Banking

  • March 4, 2015

    Proskauer, Chadbourne Get Stanford Ponzi Suit Trimmed

    A Texas federal judge on Wednesday partially dismissed claims brought by investors victimized by Robert Allen Stanford's $7 billion Ponzi scheme against Proskauer Rose LLP and Chadbourne & Parke LLP for allegedly aiding the fraud, but let the bulk of the claims move forward.

  • March 4, 2015

    SEC Small Biz Group Warns On Accredited Investor Rewrite

    An advisory committee to the U.S. Securities and Exchange Commission on issues affecting small public companies urged the agency on Wednesday not to tinker too much with the definition of an accredited investor, lest it squeeze out older individuals, women and minority entrepreneurs from the private securities market.

  • March 4, 2015

    Tight Bank Oversight Could Offset Stress Test Predictability

    Critics of Wall Street banks have begun to argue that the Federal Reserve’s stress testing process has become too predictable and easy to game, but that predictability may not matter if there is tight enough supervision of the largest institutions, experts say.

  • March 4, 2015

    SEC Tries To Cash In On Tossing Of In-House Court Challenge

    Attorneys for the U.S. Securities Exchange Commission on Wednesday asked a New York federal judge to toss a former Standard & Poor’s Rating Services executive's challenge to the agency's in-house court, citing a recent decision by a different judge to throw out a similar complaint raising the same constitutional challenges.

  • March 4, 2015

    Lehman Settles Bond Swap Fight Over Giants Stadium

    Lehman Brothers Holdings Inc. has put to rest a lingering dispute over soured swaps deals to finance the construction of MetLife Stadium, reaching a settlement with an affiliate of the New York Giants football team that claimed it was owed $302 million on interest hedges.

  • March 4, 2015

    Deals Rumor Mill: ZF, Hellman & Friedman, Qatar Airways

    ZF Friedrichshafen AG's $13.5 billion acquisition of U.S. rival TRW Automotive Holdings Corp. is likely to be approved by the European Union, while Hellman & Friedman and Fortress Investment Group are planning to offer up to $2.6 billion to buy Istituto Centrale delle Banche Popolari Italiane SpA.

  • March 4, 2015

    Madoff Investors Win Class Cert. In Suit Against PwC, Citco

    A New York federal judge on Tuesday again certified a class of investors accusing PriceWaterhouseCoopers LLP and Citco Group Ltd. of misleading them about the quality of feeder funds involved in Bernie Madoff’s Ponzi scheme after the Second Circuit vacated his previous decision in 2014.

  • March 4, 2015

    Split 9th Circ. Won't Let FDIC Flout Failed Bank's Contracts

    The Ninth Circuit ruled Wednesday that the Federal Deposit Insurance Corp. can’t breach private contracts that insolvent banks struck with other parties before the FDIC stepped in and took those banks over, finding that a federal law didn’t preempt a community bank’s claims.

  • March 4, 2015

    FSB Jumps Forward On Boundaries For SIFI Asset Managers

    The Financial Stability Board on Wednesday released a second round of research in its effort to delineate systemically important financial institutions beyond the bank and insurer categories.

  • March 4, 2015

    Sullivan & Cromwell Denies Witness Coaching In FHFA Suit

    Sullivan & Cromwell LLP fought back Wednesday against accusations made by the Federal Housing Finance Agency that the firm does not have a bona fide relationship with four trial witnesses in mortgage-backed securities litigation and its representation of them is nothing more than a strategy to coach witnesses.

  • March 4, 2015

    SEC Seeks $99M From Convicted McGinn Smith Brokers

    The U.S. Securities and Exchange Commission on Tuesday asked a New York federal judge to order two McGinn Smith & Co. brokers accused of a $126 million investment scheme to pay $87,433,200 in disgorgement fees and $11,668,000 in prejudgment interest, less than half of the amount in penalties that the commission had lobbied for last month.

  • March 4, 2015

    2nd Circ. Wary Of Expanding Bank Cardholder Arbitration Bar

    The Second Circuit  appeared unwilling Wednesday to extend an arbitration bar from bank cardholder litigation to an overdraft fee consumer class action against JPMorgan Chase & Co., because the latter was funneled into arbitration based on a checking account — not a cardholder — agreement.

  • March 4, 2015

    Goldman, JPM Biz Units, Others Axed From Aluminum MDL

    A New York federal judge this week trimmed various business entities of Goldman Sachs Group Inc., JPMorgan Chase & Co., Glencore PLC and others from multidistrict litigation accusing them of manipulating aluminum prices, citing both pleading deficiencies and jurisdiction issues.

  • March 4, 2015

    Temenos Pays Summit Partners $260M For Multifonds

    Temenos Group AG has agreed to buy fund administration software provider Multifonds from private equity firm Summit Partners for €235 million ($260.23 million), the companies said Wednesday, in a deal designed to bolster the Swiss banking software maker's scale and product offerings.

  • March 4, 2015

    Citi Settles With Military Members Over Mortgage Interest

    CitiMortgage Inc. agreed on Tuesday to pay $2.2 million to end a class suit accusing the company of violating a federal statute capping interest payments on military service members’ mortgages, weeks after the U.S. Department of Justice revealed the bank would pay nearly $15 million to foreclosed-upon service members.

  • March 4, 2015

    ING Exits Insurance Biz With $2B Stock Sale And Repurchase

    ING Groep NV said on Wednesday that it has completed its exit from New York-based insurance and investment company Voya Financial Inc. by selling its remaining stake for roughly $2 billion total via a secondary public offering and stock repurchase, marking the end of ING's 40-year foray into the world of insurance.

  • March 3, 2015

    Yellen Says Overall Stability Is Priority In Bank Oversight

    Federal Reserve Chair Janet Yellen said that the regulator is prioritizing overall financial stability in its supervision and regulation of large banks, looking at not only individual firms, but also the way those firms interconnect and do business with one another.

  • March 3, 2015

    EFH Wants Creditors Blocked From Targeting LBO Debt

    Energy Future Holdings Corp. on Tuesday resisted unsecured creditors’ request for authorization to attack holders of $24.8 billion in first-lien debt used to finance the bankrupt energy giant’s boom-era buyout, citing the potential disruption to restructuring negotiations.

  • March 3, 2015

    'Body And Brain' Ruling To Keep Delaware Experts On Toes

    A Delaware Chancery Court ruling that expert witnesses must possess "a body and brain" to testify was a cheeky way to tell parties not to designate corporate entities as witnesses, but it also goes to the heart of a challenge for litigators, which is to ensure their experts were hands-on with the research they’ll testify about.

  • March 3, 2015

    JPMorgan Tries To Harpoon 'London Whale' ERISA Suit

    JPMorgan Chase & Co. on Tuesday urged a New York federal judge to dismiss an employee class action claiming their retirement plan tanked after the $6 billion “London Whale” fiasco, arguing that disclosing the allegedly risky trading earlier would have caused the stock to fall farther.

Expert Analysis

  • Law Firm Tensions Mount In Africa — What Does It Mean?

    Steve Blundell

    Tensions are perhaps inevitable in a fast-growing market such as Africa where international law firms are gearing up for a greater level of market entry, and where the independent firms remain highly reliant on referrals from these same firms. But the questions facing both types of firms go to the heart of short-term expedient versus long-term strategy, says Steve Blundell of Redstone Consultants.

  • A Close Look At Recent UDAAP Actions: Part 2

    Stephanie Robinson

    In 2014, the Federal Trade Commission was increasingly active in pursuing “cramming” cases as unfair or deceptive acts or practices, and the Consumer Financial Protection Bureau entered the field by filing its first cramming case. The consumer finance industry also saw continued UDAAP enforcement at the state level, say attorneys with K&L Gates LLP.

  • Crunching The Numbers In NYDFS' Cybersecurity Report

    Mary Jane Wilson-Bilik

    While all insurers surveyed in the New York Department of Financial Services' cybersecurity report claimed to have engaged in penetration testing of their systems, the NYDFS noted that the results of this testing can become quickly outdated as new threats emerge, say Mary Jane Wilson-Bilik and John Pruitt of Sutherland Asbill & Brennan LLP.

  • A Close Look At Recent UDAAP Actions: Part 1

    Soyong Cho

    In the last few years, consumer financial services companies have increasingly faced the new darling tool of government enforcers — the prohibition of unfair, deceptive, or abusive acts or practices. The challenge of UDAAP compliance is that its standards are intentionally broad and inherently flexible, and regulators have expressly stated that compliance with a consumer financial services law is no defense to a UDAAP claim, say at... (continued)

  • Swipe Fee Litigation Isn’t Over Yet

    Barkley Clark

    It is premature for U.S. bank issuers to claim a complete victory in the debit card swipe fee litigation based on the U.S. Supreme Court’s recent denial of certiorari in NACS v. Board of Governors of the Federal Reserve System. The D.C. Circuit left one bone to pick with the Federal Reserve Board, say Barkley Clark of Stinson Leonard Street LLP and Barbara Clark of the Commercial Law Institute.

  • Lawsky Speech Portends Strict NY Cybersecurity Standards

    Alexander H. Southwell

    In a Feb. 25 speech, Superintendent Benjamin Lawsky of the New York Department of Financial Services advanced his view that states can play a “catalytic” role in raising cybersecurity practices, and he appears to be seeking regulation that could require third-party vendors in sectors far from the regulatory purview of the DFS — including law firms — to effectively comply with stringent cybersecurity requirements, say attorneys with... (continued)

  • Key Employment And Immigration Issues Facing Banks Today

    James R. Wiley

    Many banks are facing class actions for not compensating nonexempt employees for compensable work. These lawsuits are costly and hard to defend. Meanwhile, foreign nationals create a potential new client base, but the issue is whether to offer services to undocumented individuals, say attorneys with Carlton Fields Jorden Burt LLP.

  • From .Com To .Bank: What Financial Institutions Need To Know

    Eleanor Yost

    Trademark and brand owners can leverage the new .bank Internet domain as yet another way to build a company’s brand online. Importantly, however, the anticipated flood of new “real estate” that will become available as part of the .bank release will be tempered by mandated security measures, say attorneys with Goodwin Procter LLP.

  • Lenity And Deference On A Collision Course

    Michael Y. Kieval

    It is clear that at least two U.S. Supreme Court justices are willing to address the issue of deference to the agency interpretation of criminal or hybrid statutes. It is less clear whether the court is interested in curbing the use of administrative adjudication to make law. Both of these trends carry particular importance for the financial services industry, say attorneys with Weiner Brodsky Kider PC.

  • Recent Lessons In Anti-Money Laundering Compliance

    Emily P. Gordy

    Chief compliance office liability continues to be one of the hottest topics in the regulatory community. Two recent enforcement actions against anti-money laundering compliance officers not only highlight the issue but also offer a number of lessons for any current or prospective AMLCO, say Emily Gordy and Renée Kramer of Shulman Rogers Gandal Pordy & Ecker PA.