Banking

  • September 4, 2015

    Nomura To Pay FHFA Up To $839M If 2nd Circ. Fight Flops

    Nomura Holdings Inc. and Royal Bank of Scotland Group PLC will pay an extra $33 million on top of $806 million in damages against them for selling risky mortgage securities to Fannie Mae and Freddie Mac if they fail in their appeal of the judgment at the Second Circuit.

  • September 4, 2015

    SIFMA Urges 5th Circ. To Vacate FDIC Extender Decision

    The Securities Industry and Financial Markets Association on Thursday told the Fifth Circuit that its decision reinstating the FDIC’s $2.1 billion mortgage-backed securities suit incorrectly interpreted a statute increasing its limitations period and conflicts with U.S. Supreme Court precedent.

  • September 4, 2015

    Geneva Wealth Managers Settle Investors’ Madoff Suit

    Five former directors of a Swiss wealth management firm have settled criminal claims that they lost $800 million in clients’ funds in Bernard L. Madoff’s Ponzi scheme, the Geneva prosecutor’s office announced Friday.

  • September 4, 2015

    Schwab Founder Can't Escape $25M Real Estate Fraud Suit

    A California judge on Friday denied Charles Schwab Corp. founder Charles Schwab Jr.'s bid to escape a suit alleging his son forced a business partner out of an eco-friendly real estate investment venture worth $25 million, ruling the business partner sufficiently alleges Schwab's son was acting on his behalf.

  • September 4, 2015

    BofA, Others Ask DC Circ. To Rethink Revival Of ATM Fee Suit

    Bank of America NA, JPMorgan Chase & Co., and Wells Fargo & Co. asked the D.C. Circuit on Friday for a panel rehearing of its early August decision that revived a putative class action claiming the banks and others conspired to stifle competition and inflate ATM fees.

  • September 4, 2015

    Highland Gets $288M From Credit Suisse For Land Deal Fraud

    A Texas state judge on Friday awarded a Highland Capital Management LP subsidiary about $288 million in its breach-of-contract and fraud inducement lawsuit against Credit Suisse AG, marking a win for the hedge-fund firm in its battle with the Swiss bank over luxury developments.

  • September 4, 2015

    Walter Mngmt Settles Reverse Mortgage Scam Suit For $30M

    Walter Investment Management Corp. will pay $29.6 million to settle federal allegations that through its subsidiaries, it submitted false reverse mortgage claims to the U.S. Department of Housing and Urban Development to reap referral fees and interest payments it was not entitled to, the Department of Justice announced Friday.

  • September 4, 2015

    SEC Floats Exception To Swap Data Repository Indemnity Rule

    The U.S. Securities and Exchange Commission proposed a new rule Friday for security-based swap data repositories that would implement the conditional requirement they make data available to regulators and that would provide an exemption to the Dodd-Frank Act’s indemnification requirement.

  • September 4, 2015

    Objectors Slam $10M Chase Robocall Settlement

    Two members of a 2.2 million-person class that agreed to a $10.2 million proposed settlement with JPMorgan Chase Bank NA in a Telephone Consumer Protection Act suit over robocalls objected to the agreement in Illinois federal court Thursday, saying the compensation package is unfair.

  • September 4, 2015

    Commodity Traders Apathetic On Abuse, UK Watchdog Warns

    The U.K.’s Financial Conduct Authority on Thursday warned that brokers and commodities trading firms are still complacent and not adequately keeping an eye out for market abuses in the trading of oil and metals.

  • September 4, 2015

    Judge Nixes 2 Intellectual Ventures Patents Under Alice

    A Maryland federal judge on Wednesday held that two mobile banking patents being asserted by Intellectual Ventures I LLC against Capital One Financial Corp. in a patent infringement and antitrust case are invalid as they claim abstract ideas under the U.S. Supreme Court's Alice standard.

  • September 4, 2015

    Fintech Boom Prompts Lawyers To Add Tech Know-How

    Payments startups and online lenders don't need a lawyer who can code new apps — what financial technology businesses need is an attorney with enough tech savvy to ask the right questions to get their products to market.

  • September 4, 2015

    Fed. Circ. Says Media Patent In Capital One Suit Is Indefinite

    The Federal Circuit affirmed a decision Friday that a patent for preventing unauthorized recording of copyrighted material is invalid as indefinite because it does not describe a structure for performing the claimed function, in a win for accused infringer Capital One Financial Corp.

  • September 4, 2015

    SEC's Gallagher Set To Leave Agency By Oct.

    U.S. Securities and Exchange Commission member Daniel Gallagher announced on Friday firm plans to leave the agency by early next month, putting additional pressure on the White House to name his replacement soon. 

  • September 4, 2015

    Deals Rumor Mill: GE, Hapag-Lloyd, Rokin, Jupiter Hotels

    Several major Japanese banks have lobbed bids to snatch up General Electric Co.'s Japanese commercial finance operations, German container shipper Hapag-Lloyd AG taps more banks to steer a potential initial public offering and South Korean logistics provider CJ Korea Express Corp. teams up with an investment group to acquire China's Shanghai Rokin Logistics Co.

  • September 4, 2015

    SEC's OxFam Loss May Open Floodgates To Deadline Suits

    The U.S. Securities and Exchange Commission may end up paying a price for blowing the tight deadlines Congress gave it for passing rules out of the Dodd-Frank Act and other laws after a federal court on Wednesday ordered the agency to hurry up on finalizing disclosure requirements on public oil, gas and mining companies.

  • September 4, 2015

    Aussie Court Fines Visa $12.5M For Blocking Rival Service

    An Australian court fined Visa Worldwide Pte. Ltd. $12.5 million for trying to block a rival company from offering currency conversion services to merchants in the country, Australia's antitrust enforcer said on Friday.

  • September 4, 2015

    Vt. Can Back Women Suing Tribal Lender Over Payday Loans

    A Vermont federal judge granted the state’s request Friday to file an amicus brief in support of two women in a proposed class action alleging usurious interest rates were charged at a Native American lending operation, but deferred ruling on the women’s contested request for discovery.

  • September 4, 2015

    Inside The Summer’s Hottest M&A Plays

    As summer comes to its unofficial end, so does a vibrant period in deal-making that saw seven of the transactions inked between Memorial Day and Labor Day land among the biggest plays so far this year. Here, Law360 takes a look at the summer's largest tie-ups and the law firms that steered them.

  • September 4, 2015

    Ex-Credit Agricole Employee Gets 37 Months For $1.5M Theft

    A former Credit Agricole Securities employee has been sentenced in New Jersey to 37 months in prison for illegally draining more than $1.5 million from the company to cover hefty personal expenses including the purchase of a home in North Carolina.

Expert Analysis

  • Now We Know How NYC's Credit Check Ban Will Be Interpreted

    Mark E. Brossman

    The New York City Commission on Human Rights' enforcement guidance for the Stop Credit Discrimination in Employment Act makes it clear that the commission plans on interpreting the SCDEA’s restrictions broadly and its exemptions narrowly, say attorneys at Schulte Roth & Zabel LLP.

  • Dodd-Frank 5 Years Later: Main Street Is Still Losing

    Marc S. Lampkin

    Until we recognize Dodd-Frank's shortcomings, roadblocks will remain for consumers as they look to move up the economic ladder. The well-intentioned efforts of the Consumer Financial Protection Bureau to move consumers out of a cycle of debt will only serve to entrench them in a life of poverty, says Brownstein Hyatt Farber Schreck LLP's Marc Lampkin, former strategic adviser to House Speaker John Boehner, R-Ohio.

  • Regulatory Changes In Retail Forex Market Will Continue

    Israel Dahan

    Because of January’s Swiss franc black swan, regulators now appear to believe that the only way to protect the foreign exchange market and retail investors is to regulate, regulate and regulate. The U.S. Commodity Futures Trading Commission’s adoption of new protections late last month is likely one step in a long walk toward much bigger changes, say attorneys with King & Spalding LLP.

  • OPINION: Banks Should Reject The Target-Visa Settlement

    Charles Zimmerman

    If Target Corp. succeeds in its latest attempt to extinguish financial institutions’ legal claims for pennies-on-the-dollar with its recent and woefully inadequate settlement with Visa Inc., it will set an extremely dangerous precedent for the victims of future data breaches, say Charles Zimmerman of Zimmerman Reed PLLP and Karl Cambronne of Chestnut Cambronne PA.

  • Top 10 Steps When Responding To A Disaster

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    In contrast to routine litigation, crises — such as environmental disasters, violent criminal or terrorist acts, explosions, corporate scandals or computer crimes — involve issues and follow timelines that are difficult to foresee. Even though every crisis is unique, there are 10 steps you can take to help mitigate damage and stabilize the situation, say Otway Denny and Jessica Farley of Norton Rose Fulbright US LLP.

  • Consent Order Shows More CFPB Interest In Student Loans

    Jodie H. Lawson

    The severity of the Consumer Financial Protection Bureau's consent order against Discover Financial Services, coupled with the CFPB's request for information on student loan servicing practices, indicates that the bureau is currently taking a hard look at student loan servicers, say Jordan Sykes and Jodie Lawson of McGuireWoods LLP.

  • The High Court's Key Jurisdiction Question In Manning

    Matthew Tobin

    The circuits are divided on whether federal jurisdiction can be grounded in the first instance on Section 27 of the Securities Exchange Act, which states that federal courts “shall have exclusive jurisdiction” of violations arising under the act’s regulations. The resolution of this issue by the U.S. Supreme Court in Manning v. Merrill Lynch Pierce Fenner & Smith Inc. stands to affect not just Exchange Act claims, say Matthew Tobin... (continued)

  • Putting The Brakes On 'Responsible Banking' Ordinances

    H. Rodgin Cohen

    A recent Southern District of New York decision striking down New York City’s “Responsible Banking Act” confirms that courts will scrutinize municipal laws that venture into the field of bank regulation and sets a precedent for potential challenges to responsible banking acts currently in place in various cities across the United States, say attorneys with Sullivan & Cromwell LLP.

  • FinCEN Continues Aggressive Anti-Money Laundering Trend

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    If adopted, the Financial Crimes Enforcement Network’s recently proposed rules will prescribe specific anti-money laundering obligations for investment advisers, which previously had not been subject to Bank Secrecy Act AML regulations notwithstanding their potential criminal liability for engaging in or aiding and abetting money laundering, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Litigation Risk For HFT Facilitators Fades Fast

    Kathleen Massey

    A New York federal judge’s decision last week dismissing all claims against several U.S. stock exchanges and a dark pool operator is just the latest defeat for plaintiffs firms hoping to put high-frequency trading on trial in the wake of Michael Lewis’ book “Flash Boys,” say Kathleen Massey and Jeffrey Benner of Dechert LLP.