Banking

  • September 26, 2016

    DOL Launches Wells Fargo Employment Probe Amid Scandal

    The U.S. Department of Labor said Monday it has launched a "top-to-bottom" review of Wells Fargo & Co. employment practices over the past several years in light of revelations the bank instituted an aggressive sales strategy that resulted in the opening of millions of unauthorized accounts.

  • September 26, 2016

    Fed’s Stress Test Relief Unlikely To Stave Off Challenge

    While the Federal Reserve’s top regulatory official outlined plans Monday to make annual stress tests more predictable for regional banks, he said the Fed would hold firm in its refusal to give the biggest banks a peek at the testing process, even amid rumors of a potential legal challenge.

  • September 26, 2016

    EverBank Investors Sue To Stop $2.5B Sale To TIAA

    A putative class of investors opposed to EverBank Financial Corp.’s $2.5 billion acquisition by TIAA asked a Florida federal court Monday to block the deal by stalling a stockholder vote, saying the buyout benefits the bank’s board but not its stockholders and that a regulatory filing supporting the deal was misleading.

  • September 26, 2016

    Lehman Fights $23M Interest Demand Over Reinsurance Claim

    Lehman Brothers on Monday urged a New York bankruptcy judge to reject a demand for approximately $23 million in interest from a group of investors including Centerbridge Partners and a JPMorgan Chase subsidiary that hold claims arising from the failed banking firm’s Bermuda-based reinsurance unit, Lehman Re.

  • September 26, 2016

    Tilton Unlikely To Prevail In High Court Quest, SEC Says

    The U.S. Securities and Exchange Commission has responded to private equity magnate Lynn Tilton's application at the U.S. Supreme Court for a stay of a $200 million in-house fraud case against her and Patriarch Partners, saying there are other avenues available to her.

  • September 26, 2016

    6 Banks Team With Tech Startup To Form Blockchain Network

    Six financial institutions have agreed to form a first of its kind interbank group to conduct payments based on blockchain technology, the same system that underpins the digital currency bitcoin, according to a statement on Friday from Ripple, a financial technology startup leading the endeavor.

  • September 26, 2016

    Fla. Judge Says Spokeo Kills Delayed Mortgage Doc Case

    A Florida federal judge tossed a proposed class action accusing CitiMortgage and Citibank of violating New York law by failing to provide certificates of discharge for customers' mortgages in a timely manner, holding Monday that the plaintiff didn’t establish concrete harm as required by the U.S. Supreme Court’s landmark Spokeo decision.

  • September 26, 2016

    TitleMax Parent Gets $9M CFPB Fine For Abusive Lending

    Auto title lender TitleMax's parent company will pay $9 million for luring consumers into more costly loans and illegally sharing borrowers’ debt information with others during “field visits” to borrowers’ homes and workplaces, the Consumer Financial Protection Bureau said Monday.

  • September 26, 2016

    Chase Bankers Lose Class Cert. Bid In FLSA Overtime Suit

    A California federal judge on Monday shot down a bid for class certification in a Fair Labor Standards Act suit against from J.P. Morgan Chase & Co. for underpaid wages, saying a former private client banker didn't prove others in his role had similar experiences of being forced to work off-the-clock.

  • September 26, 2016

    SEC Adds 30 Days For Comment On Disclosure Requirements

    The U.S. Securities and Exchange Commission said Friday it is giving commenters an extra month to respond to a controversial proposal to amend the agency's disclosure requirements, saying several letters it has already received call for an extension of the public’s time for comment.

  • September 26, 2016

    Justices Told JPMorgan Shouldn't Get $69M IP License Refund

    In a case that seeks to overturn a $69 million refund to JPMorgan Chase & Co., the holder of a check-processing patent has asked the U.S. Supreme Court to consider whether "most favored licensee" agreements allow for refunds if another licensee later gets a better deal.

  • September 26, 2016

    US Says Chinese Trading Co. Evaded N. Korea Sanctions

    The U.S. has accused a Chinese trading company of helping a North Korean corporation get around sanctions and access the U.S. financial system via shell companies with the help of Mossack Fonseca, according to a criminal indictment unsealed on Monday.

  • September 26, 2016

    Deutsche Won't Get German Bailout In $14B US RMBS Tiff

    Shares of Deutsche Bank AG swooned Monday after a German publication said its CEO has been told by no less an authority than Angela Merkel that the bank can't expect financial or diplomatic backing from Germany in its $14 billion fight with the U.S. over the allegedly unlawful sale of risky residential mortgage-backed securities.

  • September 26, 2016

    Lloyd's Underwriter Sues Saudi Prince, Banks Over 9/11 Ties

    A Lloyd's of London underwriting manager sued a senior Saudi prince Friday along with several charities and banks it alleges helped al Qaeda in the years leading up to the 9/11 attacks, with a New York federal court complaint seeking $312 million in total damages.

  • September 26, 2016

    AmEx Loss In DOJ Anti-Steering Suit Reversed By 2nd Circ.

    The Second Circuit on Monday reversed a win by the U.S. Department of Justice in a suit accusing American Express of violating antitrust laws by imposing rules barring merchants from steering consumers to other credit card brands, saying the lower court ruling considered only one side of the market.

  • September 26, 2016

    Silver Investors Say Forex Ruling Proves Standing

    A recent decision in favor of foreign exchange market investors supports the standing of silver investors who claim they were victims of price manipulation by major banks, the traders told a New York federal judge in a letter Friday.

  • September 26, 2016

    Merrill Lynch Pays $15.5M In ‘Mini-Flash’ Crash Fines

    Merrill Lynch has agreed to pay $15.5 million in fines to the Securities and Exchange Commission and several stock exchanges to end allegations that it failed to prevent erroneous trading orders that caused numerous “mini-flash” crashes, including one that caused Anadarko Petroleum’s market value to plunge $45 billion before recovering, the SEC and the exchanges announced Monday.

  • September 26, 2016

    4 Things Real Estate Lawyers Need To Know About Basel III

    Although rules stemming from international banking standard Basel III have been in place in the U.S. since the beginning of 2016, lawyers say banks continue to be confused about which types of loans require additional capital on the books. Here, Law360 looks at four things real estate lawyers should know as they try to make sense of Basel III.

  • September 23, 2016

    Wells Fargo Hit With $2.6B Suit Over Scam-Related Firings

    Wells Fargo was slapped with a $2.6 billion putative class action in Los Angeles County Superior Court Thursday on behalf of the bank’s California workers who were allegedly fired or demoted for refusing to participate in the company’s recently revealed unauthorized account scam.

  • September 23, 2016

    Ex-Tribe Leaders Knock Judgment Bid In Embezzlement Row

    Four former Paskenta Band of Nomlaki Indians officials accused by the tribe of a sprawling embezzlement scheme blasted current tribal leaders’ request to finalize their escape from the dispute in California federal court Thursday.

Expert Analysis

  • You Don’t Need A Data Breach To Face Regulatory Scrutiny

    Kim Peretti

    One side effect of the rise in bug bounty programs, and disclosures by security researchers and others, is a commensurate increase in publicly known security vulnerabilities that can lead to increased scrutiny from regulators and the plaintiffs bar, says Kim Peretti, co-leader of Alston & Bird LLP's cybersecurity preparedness and response team.

  • In Congress: Ticktock

    Richard Hertling

    With five days to go before a government shutdown, the parties are not that far apart, but those differences have proven difficult to resolve, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • Voluntary Self-Identification Of Virtual Currency Users?

    headshot 2015.jpg

    Our view is that a system of voluntary self-identification of virtual currency users could be a ground-breaking development in the world of virtual currency. Is it something that is coming further down the line or maybe a significant opportunity is being missed here? ask members of Locke Lord LLP.

  • OPINION: CFPB Payday Loan Rule Ignores Existing Research

    Dennis Shaul

    In its new regulations covering payday loans the Consumer Financial Protection Bureau asserts that compelled reborrowings associated with these types of loans are harmful to consumers. However, a careful review of the economic literature shows that this concept is manufactured in order to support what appear to be the CFPB’s prejudices about how this market should operate, says Dennis Shaul, CEO of the Community Financial Services ... (continued)

  • SDNY's 1st Post-Newman Insider Trading Conviction

    Alexis Yee-Garcia

    Because of Newman, prosecutors in the Southern District of New York are required to show that a tipper of inside information received a personal benefit “that is objective, consequential, and represents at least a potential gain of a pecuniary or similarly valuable nature” to trigger liability. The Sean Stewart case now helps define that standard, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Overhauling Law Firm Records Departments For A New Reality

    Raymond Fashola

    As automation increases, so do business challenges that impact overall law firm operations. Records departments are facing roadblocks associated with antiquated processes, ever-changing regulatory requirements, and emerging technologies. As a result, firms are reassessing the needs of their records department staffing models, says Raymond Fashola of HBR Consulting.

  • What’s In Your Obligations Inventory?

    Conway Dodge

    While entities regulated by the U.S. Securities and Exchange Commission are familiar with their compliance obligations, many of them haven't gone through the inventory-mapping process that banking regulators are signaling is now needed. To serve as a useful compliance tool rather than a laundry list of rules and regulations, the obligations inventory must be tailored to the financial institution’s business and risk profile, say for... (continued)

  • New York Sets Uncomfortable Cybersecurity Precedent

    Brian E. Finch

    New York's recently proposed cybersecurity regulations for financial institutions are very broad and expose senior officers and board members to all manner of penalties. One can expect that other states will follow with similar regulations, says Brian Finch, co-chairman of Pillsbury Winthrop Shaw Pittman LLP's privacy practice.

  • A Compelling Case For Uniform Wage Garnishment Laws

    William H. Henning

    Employers often have a Herculean task complying with the welter of current wage garnishment laws that differ from state to state. The newly proposed Uniform Wage Garnishment Act aims to solve this challenge by creating a more consistent approach that largely removes the garnishment process from the courts, says William Henning, executive professor of law at Texas A&M University School of Law.

  • FDIC Plan To Improve Appeal Process Doesn't Go Far Enough

    Pinchus Raice

    Current Federal Deposit Insurance Corp. guidelines contain numerous deficiencies that significantly curtail a bank’s access to the intra-agency appeal process. While recently proposed amendments address some of the long-standing failings, they have significant shortfalls, say attorneys with Pryor Cashman LLP.