Banking

  • October 31, 2014

    CFPB Mortgage Data Expansion Risks Muddy Stats

    The Consumer Financial Protection Bureau’s proposal for expanding a key mortgage data law would include information related to commercial and other loans that banks say could muddy the statistics and put them at risk of uncalled-for enforcement actions.

  • October 31, 2014

    OCC Clarifies How Banks Learn Of, Fix Compliance Problems

    The Office of the Comptroller of the Currency on Thursday updated its process for notifying banks of potential problems uncovered by its examiners and gave bank boards a clearer picture of their responsibility for making sure those issues are addressed.

  • October 31, 2014

    Santander Ups Stake In Brazil Unit With Buyout Offer

    Spain's Banco Santander SA has increased its ownership in its Brazil subsidiary in a stock swap offer with minority shareholders in which the bank will issue approximately €2.6 billion ($3.3 billion) in new shares, Santander told regulators Friday.

  • October 31, 2014

    Madoff Victims Can't Look To Trustee To Save Picower Suit

    The judge presiding over the liquidation of Bernard L. Madoff’s defunct firm refused on Thursday to let several investors suing the estate of Ponzi scheme beneficiary Jeffry Picower in Florida take discovery in an attempt to salvage their claims from the trustee winding down the Madoff estate.

  • October 31, 2014

    2nd Circ. Denies UBS Arbitration Bid In Facebook IPO Spat

    A split Second Circuit on Friday rejected UBS Securities LLC's bid to revive a $350 million arbitration over Nasdaq OMX Group Inc.'s alleged breach of an agreement for mishandling Facebook Inc.'s initial public offering in May 2012.

  • October 31, 2014

    Global Regulators Want More Stable Funding At Banks

    Global banks are going to be forced to hold sufficient cash or assets that can be quickly turned into cash to cover their potential losses over the course of a year under a rule finalized by global banking regulators Friday.

  • October 30, 2014

    Charles Schwab Sues Law Firm Over 'Defamatory' Website

    Charles Schwab Corp.'s founder and his son sued a Beverly Hills law firm and one of its clients Thursday in California state court, accusing them of creating a website associating them with an infamous Indonesian dictator in order to gain an advantage in another suit over a real estate investment venture.

  • October 30, 2014

    Ex-UBS Exec Says U.S. Failed To Establish Tax Fraud Case

    Former UBS AG wealth management head Raoul Weil has urged the Florida federal judge presiding over his tax fraud conspiracy trial to acquit him on the grounds that the U.S. government, which rested its case Thursday, failed to establish its claims.

  • October 30, 2014

    Citi Slashes Quarterly Earnings By $600M Amid Forex Probes

    Citigroup Inc. said in a Thursday regulatory filing that it has cut its previously reported quarterly net income by $600 million due to massive legal bills stemming from regulatory investigations while detailing, in another filing, probes into the alleged rigging of foreign currency exchange markets.

  • October 30, 2014

    CurrentC Says Hackers Poached Users' Email Addresses

    CurrentC, a mobile payment service backed by the retail industry and poised to compete with Apple Pay, confirmed Wednesday that hackers had obtained the email addresses of merchants and individuals who participated in a trial run of the smartphone app.

  • October 30, 2014

    IFC Raises $100M In First Ever 'Inclusive Business' Bonds

    The International Finance Corp., the private investment arm of the World Bank, said Wednesday that it has raised $100 million in the first ever bond issuance for investment in for profit companies that seek to provide products, services and jobs for low-income individuals in emerging markets.

  • October 30, 2014

    Deutsche Bank Fund Pulls In $168M For Warsaw RE Buy

    A fund managed by an investment arm of Deutsche Bank AG has received €133.4 million ($168.2 million) in financing from Deutsche Hypothekenbank AG for its recent purchase of an office and retail building in Warsaw, Poland, Deutsche Hypothekenbank said Thursday.

  • October 30, 2014

    Barclays Takes $800M Provision Related to Forex Probes

    Barclays PLC announced Thursday that it has taken a £500 million ($800.3 million) provision in the third quarter related to government investigations into its foreign exchange trading activities, joining another bank that announced a large set-aside this week.

  • October 30, 2014

    BakerHostetler Adds Ex-Haynes And Boone Energy Litigator

    BakerHostetler said Thursday that it has strengthened its litigation and energy and shale practice groups in Houston with the addition of an ex-Haynes and Boone LLP attorney who has extensive experience in international arbitration and the banking sector.

  • October 30, 2014

    MF Global Reaches $27M Settlement Over Metal Manipulation

    MF Global Inc. has reached settlements in two class action lawsuits alleging price manipulation in the palladium and platinum markets that will allow plaintiffs to file $21.1 million in claims in MF Global’s bankruptcy and receive over $6 million in cash, according to Wednesday New York federal court filings.

  • October 30, 2014

    Cartica Takes CorpBanca-Itau Merger Challenge To 2nd Circ.

    Activist investor Cartica Management LLC on Wednesday sent its shareholder challenge to CorpBanca SA and Itau Unibanco Holding SA's proposed $3.7 billion merger to the Second Circuit, appealing the suit’s September dismissal in a ruling that found only purchasers or sellers can attempt such injunctions.

  • October 30, 2014

    Market Rumors: Innocean, 1MDB, Keppel

    Innocean, Hyundai's in-house advertising agency, tapped banks to manage its IPO, while Malaysian government fund 1MDB is bracing for a $3 billion listing of its power assets amid political scrutiny.

  • October 30, 2014

    CFPB No-Action Letters May Be Small Comfort For Innovators

    The U.S. Consumer Financial Protection Bureau is seeking to offer financial product developers assurances that new products don't violate any laws in the form of so-called "no-action letters," but attorneys say the program's burdensome requirements could limit its appeal.

  • October 30, 2014

    DOJ, AllQuest's Doc Dispute In $264M FCA Suit Rages On

    The U.S. Department of Justice and AllQuest Home Mortgage Corp. traded barbs in Texas federal court Wednesday in a discovery war stretching back to May in which each seeks to compel the other to cough up loan files in a $264 million False Claims Act suit.

  • October 30, 2014

    UK Judge Trims Visa Merchant Fee Claims By $801M

    A U.K. judge ruled on Thursday that retailers' antitrust claims against Visa Inc. over the credit card issuer's use of multilateral interchange fees can only go back seven years, a decision that trims Visa's potential liability by approximately £500 million ($801 million).

Expert Analysis

  • Shouldn’t FINRA Listen To Commissioner Piwowar?

    Michael K. Freedman

    Although U.S. Securities and Exchange Commission Commissioner Michael Piwowar’s recent remarks about due process in enforcement matters may be a minority view, the Financial Industry Regulatory Authority should take heed, especially given FINRA’s troubling practice of rule-making by interpretation and circumventing the formal processes designed to ensure due process, say Michael Freedman and Gregory Amoroso of Sutherland Asbill & Brennan LLP.

  • An Insider's Guide To The CFPB

    Gerald Sachs

    While the efforts of the Consumer Financial Protection Bureau’s Enforcement Office often grab the headlines, the agency’s Supervision Office is approximately four times larger. There is almost always a greater opportunity to influence the reduction of a civil money penalty and resolve a matter through the confidential supervisory process than in the enforcement context, say attorneys with Paul Hastings LLP.

  • How Russian Sanctions Impact Energy And Financial Cos.

    The U.S. Treasury and European Union have continued to expand the scope of economic sanctions in response to Russian activities and the political unrest in Ukraine. In this brief video, Sutherland Asbill & Brennan partner Mark Herlach discusses recent key developments and what the latest round of sanctions mean for energy and financial services companies.

  • 10 Key Points From The Final Risk Retention Rule

    Dan Ryan

    The final asset-backed securities risk retention rule effectively broadens the original proposal’s exemption from risk retention requirements for qualified residential mortgages, abandoning the proposal’s most stringent requirements to obtain exemption. It may, however, be too soon for the mortgage industry to celebrate, says Dan Ryan, chairman of PricewaterhouseCoopers LLP's financial services regulatory practice.

  • How The FEC Responded To Citizens United, McCutcheon

    Joseph Cosby

    While there may be more public debate over the rules the Federal Election Commission recently adopted in response to the U.S. Supreme Court's Citizens United opinion, special attention should be given to the FEC's proposal dealing with the McCutcheon decision. Likely to be one of the more contentious provisions, the FEC requested comments on its enforcement policies concerning earmarked contributions, says Joseph Cosby of Butzel Long PC.

  • CFPB Final Privacy Notice Rule Will Hurt Consumers

    Andrew M. Smith

    By crafting a narrowly tailored rule for financial institutions on posting online annual privacy notices and imposing several needlehole requirements, the Consumer Financial Protection Bureau is essentially discouraging companies from adopting a sensible and consumer-friendly alternative, say attorneys at Morrison & Foerster LLP.

  • The RMBS Working Group: Is There Life After Eric Holder?

    Andrew W. Schilling

    Attorney General Eric Holder’s planned exit and a string of other high-level departures could lead some to believe that the U.S. Department of Justice’s aggressive pursuit of financial fraud cases may be behind us. However, there is evidence to suggest that the Residential Mortgage-Backed Securities Working Group may in fact be ramping up rather than winding down, say Andrew Schilling and Ross Morrison of BuckleySandler LLP.

  • Use Social Media For Legal Service Only As A Last Resort

    Steven Richard

    Courts remain largely skeptical about allowing litigants to serve and notify evasive parties of legal proceedings through their social media accounts. A recent split ruling by the Oklahoma Supreme Court shows the competing considerations, say Steven Richard and Britt Killian of Nixon Peabody LLP.

  • What Does It Take To Make The SEC Happy?

    Bruce M. Bettigole

    The U.S. Securities and Exchange Commission’s settled enforcement action with two broker-dealers whose Section 4(a)(4) due diligence appears to have been quite thorough has, at best, caused unnecessary confusion as to what constitutes a “reasonable inquiry” under Section 4(a)(4) or, at worst, appears to be an attempt to push the envelope beyond what current law requires, say Bruce Bettigole and Charlie Kruly of Sutherland Asbill & Brennan LLP.

  • Economic Impact On Mortgage Lenders From Strip-Off Law

    Ilyse M. Homer

    Recent circuit court case law allowing “Chapter 20” debtors to strip off valueless junior liens on their homes may result in mortgage lenders having their junior-lien rights eviscerated, rendering them general unsecured creditors with no recourse to the collateral securing their indebtedness, say Paul Avron and Ilyse Homer of Berger Singerman LLP.