Banking

  • May 26, 2017

    2nd Circ. Eyes Trader's Recordings In $83M Lehman Pay Spat

    A fabulously wealthy former Barclays Capital Inc. trader invited the Second Circuit on Friday to order the Lehman Brothers Inc. estate to make him richer by $83 million, but a three-judge panel seemed hard-pressed to ignore once-secret recordings the trader made that prompted lower courts to deny him the extra haul.

  • May 26, 2017

    Investors To Appeal Dismissal Of Fannie, Freddie Suit

    Investors seeking to challenge the sweep of profits from Fannie Mae and Freddie Mac instituted by the Obama administration on Thursday said they intend to appeal a Texas federal judge’s decision that dismissed their complaint against the Treasury Department and the Federal Housing Finance Agency.

  • May 26, 2017

    BNC Bancorp Investor Sues Over $1.9B Pinnacle Merger Docs

    A putative class of BNC Bancorp shareholders slapped the bank and Pinnacle Financial Partners Inc. with a suit in North Carolina federal court on Thursday, alleging that key details of the bank holding companies’ proposed $1.9 billion merger weren’t adequately disclosed in shareholder materials.

  • May 25, 2017

    Fla. Court Freezes Fake Student Loan Debt Relief Operator

    A Florida federal court has temporarily shut down student loan debt relief company Strategic Student Solutions, which the Federal Trade Commission says bilked customers out of millions of dollars by promising to reduce or eliminate their loan debt, the FTC said Thursday.

  • May 25, 2017

    LendingClub Stock Drop Suit Moves Forward Mostly Intact

    A California federal judge allowed the bulk of a proposed class action accusing LendingClub Corp. of hiding defective internal controls to go forward on Thursday, but ruled that the investors behind the suit will need to tighten up some of their claims.

  • May 25, 2017

    TD Bank Nears Class Action Settlement Over Account Freezes

    A putative class accusing TD Bank NA of improperly freezing money exempt from judgment in customer accounts and imposing fees asked a New York federal judge Thursday for final approval of a $500,000 settlement that will also make it easier for judgment debtors to access their funds, ending seven years of litigation.

  • May 25, 2017

    5th Circ. Remands Texas Credit Card Surcharge Case

    The Fifth Circuit on Thursday sent a case challenging a Texas law that bars retailers from imposing credit card surcharges back to a lower court following a U.S. Supreme Court ruling that a similar statute in New York may have unconstitutionally restricted merchants’ free speech rights.

  • May 25, 2017

    Judge Will OK Wells Fargo Class’ $142M Deal After Tweaks

    A California federal judge on Wednesday declared that he will approve a $142 million settlement in a class action between Wells Fargo and the owners of 3.5 million unauthorized bank accounts that were surreptitiously opened in their names, saying that certain changes need to be made to the settlement first.

  • May 25, 2017

    Subprime Auto Loan Co. Execs Cop To $11M Fraud

    Two Massachusetts men pled guilty in Boston federal court Thursday to an $11 million fraud scheme in which they falsely told investors that their subprime auto loan company could accept tax-advantaged retirement account funds.

  • May 25, 2017

    Exxon, Shell Seek Nigerian Bank Docs In $1.8B Award Suit

    Exxon Mobil Corp. and Royal Dutch Shell PLC subsidiaries trying to confirm a $1.8 billion arbitration award against a Nigerian state-owned oil company have urged a New York federal judge to deny an attempt from the country’s central bank to hold on to records related to its foreign accounts.

  • May 25, 2017

    3 Nigerians Sentenced In International Cyber Fraud

    A Mississippi federal judge on Wednesday dished out hefty prison sentences ranging from 25 to 115 years to three Nigerian nationals for their roles in a large-scale internet fraud network, where they duped U.S. citizens via romance scams to send money or help carry out the frauds, the U.S. Department of Justice announced.

  • May 25, 2017

    State AGs Want Sprint's $15M Redistributed In CFPB Row

    A group of state attorneys general has urged a New York federal judge to redirect $15 million in undistributed funds from a Sprint Corp. settlement to a nonprofit and an attorneys general training program, saying objections from the Consumer Financial Protection Bureau do not hold water.

  • May 25, 2017

    Third Coinbase User Opposes IRS Bid As ‘Fishing Expedition’

    A third anonymous Coinbase customer sought Wednesday to jump into the fray opposing the IRS’ California federal court summons enforcement bid seeking customer names and other information from the virtual currency exchange company, warning of an unconstitutionally intrusive “fishing expedition.”

  • May 25, 2017

    UK Senior Manager Conduct Rules Poised To Go Global

    The feared individual accountability scheme that makes Britain’s financial services managers responsible for misconduct happening on their watch has caught the eye of global regulators, and lawyers say it is only a matter of time before a similar program is rolled out internationally.

  • May 25, 2017

    GOP Drops Swipe-Fee Repeal From Dodd-Frank Replacement

    The head of a key House committee on Wednesday said that he would cut language to repeal a cap on debit card swipe fees included in the Dodd-Frank Act from a keystone Republican financial regulation bill, saying that he wouldn’t let the bill be derailed by a matter that has divided retailers and financial firms.

  • May 25, 2017

    Top Pence Aide Wants Bank Creditors To Play Regulatory Role

    A top adviser to Vice President Mike Pence on Thursday said that the Trump administration’s main priority in changing financial regulation will be to help creditors and other market participants take a more active role in policing markets.

  • May 25, 2017

    Global Regulators Set FX Market Conduct Code After Scandals

    Central bankers and foreign exchange players on Thursday unveiled a voluntary global code of conduct establishing good practices for wholesale foreign exchange markets, hoping to restore faith in a $5 trillion daily market beset by several enforcement probes and antitrust litigation alleging manipulation.

  • May 24, 2017

    8th Circ. Lets St. Louis Bank Out Of Sigillito Ponzi Claims

    The Eighth Circuit on Wednesday let St. Louis Bank off the hook in a suit by investors in a $56 million Ponzi scheme orchestrated by St. Louis attorney and Anglican bishop Martin Sigillito, finding the bank didn’t know the money moving through his accounts was being stolen.

  • May 24, 2017

    Wells Fargo Fails To Escape Penalty In $1.25B Tax 'Sham'

    Wells Fargo couldn’t escape a 20 percent penalty for a $1.25 billion securities transaction, part of which has been deemed a tax-avoidance sham, but it won a partial victory to deduct interest paid on a foreign loan, under a Minnesota federal court’s ruling Wednesday.

  • May 24, 2017

    Morgan Stanley Dodges Ex-Broker's ADA, Title VII Suit

    A Pennsylvania federal judge on Wednesday freed Morgan Stanley Smith Barney LLC from a former broker’s suit alleging a hostile work environment and retaliation, saying she only alleged sporadic acts of discrimination.

Expert Analysis

  • Reinstating Glass-Steagall Could Have Profound Impact

    V. Gerard Comizio

    The financial services industry faces the real possibility of a bipartisan effort to reinstate the portions of the Glass-Steagall Act that separated commercial and investment banking. Depending on the final form any new legislation takes, the changes could go further than merely reinstating the status quo as of 1999, say V. Gerard Comizio and Nathan Brownback of Fried Frank Harris Shriver & Jacobson LLP.

  • My Milkshake Is Better Than Yours: Part 2

    Jill Dessalines

    In the second installment of this two-part series on disruptive innovation among mid-size law firms, Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former senior vice president at McKesson Corp., explores a number of ideas for keeping clients and maintaining market position.

  • An Illinois Court's Lesson For Senior Lenders

    Jason Hirsh

    When does a modification “substantially impair” a junior lender’s priority? While not adopting a bright-line rule to answer this question, an Illinois state appeals court in Bowling Green Sports Center v. GAG LLC offered examples of where it would find “substantial impairment,” resulting in a senior lender losing its priority status, say Jason Hirsh and Erin Mayer Isaacson of Levenfeld Pearlstein LLC.

  • Questions Following Prevezon Money Laundering Settlement

    Elizabeth Prewitt

    The Prevezon case stands out as an example of the extraordinary lengths the U.S. government can and will go to assert jurisdiction over matters involving foreign entities and persons who commit crimes abroad to the detriment of foreign countries and citizens. However, since the matter settled, the government’s case was not tested at trial, say attorneys with Hughes Hubbard & Reed LLP.

  • My Milkshake Is Better Than Yours: Part 1

    Jill Dessalines

    As I sat there listening, incredulous to learn that "Milkshake" was not only a real song but also a chart-topper, it reminded me of Harvard Business School Professor Clayton Christensen’s work on disruptive innovation — and how it pertains to mid-size law firms, says Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former assistant general counsel of McKesson Corp.

  • FHFA Should Free Captive Insurer Capital

    Jeffrey Murphy

    The Federal Housing Finance Agency's ruling that prevents captive insurance companies from becoming members of the Federal Home Loan Bank system is forcing billions of dollars of private capital out of the U.S. residential mortgage market. Hopefully, the Trump administration and members of Congress will be able to convince FHFA Director Melvin Watt to reverse this ruling, says Jeffrey Murphy of Dentons.

  • An Overview Of Silent 2nd-Lien Loans In The US And Europe

    Frederick Fisher

    Although used often in deal negotiations, the term “silent second” has different meanings for different institutions and different meanings in the United States and Europe. Capital structures that include silent second-lien debt can therefore be complicated, particularly in cross-border transactions involving different insolvency or contract laws, say attorneys with Mayer Brown LLP.

  • Attorneys, Your Input Is Needed On Deposition Rule

    Frank Silvestri, Jr.

    Every lawyer who’s handled a civil case in federal court knows about Rule 30(b)(6), governing deposition procedures. But for many real-world deposition dilemmas, the rule offers little guidance. Last year, an Advisory Committee on Civil Rules subcommittee began considering whether the rule should be amended. Now attorneys must advise the subcommittee how to proceed, says Frank Silvestri Jr. of Verrill Dana LLP.

  • Fate Of The SEC In-House Court: Careful What You Wish For

    Matthew Solomon

    As the D.C. Circuit hears arguments on Wednesday regarding the constitutionality of the U.S. Securities and Exchange Commission’s administrative tribunals, Cleary Gottlieb attorneys consider whether the current strong movement away from using the administrative forum is universally positive for defendants.

  • The FX Global Code And Its Enforcement: What To Expect

    Matthew Kulkin

    With the second phase of the Foreign Exchange Global Code releasing this week, Matthew Kulkin and Micah Green of Steptoe & Johnson LLP analyze how U.S. courts have historically looked to or relied upon financial services global codes of conduct or industry best practices documents.