Banking

  • July 22, 2016

    IMF Head To Stand Trial In Negligence Case In France

    A French court on Friday ordered International Monetary Fund Managing Director Christine Lagarde to face a criminal trial on charges of negligence stemming from her time as finance minister, in a case involving the sale of Adidas by a well-known French billionaire, according to a report.

  • July 22, 2016

    Venezuela Beats Investors' $100M Suit Over Fake Notes

    An Ohio federal judge on Friday denied a claim made by an investment firm seeking to recover $100 million it held in notes purportedly backed by Venezuela, saying the notes originally issued by a now-defunct, state-sponsored Venezuelan bank were fraudulent.

  • July 22, 2016

    Ex-Exec Reaches $280M FTC Deal Over I Works Fraud

    Former investment company executive Ryan Riddle was ordered to pay $280 million to the Federal Trade Commission on Thursday as part of a settlement deal reached in the agency’s investigation of I Works Inc., according to Nevada court documents, and refrain from future similar business activities.

  • July 22, 2016

    9th Circ. OKs Morgan Stanley’s Firing Of Elected Official

    Morgan Stanley did not err in terminating a financial adviser after his election as supervisor of a California county, the Ninth Circuit ruled Thursday, finding he was fired for a "legitimate, apolitical reason."

  • July 22, 2016

    AIB Urges Court To Nix Fund's Suit Due To Forum-Shopping

    Allied Irish Banks PLC urged Delaware’s Chancery Court on Thursday to reject a private investment fund’s claim to Delaware court "forum deference" in its tender offer dispute with the bank, arguing that alleged forum-shopping efforts by the fund in Illinois justify dismissal.

  • July 22, 2016

    US, HSBC Urge 2nd Circ. To Block Money Laundering Report

    The U.S. and HSBC Bank USA NA both told the Second Circuit Thursday to vacate a lower court’s decision to partially unseal a report into the bank's failures to combat money laundering, saying the document is irrelevant to any judicial function.

  • July 22, 2016

    Congo Foe In Pursuit Of $800M Award Can See Plane Docs

    A public works contractor seeking an $800 million arbitral award from the Republic of the Congo must be granted access to a bank’s documents on a Boeing jumbo jet it holds in trust for Congo’s state-owned airline, whether or not it can actually seize the plane, a Utah federal judge has ruled.

  • July 22, 2016

    Compliance Pros Must Stay On Their Toes, KPMG Experts Say

    Compliance professionals at banks and other financial firms have faced a whiplash-inducing array of regulatory changes and a stomach-churning uptick in enforcement over the last 15 years as the government has responded to terror attacks and financial crises, and even with those changes, they should prepare for more, KPMG LLP’s top experts say.

  • July 22, 2016

    Why Gibson Dunn Lost A Big Case To An Old Conflict

    Gibson Dunn apparently missed a relationship with a Second Circuit judge when it agreed to represent private equity magnate Lynn Tilton, a slip experts said was likely an honest mistake but shows the difficulties of recognizing conflicts decades after a former partner has moved on but retains firm ties.

  • July 22, 2016

    CFPB Blasts Attys' Bid To Duck Morgan Drexen Judgment

    The Consumer Financial Protection Bureau asked a California federal judge Friday to ignore the recent filings of two lawyers ordered to pay $5.3 million for their alleged roles in the $173 million Morgan Drexen debt-settlement fee scam, saying the filings “regurgitate” already rejected arguments and are procedurally infirm.

  • July 22, 2016

    Bradley Arant Adds Team of Lawyers From Maynard Cooper

    Bradley Arant Boult Cummings LLP grabbed two partners for its corporate and securities team and a partner for its real estate and banking team in Birmingham, Alabama, the firm said Tuesday, adding that all three of the new additions hail from Maynard Cooper & Gale PC.

  • July 22, 2016

    Capital One Brass Urge Chancery To Ax Laundering Claims

    Capital One Financial Corp.’s directors urged the Delaware Chancery Court on Friday to throw out derivative claims that the bank holding company had weak internal controls to stop money laundering, arguing the suing shareholder is cherry picking information from compliance reports and is nowhere near alleging bad faith.

  • July 22, 2016

    SEC Fights To Keep Grip On Insider-Trading Victory

    Federal securities regulators on Friday defended civil verdicts against two brokers who traded on a $1.2 billion IBM deal before it was public, citing a jury's unanimity and the volume of evidence around each link of a complicated chain as reasons for a New York federal judge not to grant a new trial.

  • July 22, 2016

    NovaStar Successor Files For Ch. 11 Protection

    Novation Cos. Inc., a former subprime mortgage lender once known as NovaStar Financial Inc., filled for Chapter 11 bankruptcy protection, according to papers filed Wednesday in federal bankruptcy court in Maryland.

  • July 22, 2016

    Pa. Court Partially Revives $2.6M Real Estate Loan Dispute

    A Pennsylvania appeals court partially revived a suit brought by real estate company Telwell Inc. against a loan servicing company on Thursday, ruling that the lower court prematurely got rid of certain tort claims in the suit over an interest rate discrepancy on a $2.6 million loan.

  • July 22, 2016

    Bear Stearns Didn't Need Insurers' OK For Settlement: Judge

    A New York state judge has ruled that Bear Stearns did not necessarily trigger an exclusion to its insurance policy by entering a settlement with the U.S. Securities and Exchange Commission in 2006 without its insurers' permission, as the insurers had already made clear they were denying the claim.

  • July 22, 2016

    Chamber Of Commerce Criticizes Executive Incentive Pay Rule

    The U.S. Chamber of Commerce on Thursday said that a proposed rule to regulate incentive compensation for senior bank executives, traders and other financial services employees is fraught with problems and has the potential to chill the kind of risk-taking that spurs economic growth and job creation.

  • July 22, 2016

    Chicago Atty Wants PNC Sanctioned Over Hidden-Asset Suit

    A Chicago lawyer moved on Thursday to sanction Pennsylvania-based PNC bank for filing a federal lawsuit that he says is completely uncalled for because the bank knew about the assets it now claims he was hiding to avoid paying a $5 million judgment.

  • July 22, 2016

    UK Watchdog Weighs Tweaks To Capital Buffer Rulebook

    The U.K.’s Prudential Regulatory Authority proposed clarifications Friday to guidelines that set out how banks are supposed to calculate the amount of capital they have to hold to protect against market downturns.

  • July 22, 2016

    SEC Pushes For Lifetime Ban On Ex-Barclays Trader

    The U.S. Securities and Exchange Commission's Enforcement Division urged the agency to give a former Barclays trader a lifetime industry ban Friday, arguing that an administrative judge's one-year bar for stock-parking would send a "perverse" message.

Expert Analysis

  • 415 Million Reasons Why It’s Time To Hug A Whistleblower

    Jordan A. Thomas

    Five years in, the U.S. Securities and Exchange Commission’s whistleblower program is driving cases that are striking in their quality, significance and scope. Just as the SEC has harnessed the power of insiders, companies can and should utilize those same insiders to better protect their organizations, says Jordan Thomas, chairman of Labaton Sucharow LLP's whistleblower representation practice and a former SEC assistant director.

  • Brexit: An Unexpected Boost For UK Commercial Real Estate

    Michael Speranza

    Brexit has presented increased opportunities for investment in the U.K. commercial real estate market and while there is some uncertainty regarding value, lenders are still making funds available for real estate acquisitions and development, says Michael Speranza at Katten Muchin Rosenman UK LLP.

  • Gov't Contractor Sick Leave Rule Likely Excludes Banks

    Kenneth A. Rosenberg

    Banks and financial institutions have wondered for months whether they would be subject to a recent executive order requiring certain federal contractors to provide employees with paid sick leave. However, careful review of a U.S. Department of Labor notice shows it is highly unlikely the industry will be subject to this burdensome new requirement, say attorneys at Fox Rothschild LLP.

  • Substantial Assistance: The CFPB’s New Favorite Tool

    Ori Lev

    After initially leaving it unused, the Consumer Financial Protection Bureau has begun to make regular use of its substantial assistance authority. While subject to clear textual limits, based on its enforcement actions to date, the CFPB apparently intends to use the authority both as a fallback if other claims fail and to extend its jurisdictional reach where other theories are unavailable, say Ori Lev and Stephen Lilley at Mayer Brown LLP.

  • NY High Court's Ambac Decision Causes Litigation Confusion

    Savvas A. Foukas

    The New York Court of Appeals' recent decision in Ambac Assurance v. Countrywide Home Loans — limiting the common interest privilege — conflicts with the law of many other jurisdictions and creates significant uncertainties for commercial actors in subsequent litigation, say attorneys at Hughes Hubbard & Reed LLP.

  • Lehman Court Flip-Flops On Flip Provisions

    Patrick E. Fitzmaurice

    A recent decision from a New York federal judge in the Lehman Brothers bankruptcy case departs from precedent in the same case in determining that so-called “flip” provisions in swap agreements are protected by the Bankruptcy Code’s safe harbor provisions for swap agreement transactions, say Patrick Fitzmaurice and Stephen Roach of Troutman Sanders LLP.

  • VPN Dilemma: Anonymous Expression Vs. Defamation

    Adam C. Sherman

    The combination of cheap virtual private networks and federal law that protects websites from liability can cause serious problems for victims of online attacks. It will only get worse as VPNs become more popular. This is a situation where technology is outpacing the law, and it needs to be addressed, says Adam Sherman of Vorys Sater Seymour and Pease LLP.

  • How Law Firms Can Create Next-Generation Office Spaces

    Tere Blanca headshot (1).jpg

    Law firms today are recognizing that the process of creating a next-generation workplace is far more complex than relocating to a more modern space in a trendier part of town. The challenge is more significant for larger firms with multiple generations represented within their executive teams, says Tere Blanca, founder of Miami-based Blanca Commercial Real Estate Inc.

  • Lessons On SEC's Customer, Whistleblower Protection Efforts

    Carmen Lawrence

    The significant sanctions imposed recently against Merrill Lynch for violations of customer and whistleblower protection rules, and the accompanying announcement of a customer protection initiative, demonstrate the U.S. Securities and Exchange Commission’s serious focus on these areas. The situation of compliance staff, however, remains uncertain in the wake of Merrill, say attorneys with King & Spalding LLP.

  • SEC’s Cybersecurity Playbook

    Brian Rubin

    While the U.S. Securities and Exchange Commission’s cybersecurity playbook is just coming to light, it has clues about how the SEC views cybersecurity issues and, in particular, breaches. With adequate preparation, there should be no need to throw a Hail Mary pass or to deflate the SEC’s tires in the parking lot, say attorneys with Sutherland Asbill & Brennan LLP.