Banking

  • May 10, 2018

    Long-Running FCA Suit Against Wells Fargo Tossed

    A New York federal judge on Wednesday tossed long-running whistleblower litigation alleging Wells Fargo, through banks it acquired, defrauded the Federal Reserve to borrow money at lower interest rates, saying Federal Reserve Banks aren’t covered by the False Claims Act since they’re technically not government agencies.

  • May 10, 2018

    Cohen Says Avenatti's Report Should Block Him From Court

    Lawyers for Michael Cohen urged a Manhattan federal judge Wednesday to reject Michael Avenatti’s bid to appear in the case that began after last month’s government raid on Cohen’s office, arguing the attorney representing adult film actress Stormy Daniels tried to bash the attorney who’s represented President Donald Trump by publishing Cohen’s bank records.

  • May 10, 2018

    11th Circ. Says Wells Fargo Didn't Waive Arbitration

    An Eleventh Circuit panel said Thursday that Wells Fargo Bank NA didn’t waive its arbitration rights against absent class members in five suits in multidistrict litigation over allegedly unlawful overdraft fee charges, overturning a Florida federal judge’s denial of the bank's effort to push those class members’ claims into arbitration.

  • May 10, 2018

    Insurer Need Not Cover $11M Lost After Hack, 11th Circ. Says

    The Eleventh Circuit on Thursday found that a Great American Insurance Co. policy against computer fraud does not cover $11.4 million in fraudulent debit card redemptions, finding that while computer fraud occurred, the policyholder's loss was too many steps removed from the fraud for coverage.

  • May 10, 2018

    Law Firm Cites Mulvaney In 9th Circ. Challenge To CFPB

    A California law firm that’s asking the Ninth Circuit to free it from a Consumer Financial Protection Bureau civil investigative demand pressed its challenge to the constitutionality of the agency’s structure on Wednesday, citing recent criticism from CFPB acting Director Mick Mulvaney that the agency he leads “is far too powerful.”

  • May 10, 2018

    PE-Backed Evo Payments Launches $210M IPO

    Private equity-backed payment processor Evo Payments Inc. launched an initial public offering Thursday that could raise $210 million, provided that shares price at the middle of their range, represented by King & Spalding LLP.

  • May 10, 2018

    Art Maven Eyed In Inheritance Tax-Dodge Cops To Fake Return

    A Manhattan art consultant has avoided trial on charges of hiring a Swiss banking whiz to help her cheat the IRS out of $1.5 million of taxes on a $4 million inheritance, admitting Thursday to a count of signing a fraudulent tax return.

  • May 10, 2018

    Ex-Trader Indicted Over Role In Forex Rigging Conspiracy

    A federal grand jury returned an indictment Thursday accusing a former currency trader at a major U.S. bank of engaging in a conspiracy to manipulate prices in the foreign currency exchange market.

  • May 10, 2018

    ADR Holders Try To Intervene In Citigroup Exchange Rate Suit

    Two holders of Citigroup-sponsored American depository receipts urged a New York federal judge on Wednesday to let them intervene in a class action against Citigroup Inc. over the bank’s alleged manipulation of the foreign exchange rate when providing dividends to ADR holders.

  • May 10, 2018

    Quicken Loans Hit With TCPA Suit Over Spam Calls

    Quicken Loans Inc. was hit Thursday with a putative class action claiming the mortgage lending company violated the Telephone Consumer Protection Act by sending unsolicited telemarketing calls to numbers that are on the Do Not Call Registry.

  • May 10, 2018

    JPMorgan Can’t Escape DOL’s Pay Bias Suit

    An administrative law judge has denied JPMorgan’s bid to escape allegations by the U.S. Department of Labor that it illegally pays women less than men, saying the requirement that workers alleging pay discrimination sue their employers within a certain time frame doesn’t apply to the DOL’s government contracts watchdog.

  • May 10, 2018

    Debevoise Leads Axa Equitable In Year's Largest IPO

    Axa Equitable Holdings Inc., the U.S. division of French insurance and asset management firm Axa SA, debuted on public markets Thursday, raising $2.75 billion in the U.S.’ largest initial public offering this year, with guidance from Debevoise & Plimpton LLP.

  • May 10, 2018

    RBS Says US Deal Opens Way To Dividends, Gov't Stock Sales

    The Royal Bank of Scotland said Thursday its $4.9 billion misconduct settlement with U.S. authorities clears the way for the U.K. government to begin selling off its RBS stock holding and raises hopes that the bank will resume paying a dividend after a 10-year hiatus.

  • May 9, 2018

    Mulvaney Targets CFPB's Student Lending Office In Reorg

    Consumer Financial Protection Bureau Acting Director Mick Mulvaney said Wednesday that an agency office that’s been involved in investigating student loan abuses is being merged into another office focused on educating consumers, a move that consumer advocates are comparing to “shuttering the fire department in the middle of a three-alarm fire.”

  • May 9, 2018

    RBS, DOJ Near $4.9B Deal Over Potential RMBS Civil Claims

    The Royal Bank of Scotland has reached a tentative deal with the U.S. Department of Justice, reportedly worth $4.9 billion, to settle potential civil claims over the bank’s structuring and sale of residential mortgage-backed securities before the financial crisis, the agency confirmed Wednesday.

  • May 9, 2018

    Treasury Watchdog To Probe Release Of Cohen Funds Info

    A lawyer for the U.S. Department of the Treasury’s internal watchdog said Wednesday that he would look into a possible leak of confidential banking records related to President Donald Trump’s longtime personal lawyer Michael Cohen.

  • May 9, 2018

    Dems Ask Trump To Pull Kirkland Partner's DOJ Nomination

    U.S. Senate Judiciary Committee Democrats on Wednesday called on President Donald Trump to withdraw his controversial nomination of Kirkland & Ellis LLP’s Brian Benczkowski to lead the Department of Justice’s criminal division over his representation of a bank with ties to Russian President Vladimir Putin.

  • May 9, 2018

    Calif. Wells Fargo Consultants Win $97M In Rest Break Suit

    A California federal judge on Wednesday awarded $97.28 million to a class of 4,481 Golden State-based Wells Fargo & Co. home mortgage consultants who weren't paid for rest breaks, rejecting the bank's arguments that it shouldn't have to pay more than $24.5 million for the labor violations.

  • May 9, 2018

    The US Has Exited The Iran Deal. What Happens Now?

    The Trump administration’s decision to pull out of a historic nuclear disarmament deal with Iran will have serious ramifications for global geopolitics and national security, but the move will in the near term have its most pointed effect on companies doing or considering business in Iran.

  • May 9, 2018

    Taking On Gun Lobby Could Backfire For NY Bank Agency

    New York’s top financial regulator has turned heads with its recent focus on the National Rifle Association’s ties to state banks and insurers, with experts saying a foray into the contentious gun control debate could backfire on the agency and the firms it regulates.

Expert Analysis

  • What To Expect From The 2nd Criminal Spoofing Trial

    Jeffrey Brown

    Andre Flotron's upcoming criminal trial and the corresponding civil complaint demonstrate that regulators have the appetite to bring spoofing cases based largely on patterns observed in trade data. This data may be supplemented by the allegedly incriminating testimony of witnesses, say attorneys with Dechert LLP.

  • New Russian Oligarch Sanctions Will Require Prompt Action

    Grant Leach

    Last week, the U.S. Treasury Department's Office of Foreign Assets Control added several Russian oligarchs, political officials and businesses under their control to its Specially Designated Nationals and Blocked Persons List. These sanctions will likely impose serious compliance challenges for both U.S. and non-U.S. persons doing business with Russia, say attorneys with Husch Blackwell LLP.

  • Federal Vs. State: The Fight To Regulate Student Loans

    Joseph Cioffi

    In the absence of federal action, states have generally enjoyed the home-field advantage when it comes to enforcement of student loans, but that could change, say Joseph Cioffi and James Serritella of Davis & Gilbert LLP.

  • FinCEN's Customer Due Diligence Expectations: Some Clarity

    Michael Mancusi

    The Financial Crimes Enforcement Network's publication last week of a wide-ranging set of FAQs indicates that uncertainty as to FinCEN's new customer due diligence requirements is indeed widespread. Financial institutions should review and incorporate this guidance into their onboarding and due diligence procedures, say attorneys with Arnold & Porter.

  • Congressional Forecast: April

    Layth Elhassani

    As Congress returns to Washington for a three-week work period, President Donald Trump continues announcing new policy and personnel decisions. But with midterms looming, Congress is unlikely to make progress on legislation requiring compromise and bipartisanship, say Layth Elhassani and Kaitlyn McClure of Covington & Burling LLP.

  • Series

    Dissolving Practice: Partner Agreement Clauses That Can Help

    ​​​​​Leslie Corwin

    Given the competing public policies of protecting clients’ right to counsel of their choice, lawyer mobility, and the fiduciary duty partners owe to a dissolved firm, it behooves law firms to carefully review their partnership agreements to make sure they adequately spell out what happens in the unfortunate event that the law firm chooses to wind down, say ​​​​​Leslie Corwin and Rachel Sims of Blank Rome LLP.

  • A 9th Circ. Warning For Game Apps With Micro-Transactions

    Christopher Queenin

    Courts that have addressed virtual game currencies have found that developers do not run afoul of state gambling laws so long as the virtual currencies have no transferable monetary value outside of the game. But the Ninth Circuit disagreed last month in Kater v. Churchill Downs, says Christopher Queenin of Nixon Peabody LLP.

  • Series

    Dissolving Practice: The Unfinished Business Doctrine

    Thomas Rutledge

    There has been, of late, significant dispute as to the application of the unfinished business doctrine, particularly with respect to hourly rate matters of now-dissolved large law firms. And the California Supreme Court’s recent decision in Heller Ehrman, like others as to similar points, is highly questionable, says Thomas Rutledge of Stoll Keenon Ogden PLLC.

  • Senate Regulatory Relief Bill Would Benefit Community Banks

    Joan Guilfoyle

    The Dodd-Frank rollback bill recently passed by the Senate is not as sweeping as the House’s Financial Choice Act, but for community bankers, there are a number of provisions to like, says Joan Guilfoyle of Jones Walker LLP.

  • Should We Trust The Fiduciary Rule Is Gone?

    Robert Stone

    The U.S. Department of Labor's fiduciary rule has been challenged in court by various organizations on grounds that the agency exceeded its authority in promulgating it. Those challenges culminated in a recent decision by the Fifth Circuit to vacate the rule in U.S. Chamber of Commerce v. DOL, say Robert Stone and Shannon Smith of Katten Muchin Rosenman LLP.