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Banking

  • August 9, 2018

    Mass. AG Launches Probe Into LendingClub’s Ad Practices

    LendingClub Corp. said in a regulatory filing Wednesday that the Massachusetts attorney general is investigating the San Francisco-based peer-to-peer lending company's advertising and disclosure practices to consumers in that state.

  • August 9, 2018

    Ex-IRS Worker Cops To Identity Theft In Refund Scheme

    A former Internal Revenue Service employee on Thursday admitted to stealing a taxpayer’s identity as part of a yearlong tax refund fraud scheme in which prosecutors alleged she used information available to her as an IRS contact representative to file false returns in the name of other taxpayers and deposit the refunds in friends’ accounts.

  • August 9, 2018

    Manafort Judge Says His Dressing-Down Of Feds Was Wrong

    The case against Paul Manafort focused Thursday on allegations that he tricked banks into more favorable loans, but it kicked off with a mea culpa from the Virginia federal judge admitting he may have made a mistake. 

  • August 9, 2018

    GM Trust, Lenders Told To Resolve $1.5B Loan Row Quickly

    A New York bankruptcy judge Thursday urged General Motors Co.'s bankruptcy trust and JPMorgan Chase Bank NA to pick up the pace following a bellwether ruling in 2017 intended to resolve a dispute over the nature and value of security interests in GM plants related to a $1.5 billion term loan.

  • August 9, 2018

    Mesa Air Group Leads 3 IPOs Raising $260M Combined

    U.S. regional air carrier Mesa Air Group Inc. led three initial public offerings that raised a combined $260 million on Thursday, joined by a New York community bank and a cancer-focused biotechnology firm, kicking off a quiet week for IPOs.

  • August 9, 2018

    1st Circ. Hands Win To Puerto Rico In Bond Lien Dispute

    Hedge fund Peaje Investments' $65 million in bonds issued by Puerto Rico's Highways and Transportation Authority are not secured by a lien on toll revenues, the First Circuit has affirmed in a decision that amounts to a victory for the commonwealth and yet another setback for creditors of its various government agencies.

  • August 9, 2018

    Ex-Goldman Sachs Managing Director Alleges Retaliation

    Goldman Sachs & Co. LLC inappropriately fired and withheld millions of dollars in bonuses from a former senior managing director who refused to take the blame for the investment bank's alleged failure to properly vet a European businessman with a "checkered past," the employee alleged Thursday in New York federal court.

  • August 9, 2018

    Tax Residence Means Physical Presence, UK Isles Say

    Banks, insurers and company headquarters wanting to be taxed in the British dependencies of Jersey, Guernsey and the Isle of Man may have to show they hold physical board meetings and have sufficient staff on the islands as of next year, recently published government documents show.

  • August 8, 2018

    Manafort Wouldn't Have Noticed Embezzled Cash, Gates Says

    A prosecutor worked Wednesday to shore up cooperator Rick Gates' testimony against former Trump campaign chairman Paul Manafort in the face of attacks on Gates' credibility, in part by asserting to a Virginia federal jury that Manafort wouldn't have noticed that his business partner was skimming from their lobbying firm's revenue.

  • August 8, 2018

    Bowles Rice, Title Insurer Set For Trial In $41M Contract Row

    Bowles Rice LLP is headed to trial against a longtime partner, title insurer First American, after a federal court ruled Wednesday enough facts remain disputed about the law firm's share of blame around a $41 million settlement following the rocky construction of a coal power plant, whose title First American insured.

  • August 8, 2018

    1st Circ. Opens Path For PREPA Bondholders' Receiver Bid

    The First Circuit on Wednesday reversed a ruling by the judge presiding over Puerto Rico's restructuring proceedings, finding she is not precluded from lifting automatic stay protections for the island's bankrupt electric utility so that bondholders can pursue legal action to appoint a receiver.

  • August 8, 2018

    Deutsche Bank RMBS Suit Should Not Get Cert., Judge Says

    A New York federal magistrate judge said Tuesday that a residential mortgage-backed securities suit facing Deutsche Bank National Trust Co. and an affiliate should not be allowed to proceed as a class action and that claims for more than half the RMBS trusts at issue ought to be dismissed.

  • August 8, 2018

    Real Estate Rumors: Rockpoint, Schwartz Sladkus, Deutsche

    A Rockpoint venture has reportedly bought a Florida development site from BlackRock for $19.51 million, Schwartz Sladkus Reich Greenberg Atlas is said to be leasing 33,115 square feet in New York, and a Deutsche Bank real estate investment trust has reportedly sold five Florida warehouses for $15.8 million.

  • August 8, 2018

    Borrowers Balk At Bid To Pause Suit Against Tribal Lender

    A proposed class of Virginia residents alleging that an online lending company worked to use its connection to a Michigan tribe to protect itself against accusations it charged unduly high loan interest rates said a Virginia federal court should refuse one defendant’s request to halt the case while other defendants push an appeal.

  • August 8, 2018

    US Plans Sanctions On Russia Over Nerve Agent Attack

    The U.S. State Department said Wednesday that it plans to sanction Moscow for using chemical or biological weapons in violation of international law or against its own nationals, following the attempted assassination of former Russian spy Sergei Skripal and his daughter Yulia.

  • August 8, 2018

    SEC Told Proposed Broker Standards Fall Short

    Financial professionals, investor groups and 17 attorneys general asked the U.S. Securities and Exchange Commission to clarify and strengthen its proposal to require brokers to prioritize their clients over themselves, according to public comments submitted before an Aug. 7 deadline.

  • August 8, 2018

    Indian Bank Raises Fraud Concern In Samuels' Del. Ch. 11

    India’s second-largest national bank confirmed its interest Wednesday in the day-old Delaware Chapter 11 of Samuels Jewelers Inc., citing ongoing probes of jewelry chain fraudsters in India and the bankruptcy of a jewelry retailer in New York with ties similar to Samuels’.

  • August 8, 2018

    Online Tribal Lenders Hit With Va. Proposed Class Action

    Two online lenders have been hit with a proposed class action from Virginia consumers alleging a scheme in which the tribally linked lenders were used as a front to avoid state usury laws.

  • August 8, 2018

    CFPB, Payday Groups Again Denied Stay Of Payday Rule

    A Texas federal judge has again turned down a request from the Consumer Financial Protection Bureau and two payday lender trade groups to stay the August 2019 compliance date of the agency’s so-called payday rule, which puts restrictions on payday and other small-dollar lenders.

  • August 8, 2018

    Junk Fax Class Certified In North American Bancard Suit

    An Illinois federal judge certified a class of fax recipients who say they got unsolicited transmissions from credit card services company North American Bancard on Tuesday, calling the company’s claims it has evidence of consent “little more than red herrings.”

Expert Analysis

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • CFPB In-House Judges May Be Next To Come Under Scrutiny

    Gregory Hesse

    The U.S. Supreme Court's ruling last month in Lucia that an administrative law judge at the U.S. Securities and Exchange Commission is subject to the Constitution's appointments clause does not bode well for ALJ rulings relied on by the Consumer Financial Protection Bureau, say attorneys with Hunton Andrews Kurth LLP.

  • Lorenzo V. SEC: Will High Court Further Curtail Rule 10b-5?

    Roger Cooper

    In Lorenzo v. U.S. Securities and Exchange Commission, the U.S. Supreme Court will consider whether a misstatement claim that does not meet the elements set forth in the court’s 2011 Janus decision can be repackaged and pursued as a fraudulent scheme claim under Rule 10b-5. A number of possible outcomes present themselves, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Employee Performance Ratings: Tainted Or Sainted?

    Lisa Harpe

    The recent focus on pay equity and employers’ pay practices has heightened the need to consider equal employment opportunity outcomes in performance ratings systems. Lisa Harpe and Sarah Gilbert of DCI Consulting Group discuss the current legal environment and proactive steps to examine performance ratings in the context of evaluating pay equity.

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • AmEx Ruling May Have Big Impact On Health Insurance

    David Garcia

    There are a number of ongoing antitrust cases involving health insurance networks that may be susceptible to the type of two-sided market analysis described by the U.S. Supreme Court last month in Ohio v. American Express, say David Garcia and Nadezhda Nikonova of Sheppard Mullin Richter & Hampton LLP.

  • California Decision Distorts Bank Liability Under FIRREA

    Ben Singer

    A California federal judge recently concluded in United States v. Bogucki that any action by a bank employee that incurs potential liability for the bank triggers the Financial Institutions Reform, Recovery, and Enforcement Act. This renders unwieldy the scope of banks’ potential FIRREA exposure, says Ben Singer of O'Melveny & Myers LLP.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • CFPB And The Issue Of Its Legitimacy

    Joann Needleman

    A few months after the D.C. Circuit held in PHH that the structure of the Consumer Financial Protection Bureau is constitutional, the bureau’s future remains unclear due to a New York federal judge's ruling in RD Legal Funding. And the nomination of Judge Brett Kavanaugh to the U.S. Supreme Court moves the constitutionality of the CFPB to the front of the line, say attorneys with Clark Hill PLC.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.