Banking

  • January 18, 2017

    State Street To Pay $65M For Execs' Commission Fraud

    State Street Corp. admitted on Wednesday to overcharging government and pension fund managers in Europe, the U.K. and the Middle East and agreed to pay $64.6 million in criminal and civil fines to end U.S. investigations.

  • January 18, 2017

    Puerto Rico Reaches Deal On Pension Bond Payments

    Holders of bonds issued by Puerto Rico's largest public pension fund reached a deal to recoup some of the money that the beleaguered territory diverted from the fund, according to a stipulation and order filed on Tuesday in Puerto Rico federal court. 

  • January 18, 2017

    Sprint Asks to Mull AGs’ Changes To $50M Cramming Fund

    Sprint Corp. told a New York federal court on Tuesday that it was “premature” of several state attorneys general to say that the wireless carrier had agreed to proposed changes to a $50 million consumer repayment fund set up to settle allegations the company had crammed unauthorized charges onto subscribers' bills.

  • January 18, 2017

    Feds, Chase Reach Deal In Mortgage Discrimination Case

    A JPMorgan Chase & Co. unit on Wednesday agreed in principle to settle claims that it charged black and Hispanic borrowers higher mortgage rates between 2006 and 2009, federal prosecutors said.

  • January 18, 2017

    High Court Says Fannie Mae Has Limited Path To Fed. Court

    The nation's high court on Wednesday reversed a Ninth Circuit ruling that found Fannie Mae can remove state suits to federal court, striking a blow to Fannie, which has argued that its charter allows it to bring suits to federal courts.

  • January 17, 2017

    Ex-Coin.mx Worker Pleads Guilty In Bitcoin Fraud Scheme

    A Florida man accused of helping criminals launder money through unlicensed bitcoin exchange site Coin.mx pled guilty to seven criminal counts including wire fraud in New York federal court on Tuesday, according to federal prosecutors.

  • January 17, 2017

    Ex-Cravath Atty, Hedge Fund Runner Get 2nd CFTC Seat Try

    Just days before stepping out of office, the Obama administration on Tuesday renewed a bid to fill a pair of vacancies at the U.S. Commodity Futures Trading Commission, re-nominating a former Cravath Swaine & Moore LLP attorney and a hedge fund manager who didn’t advance last year.

  • January 17, 2017

    High Court Wrestles With Clash Over Stale Debt In Bankruptcy

    The U.S. Supreme Court on Tuesday pressed a professional debt collector to explain why it should not face legal liability if it pursues stale debt in bankruptcy proceedings, and questioned to what extent the U.S. Bankruptcy Code may preclude debtors from filing consumer protection law reprisals.

  • January 17, 2017

    Southport, US Bank Hit In Asset Misappropriation Scheme

    The former owners of two insurance companies launched a lawsuit in Delaware Chancery Court on Tuesday accusing the companies' buyers of hatching a scheme to replace the companies’ assets with worthless investments that, with the aid of U.S. Bank NA, cost the sellers hundreds of millions of dollars.

  • January 17, 2017

    Capital One Says $57M Loan Guarantee Is Enforceable

    Capital One told a New York appellate panel Tuesday that a lower court should have forced loan guarantors to cough up $57 million for a defaulted loan for taxi medallions, saying that the contract language calling the guarantees absolute, irrevocable and unconditional entitles the bank to collect from the guarantors.

  • January 17, 2017

    Texas Bank Can’t Leapfrog To Full DC Circ. In CFPB Case

    A D.C. federal judge on Tuesday shot down a Texas bank's bid to join an appeal before the full D.C. Circuit concerning the constitutionality of the Consumer Financial Protection Bureau’s single-director leadership, rejecting the bank’s arguments the move would serve the interest of “judicial economy.”

  • January 17, 2017

    Secret Client In JPM Whistleblower Case To Be Named

    The anonymous Client A, who is at the center of a lawsuit against JPMorgan Chase & Co. by an ex-executive who claims the bank fired her for flagging possible fraud, will be identified at trial and may be called as a witness by the former banker, a New York federal judge said Tuesday.

  • January 17, 2017

    Deals Rumor Mill: Vitanas, Tata Group, Abraaj Group

    German nursing home operator Vitanas could sell for up to €550 million; India's Tata Group intends to increase the stakes it owns in a number of its own listed companies, including an automaker; and emerging economy-focused private equity shop Abraaj Group is interested in buying a stake in Barclays' South African business.

  • January 17, 2017

    Deutsche Bank Finalizes $7.2B MBS Settlement

    The U.S. Department of Justice finalized a $7.2 billion deal with Deutsche Bank AG on Tuesday, releasing new details about how Germany’s largest bank misled investors in selling subprime mortgage-backed securities that led to the 2007 financial crisis.

  • January 17, 2017

    Cadwalader Closing Houston Office

    Cadwalader Wickersham & Taft LLP said on Tuesday that it will close its Houston office as part of the firm’s decision to consolidate around its core client base of large corporations and the financial sector, including banks and hedge funds.

  • January 17, 2017

    NY Says OCC Fintech Charter Puts Consumers At Risk

    New York’s top financial watchdog on Tuesday blasted a federal regulator’s proposal to create a new charter for nonbank online lenders and other financial technology firms, saying that the new charters would open the door to weakening state consumer protection laws.

  • January 17, 2017

    Tragic Juror Issues Delay Litvak Deliberations

    Deliberations have halted in the retrial of former Jefferies & Co. trader Jesse Litvak after an alternate juror died over the weekend and another was involved in a serious car accident, a spokesman for the Connecticut federal prosecutor's office confirmed Monday.

  • January 17, 2017

    Mary Jo White Says SEC Must Remain An Independent Agency

    Outgoing U.S. Securities and Exchange Commission Chair Mary Jo White said Tuesday the agency must remain independent in the face of “partisan tides” and constricting legislation in order to fulfill its mission of protecting investors.

  • January 17, 2017

    Ex-Nova Bank Board Chairman Asks For No Prison Time

    The former board chairman of now-defunct NOVA Bank has asked a Pennsylvania federal judge for leniency when sentencing him next week for devising a circular lending scheme in a failed effort to deceive federal regulators into investing in the bank, arguing that a probationary punishment should be handed down.

  • January 17, 2017

    Senate Dems Won’t Negotiate CFPB's Makeup, Schumer Says

    Senate Democrats will not negotiate to replace the Consumer Financial Protection Bureau's single-director leadership with a commission structure similar to that of other financial regulatory bodies, the party’s leader in that chamber said Tuesday.

Expert Analysis

  • It’s Time To Change The Law Firm Business Model

    Lucia Chiocchio

    Every year, statistics reveal very little change in the number of women and minorities in the ranks of partnership. So how do law firms change this painfully slow rate of progress? It takes more than adding a diversity policy or a women’s leadership program to the current law firm business model, says Lucia Chiocchio, co-chair of Cuddy & Feder LLP's telecommunications and land use, zoning & development groups.

  • Hague 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 reveals 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.