Launches $225M Real Estate Fund

    IBS Investment Bank, a division of Florida's Institutional Banking Services NA Corp., said on Thursday that it has launched the IBS Small Balance Investment Real Estate Fund VI, an open-ended $225 million fund dedicated to small balance real estate.

  • April 17, 2014

    Bankrupt Dolan Co. Gets Nod For $10M DIP Package

    A Delaware bankruptcy judge on Thursday gave final approval for the Dolan Co.'s proposed $10 million debtor-in-possession financing package, which the business information firm and mortgage default processor can tap as it moves ahead with a restructuring plan centered on a debt-for-equity swap with a unit of H.I.G. Capital LLC.

  • April 17, 2014

    Industry Groups Warn Fed Of Bank Commodities Rule Risks

    Industry groups representing financial services firms, private equity firms and manufacturing companies asked the Federal Reserve to rethink a proposal for limiting banks' holdings of physical commodities as the comment period for the plan drew to a close Thursday.

  • April 17, 2014

    Executors Of BMS CEO's Estate Can't Shake $6M Tax Suit

    A New York state judge refused to allow two relatives of former Bristol-Myers Squibb Co. CEO Richard L. Gelb to ditch a $6 million lawsuit filed against them by a Deutsche Bank AG subsidiary last week, saying a future legal proceeding will likely find they owe the subsidiary almost $900,000 in tax preparation expenses. 

  • April 17, 2014

    MasterCard To Buy Rewards Program Manager Pinpoint

    MasterCard International Inc. will buy Sydney, Australia-based loyalty and rewards services provider Pinpoint Pty Ltd., the companies said on Thursday, in a deal designed to enhance the rewards programs that MasterCard can offer to its customers.

  • April 17, 2014

    Clifford Chance Review Finds No Evidence Of RBS Client Fraud

    An independent review by law firm Clifford Chance LLP commissioned by The Royal Bank of Scotland PLC released Thursday found that the troubled British bank did not push clients into default in a bid to boost its own profits and take over real estate assets, as alleged by a government report last year.

  • April 16, 2014

    Nelnet Picks Up CIT Group Student Loan Unit, $3.6B Debt

    Nelnet Inc. has agreed to buy CIT Group Inc.’s student lending business, the companies announced Wednesday, adding about $3.6 billion in student loans to Nelnet’s portfolio.

  • April 16, 2014

    Morgan Stanley Can't Shake Oligarch's Securities Action

    A New York federal judge has refused to dismiss an insider trading and market manipulation lawsuit brought against Morgan Stanley and affiliates by a Russian oligarch-owned firm, ruling the issues raised in the case are not identical to those decided by a related arbitration, according to court documents unsealed Wednesday.

  • April 16, 2014

    NY AG's High-Speed Trading Probe Heats Up, Report Says

    New York Attorney General Eric Schneiderman’s office has sent subpoenas to at least a half-dozen New York- and Chicago-based firms specializing in high-frequency trading, the latest step in his investigation into whether those firms have an unfair advantage in the market, according to a report Wednesday.

  • April 16, 2014

    Money Centers Decries Ch. 11 Trustee Bid, Wants Auction

    Money Centers of America Inc. and its senior secured lender pushed back against attempts to have a Chapter 11 trustee appointed in its Delaware bankruptcy case, arguing Thursday that do so would scuttle the proposal to sell the debtor's assets in a bankruptcy auction.

  • April 16, 2014

    5 Ways Banks Can Defend Against Cyberattacks

    Regulators and customers are putting pressure on banks to increase their vigilance against cyberattacks even as they try to get a handle on the amount of damage caused by the recently revealed “Heartbleed” online security hack.

  • April 16, 2014

    Capital One Escapes Patent Co.'s Online Banking Patent Suit

    A Virginia federal judge on Wednesday found in favor of Capital One Financial Corp. in a patent lawsuit brought by a patent holding company over technology for a budgeting database, holding that the two patents-in-suit are invalid because they claim only abstract ideas.

  • April 16, 2014

    FDIC Trumps Jackson Walker In Row Over Bank's Legal Fees

    A Minnesota federal judge on Wednesday found that Jackson Walker LLP must return to the Federal Insurance Deposit Corp. the remaining amount on a retainer paid by a Minnesota-based bank that collapsed after it tried to convert to a Texas state savings bank.

  • April 16, 2014

    Deutsche, UBS Overcome $166M UK Tax Scheme Suit

    Deutsche Bank and UBS scored a $166 million victory on Wednesday in a United Kingdom court battle over an alleged scheme to avoid paying taxes on employee bonuses.

  • April 16, 2014

    TD Bank, Class Get Approval Of $6M Deal Over FLSA Suit

    A Pennsylvania federal judge on Monday gave his first green light to a $6 million deal to settle a class action against TD Bank NA alleging that the bank stiffed its employees payments for duties they had performed prior to the start of their shifts in violation of the Fair Labor Standards Act.

  • April 16, 2014

    Saudi Co.'s Bribery Suit Shouldn't Be In NY, Swiss Bank Says

    Private Swiss bank Pictet & Cie on Wednesday sought to extinguish a Saudi Arabian oil investment company's lawsuit alleging it aided employees in a kickback scheme that cost it $350 million, saying the action clearly doesn’t belong in New York.

  • April 16, 2014

    UK Court Rejects Madoff Feeder Fund's Clawback Suit

    A U.K. appeals court decided Wednesday that Fairfield Sentry Ltd., which fed billions of investor dollars into Bernard Madoff's notorious Ponzi scheme, couldn't recover payments made to investors who redeemed their shares before the scheme collapsed because certificates documenting the transactions were binding.

  • April 16, 2014

    Lucchese Associate Asks For Mistrial Due To Court Ejection

    A reputed Lucchese crime syndicate associate on Monday sought a mistrial in his prosecution for allegedly draining $12 million from a mortgage lender and forcing its bankruptcy, claiming a New Jersey federal judge infringed his rights and tainted the jury by ejecting him from court.

  • April 16, 2014

    CFTC Demands $645M Penalty For Peregrine Fraud

    The U.S. Commodity Futures Trading Commission asked an Illinois federal court on Wednesday to hit bankrupt Peregrine Financial Group Inc. with a monetary penalty of $645 million, nearly three times the amount of total investor losses from the brokerage firm’s nearly 20-year fraud and embezzlement scheme. 

Expert Analysis

  • Light On The Horizon For 'Bad Boy' Guarantors

    Janice Mac Avoy

    In keeping with commercial real estate guarantors’ expectations of what it means to sign a “bad boy” guaranty, the Southern District of New York’s ruling in CP III Rincon Towers v. Cohen has turned the tide against recent decisions that purport to apply “plain language” in a way that causes commercially unreasonable and absurd results, say Janice Mac Avoy and Gregg Weiner of Fried Frank Harris Shriver & Jacobson LLP.

  • The 6 Most Important Changes To Russian Pledge Rules

    Alexey Kukharev

    Among the most significant changes being made to the Russian Civil Code is the introduction of the security trustee concept, which will strengthen syndicated lending and asset-backed security structures involving Russian collateral, and will bring the Russian legal system into harmony with the most developed legal systems in the world in this area, says Alexey Kukharev of Orrick Herrington & Sutcliffe LLP.

  • Know Your Red Flags For The Identity Theft Red Flag Rule

    John S. Servidio

    With data privacy and identity theft being a top issue for the national media and federal regulators, even organizations not subject to the Fair Credit Reporting Act’s Red Flags Rule should consider implementing an identity theft prevention program to manage business and legal risk due to data breaches, say John Servidio and Amy Worley of McGuireWoods LLP.

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.

  • Reading Between The Whistleblower Headlines

    Shanti Atkins

    The meteoric media rise of the “celebrity” whistleblower has shone a spotlight on the practice, with personalities such as Chelsea Manning and Edward Snowden dividing public opinion on the ethics of spilling secrets. But organizations should pay close attention to the surge in this trend beyond the headlines. Remember, whistleblowers don’t need to be popular to be effective, and opinions on their motives and morality are entirely secondary to the critical issues they potentially uncover, says Shanti Atkins of Navex Global.

  • Heartbleed Rains On The Legal Cloud Parade

    David Houlihan

    While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.

  • The Lessons And Limitations Of Chadbourne V. Troice

    Fred Isquith

    The U.S. Supreme Court's ruling in Chadbourne & Parke LLP v. Troice is unlikely to have a sweeping effect on securities or class action litigation. However, professions engaged in assisting clients obtain financing will likely change their internal controls to avoid potential problems in the future — we may even see law and accounting firms called into court to justify their actions, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.

  • EU Sanctions May Criminalize Some US Business Activity

    Peter McMaster

    Given the extra-territorial character of the European Union's new financial sanctions against targeted Russians and Ukrainians, a person can aid and abet the commission of an offense by taking steps whose only effect is to facilitate a transaction. This places law firms, investment businesses and others engaged in international transactions at risk of accessory liability through their everyday work, says Peter McMaster of Appleby Global Group Services Ltd.

  • The British (Financial Regulatory Principles) Are Coming!

    Manley Williams

    Regulation of financial products and services in the United States historically has relied on rules-based regulatory policy, governing business processes including disclosures relating to terms, pricing, structure and marketing. The U.K. has been a leader in applying principles-based regulation, which governs conduct at a higher level of generality. It is clear that strands of the British approach are gaining hold in the U.S., say attorneys with BuckleySandler LLP.

  • Will Dodd-Frank’s Diversity Mandates Go Far Enough?

    Doreen E. Lilienfeld

    Section 342 of the Dodd-Frank Act and recent diversity standards proposed by regulated agencies may impact employment and recruiting practices, but it is unclear whether they will actually lead to greater diversity and inclusion at financial services institutions. To begin with, there is no enforcement mechanism under Section 342, and the proposed standards do not mandate reporting, disclosure or other specific actions, say Doreen Lilienfeld and Amy Gitlitz Bennett of Shearman & Sterling LLP.