Banking

  • August 22, 2014

    Ex-Phoenix Payment CEO Balks At $4M Fee For Ch. 11 Sale

    The former CEO and controlling stakeholder of bankrupt card transaction processor Phoenix Payment Systems Inc. took issue Friday with the fee structure for the debtor's proposed investment banker, Raymond James & Associates Inc., arguing a $4 million “success fee” heavily favors a sale instead of the reorganization he supports.

  • August 22, 2014

    2nd Circ. Ruling No Call For Reviving SOX Suit, JPMorgan Says

    Nothing in a recent Second Circuit decision affirming the dismissal of a Sarbanes-Oxley Act whistleblower suit against AECOM Technology Corp. supports reviving a SOX case from a former JPMorgan Chase & Co. worker allegedly axed for flagging potential fraud, JPMorgan told the appeals court Friday.  

  • August 22, 2014

    Texas Justices' Broad Waiver For Foreclosure Offset Stays Put

    The Texas Supreme Court said Friday it would not rehear a case it decided earlier this summer, when the court ruled that a real estate loan guarantor had to pay a promissory note balance after having waived his right to offset it.

  • August 22, 2014

    NY AG Fires Shot Across Bow Of Private Mortgage Defense Bar

    New York Attorney General Eric T. Schneiderman's victory lap in announcing Bank of America Corp.'s massive mortgage-abuses settlement came with praise for the money that will flow into the state's nonprofit foreclosure legal aid sector, but his fierce broadside against private-sector lawyers is drawing pushback.

  • August 22, 2014

    Goldman To Pay $3B To Settle FHFA's Toxic-MBS Suit

    Goldman Sachs & Co. said Friday that it has agreed to pay more than $3 billion to settle the Federal Housing Finance Agency's claims that it knowingly sold Fannie Mae and Freddie Mac toxic mortgage-backed securities in the run-up to the housing market collapse in 2007.

  • August 22, 2014

    Ex-Barclays Rep Fires Back At SEC Over 'Parking' Charge

    Attorneys for a former Barclays Capital Inc. bond trader accused of a fraudulent “parking” scheme sought to poke holes Thursday in the U.S. Securities and Exchange Commission's case against their client, saying enforcement attorneys failed to prove he willfully broke any laws.

  • August 22, 2014

    ADP Faces Class Action Over Payroll Debit Card Fees

    Payroll processing giant Automatic Data Processing Inc. was slapped with a putative class action in Pennsylvania federal court Friday alleging that it deducted illegal fees from debit cards issued to its clients' employees in lieu of paychecks.

  • August 22, 2014

    CFPB Gives Banks 5 Years To Divulge Exact Remittance Fees

    The Consumer Financial Protection Bureau on Friday granted federally insured banks and credit unions a five-year exemption from a portion of its rules for international money transfers that requires the disclosure of any fees that will apply to the transactions as well as exchange rates.

  • August 22, 2014

    Six Months On, US Cos. Feeling Might Of Russian Sanctions

    After nearly six months of Western powers steadily tightening their grasp on Russia for its role in the Ukrainian crisis, experts say the novel structure and implementation of sanctions have led firms operating in the Russian energy and financial sectors to be overly cautious in their compliance efforts.

  • August 22, 2014

    RBS Says High Court’s CTS Ruling Defeats FHFA In MBS Suit

    The Royal Bank of Scotland Group PLC on Thursday said a mortgage-backed securities lawsuit brought by the Federal Housing Finance Agency in Connecticut federal court should be dismissed after a U.S. Supreme Court decision narrowed the time the regulator had to file a complaint.

  • August 22, 2014

    Madoff Judge Denies Benefit Plan Investors' SIPA Claims

    A New York bankruptcy judge on Friday ruled that more than 300 individual investors who funneled money into Bernard L. Madoff's Ponzi scheme indirectly through Employee Retirement Income Securities Act plans were not "customers" of Madoff’s firm and are not entitled to recovery from the Securities Investor Protection Corp.

  • August 22, 2014

    Argentina Blasts Bond Judge's Remarks As Imperialist

    Argentina’s government on Friday accused the New York federal judge overseeing its sovereign debt dispute with hedge funds of making imperialist comments against the nation, after it unveiled a plan to evade U.S. jurisdiction over its government bonds.

  • August 22, 2014

    Philadelphia Bank Plans $1B IPO In Reorganization

    Beneficial Bancorp Inc. on Friday filed for an almost $1.1 billion initial public offering as part of the reorganization of Beneficial Mutual Bank Bancorp Inc., which owns a community-based bank operating in southeastern Pennsylvania and southern New Jersey, into a newly formed publicly held bank company.

  • August 22, 2014

    Yellen Says Questions Must Be Answered Before Rates Rise

    Federal Reserve Chair Janet Yellen on Friday said that questions about recent improvements in the labor market and broader economy needed to be answered before the central bank’s policy makers would move to raise historically low interest rates.

  • August 22, 2014

    JPMorgan Makes Voluntary Exit From 9/11 Cleanup Litigation

    A New York federal judge granted the voluntary dismissal on Thursday of JPMorgan Chase & Co. from ongoing litigation over alleged workplace injuries relating to asbestos cleanup and reconstruction efforts around the World Trade Center site, but left room for the bank to re-enter the case in the future. 

  • August 22, 2014

    Dealmakers Q&A: Bird & Bird's Alberto Salvade

    From a sector perspective, I expect a consolidation of the Italian banking market, especially as regards regional and mid-size banks. On the technical side, I notice an increasing interest of private equity players in implementing a clean-exit approach while divesting, says Alberto Salvade, head of Bird & Bird's corporate group in Italy.

  • August 21, 2014

    Arab Bank Faces Anti-Israel Claims In Terror Funding Trial

    Attorneys for victims of terrorist attacks in Israel and the Palestinian territories on Thursday sought to convince jurors that there was an anti-Israel bent in the top levels of leadership of Arab Bank PLC, in the civil case accusing the lender of funneling money to families of suicide bombers.

  • August 21, 2014

    BofA Deal Shows Pragmatism At Work On Both Sides

    Bank of America Corp.'s $16.65 billion global settlement over its alleged faulty lending practices in the run-up to the financial crisis may have made bigger waves than recent payouts by JPMorgan Chase & Co. and Citigroup Inc., but attorneys say the deal still represents the best possible outcome for the bank and for federal prosecutors, who can now put their resources elsewhere.

  • August 21, 2014

    BofA’s SEC Admission Likely To Disappoint Plaintiffs Attys

    Plaintiffs attorneys probably will scour Bank of America Corp.’s admission of wrongdoing that came as part of its landmark $16.7 billion settlement on Thursday, but legal experts say they expect litigants to find little ammunition as the window to file claims fast draws to a close.

  • August 21, 2014

    US Says Ex-UBS Exec Hasn't Met Burden For Video Testimony

    Federal prosecutors said in a Florida federal court on Wednesday that a former UBS AG wealth management and banking head accused of helping U.S. taxpayers conceal their assets has not carried his burden and too many questions remain to allow live video testimony of foreign witnesses at his trial.

Expert Analysis

  • Solvency Drives Dismissal Of Fraudulent Transfer Suit

    Michael L. Cook

    In U.S. Bank National Association v. Verizon Communications, the Fifth Circuit found competing valuations helpful in dismissing a litigation trustee’s $2.5 billion fraudulent transfer suit against a Chapter 11 debtor’s corporate parent. An adversarial system, therefore, not ideology, worked for the defendants, says Michael Cook of Schulte Roth & Zabel LLP.

  • How To Control Risk And Cost Of E-Discovery

    "If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.

  • From Landlord To Locked Up: The Long Arm Of The SCRA

    Kirk D. Jensen

    While financial institutions — including private equity firms — rarely think of themselves as landlords, they may be subject to a narrow window of exposure under the eviction provisions of the Servicemembers Civil Relief Act, violations of which can lead to severe penalties, including incarceration, say attorneys with BuckleySandler LLP.

  • A Review Of The Subscription Credit Facility Market

    Michael C. Mascia

    Despite the nearly uniform positive trending in the data supporting facility credit performance, none of it goes to the heart of the fundamental credit underwriting premise of a facility. And from this vantage point, the 2014 year-to-date trending has been far less beneficial for lenders, say attorneys with Mayer Brown LLP.

  • Foreclosure Sale Purchasers Face New Risks In Illinois

    Simon A. Fleischmann

    A recent Illinois Appellate Court decision in 1010 Lake Shore Association v. Deutsche Bank National Trust Co. has brought to the forefront the ongoing dispute between foreclosure sale purchasers and homeowners associations regarding the extent to which purchasers are responsible for HOA assessments — and the balance appears to have shifted toward the HOAs, say attorneys with Locke Lord LLP.

  • Picard Powerless To Block Independent Madoff Settlements

    Jonathan Sablone

    The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • Inside New York's Proposed Virtual Currency Regulation

    Marcus A. Asner

    New York’s proposed virtual currency rules intended to prevent money laundering and bolster cybersecurity have been met with mixed reactions and will likely trigger a lot of discussion about issues such as rooting out illegal activity without stifling innovation, say attorneys with Arnold & Porter LLP.

  • Congress Asks, CFPB Delivers On SCRA Violations

    John Costello

    A prudent retailer, lender or servicer should avail itself of the online database that provides information regarding the active-duty status of service members. As noted by the Consumer Financial Protection Bureau’s recent actions, Servicemembers Civil Relief Act compliance is regaining focus and attention, says John Costello of Locke Lord LLP.

  • Lessons From SEC Focus On Compliance Officers

    Louis Greenstein

    The two recent U.S. Securities and Exchange Commission proceedings involving Penson Financial Services Inc. and Private Capital Management Inc. illustrate the continued focus of SEC enforcement on the duties and potential liability of compliance officers, say attorneys with McGuireWoods LLP.

  • Yet Another Case Counters 6th Circ.'s Omnicare Reasoning

    John S. Durrant

    As the U.S. Supreme Court gears up to hear Omnicare, the Tenth Circuit has presented yet another case supporting the view that Section 11 claims cannot arise simply from opinions contained in securities offering documents that turn out in hindsight to be false or misleading, say attorneys with Paul Hastings LLP.