Banking

  • July 7, 2015

    5th Circ. Rejects Maritime Liens Despite Contract Breach

    The Fifth Circuit on Monday affirmed a Louisiana federal judge's summary judgment in favor of JP Morgan Chase Bank and Allegiance Bank Texas in a breach of contract suit brought by Comar Marine LLC against four vessel-owning LLCs and the banks, saying the court was right in concluding the breach did not give rise to maritime liens.

  • July 7, 2015

    In Goldman IP Theft Trial, DA Stumbles With Outdated Law

    Like federal judges before him, a New York Supreme Court judge on Monday rebuffed prosecutors’ attempts to convict former Goldman Sachs Group Inc. programmer Sergey Aleynikov of computer code theft, and some legal experts say the Manhattan district attorney may have overreached in his efforts to apply a 48-year-old law to modern code theft.

  • July 7, 2015

    Stanford Receiver Seeks $5M From Coin And Gold Wholesaler

    The receiver in the R. Allen Stanford Ponzi scheme told a Texas federal jury Tuesday that a Dallas coin and gold wholesaler should return more than $5 million it was paid in the months leading up to the collapse of Stanford’s massive $7 billion scheme.

  • July 7, 2015

    Crisis In Greece Won’t Derail $1.27B Pfandbriefbank IPO

    German financial lender Deutsche Pfandbriefbank on Tuesday said it would proceed with plans for an initial public offering of approximately 101 million shares that it hopes will raise between €1.16 billion ($1.27 billion) and €1.37 billion, in spite of the recent financial crisis in Greece.

  • July 7, 2015

    Santander Comes To Terms With Fed On Risk Management

    The board of directors of Santander Holdings USA Inc. agreed Tuesday to sit down and draw up a new plan to manage risk at its banks, in response to a Federal Reserve investigation that found the financial institution's current program wasn’t up to snuff.

  • July 7, 2015

    Deals Rumor Mill: Hostess, ProSiebenSat.1, Ferrari

    Twinkies and Ding Dongs maker Hostess may be considering an initial public offering in lieu of a sale, German media companies ProSiebenSat.1 and Axel Springer SE are reportedly engaged in merger talks, and Ferrari is said to have tapped UBS to manage its planned IPO as Fiat Chrysler prepares to spin off the luxury carmaker.

  • July 7, 2015

    Alleged Russian Spy Not Protected By Immunity, Feds Say

    Banker and alleged Russian spy Evgeny Buryakov isn’t protected by the immunity afforded to foreign officials because he never officially claimed to represent the Russian Federation, the U.S. government argued in New York federal court Monday.

  • July 7, 2015

    Capital One Hit With New Class Action Over Robodialing

    A year after reaching a record-breaking settlement over its autodialing practices, Capital One Financial Corp. is facing another putative class action in Virginia federal court claiming the bank is violating the Telephone Consumer Protection Act by calling consumers through robodialing without their consent.

  • July 7, 2015

    Banks' Public Living Wills Leave Room For Improvement

    The public portions of living wills for 12 banks released Monday provided a much clearer picture of how they would be taken apart through bankruptcy should they fail, but analysts say the banks could be even more transparent without compromising their confidential financial data.

  • July 7, 2015

    BB&T Moves To Split Trial In NFL Players' $53M Suit

    After the trial court struck jury demands for nine of 12 plaintiffs, Branch Banking & Trust Co. moved Monday for separate trials in a $53 million case brought by a group of National Football League players, saying a single trial could cause prejudice.

  • July 7, 2015

    FTC Settles Claims Over ‘Massive’ Payday Loan Scheme

    Two men behind several payday lenders accused of shaking down customers for tens of millions of dollars have agreed to permanently exit the consumer lending business and fork over all assets related to the "massive" scheme, the Federal Trade Commission announced Tuesday.

  • July 7, 2015

    Senators Push Renewed Effort To Wall Off Investment Banks

    An influential, bipartisan group of U.S. senators on Tuesday introduced legislation that would rebuild the barrier between traditional and investment banking, but their bid to reverse the repeal of the Glass-Steagall Act looks like a long shot in the Senate to say nothing of the regulation-unfriendly U.S. House of Representatives.

  • July 7, 2015

    Ex-Bank Exec. Gets Time Served For $1.7B Olympus Scam

    A former Commerzbank AG executive was sentenced in New York federal court Tuesday to time served for aiding Olympus Corp.’s $1.7 billion accounting fraud scheme, receiving credit for cooperating in a U.S. investigation that prompted the bank to pay a $1.45 billion fine.

  • July 7, 2015

    Greek Debt Aid Could Pose Moral Hazard, ECB Suggests

    The European Central Bank on Tuesday warned of the “moral hazard” of providing financial assistance to struggling institutions on too-generous terms, a day after the central bank increased collateral requirements on emergency aid to Greek banks.

  • July 7, 2015

    JPMorgan, FDIC Trim More WaMu Tax Liability Claims

    JPMorgan Chase NA and the Federal Deposit Insurance Corp. told a D.C. federal court Tuesday that New York and Pennsylvania tax authorities have dropped claims of outstanding liabilities on Washington Mutual Inc. and they will no longer fight over them.

  • July 7, 2015

    4th Circ. Schools Mercedes-Benz Credit On Best Practices

    The Fourth Circuit on Tuesday refused to revive a suit accusing Mercedes-Benz Credit Corp. of not timely releasing a lien placed on a woman's residence after she paid off the loan her Audi sedan, but called the company out for “substandard” conduct and warned it should review its business practices.

  • July 7, 2015

    Hitachi Parent Cut From Truenorth's $6.8M Merger Fee Suit

    Finding no jurisdictional tie to New York, a Manhattan federal judge Tuesday cut Japan-based Hitachi Metals Ltd. and two of its subsidiaries from investment banking firm Truenorth Capital Partners LLC's bid to collect a $6.8 million fee tied to Hitachi's 2014 purchase of Waupaca Foundry Inc. for $1.3 billion.

  • July 7, 2015

    Okla. Tribe Wants To Join Native Farmer Settlement Row

    The Choctaw Nation on Monday urged the D.C. Circuit to reverse its denied bid to intervene in a dispute over how to distribute some $380 million in unclaimed funds from a U.S. Department of Agriculture class action settlement over a farm loan program.

  • July 7, 2015

    CFPB Says Student Loan Companies Fail To Serve Troops

    A Consumer Financial Protection Bureau report released Tuesday found that members of the military continue to get the runaround from student loan servicers that fail to grant requested deferments or provide federally mandated lower interest rates, with the agency saying it has received 1,300 complaints over the past three years.

  • July 7, 2015

    Lehman Taking $67M Tax Credit Fight To 2nd Circ.

    Lehman Brothers Holdings Inc. said Monday it is appealing to the Second Circuit a decision denying its bankruptcy administrators $67 million in foreign tax credits, challenging a federal judge’s reading of a bilateral tax treaty between the U.S. and the U.K.

Expert Analysis

  • Devaluing The Currency Of Settlements

    Richard J. Morvillo

    The irony is that, while cooperation with the government is at an all-time high, so are the sanctions visited on cooperators. Many lawyers find it difficult to explain to their clients why cooperation was worth it when the settlement they negotiated still wound up requiring exceedingly large penalties, says Richard Morvillo, a former branch chief with the U.S. Securities and Exchange Commission's Division of Enforcement.

  • The Problems In CFPB Process For Identifying Race

    Christopher Craig

    The Consumer Financial Protection Bureau had ordered Ally Financial Inc. and Ally Bank to pay $80 million in damages to minority customers who were allegedly harmed by Ally’s automobile loan policies. Almost two years from the settlement, the CFPB seems no closer to identifying the minority borrowers purportedly harmed by Ally, say members of Edgeworth Economics LLC and O’Melveny & Myers LLP.

  • NY High Court Standing Ruling Looks Like A Win For Lenders

    Christopher A. Gorman

    In Aurora Loan Services LLC v. Taylor, the New York Court of Appeals finally weighed in on the issue of standing that has been at the center of hundreds of contested residential mortgage foreclosure actions. Taylor may be read to abandon the requirement that lenders provide “factual details of a physical delivery of the note” to establish their standing to foreclose, says Christopher Gorman of Westerman Ball Ederer Miller Zucker & Sharfstein LLP.

  • This Week In Congress: Post July 4 Tumult

    Richard A. Hertling

    The House and Senate return from the Independence Day recess this week facing a crowded July agenda. Richard Hertling and Kaitlyn McClure of Covington & Burling LLP map the issues, ranging from national transportation and infrastructure funding to the Export-Import Bank's lapsed charter to the slew of fiscal year 2016 spending bills.

  • The CFPB's Real Message In Its 1st Administrative Appeal

    Ori Lev

    The message from the Consumer Financial Protection Bureau after its first administrative appeal is now clear — no matter what the amount of payments made for services rendered, any quid pro quo agreement in which one party receives business as a result of referring settlement service business to another party is a violation of the Real Estate Settlement Procedures Act, says K&L Gates LLP's Ori Lev, a former deputy enforcement direc... (continued)

  • MCDC Settlements Cast Doubt On Self-Reporter Leniency

    Kit Addleman

    The recent U.S. Securities and Exchange Commission settlements with 36 municipal underwriters under the Municipalities Continuing Disclosure Cooperation Initiative provide little transparency regarding the determination of the penalty amounts. It seems incongruous that the penalty imposed on a firm that is not self-reporting would be similar or even less than the penalties imposed on some self-reporting firms, say Kit Addleman and ... (continued)

  • HOA Superpriority Litigation Intensifies In Nevada

    Robin Perkins

    For the last three years, Nevada lenders and homeowners’ associations have been battling over the interpretation of Nevada’s version of the Uniform Common Interest Ownership Act, which provides a limited superpriority lien for HOAs to recover past due assessments. Senate Bill 306 — which substantially revised the statute and these new provisions — will likely diminish investor interest in the HOA foreclosure market, say attorneys a... (continued)

  • Don't Discount Disparate Impact After High Court Case

    Michael B. Mierzewski

    The implications of the U.S. Supreme Court's ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project Inc. extends beyond the primary mortgage lending and insurance industries. The ruling almost certainly will embolden private plaintiffs and government agencies to assert claims of disparate impact discrimination, say attorneys at Arnold & Porter LLP.

  • Casinos Can No Longer Gamble On FinCEN Compliance

    Travis Nelson

    The Financial Crimes Enforcement Network's comments at the Nevada Bar Association’s Bank Secrecy Act Conference in Las Vegas and recent enforcement actions against casinos reflect FinCEN’s expectation that casinos and card clubs be held to the same high compliance standards as their much more pervasively regulated bank counterparts, say attorney at Reed Smith LLP.

  • A Fiduciary Standard For Brokerage Firms May Be Inevitable

    Jeffrey Holik

    It seems as if the entire financial services industry has been caught up in a drama, now approaching the end of its fifth year — will regulators adopt rules requiring brokerage firms to act in the best interest of customers when offering investment advice? Our advice for brokerage firms is not to give in to the “wait and see” temptation, say attorneys with Shulman Rogers Gandal Pordy & Ecker PA.