Banking

  • May 19, 2020

    Curo Investors Seek Cert. In Canada Products Class Action

    Investors of online lender Curo asked a Kansas federal judge Monday to certify their proposed class action alleging the company misled shareholders about the timeline and impact of ending profitable single-pay loans in Canada, causing its stock price to drop.

  • May 19, 2020

    Medical Cos. Didn't Show SBA Failed To Investigate Fraud

    Several medical groups that accused the Small Business Administration of not investigating fraud claims related to a small business loan haven't backed up their claims, according to a New York federal judge who tossed their suit on Monday.

  • May 19, 2020

    Payment Co., Ex-Exec Settle FTC Fraud Claims For $40M

    Payment processor First Data Merchant Services LLC and a former executive will pay the Federal Trade Commission more than $40.2 million to end the federal regulator's allegations that they enabled bad actors to process credit card payments as part of widespread fraud, the FTC said Tuesday.

  • May 19, 2020

    Real Estate Rumors: Kushner, Zaragon, JP Morgan

    Kushner Cos. is reportedly subleasing 20,500 square feet at the General Motors Building in Manhattan, Zaragon is said to have paid $7.55 million for a Miami industrial building, and JP Morgan has reportedly provided $600 million of CMBS financing for two San Francisco office towers.

  • May 19, 2020

    Children Can't Escape Mother's $2M Offshore Account Suit

    A Florida federal judge rejected a bid Tuesday to dismiss a suit alleging that a U.S. woman and her children owe nearly $2 million for concealing a bank account in Antigua and Barbuda from the Internal Revenue Service. 

  • May 19, 2020

    Sony Launches $3.7B Takeover Bid For Sony Financial Unit

    Sony is launching a roughly 400 billion yen ($3.7 billion) takeover offer for insurance and financial services unit Sony Financial Holdings Inc., saying that both businesses will be better served under one roof, even as the novel coronavirus continues causing global economic turmoil.

  • May 19, 2020

    Libra Taps Ex-FinCEN, OFAC Director As General Counsel

    The Libra Association announced Tuesday that former FinCEN and OFAC director Robert Werner has been appointed general counsel as the group behind the Libra digital currency fills out its top positions.

  • May 18, 2020

    Trustee Says Hudson's Bay Played 'Corporate Shell Game'

    Wilmington Trust has filed a suit in Delaware federal court claiming that Canadian retailer Hudson's Bay Company engaged in a "covert corporate shell game" and attempted to shirk its guarantor responsibilities as payments it was ultimately responsible for came due amid the global coronavirus pandemic.

  • May 18, 2020

    SEC Suspends Ex-KPMG Auditors For Alleged Exam Cheating

    The U.S. Securities and Exchange Commission issued suspensions for three former KPMG audit partners on Monday after accusing them of sharing the answers to required training exams.

  • May 18, 2020

    Relief Bill Could Shift Paycheck Program's Focus To Biz

    Language tucked into the House Democrats' proposed $3 trillion coronavirus relief package could alter the scope of the Paycheck Protection Program from helping workers at small businesses to supporting their employers more generally.

  • May 18, 2020

    SBA Can't Get Strip Club Loans Order Paused At 6th Circ.

    The Sixth Circuit has refused to pause a Michigan federal judge's order blocking the U.S. Small Business Administration from withholding Paycheck Protection Program loans from strip clubs and other sexually oriented businesses, although one panelist sharply dissented.

  • May 18, 2020

    TD Bank Can't Duck Ex-Worker's ADA, FMLA Bias Claims

    A Pennsylvania federal judge has refused to toss a former TD Bank employee's claims that he was wrongly canned after taking time off work to care for family members who had fallen ill, finding the bank's reasoning for his termination wasn't consistent.   

  • May 18, 2020

    2 Alliant Overdraft Fee Plaintiffs Head To Arbitration

    An Illinois federal judge sent to arbitration two of three Alliant Credit Union members pressing proposed class claims that the credit union improperly charged members insufficient-funds fees, saying Monday the members hadn't opted out of an arbitration agreement.

  • May 18, 2020

    Synovus Wants Accountants' Suit Over PPP Fees Tossed

    Synovus Trust Co. sought dismissal Sunday of a Florida accounting firm's proposed class action alleging banks are flouting the intent of the federal Paycheck Protection Program by refusing to pay loan recipients' agents a portion of their processing fees, saying such entitlement is "found nowhere" in the governing law.

  • May 18, 2020

    Banks Fight To Nix Exchange's Boycott Conspiracy Suit

    Several major banks have shot back at a small trading exchange's bid to preserve its suit accusing the banks of conspiring to shut it out of the credit default swap market, telling a New York federal judge that the exchange's attempt to salvage antitrust claims is implausible.

  • May 18, 2020

    Student Lender Says It Hasn't Suspended Rate Cuts

    Student loan provider Northstar Education Finance Inc. has not suspended interest rate reductions on loans as alleged in a proposed class action and isn't in breach of loan contracts or a 2009 settlement, the company said Friday in Minnesota federal court, calling the claims "unripe."

  • May 18, 2020

    New Banking Rule Could Free Up $55B Amid Pandemic

    Bank regulators have issued temporary relief aimed at expanding the lending capacity of the largest U.S. banks during the COVID-19 pandemic, noting that the changes to supplementary leverage ratio calculations could temporarily reduce banks' regulatory capital requirements by as much as $55 billion.

  • May 18, 2020

    Mozambique Bank Waits To Strike In Credit Suisse Fraud Fight

    A Mozambican lender is queuing on the sidelines of a London court battle between Credit Suisse and the country in connection with a $2 billion fraud and bribery scandal, saying it will sue whoever loses to reclaim millions in unpaid loans.

  • May 15, 2020

    Equifax Inks $30M Deal With Credit Unions Over Data Breach

    Equifax Inc. has agreed to pay $5.5 million to a putative class of thousands of banks and credit unions, and to spend at least $25 million on the financial institutions' data security, to end their claims in multidistrict litigation stemming from a massive 2017 data breach, the banks said Friday.

  • May 15, 2020

    Nat'l Collegiate Owner Blames 'Bad Actors' In Chancery Suit

    An attorney for owners of what was once a $15 billion fleet of securitized student loan trusts called some opponents in a Delaware Chancery Court suit "bad actors" on Friday, accusing them of stretching contracts to preserve their ability to service the trusts and collect fees.

  • May 15, 2020

    Del. Justices Uphold Toss Of Suit Over $65M Lending Co. Sale

    The Delaware Supreme Court on Thursday affirmed a ruling tossing a proposed investor class action alleging the $65 million go-private sale of student and specialty lender First Marblehead Corp. was steered by a conflicted controlling group to a company owned by First Marblehead's second-largest stockholder.

  • May 15, 2020

    3 Ill. Men Charged With Pilfering $5.3M From Auto Lender

    Two top officers of an Illinois subprime auto lending company and an accountant they worked with funneled $5.3 million from the company to a shell company by selling GPS devices at significant markups and collecting commissions on vehicle warranties they weren't entitled to, federal prosecutors said Friday.

  • May 15, 2020

    FINRA Says Merrill Lynch Gave Unregistered Exec Key Duties

    Merrill Lynch allowed an unregistered executive with an affiliate entity to function as a principal within the firm's prime brokerage business, giving him oversight over key decisions and customers, according to a Financial Industry Regulatory Authority settlement slapping the firm with a $150,000 fine.

  • May 15, 2020

    Bipartisan Bill Would Give PPP Loan Recipients More Time

    A bipartisan group of five senators has introduced a bill that would allow 16 weeks for recipients of forgivable small-business loans to rehire their workers and use the money for payroll and certain other expenses, doubling the current covered period of eight weeks.

  • May 15, 2020

    Big Banks Seek Exit From Suit Over Third-Party Investments

    Four major banks including Citibank and Wells Fargo have urged a New York federal judge to toss a proposed consumer class action accusing them of failing to prevent or cover losses sustained due to a third party's fraudulent binary options scheme, arguing they are not liable for "poor investment decisions."

Expert Analysis

  • What All Attorneys Can Learn From Female Rainmakers

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    Soon lawyers may find an unrecognizable competitive landscape in which most firms will be vulnerable — if they don't rapidly start upgrading their client development tactics to ones like those used by female rainmakers, says marketing consultant Craig Levinson, who recently interviewed Jennifer Trock, Desiree Moore and Debra Fischer about their secrets to success.

  • What Hospitality Cos. Should Know About Virus Relief Funds

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    Yuval Tal and Jeffrey Horwitz at Proskauer highlight key issues the hospitality industry may face related to coronavirus relief funds under the Paycheck Protection and Main Street Lending Programs, including general eligibility, forgiveness qualifications and satisfaction of the so-called necessity requirement.

  • An Early Look At Congressional Oversight Of The Pandemic

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    Oversight of the public and private sectors' responses to the COVID-19 crisis will dominate Capitol Hill's attention for many years, and we can already see what some of those efforts may entail, say attorneys at Steptoe & Johnson.

  • PPP Loan Scrutiny Requires Immediate Borrower Attention

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    Despite the need for swift decisions regarding the dwindling Paycheck Protection Program funds, the Small Business Administration's recently released limited safe harbor and guidance require loan applicants to contemplate their next steps carefully prior to the looming May 14 repayment deadline, say attorneys at Lowenstein Sandler.

  • Promoting Lawyer Well-Being Is More Essential Than Ever

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    As the COVID-19 pandemic profoundly tests the overall well-being of lawyers, firms with behavioral health programs can leverage or adapt many existing resources to respond to the crisis, while firms without formal programs can find little ways to make a big difference, says Krista Larson, director of employee well-being at Morgan Lewis.

  • Should Companies Return Their PPP Loans?

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    Deciding whether to return a Paycheck Protection Program loan by May 14 to avoid liability for falsely certifying necessity requires close consideration of the U.S. Department of the Treasury's evolving guidance, changing public sentiment and the intangible costs of keeping the funds, say Amanda Kramer and Daniel Suleiman at Covington.

  • Remote Depositions Bring Ethics Considerations For Lawyers

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    Utilizing virtual litigation technologies and participating in remote depositions require attorneys to beware of inadvertently violating their ethical obligations, including the principal duty to provide competent representation, say attorneys at Troutman Sanders.

  • Ruling On Anti-Hacking Law May Guide Fair Lending Tests

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    A D.C. federal court recently held in Sandvig v. Barr that testing a hiring website's algorithm for bias using fake profiles does not violate the Computer Fraud and Abuse Act, but it is not a complete safe harbor for similar tactics in fair lending, say attorneys at Buckley.

  • More Reasons To Redesign The Open Office Post-Pandemic

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    A new South Korean study demonstrates that the so-called open office adopted by so many U.S. companies is extremely dangerous in the COVID-19 world, which is important to consider as Congress may provide employers federal immunity from COVID-19 suits as they reopen, says Steven Moore at Withers.

  • Roundup

    State Of Class Certification

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    In light of recent data revealing record levels of class certification grants from federal courts, attorneys examine the latest offense and defense strategies in Employee Retirement Income Security Act, workplace bias, and wage and hour class suits.

  • Early Pandemic-Related Shifts We're Seeing In Legal Finance

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    As law firms chart their paths forward during these unsettled times, litigation funders are already observing changes in the types of products firms are seeking, such as an increase in one-off case funding requests, says Eric Blinderman at Therium.

  • COVID-19 Gives Congress Greater Incentive To Pass SAFE Act

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    The SAFE Banking Act provides a cost-free way for Congress to buoy the legal cannabis industry by loosening some of the financial impediments the product's federal status imposes on state-legal businesses, say attorneys at Benesch.

  • Opinion

    The Death Of The LSAT

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    Over the last year, the LSAT has been anything but unflappable — it has not been the objective, standardized law school entrance exam it's supposed to be, say soon-to-be law student Elliot Fuchs and attorney Saul Bienenfeld.

  • PPP Loan Standard Of Necessity Hinges On Documentation

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    In light of U.S. Treasury Secretary Steven Mnuchin's harsh words for large companies that accepted Payment Protection Program loans, borrowers should document why they need relief funds to support ongoing operations, or consider returning funds before the safe harbor expires May 7, say attorneys at V&E.

  • Opinion

    DOJ Should Issue No-Action Letters For Marijuana Industry

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    The best way to eliminate the illegal market for marijuana is to support market entry by legitimate businesses by using an existing federal letter process, says Thomas Firestone at Baker McKenzie.

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