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Banking

  • October 3, 2018

    CFTC Official Lauds Ruling Putting Crypto Under Its Purview

    An official at the U.S. Commodity Futures Trading Commission on Wednesday praised a Massachusetts federal court decision in a fraud case that bolsters the agency’s ability to prosecute cryptocurrency fraud.

  • October 3, 2018

    Merrimack Loan Fraud Coverage Dispute Sent To Arbitration

    An insurance dispute over losses suffered by Merrimack College from an employee’s $6 million fraudulent student loan scheme is headed to arbitration, a Massachusetts federal judge ruled Tuesday after the college disputed a forensic accountant’s assessment of the coverage.

  • October 3, 2018

    Navient Stood In Way Of Student Loan Forgiveness, Suit Says

    Navient Corp. was hit with a class action complaint in New York federal court Wednesday from nine public service workers who say the student loan servicing giant has lined its own pockets by misleading them and millions of other borrowers about accessing a federal loan forgiveness program.

  • October 3, 2018

    Deutsche Sues BofA For $253M Over Loan Warranty Breaches

    Deutsche Bank National Trust Co. is seeking more than $253 million from Bank of America as the successor of Countrywide Home Loans Inc., saying Tuesday that the loan originator has issued hundreds of loans that breach its representations and warranties but has failed to repurchase those loans despite its contractual obligations to do so.

  • October 3, 2018

    Lehman Judge Nixes Bids To Transfer Lender Indemnity Suits

    Lehman Brothers Holdings Inc. can continue to pursue indemnity claims against about 100 mortgage loan sellers from around the country in New York bankruptcy court, a judge ruled on Tuesday, turning down dozens of requests to transfer venue and saying she is best equipped to hear the cases.

  • October 3, 2018

    AmEx Cardholders Get Cert. Redo Over Arbitration Contracts

    A California state appeals court has revived American Express cardholders' proposed class action seeking a declaration that the company's mandatory arbitration provisions are illegal, finding that a lower court denied consumers certification based upon the wrong standards and erroneous legal assumptions. 

  • October 3, 2018

    SC Bank Pays Kickbacks For Mortgage Referrals, Suit Says

    A proposed class of homebuyers has filed suit in South Carolina federal court alleging an area bank pays kickbacks to residential developers to steer mortgage applicants its way, in violation of federal law and at the expense of the borrowers.

  • October 2, 2018

    Lehman To Add Indemnity Claims Against Mortgage Sellers

    Lehman Brothers Holdings Inc. is looking to increase indemnification requests from about 100 mortgage lenders it alleges sold the defunct firm shoddy home loans before its collapse, seeking to tack on obligations related to $2.45 billion worth of claim settlements with residential mortgage-backed securities trusts.

  • October 2, 2018

    Deutsche Libor Trial Judge Eyes Internal Paul Weiss Probe

    The judge overseeing the trial of two former Deutsche Bank traders accused of benchmark rate rigging heard from a Paul Weiss Rifkind Wharton & Garrison LLP partner on Tuesday who led an internal investigation into the German lender over alleged Libor misdeeds, in order to determine if evidence from purportedly compelled statements should be kept out of the jury’s view.

  • October 2, 2018

    Multiple Cos. Dropped From VIX Manipulation MDL, For Now

    Cboe Global Markets Inc. will face multidistrict litigation over alleged manipulation of its volatility index largely alone after investors dropped virtually all other defendants from their case in Illinois federal court, having previously said they wanted to pursue the case in two parts.

  • October 2, 2018

    Wells Fargo Auto Insurance Cleanup Not There Yet, Sens. Told

    The head of the Office of the Comptroller of the Currency told senators Tuesday that his agency is working with Wells Fargo leadership on remediation for hundreds of thousands of customers who were forced to buy unnecessary auto insurance but is “not comfortable where we are with them.”

  • October 2, 2018

    Ex-U.S. Ambassador Joins Bryan Cave’s White Collar Practice

    Bryan Cave Leighton Paisner LLP announced Monday that Timothy Broas, a white collar criminal defense attorney and former U.S. ambassador to the Netherlands, will be joining the firm’s Washington, D.C., office to work in its investigations, financial regulations and white collar practice group.

  • October 2, 2018

    BofA Can't Duck $4.3M NJ Tax Bill Against Merrill Lynch

    Bank of America NA has lost its bid to escape a roughly $4.3 million corporation business tax bill levied against a former Merrill Lynch unit after a New Jersey Tax Court judge rejected the company's arguments that a notice of assessment from state tax authorities was sent to the wrong entity and ZIP code.

  • October 2, 2018

    Infowars Sues After PayPal Cut Ties Based On Hate Speech

    Free Speech Systems LLC, the parent company of Infowars, on Monday slapped PayPal Inc. with an unlawful business practice suit in California federal court, accusing the payments processing website of cutting ties with Infowars because of its conservative viewpoints.

  • October 2, 2018

    Investors Seek To Stop Staples’ $1B Purchase Of Essendant

    Investors in Essendant asked a Delaware federal court Tuesday to halt its $996 million merger with Staples, arguing there is key information missing from disclosures connected to the deal.

  • October 2, 2018

    Zillow Escapes Investor Class Action Over CFPB Probe

    A Washington federal judge Tuesday tossed a proposed securities fraud class action against Zillow Group Inc. arising from a Consumer Financial Protection Bureau investigation into the real estate website’s co-marketing deal for agents and lenders, saying the investors didn’t show the program violated a federal home loan law.

  • October 2, 2018

    Judge Scolds JPMorgan, Traders For 'Excessive' Redactions

    A New York federal judge has ordered both sides in a $25 million competition suit against JPMorgan Chase & Co. to refile their motions over what evidence to allow at trial without the “extremely excessive” redactions, saying that by his estimation, up to 90 percent of the redacted information should not have been concealed.

  • October 2, 2018

    Lawyer Gets 5 Years In $22.9M Chicago Mortgage Fraud

    An Illinois lawyer was sentenced to 63 months in prison Tuesday for his role in a $22.9 million mortgage fraud scheme centered on selling condos in a downtown Chicago high-rise to straw buyers.

  • October 2, 2018

    Fla. Man Pleads Guilty To $6.1M Fraud Scheme, Tax Evasion

    A Florida man who had passed himself off as a Harvard-educated investment adviser pled guilty in North Carolina federal court Tuesday to wire fraud and tax evasion for having engaged in a scheme that defrauded lenders, his father's company and his wife out of more than $6.1 million that he either spent or lost through risky trading.

  • October 2, 2018

    AmEx Won’t Challenge 2-Sided Market In Card-Steering Row

    Multidistrict litigation accusing American Express of keeping competitors at bay by not letting merchants steer customers toward other cards appeared bound for trial after the charge card giant told a New York federal judge Monday it has decided not to challenge one of the possible markets identified by retailers.

Expert Analysis

  • 10 Ways To Prevent E-Discovery Woes

    Debbie Reynolds

    E-discovery is not easy, but employing these 10 strategies may help minimize future headaches, say Debbie Reynolds and Daryl Gardner of EimerStahl Discovery Solutions LLC.

  • What Banks Should Know About 'Fiserv' Data Breach Risk

    Paige Boshell

    Banks that use Fiserv — an outsourcing vendor for community banks in the U.S. — for online banking may have recently had their customer account information exposed. Paige Boshell of Privacy Counsel LLC explains immediate steps for banks to proactively mitigate risk.

  • Cos. Must Prepare For Toughening Russia Sanctions

    Mario Mancuso

    On Monday, the U.S. Department of State enacted the first round of sanctions against Russia in response to the March 2018 poisoning of the Skripal family in the United Kingdom. The impact of these sanctions is somewhat limited, but the next round of sanctions, expected in early November, may be more sweeping, say attorneys with Kirkland Ellis LLP.

  • Why Courts Should Apply Escobar In Criminal Cases

    Antonio Pozos

    In the two years since the U.S. Supreme Court's Escobar decision set off waves of litigation over materiality in civil False Claims Act cases, it has largely failed to gain traction in criminal fraud prosecutions. However, the ruling has broad implications in criminal law, say Antonio Pozos and Mark Taticchi of Drinker Biddle & Reath LLP.

  • How Blockchain Use Can Block Competition

    Daniel Fenske

    Given that blockchain technology is still developing and new uses are popping up every day, it is impossible to conceive of every anti-competitive problem that could arise. Daniel Fenske and Justin Steffen of Jenner & Block LLP address two antitrust issues that are readily apparent and can be mitigated.

  • 4 Key Components To New Firm Partnership Agreements

    Russell Shinsky

    A well-drafted partnership agreement protects a law firm's founders, establishes a process for new and outgoing partners, and sets forth guidelines for navigating conflict along the way. Startup firms can begin with something less complex, but there are important elements that every agreement should include, says Russell Shinsky of Anchin Block & Anchin LLP.

  • Opinion

    Open The Federal Courthouses

    David Oscar Markus

    Forget about cameras, reporters in the Manafort trial were not even permitted in the courtroom with their phones, tablets or computers. That meant no live reporting on Twitter and no emails to the newsrooms with updates. In a world focused on information and news as it happens, this is unacceptable, says trial attorney David Oscar Markus.

  • Good News For Banks Organized As Pass-Through Entities

    Brian Harvel

    Following some confusion, the IRS this month proposed Treasury Section 199A regulations that specifically exclude banking from the definition of specified financial services, meaning that owners of banks organized as flow-through entities would qualify for a 20 percent deduction, say Brian Harvel and Michael Senger of Alston & Bird LLP.

  • Assessing 'Concreteness' Under Spokeo In Northern Illinois

    Alex Egbert

    The U.S. Supreme Court's Spokeo decision left lower courts to flesh out history's and Congress' “important roles” when developing a workable legal standard for deciding whether an intangible injury is sufficiently “concrete.” Not surprisingly, the Northern District of Illinois “concreteness” determinations relying on Congress’ role tend to be ad hoc, say Alex Egbert and Tony Hopp of Steptoe & Johnson LLP.

  • 5 E-Discovery Hurdles For Government Agencies

    Amy Hilbert

    Electronic discovery is a challenging process for even the most experienced law firms and corporations, but the challenges faced by government agencies may be even more daunting, says Amy Hilbert of Casepoint LLC.