Banking

  • September 16, 2014

    BNY Mellon Loses Bid To Toss Pension Fund's $11M Suit

    An Illinois federal judge on Tuesday rebuffed the Bank of New York Mellon Corp.'s bid to dismiss a union pension fund's suit claiming the bank cost it $11 million by making high-risk "prohibited transactions" with its assets, ruling that the fund pled adequate facts to support its allegations.

  • September 16, 2014

    Lehman Slams JPMorgan's $7B Precollapse 'Cash Grab'

    Lehman Brothers Holdings Inc. urged a New York federal judge on Monday to order the return of a $6.9 billion “slush fund” of collateral that JPMorgan Chase Bank NA allegedly seized days before Lehman’s 2008 collapse, saying it belongs to the general unsecured creditor body.

  • September 16, 2014

    Chancery Won't Nix Claims Over $3B Jefferies Leucadia Deal

    A Delaware Chancery judge declined Tuesday to dismiss the investor lawsuit challenging the nearly $3 billion stock swap between Leucadia National Corp. and Jefferies Group Inc., which created a $9 billion conglomerate with real estate, health care and other holdings, saying he needed an evidentiary record before deciding.

  • September 16, 2014

    TD Ameritrade Sued Over Routing Of Clients' Orders

    TD Ameritrade Inc. and its chief executive were hit Tuesday with a putative class action in New Jersey federal court accusing the company of self-interested routing of client orders to maximize liquidity and order flow rebates to the detriment of its customers.

  • September 16, 2014

    CFTC's Massad Faces Test Of Dodd-Frank Fine-Tuning Pledge

    After saying regulatory reforms need tweaking to ensure farmers and manufacturers can keep using the swaps markets, the new head of the U.S. Commodity Futures Trading Commission will be on the spot Wednesday to live up to the pledge when his agency reproposes rules around margin requirements for uncleared swaps and finalizes an exemption related to another class of so-called end users.

  • September 16, 2014

    Ex-Execs Face New Charges Over $300M RE Ponzi Scheme

    Continuing the federal government's pursuit for justice for an alleged $300 million real estate Ponzi scheme, federal authorities entered a superseding indictment Tuesday in Miami bringing bank fraud charges against two people focused on their alleged efforts to conceal funds from the plot.

  • September 16, 2014

    NY AG Attacks Barclays’ Bid To Kick Dark Pool Suit

    New York’s attorney general on Tuesday defended against Barclays PLC’s efforts to dismiss his securities fraud lawsuit accusing the firm of misleading clients and investors in order to dramatically increase the market share of its so-called dark pool, arguing Barclays’ alleged misstatements ran afoul of a state law.

  • September 16, 2014

    CFPB Sues Corinthian Colleges For Lending Abuses

    The Consumer Financial Protection Bureau on Tuesday slapped Corinthian Colleges Inc. with a lawsuit alleging the for-profit college chain pushed burdensome private loans on its students with false promises about their post-graduation job prospects.

  • September 16, 2014

    Kaplan, Pomerantz Among Firms Sought To Lead Libor Cases

    Four putative classes of lenders, students, homeowners and mortgage holders accusing a slew of major banks in multidistrict litigation of rigging the London Interbank Offered Rate each urged a New York federal judge on Monday to appoint firms such as Pomerantz LLP and Kaplan Fox & Kilsheimer LLP as class counsel.

  • September 16, 2014

    House Passes Broad Dodd-Frank Revision Bill

    The U.S. House of Representatives on Tuesday passed a consolidated bill tweaking the Dodd-Frank Act to exempt insurers from the capital requirements that apply to banks and exempt existing collateralized loan obligations from the statute’s Volcker Rule, while also adjusting the regulatory definition of a “qualified mortgage.”

  • September 16, 2014

    Arab Bank Rests Its Case In Terrorist Payment Trial

    Arab Bank PLC on Tuesday rested its case in the trial brought by victims of terrorist attacks in Israel and the Palestinian territories that accuse the Jordanian lender of facilitating payments to families of suicide bombers.

  • September 16, 2014

    NY High Court Eyeballs Rule Shielding Foreign Bank Branches

    Motorola Solutions Inc.'s 12-year quest to recover billions of dollars in damages from a fugitive Turkish family went before New York's top court Tuesday, where judges were asked to pare back a legal doctrine that treats banks' foreign branches as distinct legal entities free from the reaches of Empire State courts.

  • September 16, 2014

    Regulators Probe Banco Espirito Santo's Former Fla. Unit

    Federal and state regulators are probing a Florida-based former unit of Banco Espirito Santo SA over business it conducted with an affiliate bank in Panama, a representative of the Florida bank said Monday, a month after Portuguese regulators bailed out BES and split it up.

  • September 16, 2014

    Deals Rumor Mill: Eagle Merchant, Advanstar, Citadele Bank

    Atlanta-headquartered private equity firm Eagle Merchant Partners is looking into PODS Enterprises Inc. for about $1 billion including debt, while U.K. communications and media company UBM PLC is in the late stages of discussions to buy Advanstar Communications Inc.

  • September 16, 2014

    Small Banks Slam 'One Size Fits All' Dodd-Frank Regs

    Community bank and credit union representatives urged Senate lawmakers Tuesday to help ease their regulatory burdens, saying they've been unfairly caught up in "one size fits all" Dodd-Frank Act rules designed to curb the risky practices of larger institutions.

  • September 16, 2014

    Scottish ‘Yes’ Vote Could Put Debt Markets On Pause

    Friendly capital markets have helped spur a strong year for global M&A as low interest rates and few constraints have made debt readily available to buyers, but as Scotland prepares to vote for independence, a "yes" vote could quickly put the deals market on pause amid an expected spike in interest rates.

  • September 16, 2014

    Schumer Argues New Liquidity Rule Harms Municipal Bonds

    Sen. Charles Schumer, D-N.Y., asked federal banking regulators on Tuesday to revise a proposed liquidity rule for large banks, saying the second-class status it accords municipal bonds could dry up the financing of major urban infrastructure projects.

  • September 16, 2014

    Market Rumors: Alibaba, Barclays, InBev

    A group of previously undisclosed Alibaba investors are set to rake in some serious cash in the e-commerce giant's upcoming IPO, while the world's biggest banks are overhauling the way they trade currencies.

  • September 16, 2014

    FDIC Wants FBOP's 'Unclean Hands' Defense Struck

    FBOP Corp. can't invoke the "unclean hands" doctrine to claim that the Federal Deposit Insurance Corp. acted in bad faith by becoming a receiver for its funds because the agency didn't assume that role under its own authority, the FDIC told an Illinois federal court on Monday.

  • September 16, 2014

    NY Bank Regulator Probes Real Estate 'Hard Money' Lenders

    New York authorities said Tuesday that they have subpoenaed nine so-called hard-money lenders, groups who issue short-term loans secured by a borrower's home or other real estate, amid concerns that some may intentionally structure loans with the expectation of foreclosing and taking possession of property.

Expert Analysis

  • Scotland — The 'Succession Event' Question

    James Duncan

    A vote for an independent Scotland will have many consequences for the United Kingdom. Unsurprisingly, the implications for U.K. sovereign credit default swaps have not featured prominently in the public debate, say attorneys with Shearman & Sterling LLP.

  • The CFPB's 'UDAAPification' Of Consumer Protection Law

    Jonice G. Tucker

    The Consumer Financial Protection Bureau has significant latitude to pursue infractions it asserts are unfair, deceptive or abusive acts or practices, a pursuit it is now using to push its jurisdictional limits over perceived legal violations it might not otherwise have authority over, say Jonice Tucker and Aaron Mahler of BuckleySandler LLP.

  • Bandfield Confirms Aggressive FATCA Enforcement Tactics

    Miriam L. Fisher

    The scheme detailed in the U.S v. Robert Bandfield indictment follows a well-worn path of prior offshore financial frauds, but the prosecutors’ focus on the defendants’ alleged attempt to avoid compliance with the Foreign Account Tax Compliance Act sends a strong message to the global financial community, say Miriam Fisher and Brian McManus of Latham & Watkins LLP.

  • A Look At The New US And EU Sanctions On Russia

    Triplett Mackintosh

    While the latest U.S. and EU sanctions do not cut off entire sectors of the Russian economy, they come close, say attorneys with Holland & Hart LLP.

  • Next Possible CFPB Targets: Foreclosures And Law Firms

    Richard B. Benenson

    Currently, the Consumer Financial Protection Bureau stands at the threshold of a circuit split regarding the scope of the Fair Debt Collection Practices Act, with foreclosure entities — for now — enjoying an exemption from FDCPA enforcement, say Richard Benenson and Emily Renwick of Brownstein Hyatt Farber Schreck LLP.

  • 2nd Circ. Ruling Clears FINRA Arbitration Confusion

    Jeff Kern

    The Second Circuit’s decision in Citigroup Global Markets Inc. v. Abbar provides an efficient framework for determining whether the Financial Industry Regulatory Authority’s mandatory arbitration rule is applicable to investor-initiated claims, and should serve to diminish the sort of “sprawling litigation” that transpired there, say Jeff Kern and Manuel Gomez of Sheppard Mullin Richter & Hampton LLP.

  • OPINION: Pro Bono May Help Diversity Recruiting Efforts

    David A. Lash

    A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.

  • How Volcker Rule Affects Subscription Credit Facilities

    Michael C. Mascia

    It is highly unlikely that a subscription facility lender, absent unusual control or profit-sharing mechanics, could be deemed to hold an ownership interest in a private equity fund under the Volcker Rule solely as a result of the typical facility lending relationship, say attorneys with Mayer Brown LLP.

  • Esquenazi In Korea: Identifying Instrumentalities Abroad

    Samantha Dreilinger

    Efforts to apply the Esquenazi definition in Korea — a country where the government plays a significant yet often obscured role in several important industries — reveal that the definition leaves important questions unresolved and provides little comfort to companies trying to determine whether a potential business partner may be subject to the Foreign Corrupt Practices Act, say attorneys with Cadwalader Wickersham & Taft LLP and Kim & Chang.

  • How Research Efficiency Impacts Law Firm Profitability

    David Houlihan

    For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.