Banking

  • May 23, 2017

    Investors Rip Citi's Bid For Quick Win In RMBS Trustee Suit

    A group of institutional investors accusing Citibank NA of bungling its duties as a residential mortgage-backed securities trustee urged a New York federal court on Tuesday to deny the bank’s bid to exit the proposed class action, telling the court that they have mustered enough evidence to cast doubt on Citi’s version of events.

  • May 23, 2017

    HSBC Fights For Right To Legal Advice Defense In MBS Row

    HSBC urged a New York federal court Monday to reject a magistrate judge's recommendation to bar the bank from deflecting blame onto its lawyers in a raft of cases alleging HSBC failed to protect investors from toxic mortgage-backed securities, saying it is too early to know whether it will raise the defense.

  • May 23, 2017

    Rate-Swap Class Plaintiffs Paint Big-Dollar Damages Picture

    A Manhattan federal judge sought Tuesday to assess the size of a potential class action alleging a dozen megabanks including Goldman Sachs Group Inc. and Bank of America Corp. colluded to block startup trading platforms from entering the giant market for interest rate swaps, after a plaintiffs-side lawyer alluded to potential billion-dollar damages.

  • May 23, 2017

    Goldman Sachs To Unload 4M Hyatt Shares In Secondary Sale

    The Goldman Sachs Group Inc. is planning to sell off part of its stake in Chicago-based hospitality giant Hyatt Hotels Corp. in a secondary sale that could raise about $232 million, according to a filing with the U.S. Securities and Exchange Commission.

  • May 23, 2017

    UBS Contends Client’s Puerto Rico Award Is $4.4M, Not $12M

    In a petition to a federal court in Puerto Rico to confirm an arbitral award against itself it says is worth only $4.4 million, UBS pushed back Monday against a former client’s claim the ruling covered an additional $7.5 million in nullified transactions.

  • May 23, 2017

    Trump Budget Targets Financial Regulators

    President Donald Trump’s proposed $4.1 trillion budget released Tuesday takes an ax to financial regulations in its proposed cuts, including potentially eliminating regulators’ power to take apart a big bank and reshaping the federal consumer finance watchdog.

  • May 23, 2017

    SEC Halts Some Admin. Proceedings After 10th Circ. Ruling

    The U.S. Securities and Exchange Commission on Monday paused all pending administrative proceedings in its home court that concern certain securities laws and could ultimately be appealed to the Tenth Circuit, citing the appellate court’s recent ruling that deemed the agency’s in-house judges as unconstitutional.

  • May 23, 2017

    Feds Urge Justices Not To Review Santander $234M Tax Beef

    The federal government has urged the U.S. Supreme Court to deny Santander Holdings USA Inc.’s bid to win back a $234 million foreign tax credit refund overturned by the First Circuit, saying the appellate court correctly found that the bank used an improper tax shelter.

  • May 23, 2017

    Investment Bank Hits Monster With $8.9M Contract Suit

    Boutique investment banking company Stone Key Partners on Monday hit job posting website Monster Worldwide Inc. with a breach of contract suit, claiming the website owes it $8.9 million under an advisory services contract related to the sale of a Korean subsidiary and the sale of Monster itself to a Dutch firm.

  • May 22, 2017

    Giuliani, Mukasey Deny Conflict In Iran Sanctions Case

    Rudy Giuliani and former U.S. Attorney General Michael Mukasey have penned two fresh affidavits explaining their role in representing Turkish-Iranian financier Reza Zarrab in a suit alleging he aided Iran sanctions violations, but the government told a New York federal judge Monday more information is needed to rule out a conflict of interest.

  • May 22, 2017

    Insurers Angle For Win In Fiserv Coverage Battle

    A Sompo Holdings unit and XL Specialty Insurance Co. on Monday urged a Wisconsin federal court to find that they have no obligation to cover Fiserv Solutions Inc.'s claims for costs tied to a $530 million Bank of America NA title insurance suit, saying the court previously failed to take into account recent Wisconsin Supreme Court precedent.

  • May 22, 2017

    No-Admit Settlements Undercut Accountability, Paper Says

    A new research paper suggests the no-admit, no-deny settlements commonly used in civil enforcement actions by agencies like the U.S. Securities and Exchange Commission can undermine accountability, and that both federal agencies and their targets could benefit from requiring more admissions.

  • May 22, 2017

    Ex-Adidas Owner Loses Appeal, Must Return €404M Award

    France’s high court has upheld a 2015 ruling that French businessman Bernard Tapie must repay €404 million ($454 million) that he won in arbitration against a state-controlled bank that was later annulled because an arbitrator had concealed links to the then-tycoon.

  • May 22, 2017

    PayPal Says Pandora's New Logo Confusing Customers

    PayPal Inc., pointing to customer complaints of accidentally opening Pandora Media Inc.’s app, said in a New York suit on Friday the music streaming company copied the style of PayPal’s “P” logo to get in on the company’s “forward-looking” reputation.

  • May 22, 2017

    SquareTwo Clears Path To Ch. 11 Exit With Creditor Deal

    Consumer and commercial debt collector SquareTwo Financial Services Corp. on Friday asked a New York bankruptcy court to approve a deal it reached to knock out opposition from a committee of unsecured creditors, paving a path to confirm its proposed Chapter 11 restructuring plan.

  • May 22, 2017

    Investors Ask To Keep Deutsche, JPMorgan Deals In NY

    The investors who sued several big financial institutions for allegedly rigging interbank loan rates asked a New York federal judge Monday to claim jurisdiction over their litigation with Deutsche Bank and JPMorgan, arguing the case’s dismissal and pending appeal has created difficulties in finalizing settlements with the banks.

  • May 22, 2017

    Fed. Prosecutor To Join Cahill's White Collar Team In NY

    Cahill Gordon & Reindel LLP has expanded its New York office’s white collar practice with the addition of a new partner who has over a decade of experience prosecuting securities fraud, racketeering and bank fraud cases as an assistant U.S. attorney.

  • May 22, 2017

    Wells Fargo Suit Heralds Philly's New Enforcement Focus

    A recent lawsuit accusing Wells Fargo & Co. of racially discriminatory lending practices is the first of what Philadelphia’s new city solicitor says are a string of cases he’s eyeing as he looks to make good on a pledge to recast his department as a muscular public interest law firm.

  • May 22, 2017

    Visa, Mastercard Beat Injunction Bid In ATM Antitrust Suit

    A D.C. federal court on Monday refused to block Visa and Mastercard from enforcing ATM fee rules that allegedly violate federal antitrust law, saying the National ATM Council failed to prove that the rules have caused the number of independent ATMs to decline.

  • May 22, 2017

    Payday Lenders Ask DC Circ. To Halt 'Choke Point' For Now

    A coalition of payday lenders accusing federal banking supervisors of suffocating their businesses with regulatory pressure tactics has asked the D.C. Circuit to bar the regulators from seeking to restrict the lenders’ access to the banking system, telling the court on Friday that their suit over “Operation Choke Point” is likely to succeed.

Expert Analysis

  • Uncertain Future For CFPB Small Business Data Rule

    Daniel Kearney

    Last week, the Consumer Financial Protection Bureau issued a request for information on the small-business lending marketplace — the first step in an anticipated rulemaking pursuant to Section 1071 of Dodd-Frank. While the chances of it being finalized are far from certain, financial institutions should continue to monitor compliance with fair lending laws as they relate to small business, say attorneys with WilmerHale.

  • In Congress: Post Comey

    Richard Hertling

    The GOP majority is undoubtedly hoping the political storm surrounding FBI Director James Comey's dismissal does not derail its agenda for the 115th Congress, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • 5 Mistakes That End Law Firms

    Randy Evans

    Although the end often comes quickly, law firms do not fail overnight. Randy Evans of Dentons and Elizabeth Whitney of Swiss Re Corporate Solutions review five mistakes that expedite law firm failures.

  • Shaping FINRA's Desk Commentary Safe Harbor

    Amy Natterson Kroll

    The Financial Industry Regulatory Authority recently proposed amendments to its research rules in order to ease many of the regulatory burdens on industry communications. Without certain refinements, however, the proposed safe harbor could have the ironic effect of creating additional uncertainty, say Amy Natterson Kroll and John Ayanian of Morgan Lewis & Bockius LLP.

  • Cybersecurity Is The Next Frontier Of State Regulation

    David Forscey

    States considering whether to enforce existing cybersecurity rules more aggressively, or else pass standards of their own, should carefully consider the policy rationale and potential pitfalls of existing frameworks and collaborate with private experts to determine what works and what does not, say David Forscey of the National Governors Association, and Steven Cash and Benjamin Nissim of Day Pitney LLP.

  • MoneyGram Exec Case Puts AML Officers In The Crosshairs

    Carlton Greene

    Last week's $250,000 settlement between MoneyGram’s ex-chief compliance officer and the Financial Crimes Enforcement Network resolving alleged anti-money laundering compliance violations appears to be the largest penalty FinCEN has ever imposed on an individual. The first lesson that comes from this resolution is that financial institutions need to empower their AML compliance officers, say attorneys with Crowell & Moring LLP.

  • What To Watch For From The New SEC Chairman

    Justin Giovannettone

    As Jay Clayton, the new chairman of the U.S. Securities and Exchange Commission, takes office, attorneys with Orrick Herrington & Sutcliffe LLP list a few issues they are keeping an eye on.

  • How 2 Courts View Gov't Role In Nonintervened FCA Cases

    Douglas Baruch

    Both the Eleventh Circuit's decision last week in the Everglades College case and a Florida federal court's ruling last month in Salus Rehabilitation take aim at the government’s practices in nonintervened False Claims Act qui tam cases — with mixed results, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • A Wake-Up Call For Banks To Comply With Bankruptcy Rules

    Jerome Walker

    The Office of the Comptroller of the Currency’s recent action against U.S. Bank shows that a bank may commit a safety and soundness violation by failing to comply with the bankruptcy laws and rules. The challenge for banks is to determine what changes need to be made to their internal controls, says Jerome Walker of Duane Morris LLP.

  • How To Save The European Securitization Market

    Jonathan Walsh

    It is hard to see how Europe's securitization market will recover to its full potential, or at all, if it continues on its current path. A guiding standard prioritizing clarity, certainty, consistency and calibration may help with bringing real money investors back to Europe, says Jonathan Walsh of Baker & McKenzie LLP.