Banking

  • September 19, 2017

    PR Firm's Ex-CFO Charged With Embezzling $3.6M

    The former chief financial officer of an international marketing and public relations firm was charged Tuesday with embezzling $3.6 million from the company during his 10-year tenure, the U.S. Department of Justice said in a statement.

  • September 19, 2017

    Racer Blames Manager For Weather Fibs At $2B Fraud Trial

    Talk of the weather returned Tuesday to the Manhattan payday loan fraud trial of racer Scott Tucker and lawyer Timothy Muir, with Tucker’s defense team blaming a former manager for meteorological fibs that tricked callers into thinking the Kansas-based lending operation was on faraway tribal lands.

  • September 19, 2017

    Dodd-Frank Rollbacks May Lead To Bank Failures, Panel Says

    A panel of former top financial regulators, policymakers and academics warned the Trump administration on Tuesday that some of the recommendations it's made for rolling back bank rules under Dodd-Frank and other laws could make it harder to prevent the collapse of global financial firms and mitigate the damage.

  • September 19, 2017

    CFPB Missed Chance To Punish Wells Fargo: House Repubs

    House Republicans on Tuesday said that the Consumer Financial Protection Bureau passed on the chance to fine Wells Fargo & Co. at least $10 billion and investigate additional fraudulent account generation when the bureau entered into a settlement with the bank last year.

  • September 19, 2017

    Mass. AG Sues Equifax Following Consumer Data Breach

    Massachusetts on Tuesday became the first state to hit credit reporting firm Equifax with a lawsuit in the wake of the company’s disclosure that a hack compromised the sensitive financial and personal information of 143 million people, arguing in a state court filing that the company knew about holes in its security system but failed to fix them.

  • September 19, 2017

    Mobile Payments Co. Cashes In On $60M In Series C Funding

    A company touting itself as the world's largest gift card marketplace on Tuesday said it raised $60 million in a Series C funding round thanks to investments from PayPal and venture capital firms Accel, Bessemer Venture Partners and New Enterprise Associates, bringing its total capital to more than $147 million.

  • September 19, 2017

    Deals Rumor Mill: Sprint, Renova Energia, Apollo Global

    Sprint and T-Mobile are deep into merger discussions, Brookfield Asset Management may make an improved offer to Brazilian renewable company Renova Energia, and Apollo Global is considering an increased offer for a controlling stake in Slovenia's Gorenjska Banka.

  • September 19, 2017

    King & Spalding Picks Up Deutsche Bank GC, SEC Vet

    King & Spalding LLP has hired the former Deutsche Bank general counsel who oversaw the bank's legal affairs during an array of scandals in the financial crisis era, who is also a former U.S. Securities and Exchange Commission enforcement czar and former SEC general counsel, it said on Tuesday.

  • September 19, 2017

    US Bank Wants Ambac RMBS Suit To Yield To State Actions

    U.S. Bank NA has asked a New York federal court to stay or dismiss a lawsuit by insurer Ambac Assurance Corp. that claims U.S. Bank failed to prevent losses on billions of dollars’ worth of residential mortgage-backed securities, saying there’s no reason for the court to weigh in on a dispute that has been working its way through state courts for several years.

  • September 19, 2017

    Emirates Order Can't Halt UK $700M Dana Gas Bond Trial

    A London High Court judge on Tuesday said that a lawsuit over $700 million in Islamic bonds, known as sukuk, issued by Dana Gas PJSC will go ahead despite a United Arab Emirates court order that intended to stop the company from taking part in the trial.

  • September 18, 2017

    Madoff Trustee Blasts Merkin's 'Double Recovery' Claims

    The trustee for Bernie Madoff's defunct investment firm on Friday slammed efforts to prevent him from both seeking $280 million from disgraced financier J. Ezra Merkin and subordinating Merkin's claims against the estate at an upcoming trial over Ponzi scheme proceeds, saying this “double recovery” concern is off-base and premature.

  • September 18, 2017

    Wilmington Trust Seeks Fed Reserve Docs Before Fraud Trial

    Wilmington Trust Corp. has told a Delaware federal court that the Federal Reserve is in possession of documents that could help the bank defend against charges it hid hundreds of millions of dollars’ worth of overdue loans from investors and regulators.

  • September 18, 2017

    Insurer Wants Coverage Claims Nixed In $36M Experian Suit

    Illinois National Insurance Co. told an Illinois federal judge on Friday that it owes no coverage to Experian Information Solutions Inc. in an underlying breach of contract suit with the Business Development Bank of Canada in which the bank was awarded CA$44.4 million ($36 million).

  • September 18, 2017

    CFPB Inks $22M In Settlements With Student Loan Cos.

    Several private student loan holding trusts and their debt collector will pay nearly $22 million in fines and borrower reimbursements to head off lawsuits by the Consumer Financial Protection Bureau after the agency accused them of suing thousands of people to collect debts that they couldn’t prove were owed.

  • September 18, 2017

    NY Aims To End Questions Over Credit Bureau Cybersecurity

    New York’s bid to bring consumer credit reporting bureaus under the state’s exacting cybersecurity standards could plug some regulatory leaks that have been exposed after the colossal breach Equifax Inc. reported recently, experts say.

  • September 18, 2017

    Atty Tells Jury Tribe Grew Wary Of Racer's Payday Loan Plan

    An effort by racer Scott Tucker to involve California's Yurok tribe in a lending operation fizzled amid tribal concern it would have no role in the business except to “exist,” the Yuroks' former lawyer told a Manhattan jury Monday in the criminal fraud trial of Tucker and his attorney Timothy Muir.

  • September 18, 2017

    DOL Defends Authority To Issue Fiduciary Rule At DC Circ.

    The U.S. Department of Labor told the D.C. Circuit on Friday that it had the authority to promulgate its fiduciary rule for retirement account advisers, disputing the National Association for Fixed Annuities’ claim that the rule runs contrary to congressional intent.

  • September 18, 2017

    Wells Fargo Can't Deduct Tax In Sham Barclays Transaction

    A last-minute bid by Wells Fargo & Co. to deduct $150 million in foreign taxes was blocked by a Minnesota federal judge Friday, who found the complex transaction that generated the tax was a sham and the bank’s request for relief came too late.

  • September 18, 2017

    Citi Settles DOJ Suit Over Military Car Repos

    CitiFinancial Credit Co. will pay $907,000 to settle a Texas federal suit alleging the consumer finance company violated the Servicemembers Civil Relief Act by illegally repossessing cars from on-duty military service members, the U.S. Department of Justice said Monday.

  • September 18, 2017

    Stanford Ponzi Scheme Receiver Battles Ex-GC For Records

    The receiver unwinding Robert Allen Stanford's $7 billion Ponzi scheme asked a Texas federal judge Thursday to force Stanford's former general counsel to show why he hasn't produced requested documents regarding his bank accounts and properties in Texas and Florida in the receiver's clawback suit targeting Stanford's legal advisers.

Expert Analysis

  • The Equifax Data Breach And Its Impact On Businesses

    Eduard Goodman

    The Equifax breach could trigger a shift in data breach class actions from potential harm to consumers to potential harm to businesses, says Eduard Goodman, chief privacy officer at CyberScout LLC.

  • What Libor Replacement Will Mean For Derivatives

    Mark Young

    The increasing attention to Libor's phaseout is sending a strong signal to derivatives markets and derivatives market participants to prepare for this major financial change. The phaseout will also raise intriguing regulatory issues, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • Sanctions Compliance Lessons From Recent OFAC Actions

    Mike Casey

    Three recent enforcement actions by the Office of Foreign Assets Control illustrate that OFAC is increasingly bringing cases against nonfinancial institutions, taking aggressive jurisdictional and interpretative positions, and focusing its efforts on Iranian sanctions. Financial and nonfinancial institutions should therefore assess their sanctions risk, say attorneys with Kirkland & Ellis LLP.

  • 2 Cases Clarify Dodd-Frank Whistleblower Protections

    Harini Srinivasan

    Recent decisions in Reyher v. Grant Thornton and Boyle v. Evolve Bank indicate that courts are not persuaded by whistleblowers' arguments that defendants or their publicly traded clients are generally covered by the Dodd-Frank Act, says Harini Srinivasan of Katz Marshall & Banks LLP.

  • Ransomware Issues Too Often Lost In The Shuffle: Part 2

    John Reed Stark

    Notification responsibilities relating to a ransomware attack can become complicated and may not precisely align with other cybersecurity-related notification obligations and triggers, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • Managing Flood Risk When '1,000-Year' Floods Seem Common

    Melissa Klimkiewicz

    The “1,000-year flood” caused by Hurricane Harvey follows two consecutive years of “500-year” floods in Houston, and Houston is not alone. With flood damage and related costs growing at an alarming rate, now may be the time for lenders to re-evaluate their flood risk policies, say Melissa Klimkiewicz and Brandy Hood of Buckley Sandler LLP.

  • Ransomware Issues Too Often Lost In The Shuffle: Part 1

    John Reed Stark

    The U.S. Department of Justice and the Financial Crimes Enforcement Network are turning the tides on ransomware attackers and enablers who exploit the bitcoin ecosystem to anonymize the payments received by their victims. Anti-money laundering statutes and regulations are their preferred statutory weaponry, says John Reed Stark, president of John Reed Stark Consulting LLC.

  • Blockchain Cos. Must Beware SEC Intervention Risks

    Herbert Kozlov

    The U.S. Securities and Exchange Commission recently suspended trading in securities of three public blockchain-related businesses in a period of just over two weeks, highlighting the fact that the spot market for digital tokens is no longer the “Wild West,” say attorneys with Reed Smith LLP.

  • What To Expect From CFPB As Leadership Remains Uncertain

    Quyen Truong

    Before the installation of new leadership at the Consumer Financial Protection Bureau, much activity will ensue that will have major impact on the financial industry and will be challenging to reverse, says Quyen Truong, partner at Stroock & Stroock & Lavan LLP and former deputy general counsel of the CFPB.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.