Banking RSS

  • April 23, 2014

    Subprime Lender Faces Class Action Amid CFPB Probe

    World Acceptance Corp., a top provider of short-term loans to low-income borrowers, on Wednesday was slapped with a securities class action after the disclosure of a recent U.S. Consumer Financial Protection Bureau probe caused its stock to tumble.

  • April 23, 2014

    2nd Circ. Revives EU's RICO Suit Against RJR Nabisco

    The Second Circuit on Wednesday revived a European Union suit accusing RJR Nabisco Inc. of running a criminal money-laundering and cigarette-smuggling scheme, saying Racketeer Influenced and Corrupt Organizations Act claims can apply to foreign groups and misconduct outside the U.S.

  • April 23, 2014

    Mass. AG Jumps Into Experian Unit Data Breach Probe

    The Massachusetts attorney general on Tuesday revealed her involvement in a multistate probe into a data breach in which hackers gained access to Social Security numbers and bank account information for more than 200 million consumers through a unit of data provider Experian PLC.

  • April 23, 2014

    RE Rumor Mill: Bank Of NY Mellon, Sony, JPMorgan

    Bank of New York Mellon considers moving to New Jersey, Sony plans to get into real estate business, and New York plans to shut down Long Island College Hospital.

  • April 23, 2014

    US Bank Unable To Escape NJ RMBS Case

    U.S. Bank NA was unable to escape claims in New Jersey federal court on Wednesday alleging negligence and failure to inform investors of defaults in its role managing two residential mortgage-backed securities trusts.

  • April 23, 2014

    Judge Taps Trustee To Oversee Money Centers Ch. 11

    A Delaware bankruptcy judge on Wednesday granted a request by creditors of casino check-cashing firm Money Centers of America Inc. to have a Chapter 11 trustee appointed for ruling that the evidence of financial impropriety “overwhelmingly” supported the need for an outsider to steward the case.

  • April 23, 2014

    Law Firms' Wins Affirmed In Pa. Foreclosure Abuse Suits

    A Pennsylvania appeals court on Wednesday upheld the dismissal of separate class actions accusing two law firms of foreclosure abuses on behalf of banks, finding that the state consumer protection laws at issue didn’t apply to lawyers.

  • April 23, 2014

    BNY Mellon Can't Score Ore. Rate Analyses In Forex MDL

    A New York magistrate judge on Wednesday declined to provide Bank of New York Mellon Corp. with Oregon pension investment officials’ analysis of their foreign exchange transactions with State Street Corp., despite BNY's insistence that the information could “devastate” securities fraud claims surrounding its own forex business.

  • April 23, 2014

    Auto Lender Bilked Millions, NY Financial Regulator Says

    The superintendent of the New York Department of Financial Services sued subprime auto lender Condor Capital Corp. and its owner in New York federal court Wednesday, alleging the lender ran a longstanding scheme to steal millions of dollars from consumers, among other unfair practices.

  • April 23, 2014

    AmEx Evidence Plan Would Muddy Antitrust Trial, DOJ Warns

    The U.S. Department of Justice on Tuesday accused American Express Co. of trying to "prolong and complicate" an upcoming trial in the government's antitrust case over the company's merchant policies by pushing to delay all battles over evidence admissibility until trial.

  • April 23, 2014

    Challenge To $15M Wells Fargo OT Settlement Still Alive

    Plaintiffs challenging the reach of a $15 million agreement to settle overtime wage class action claims against Wells Fargo & Co. Inc. will get the chance to brief the court fully on their objections as a Texas federal judge on Tuesday decided that a quick denial of their motion was inappropriate.

  • April 23, 2014

    CFPB Pushes For More Mortgage eClosings

    The Consumer Financial Protection Bureau announced on Wednesday a pilot program to determine if relying on electronic documents and other tools could make the mortgage closing process simpler, as part of a campaign to make it easier to buy a home.

  • April 23, 2014

    Goldman Says Aluminum Antitrust MDL Plaintiffs Can't Sue

    Goldman Sachs Group Inc., JPMorgan Chase & Co., the London Metal Exchange and others accused of a conspiracy to raise aluminum prices asked a New York federal court Wednesday to toss the suit, saying the plaintiffs lacked standing to make antitrust claims because they didn't participate in the allegedly restrained market.

  • April 23, 2014

    Deals Rumor Mill: Charter, Eni, Carlo Tassara

    Charter Communications is closer to inking a deal to snag 1.5 million subscribers from Comcast as the cable giant looks to appease competition regulators before they review its $45.2 billion acquisition of Time Warner Cable, while Hungary’s MOL Group has snapped up more than 100 Czech gas stations from Italy’s Eni.

  • April 23, 2014

    NJ Judge Trims Attys' Charges In Lucchese Racketeering Case

    A New Jersey federal judge on Wednesday declined to toss racketeering charges against a pair of reputed Lucchese crime family associates accused of draining $12 million from a mortgage lender and forcing its bankruptcy but dismissed counts against two attorneys and another defendant.

  • April 23, 2014

    Fannie, Freddie Score Win Against Conn. Cities In Tax Row

    A Connecticut federal judge on Wednesday gave Fannie Mae and Freddie Mac another victory in a long judicial winning streak against state and local governments trying to collect local real estate transfer taxes, dismissing a class action brought by the city of Bridgeport.

  • April 23, 2014

    UBS Beats State Law Claims In Credit Board's MBS Suit

    A Kansas federal judge on Tuesday tossed the National Credit Union Administration board’s state-law claims alleging UBS Securities LLC misrepresented the risk of about $2 billion in residential mortgage-backed securities it sold to two now-defunct credit unions, finding the claims were time-barred.

  • April 23, 2014

    Chartis Can't Dodge Suit Over Losses On $103M Hotel Loan

    A New York judge on Friday refused to dismiss a suit accusing Chartis Specialty Insurance Co. of failing to cover an investment firm for losses from a $103 million loan to a Mexican hotel venture that went belly-up, saying she suspects the Mexican borrowers are shielding themselves through a sham bankruptcy proceeding.

  • April 23, 2014

    Conservative Groups Urge Rejection Of Senate Housing Bill

    Conservative activist groups on Wednesday launched a broadside attack against a U.S. Senate bill that would reshape the United States housing finance system and eliminate Fannie Mae and Freddie Mac, saying that it would simply increase government intrusion in the housing market.

  • April 22, 2014

    MetWest Loses $12.5M Wilshire Bank Deal, Suit And Appeal

    A California appeals court upheld a lower court's decision that MetWest Ventures LLC can't enforce Wilshire State Bank's letter of intent to sell seven subperforming loans to MetWest for $12.5 million, ruling Monday that the letter lacks essential terms including for interest and repayment.

Expert Analysis

  • Why Fund Borrowers Must Consider Subscription Facilities

    Mary Touchstone

    Subscription facilities have become attractive financing opportunities for a wide range of funds throughout the private equity, real estate, energy, infrastructure and mezzanine debt space. With even the most basic subscription facility, a fund can borrow to “bridge” the time between the making of an investment or the payment of expenses and the calling of capital at a later date to repay the borrowing, say Mary Touchstone and Julia Kohen of Simpson Thacher & Bartlett LLP.

  • History Of Alleged Financial Sector Collusion: Part 1

    Jon Eisenberg

    Over the last 15 years, financial institutions have paid billions of dollars to settle claims that they colluded with each other. In this two-part series, we discuss cases beginning with the Nasdaq spread collusion allegations in the late 1990s and ending with the more recent Libor and Forex investigations, identify lessons that emerge, and suggest steps that firms, and in some cases, regulators, may wish to consider to reduce risks going forward, says Jon Eisenberg of K&L Gates LLP.

  • CFPB In Focus: Navigating Investigational Hearings

    Jonice Gray Tucker

    The process for investigative hearings is another instance in which the Consumer Financial Protection Bureau’s rule of the road diverges from those of many other government agencies. Enforcement lawyers and the institutions they represent are working within a new rubric, say Jonice Tucker and Amanda Raines of BuckleySandler LLP.

  • Mandatory Pro Bono Is Not The Answer For Practitioners

     Amanda D. Smith

    The State Bar of California has decided to follow New York's lead and require prospective attorneys to record 50 hours of pro bono service in order to be eligible for admission. While we applaud the intentions behind these initiatives, there are a number of reasons why state bars should limit any mandatory pro bono requirement to this context, rather than extend it to licensed attorneys as some have suggested, say attorneys with the Association of Pro Bono Counsel.

  • Capital Planning In A Fluctuating Regulatory Environment

    Kevin L. Petrasic

    Several changes to how regulatory capital ratios are calculated pose formidable challenges to capital planning for U.S. bank-holding companies and their bank subsidiaries. In the face of this regulatory uncertainty, institutions are focusing on ensuring a flexible process that enables management to effectively deploy and supplement existing capital without having to substantially alter their business model, say Kevin Petrasic and Michael Hertzberg of Paul Hastings LLP.

  • 6th Circ. Creates Risky Situations For Secured Parties

    David E. Peterson

    The lesson arising out of a Sixth Circuit ruling in 1st Source Bank v. Wilson Bank & Trust for a junior secured party taking a security interest in accounts (or anything else, for that matter) is to make certain that the collateral is something that will not likely be subject to a prior security interest in proceeds. The riskiest situations will naturally involve accounts receivable, general intangibles, instruments, deposit accounts and investment property, says David Peterson of Lowndes Drosdick Doster Kantor & Reed PA.

  • 1st Circ. Sets Precedent On Post-Petition Interest

    Hugh McCullough

    The First Circuit’s decision in In re SW Boston Hotel Venture is significant for lenders because it demonstrates that a lender’s right to post-petition interest may change during the course of a bankruptcy case. Importantly, it provides a precedent for lenders to obtain post-petition interest, even when they happen to be undersecured on the date of the filing of the petition, say Hugh McCullough and Bradley Duncan of Davis Wright Tremaine LLP.

  • The Future Of Law Firm PR: The Good, Bad And Ugly

    Paul Webb

    There has been a dramatic change in how public relations professionals interact with the news media to promote or protect a law firm’s brand and reputation. But content is queen and has a bright future in law firm PR — it all begins with a plan that should include goals, performance indicators and a system of assessment, say Paul Webb, director of marketing at Young Conaway Stargatt & Taylor LLP, and Kathy O'Brien, senior vice president at Jaffe PR.

  • Roadblocks To D&O Coverage For Subpoena Response Costs

    Benjamin D. Tievsky

    While it must be emphasized that a policyholder’s entitlement to coverage is dependent upon the precise language of the policy at issue and the specific facts of each case, the recognition by many courts that a subpoena is a “claim” under D&O policies opens the door for potential recovery in a variety of circumstances, says Benjamin Tievsky of Orrick Herrington & Sutcliffe LLP.

  • Light On The Horizon For 'Bad Boy' Guarantors

    Janice Mac Avoy

    In keeping with commercial real estate guarantors’ expectations of what it means to sign a “bad boy” guaranty, the Southern District of New York’s ruling in CP III Rincon Towers v. Cohen has turned the tide against recent decisions that purport to apply “plain language” in a way that causes commercially unreasonable and absurd results, say Janice Mac Avoy and Gregg Weiner of Fried Frank Harris Shriver & Jacobson LLP.