Banking

  • February 17, 2017

    DOL Notches Win Against Insurer's Fiduciary Rule Challenge

    A Kansas federal judge on Friday sided with the U.S. Department of Labor in upholding a new fiduciary rule for retirement account advisers related to fixed indexed annuity sales, finding the agency did not exceed its authority in ushering it in.

  • February 17, 2017

    Calif. Appeals Court Revives BNY Mellon’s Lien Priority Suit

    Bank of New York Mellon Corp. convinced a California state appeals court on Thursday to resuscitate its case against Citibank NA over which lender has a lien on a home whose owners refinanced their home-equity loan with both banks nearly simultaneously, with the court concluding that one of BNY’s claims could have a chance.

  • February 17, 2017

    FDIC Can Split Colonial Trials Against Crowe Horvath, PWC

    An Alabama federal judge agreed Friday to split trials for claims by the Federal Deposit Insurance Corp. alleging that Crowe Horwath LLP and PricewaterhouseCoopers LLP acted negligently by failing to catch a $1.8 billion fraud scheme involving defunct former client Colonial BancGroup Inc.

  • February 17, 2017

    Ex-JPMorgan Banker Gets 3 Years For Leaking Tips To Dad

    A former investment banker for JPMorgan Chase & Co. and Perella Weinberg Partners convicted of insider trading after he was accused of leaking confidential information about health care company mergers to his father was sentenced to three years in prison on Friday.

  • February 17, 2017

    Ex-Tribal Officials Slam Stay Terms In $6M Embezzlement Row

    Former Paskenta Band of Nomlaki Indians officials accused by the tribe of a wide-reaching $6 million embezzlement scheme continued Thursday to press a California federal court to pause the dispute while related criminal charges against some of them are resolved, blasting the tribe’s request that certain conditions be imposed on such a pause.

  • February 17, 2017

    Facing Trump, CFPB Picks Up Enforcement Pace

    The opening months of 2017 have seen a fivefold increase in Consumer Financial Protection Bureau enforcement actions compared to previous years, and attorneys say that is in part a result of the bureau seeking to get as much done as possible before President Donald Trump tries to reshape it.

  • February 17, 2017

    PE CEO In Fraud Case Wants 'Bad Faith' Warrants Suppressed

    Scandal-plagued private equity CEO Benjamin Wey asked a New York federal judge Friday to suppress the fruits of two search warrants in a securities fraud and money laundering case, saying the warrants were defective and after the government seized more than it should have, it impermissibly searched electronic data years later.

  • February 17, 2017

    Austrian Co. Can't Exit GM Suit Over $1.5B Loan

    A New York bankruptcy judge on Thursday told an Austrian company it can’t use jurisdictional arguments to escape a lawsuit trying to recover transfers to hundreds of General Motors’ former bank lenders related to a $1.5 billion term loan.

  • February 17, 2017

    NY AG, Regulator Spar Over Cuomo's Banking Fraud Plan

    New York Gov. Andrew Cuomo’s proposal to expand the Department of Financial Services’ powers against financial fraud sparked a war of words this week, with Attorney General Eric Schneiderman calling the proposal a "wholly unnecessary overreach by the executive," while the department’s superintendent labeled the objections as “petty concerns over turf.”

  • February 17, 2017

    Cay Clubs Ex-CFO Fights Gov't Request To Clarify Order

    A former Florida real estate executive facing charges related to an alleged $300 million Ponzi scheme blasted the government’s request for clarity on a pretrial order, saying Friday he won’t be raising arguments the court has barred.

  • February 17, 2017

    Taxation With Representation: Weil, Skadden, Kirkland

    In this week’s Taxation With Representation, Japanese telecommunications giant SoftBank Group acquires a private equity firm for $3.3 billion in cash, Hologic buys medical aesthetics company Cynosure for $1.65 billion, and a Texas oil and gas company purchases new assets in North Louisiana for $465 million.

  • February 17, 2017

    SunEdison's Unsecured Creditors Grilled Over Fraud Suit

    SunEdison's unsecured creditors were challenged in New York bankruptcy court Thursday over the durability of their allegations that the energy giant’s secured lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask the company’s deteriorating finances, finding themselves forced to defend a lack of specific details.

  • February 17, 2017

    $3.9M Ends SEC's Stanford Ponzi Claims Against Ex-Exec

    A former executive at one of Ponzi schemer R. Allen Stanford’s financial firms has agreed to pay the U.S. Securities and Exchange Commission nearly $3.9 million to settle claims related to his role in the fraud, according to a Friday decision by the regulator.

  • February 17, 2017

    Freddie Mac, FDIC Lose Bid For Redo In Libor Rigging Fight

    A New York federal judge refused Thursday to reconsider her dismissal of allegations by Freddie Mac, the Federal Deposit Insurance Corp. and Principal Financial Group Inc. regarding a conspiracy by big banks to rig the London interbank offered rate, saying U.S.-based accusations were dismissed in 2015.

  • February 17, 2017

    9th Circ. Won't Revive Suit Against BofA Over Loan Reports

    The Ninth Circuit on Thursday declined to revive homeowners’ proposed class action alleging that Bank of America violated federal tax law by failing to report capitalized interest payments on mortgages, finding that the homeowners could not show that they were harmed.

  • February 16, 2017

    Willkie Farr, Ex-Client Spar Over Tossed Backstabbing Claim

    An ex-client of Willkie Farr & Gallagher LLP squared off against the firm in a New York appellate court on Thursday in a bid to overturn the dismissal of his case, saying the court misconstrued his suit as a legal malpractice case and used the wrong date when it determined he sued too late.

  • February 16, 2017

    Trump Will Struggle To Fire Cordray During DC Circ. Review

    Any plans President Donald Trump had of firing Consumer Financial Protection Bureau Richard Cordray became more complicated when the D.C. Circuit vacated and elected to review a court decision giving the president the power to fire Cordray at will rather than for cause, experts say.

  • February 16, 2017

    Founder Of BlueHippo, Itself Underwater, Files For Ch. 7

    The former CEO of now-defunct BlueHippo Funding LLC filed for personal Chapter 7 bankruptcy in Florida on Wednesday, two days before he was required to respond to a motion to hold him in contempt for failing to pay $13.4 million for violating an order that his company cease deceptive practices.

  • February 16, 2017

    Commerzbank Tells Judge Not To Toss Wells Fargo RMBS Suit

    Commerzbank AG on Thursday urged a New York federal judge not to toss its suit alleging that Wells Fargo Bank NA failed to protect it from massive residential mortgage-backed securities losses, saying a ruling in a similar suit against Deutsche Bank National Trust Co. supports such an outcome. 

  • February 16, 2017

    Investors Can't Revise Distribution For $15M Farm Loan Scam

    An Indiana federal judge on Thursday backed a receiver’s plan to distribute recovered funds to investors allegedly misled about an asset manager’s use of $15 million in farm loans, denying a group’s plan to split the investors into different tiers for recovery.

Expert Analysis

  • Anti-Money Laundering Expectations Under Trump

    Michael A. Mancusi

    We do not anticipate the new administration will ease anti-money laundering enforcement. In fact, it is more likely that enforcement of the Bank Secrecy Act is an area of supervision that will increase in the coming years, say attorneys with Arnold & Porter Kaye Scholer LLP.

  • Waive Goodbye: How Trump Might Attack The Iran Deal

    Anthony Rapa

    On the campaign trail, candidate Donald Trump attacked the Joint Comprehensive Plan of Action agreement regarding Iran’s nuclear program. But he suggested that rather than tearing the deal up, he would seek to improve it. One possible approach would be to engage in brinksmanship related to the statutory sanctions waivers President Obama issued in implementing the deal, says Anthony Rapa of Steptoe & Johnson LLP.

  • Reconsidering CFPB V. PHH

    Eric J. Mogilnicki

    If the D.C. Circuit had declined to act in Consumer Financial Protection Bureau v. PHH, President Donald Trump would have had a clear path to firing CFPB Director Richard Cordray. Instead, the court’s action granting the CFPB’s petition for rehearing creates fresh uncertainty about the scope and shape of the president’s authority over the CFPB, say Eric Mogilnicki and Andrew Smith of Covington & Burling LLP.

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    General counsels face the challenging task of understanding how companies can navigate the rules surrounding uses of artificial intelligence. To get smart on AI, general counsels must ask the right questions about areas such as human resources, intellectual property, liability and insurance, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • How A General Counsel Should Think About AI: Part 1

    Bruce J. Heiman

    Though the Trump administration has yet to make an official statement regarding artificial intelligence, support for AI is consistent with its expressed desire to promote American business. As such, general counsel will inevitably have to navigate what big data and AI mean for compliance with current and future laws and regulations, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • Bank M&A Lessons From 2016 Regulatory Approvals

    Robert C. Azarow

    A review of last year's regulatory orders approving bank mergers reveals common themes. For example, compliance history remained an essential element of the regulatory analysis for buyers of all sizes, and fair lending was one of the hottest compliance issues in connection with the merger approval process, say attorneys with Arnold & Porter Kaye Scholer LLP.

  • Overcoming Obstacles To Financial Reform And Deregulation

    Joseph Lynyak III

    Creating a list of industry-endorsed reforms is perhaps the easiest task to complete when attempting to ease financial regulatory burdens. However, sorting through and identifying realistic, achievable regulatory reforms at the agency level will prove much more difficult and vexing because of the complexity of current agency interconnectivity, says Joseph Lynyak III of Dorsey & Whitney LLP.

  • Saving Lawyers 1 Less Drink At A Time

    Jennifer Gibbs

    Lawyers are likely turning to alcohol to lessen stress and anxiety, to socialize, and even to sleep better. Unfortunately, many are unaware that their nightly pour could be causing or exacerbating the anxiety that is plaguing the legal profession, says Jennifer Gibbs of Zelle LLP.

  • The Post-Brexit Future Of Euro Clearing In London

    Christopher Arnold

    Of all the threats from Brexit on London’s status as Europe’s financial capital, few have garnered as much attention as the potential loss of its euro-denominated clearing business. Recent reports have estimated that as many as 83,000 jobs could be lost in London over the next seven years if euro-denominated clearing were shifted to continental Europe, says Christopher Arnold of Mayer Brown LLP.