Banking

  • January 17, 2017

    Supreme Court Rejects Banks’ Appeal In Libor Rigging Suit

    The U.S. Supreme Court on Tuesday rejected a bid by banks seeking to shut down an antitrust lawsuit from investors alleging widespread rigging of a key benchmark interest rate that a lower court had earlier brought back to life.

  • January 17, 2017

    UK Gov't Seeks Clean Break From EU Single Market

    U.K. Prime Minister Theresa May on Tuesday outlined plans for a clean break from the European Union, including its single market for goods and services and the jurisdiction of the European Court of Justice, but held out hope for possible transitional arrangements for legal and financial services.

  • January 13, 2017

    Moody's To Pay $864M To US, States Over Crisis-Era Conduct

    Moody’s Corp. said Friday it has agreed to pay $864 million in a settlement with the U.S. Department of Justice and 21 states over the ratings agency’s work on residential mortgage backed securities and other products whose crashes led to the financial crisis.

  • January 13, 2017

    11th Circ. Revives Suit Alleging JPMorgan Aided $1.3M Scam

    The Eleventh Circuit on Friday revived a Florida man’s suit accusing JPMorgan Chase of helping a fraudster siphon $1.3 million of his money out of a Chase account, ruling the man had presented sufficient evidence that bank employees knew a scam was underway. 

  • January 13, 2017

    Ex-Title Agent Pleads Guilty In $6M Fake Mortgage Scam

    A Panama City, Florida, title agent on Friday pled guilty to charges that she participated in a scheme to rip off banks by setting up fraudulent third-party purchases of more than $6 million worth of properties in northwest Florida.

  • January 13, 2017

    6th Circ. Affirms Whistleblower Can't Sue Morgan Stanley

    The Sixth Circuit on Friday upheld the dismissal of a former Morgan Stanley employee's retaliation lawsuit against the company, finding that his “vague assertions” of working with law enforcement don’t afford him whistleblower protections.

  • January 13, 2017

    Cost-Benefit Bill Frees Industry By Tying SEC Down

    The bill passed Thursday in the U.S. House of Representatives requiring the U.S. Securities and Exchange Commission to perform a cost-benefit analysis on regulation could help the agency "drain the swamp" of burdensome regulation, experts said, but may bog SEC staff down in regulatory review and expensive litigation at the cost of investor protection.

  • January 13, 2017

    CashCall, Western Sky Reach $1.25M Deal With Fla. AG

    Lenders CashCall Inc. and Western Sky Financial LLC have agreed to a settle yet another state action over charging allegedly illegal interest rates, this time paying a total of $1.25 million to the state of Florida with around $11 million for borrowers, Attorney General Pam Bondi announced Friday.

  • January 13, 2017

    Wells Fargo Says Account Scandal Recovery Moving Along

    Wells Fargo & Co. on Friday said it had made significant progress in reimbursing customers, reforming sales practices and taking other steps to recover from the phony account scandal that rocked the bank last fall, even as it struggles to attract new customers.

  • January 13, 2017

    High Court Libor Appeal Tests Bedrock Of Rate-Fixing Suits

    The U.S. Supreme Court could decide as early as Tuesday whether it will review allegations of a conspiracy by banks to rig the London Interbank Offered Rate in a case that could test whether financial institutions will be liable for costly antitrust damages in a slew of other rate-fixing actions, experts said.

  • January 13, 2017

    Tribe Says Leaders' Indictment Boosts Suit Against Bank

    The Paskenta Band of Nomlaki Indians told a California federal judge Thursday that the recent indictment of three former tribal officials on embezzlement charges bolsters its case against a bank that allegedly knew the ex-leaders were exploiting their positions to steal from the tribe.

  • January 13, 2017

    UBS Loses $1.2B Bail Challenge In Tax Fraud Investigation

    The European Court of Human Rights announced on Thursday that it has rejected UBS AG's challenge to a €1.1 billion ($1.24 billion) bail upheld by the French Supreme Court after the bank came under scrutiny for allegedly helping clients dodge taxes.

  • January 13, 2017

    SEC Fines Morgan Stanley $13M For Overcharging Fees

    A Morgan Stanley investment advisement subsidiary on Friday agreed to dole out $13 million to end the U.S. Securities and Exchange Commission’s allegations that it charged about 150,000 clients inadvertently heightened advisory fees due to billing system and administrative errors.

  • January 13, 2017

    Investors Left In Dark About $912M Cardinal Sale, Suit Says

    A Cardinal Financial Corp. shareholder has hit United Bankshares Inc., Cardinal and its executives with a putative class action in Virginia federal court claiming the companies held back information related to Cardinal’s proposed $912 million sale to United, preventing shareholders from making an informed vote.

  • January 13, 2017

    8th Circ. Affirms Max Liability Ruling In Grocer's Breach Battle

    The Eighth Circuit on Friday saved Schnuck Markets from a potential million-dollar bill related to a 2013 data breach that compromised customer cardholder data, letting stand a lower court's ruling that the supermarket chain's liability is capped at $500,000.

  • January 13, 2017

    Senate Dems Want Foreclosure Victims To Challenge Mnuchin

    Senate Democrats on Friday asked that outside witnesses be allowed to testify at confirmation hearings for Treasury Secretary nominee Steven T. Mnuchin, including witnesses who say they were victims of allegedly shoddy foreclosure practices at a bank where Mnuchin served as chairman.

  • January 13, 2017

    Investors Say Forex Ruling Leaves Banks Luckless On Libor

    A group of investors urged a New York judge Thursday to ignore recent correspondence from bank defendants including Deutsche Bank AG over a London Interbank Offered Rate rigging scandal, arguing that the banks are fighting a losing battle following a recent landmark decision involving foreign exchange rates.

  • January 13, 2017

    $1.9M Mapco Express Data Breach Deal Gets Final OK

    A Tennessee federal judge on Thursday gave the final stamp of approval to a nearly $2 million deal settling claims over data security breaches at several Mapco Express stores, saying that the deal puts class members first.

  • January 12, 2017

    Citi Bankers Tell 2nd Circ. Unfair Standard Used In Cert. Denial

    Citibank personal bankers in New York and Illinois, appealing the denial of class certification in their suit alleging Citibank NA withheld overtime pay, told the Second Circuit on Thursday that they were unfairly held to a trial standard of evidence at the certification stage.

  • January 12, 2017

    HSBC Inks $45M Deal To Settle Euribor Investor Claims

    Investors suing big banks over alleged manipulation of Euribor, the euro interbank offered rate, asked a New York federal court Wednesday to sign off on a $45 million settlement with HSBC Bank PLC.

Expert Analysis

  • Hague Securities Convention’s Impact On Secured Transactions

    Edwin E. Smith

    Choice-of-law rules for the perfection and priority of a security interest in “securities credited to a securities account” will change on April 1, 2017, when the Hague Securities Convention comes into effect. Edwin Smith and Alan Beloff of Morgan Lewis & Bockius LLP describe what steps secured parties may need to take now for existing secured transactions and in planning for new ones.

  • Amended Rule 37(e): 1 Year Later

    Samantha Southall

    After a full year in effect, the amended Federal Rule of Civil Procedure 37(e) has been tested in a variety of district courts. A sampling of these decisions reveal that courts seem to be adhering closely to the amended rule and ordering adverse inference instructions only where there was intent to deprive another party of access to relevant information, say Carrie Amezcua and Samantha Southall of Buchanan Ingersoll & Rooney PC.

  • Avoiding The Hidden Costs Of Bargain-Priced E-Discovery

    Michael Cousino

    Many organizations are interested in finding electronic discovery partners who offer tantalizingly low prices for electronic discovery services. However, unforeseen gaps, lax security practices, ignorance of global practices and delayed deliverables can all add up to a surprisingly large final cost, says Michael Cousino of Epiq Systems.

  • Dabbing Into The Financial Side Of Marijuana

    Neda Ghomeshi

    Both the U.S. Department of Justice and the Financial Crimes Enforcement Network have provided guidance for brokers and firms doing business with the cannabis industry, concerning how to avoid prosecution for violating the law. However, even 100 percent compliance does not guarantee total safety from investigation, says Neda Ghomeshi of Hunter Taubman Fischer & Li LLC.

  • FINRA’s Most Significant 2016 Enforcement Actions

    Jon Eisenberg

    The Financial Industry Regulatory Authority brings about 1,500 enforcement actions a year, but often lost in the volume of actions are the ones that merit particular attention. Jon Eisenberg and Michael Dyson of K&L Gates LLP review the 2016 actions that resulted in fines of $1 million or more.

  • Native American Cases To Watch In 2017

    Thomas F. Gede

    The current eight-member U.S. Supreme Court will examine two Native American cases early this year, and may hear additional cases following the confirmation of a ninth justice. Thomas Gede of Morgan Lewis & Bockius LLP discusses the most important cases to pay attention to, including Lewis v. Clarke and Lee v. Tam.

  • New York Revises Cybersecurity Proposal: A Closer Look

    Michael A. Mancusi

    Although the revised version of New York's proposed cybersecurity regulations addresses several areas of concern or confusion for financial services firms, certain questions of scope and liability remain. In addition, the revised proposal's requirements remain extensive, say attorneys with Arnold & Porter Kaye Scholer LLP.

  • Saving Lawyers 1 Breath At A Time: Mindfulness In The Law

    Jennifer Gibbs

    As critical as lawyers are to society, they are reported to be the most frequently depressed occupational group in the United States. In response to the inherently stressful nature of the practice of law, more and more lawyers are turning to an ancient contemplative practice called “mindfulness,” says Jennifer Gibbs of Zelle LLP.

  • Long-Arm Jurisdiction In A Post-Daimler Era

    Muhammad U. Faridi

    A New York state court’s recent decision in Ace Decade Holdings v. UBS, dismissing a $500 million fraud suit against Swiss bank UBS, highlights the nuanced issues involved in personal-jurisdiction disputes and demonstrates that Daimler has significantly limited general “doing business” jurisdiction over out-of-state defendants, say Muhammad Faridi and Jordan Engelhardt of Patterson Belknap Webb & Tyler LLP.

  • Understanding How Blockchain Could Impact Legal Industry

    R. Douglas Vaughn

    Blockchain is essentially a computerized public ledger that can apply to almost anything that a person might save into a database or spreadsheet. This versatile technology may enhance the legal industry by providing an improved record keeping system, setting up "smart contracts" and tracking intellectual property and land records, say R. Douglas Vaughn and Anna Outzen of Deutsch Kerrigan LLP.