Banking

  • May 13, 2020

    'Love & Hip Hop' Star Charged With $1.5M Virus Loan Fraud

    Federal prosecutors accused a reality TV personality who stars in "Love & Hip Hop: Atlanta" of spending $1.5 million from a coronavirus small-business relief loan on a Rolls-Royce, jewelry and child support, charging him with federal bank fraud, but the reality star told Law360 on Wednesday he's "fighting them 100%."

  • May 13, 2020

    Engineer Accused Of Inventing Biz For $13M In Virus Loans

    A Texas engineer is accused of using a fake company to file for $13 million in forgivable loans under the Coronavirus Aid, Relief, and Economic Security Act that are meant to help small businesses during the pandemic, according to federal court documents unsealed Wednesday.

  • May 13, 2020

    AmEx Anti-Steering Suit Headed Back To Calif. State Court

    A California federal judge has kicked back to state court a lawsuit alleging that American Express Co. violated state antitrust law by preventing merchants from steering customers to cheaper payment options, ruling that the financial institution failed to demonstrate the district court has "diversity jurisdiction" to hear the dispute.

  • May 13, 2020

    Judge Points To Manafort In Ex-NFLer's Early Release Hearing

    A former NFL player jailed for fraud will learn Friday whether he will leave a Massachusetts prison early over concerns about COVID-19, a federal judge said Wednesday after a five-hour hearing in which he noted the release of former Trump campaign chairman Paul Manafort.

  • May 13, 2020

    Dems Want Fed, Treasury To Bar Mergers By Bailed Out Cos.

    Large corporations that receive coronavirus relief aid should have to promise they won't leverage the pandemic into an opportunity to scoop up struggling businesses, three lawmakers told the heads of the Federal Reserve and the U.S. Department of the Treasury on Wednesday.

  • May 13, 2020

    Real Estate Rumors: Lindy, Realterm Logistics, Nationwide

    Lindy Property has reportedly scored $76.6 million in financing for a Pennsylvania apartment complex, Realterm Logistics is said to have paid $26 million for a Florida food distribution warehouse, and Nationwide Life Insurance has reportedly loaned $35 million for a Florida office building.

  • May 13, 2020

    BofA Can't Escape Negligence Suit Over Fraudulent Account

    Bank of America cannot escape negligence claims levied by a South Florida scrap metal company over a fraudulent account the business's chief financial officer set up to steal its funds, a Florida state appeals court ruled on Wednesday, finding disputed factual issues remain.

  • May 13, 2020

    Tribe Says Virus Crippled Ability To Fight Casino Loan Suit

    A Native American tribe told a New York state judge Wednesday that because of the COVID-19 pandemic and the shutdown of its California casino, it can't afford to litigate a suit over a $250 million Wells Fargo loan.

  • May 13, 2020

    Optimism Rising Among Private Lenders During Pandemic

    Private credit market lenders have become more optimistic over the last month about making loans for a variety of asset classes amid the continuing COVID-19 pandemic, according to a forthcoming report from Proskauer that Law360 has exclusively obtained.

  • May 13, 2020

    Mastercard Tells Justices £14B Class Action 'Overblown'

    Mastercard said Wednesday that a proposed £14 billion ($17.2 billion) consumer lawsuit over its merchant fees is "overblown and impractical," telling Britain's Supreme Court the claims should not have been brought under the country's class action regime.

  • May 13, 2020

    Paul Manafort Released From Prison Amid COVID-19 Fears

    Former Trump campaign chairman Paul Manafort was released from prison Wednesday to serve the remainder of his sentence in home confinement amid concerns about the spread of the novel coronavirus in the federal correctional system.

  • May 12, 2020

    NY Times, WaPo Sue Gov't For Info On Virus Relief Loans

    Five major news outlets, including The New York Times, The Washington Post and Bloomberg, slammed the U.S. Small Business Administration for purportedly illegally rebuffing public records requests regarding its Paycheck Protection Program, telling a D.C. federal court Tuesday the SBA has "no basis" to withhold the information sought.

  • May 12, 2020

    Lawmakers Press Banking Regulators On COVID-19 Lending

    U.S. Senators told federal banking regulators Tuesday that the government's efforts to blunt the economic impact of the coronavirus pandemic may leave some communities, businesses and nonprofits behind, pushing for broader responses and stressing the need for speed.

  • May 12, 2020

    Sens. Advance WH Lawyer Tapped For Virus Relief Watchdog

    The Senate Banking Committee on Tuesday saw a nearly party-line vote to advance a White House lawyer's nomination to monitor the U.S. Treasury Department's coronavirus relief efforts, with all but one Democrat opposed and questioning his independence.

  • May 12, 2020

    Canadian Court Upholds Bank Of Montreal's US Loan Scheme

    The Canadian Federal Court of Appeal rejected tax authorities' assertion that currency hedging by the Bank of Montreal tied to $1.4 billion in loans to its U.S. subsidiaries breached Canada's general anti-avoidance rules.

  • May 12, 2020

    Wedbush Hires Ex-BNY Mellon Vet As Compliance Chief

    Los Angeles-based broker-dealer Wedbush Securities announced on Tuesday that it has hired a former Bank of New York Mellon chief compliance officer to head up its compliance department, adding a seasoned industry veteran to a firm with a history of run-ins with regulatory authorities. 

  • May 12, 2020

    ResCap Says Lending Tree Must Cough Up $68.5M Judgment

    The successor of Residential Funding Co. LLC urged a Minnesota federal judge to grant it victory in its suit seeking to hold LendingTree accountable for a $68.5 million judgment against LendingTree's now-bankrupt subsidiary, Home Loan Center Inc.

  • May 12, 2020

    BNY Mellon Says It Had No Duty To Foundation In Settlement

    The Bank of New York Mellon told a Pennsylvania federal judge Tuesday it had no fiduciary duty to a Pittsburgh-based foundation when the bank allegedly promised the charity low rates while negotiating a settlement in 2011, so it didn't breach that duty when the promise later turned out to be false.

  • May 12, 2020

    Borrowers Seek $49M Atty Fees In BofA, Countrywide Case

    Following a recent $250 million settlement that ended a consolidated class action accusing Bank of America, Countrywide Financial Corp. and others of participating in a fraudulent real estate appraisal scheme, the borrowers on Monday asked for $49 million in attorney fees.

  • May 12, 2020

    Arnold & Porter Hires Privacy Pro From Venable

    Arnold & Porter has grown its partnership with a hire from Venable LLP who will join its privacy and data security practice as the global pandemic makes sound legal advice on those subjects ever more critical for clients.

  • May 12, 2020

    House Dems Add Cannabis Banking Protections To Virus Bill

    House Democrats have proposed giving the cannabis industry access to the banking system as part of their $3 trillion package of coronavirus relief, which was unveiled Tuesday.

  • May 12, 2020

    Justices Probe House Panels' Authority To Seek Trump Docs

    In oral arguments Tuesday regarding congressional subpoenas seeking President Donald Trump's financial information, U.S. Supreme Court justices focused much of their questioning on defining the limits of congressional committees' authority to seek the records.

  • May 12, 2020

    Morgan Stanley To Pay SEC $5M Over Wrap Fee Accounts

    Morgan Stanley Smith Barney LLC will fork over a $5 million fine to the U.S. Securities and Exchange Commission to resolve claims that it misled some retail investors about fees for brokerage services and investment advice, according to an administrative order filed Tuesday.

  • May 11, 2020

    SBA Has To Offer COVID-19 Loans To Strip Joints, Judge Says

    The U.S. Small Business Administration must provide COVID-19 relief loans for strip clubs, a Michigan federal judge ruled Monday, saying that Congress "did not pick winners and losers" in its legislation intended to help small businesses cover employees' paychecks during the pandemic.

  • May 11, 2020

    CFPB Finalizes Wider Safe Harbor For Remittance Rule

    The Consumer Financial Protection Bureau on Monday released finished changes to its regulations for international money transfer providers, widening a safe harbor to cover potentially hundreds of more banks and moving to replace a temporary exception that's set to expire in two months.

Expert Analysis

  • 9th Circ. Denials Sustain Consumer Arbitration Hurdles

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    The Ninth Circuit’s ratification of the California Supreme Court’s 2017 McGill ruling in Blair v. Rent-a-Center — and its recent denial for rehearing in two similar cases — presents significant enforceability challenges for consumer arbitration agreements, but companies can use certain strategies to draft and support valid provisions, say attorneys at Baker McKenzie.

  • Opinion

    US Should Decriminalize, Regulate And Tax Marijuana

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    If undertaken with appropriate oversight by the federal government, legalization of marijuana would generate billions in tax revenue, help address our vaping health crisis, deprive drug cartels of a major revenue source, and help secure our borders, says congressional candidate Adam Schleifer.

  • Series

    State Of Class Certification: Defense In Wage And Hour Cases

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    Although courts grant class certification for wage and hour actions at a relatively high rate, using individual arbitration agreements and asserting a personal jurisdiction defense continue to be promising avenues for defeating or limiting claims, say Paul DeCamp and Maxine Adams at Epstein Becker.

  • Environmentally Challenged Property Foreclosures In A Crisis

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    With the evolving economic implications of COVID-19, lenders considering foreclosure on properties with environmental challenges should explore secured creditor protections to avoid the risk of liability as the property's new owner, say attorneys at King & Spalding.

  • Navigating Loan Doc Implications Of Pandemic Disruption

    Excerpt from Lexis Practice Advisor
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    As the negative impacts of the pandemic make it harder for corporate borrowers to comply with loan terms, parties to new debt financings should review covenants, grace periods and penalties for potential breaches, say attorneys at Shearman.

  • Environmental Due Diligence For M&As During The Pandemic

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    While COVID-19 has severely disrupted global and domestic M&A activity, parties continue to identify strategic transactions — so environmental due diligence needs to adapt to fit client needs, says Matthew Dobbins at Vinson & Elkins.

  • How Lawyers Can Find Equanimity In Crisis

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    Lawyers navigating the COVID-19 fallout may think they no longer have time for the “soft” aspects of their work — such as being an outlet for clients' stress — but maintaining equanimity and focusing on the human aspects of lawyering are key to weathering the crisis, say Meredith Parfet and Aaron Solomon at Ravenyard Group.

  • Market Decline Will Have Diverse Repercussions For Cos.

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    The recent market decline is likely to usher in a wave of litigation as several contemporaneous factors — such as news about the pandemic and faltering oil prices — contribute to volatility that will be felt differently across various industries, says Jordan Milev at NERA Economic Consulting.

  • Unique Small Biz Virus Relief Concerns For Brokers, Advisers

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    Broker-dealers, investment advisers and their independent contractors applying for loans under the Coronavirus Aid, Relief and Economic Security Act's Paycheck Protection Program and the Small Business Administration's Economic Injury Disaster Loan program should consider staffing expectations, payroll costs, disclosures and supervision, say attorneys at Eversheds Sutherland.

  • Preparing For A Surge In Virus-Related Whistleblower Claims

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    With whistleblower allegations concerning companies’ pandemic-related conduct expected to rise, robust corporate response plans that account for operational disruptions are essential, say attorneys at Gibson Dunn.

  • Opinion

    Courts Should Look To 3 Bar Exam Alternatives During Crisis

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    While the pandemic delays bar exams, jurisdictions should adopt other ways to license new lawyers, as sticking to the status quo would abdicate our profession’s responsibility to meet the public’s legal needs, say law professors Deborah Jones Merritt, Marsha Griggs and Patricia Salkin.

  • South Korean Bank's AML Penalties Offer Cautionary Tale

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    Federal and New York State regulators' settlements this week over anti-money laundering allegations at the Industrial Bank of Korea demonstrate the risks of neglecting internal compliance functions at banks, say John Curran and Daniel Chirlin at Walden Macht.

  • What Entertainment Cos. Must Know About CARES Act Loans

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    With entertainment productions halted as a result of COVID-19, the prospect of more funding for the Coronavirus Aid, Relief and Economic Security Act's Paycheck Protection Program is welcome news for film, television, and related businesses, but important restrictions apply on how the money may be spent, say attorneys at Venable.

  • Mitigating Fraud Risk During COVID-19 Crisis

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    As the U.S. prepares to provide $2.2 trillion in financial relief under the Coronavirus Aid, Relief and Economic Security Act, enhanced corporate controls with respect to reporting financial performance, material nonpublic information and government communications are crucial to ensure compliance and allay fraud risk, say attorneys at White & Case.

  • Tips For Real Estate Borrowers Affected By COVID-19

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    Prudent commercial real estate borrowers should communicate with their lenders, review their loan obligations, and look into state and federal financial assistance to help mitigate the adverse effects of the pandemic, say attorneys at Fried Frank.

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