Banking

  • October 12, 2017

    Investors Want $152M In Libor Settlements Approved

    Exchange-based investors told a New York federal judge on Wednesday that they want approval of $151.9 million in settlements reached with several banks in multidistrict litigation that alleges a sprawling scheme to manipulate the London Interbank Offered Rate benchmark.

  • October 12, 2017

    Barclays Urges 9th Circ. Not To Revive Dark Pool Suit

    Barclays Capital Inc. on Wednesday asked the Ninth Circuit not to revive a proposed class action from a broker-dealer that alleges it was misled about the risks of trading on a dark pool, saying that two lower court judges correctly concluded that Great Pacific Securities lacked a legal leg to stand on.

  • October 11, 2017

    UK Lawmaker Joins Grilling Over Equifax Data Breach

    A top U.K. Parliament member on Wednesday piled on to the scrutiny over Equifax's massive data breach, pushing the credit reporting agency and the country's Financial Conduct Authority for more details on the heels of Equifax revealing that the hack compromised as many as 15.2 million U.K. consumers' data. 

  • October 11, 2017

    9th Circ. Hears Round 3 In Northstar Suit Over Schwab Fund

    Northstar Financial Advisors Inc. went before the Ninth Circuit on Wednesday for its third appeal in a putative class action claiming Charles Schwab Corp. broke its own rules for making risky bond-fund bets, arguing that a lower court erred in finding the class claims were barred by the federal Securities Litigation Uniform Standards Act.

  • October 11, 2017

    Ex-HSBC Exec Tells Jury $3.5B Forex Deal Was Aboveboard

    A former HSBC foreign exchange executive took the witness stand Wednesday at his trial over claims that he used a $3.5 billion forex transaction to enrich the bank at the expense of Scottish oil and gas developer Cairn Energy PLC, telling a New York federal jury that there was nothing improper about the execution of the deal.

  • October 11, 2017

    Terror Liability Troubles Kennedy, Conservatives At High Court

    Conservative justices on the U.S. Supreme Court sounded skeptical Wednesday that foreign corporations could be held liable for terror financing, human rights violations and other international violations under a 1789 U.S. law.

  • October 11, 2017

    'Wizard Of Oz' Reference Caps $2B Tribal Payday Loan Trial

    Attorney Timothy Muir insisted Wednesday that tribal leaders were the top dogs in Scott Tucker's $2 billion payday loan empire, but the Manhattan jury tasked with deciding if Tucker and Muir built a criminal operation on the backs of tribes saw an email that said Tucker was “the man behind the curtain.”

  • October 11, 2017

    Barclays Seeks Toss Of Feds' Fraud Suit Over $31B RMBS

    Barclays PLC and federal prosecutors traded blows in papers filed in New York federal court on Tuesday over the government’s use of a law passed in the aftermath of the 1980s savings and loan crisis to seek civil penalties from the British bank for allegedly deceiving investors about the quality of $31 billion worth of residential mortgage-backed securities.

  • October 11, 2017

    Bank Asks 6th Circ. To Revive $75M FCA Deal Coverage Battle

    First Tennessee Bank NA Tuesday asked the Sixth Circuit to overturn a district court’s finding that it provided its insurers with too little notice for them to pay out $75 million to cover part of the bank's 2015 $212.5 million False Claims Act settlement.

  • October 11, 2017

    GM Trust Appeals Judge's $1.5B Loan Row Asset Valuations

    A General Motors creditors’ trust on Tuesday asked to appeal a bankruptcy judge’s ruling in a bellwether case on the nature and value of security interests in GM plant assets related to a $1.5 billion term loan, saying that the findings overlook the federal government’s role as savior to the manufacturer in 2009.

  • October 11, 2017

    2nd Circ. Urged To Uphold Litvak's RMBS Fraud Conviction

    The U.S. Department of Justice asked the Second Circuit on Tuesday to uphold the conviction of former Jefferies Group trader Jesse Litvak, saying a jury had ample evidence to find his lies in residential mortgage-backed securities sales would matter to reasonable investors.

  • October 11, 2017

    Convicted Ex-Simpson Thacher Tipper Gets Opening On Fine

    A New Jersey federal judge ruled Wednesday that a former clerk at Simpson Thacher & Bartlett LLP who has been convicted of insider trading is liable for related civil offenses, but set the stage for penalty talks with the U.S. Securities and Exchange Commission.

  • October 11, 2017

    Contract Suit In Wells Fargo Data Row Sent To Arbitration

    A New York state court judge on Wednesday ordered a contract dispute between Wells Fargo Advisors LLC and former Managing Director Gary Sinderbrand into arbitration, keeping in place an injunction preventing Sinderbrand from disseminating further any customer information that the financial firm inadvertently turned over in response to a subpoena.

  • October 11, 2017

    Morris Manning Launches Blockchain Practice

    Tech-focused legal firm Morris Manning & Martin LLP said Tuesday it has launched a new blockchain and cryptocurrency group to meet rising demand from companies of all stripes, for advice on adopting the technology.

  • October 11, 2017

    EU Blesses Portugal's Novo Banco Sale Under State Aid Rules

    The European Commission on Wednesday said it has cleared Portugal’s plan to sell a majority of rescued bank Novo Banco to private equity outfit Lone Star after it found the arrangement did not run afoul of the European Union’s state aid rules.

  • October 11, 2017

    BNP Paribas To Stop Financing Certain Fossil Fuel Cos.

    BNP Paribas said on Wednesday it would no longer work with companies whose “principal business” involves dealing with oil and gas from shale or tar sands, an effort the major European bank said was aimed at promoting green energy and reducing the harmful impacts of climate change.

  • October 11, 2017

    Bitcoin Fraud Suspect's Russia Extradition Sets Up US Clash

    A Greek court on Wednesday approved extraditing a suspected Russian money launderer to Moscow, setting up a legal showdown with the United States, which also wants to prosecute him for allegedly handling billions of dollars in illegal bitcoin payments.

  • October 11, 2017

    AGs Tell Experian, TransUnion To Halt Fees Post-Equifax

    Illinois Attorney General Lisa Madigan led a coalition of 37 attorneys general Tuesday urging Experian and TransUnion to stop charging fees to consumers seeking to put a credit freeze on their accounts following the massive Equifax data breach.

  • October 11, 2017

    Caterpillar Seeks End To Tax Raid-Triggered Investor Suit

    Caterpillar Inc. asked an Illinois federal court Tuesday to dismiss securities fraud class allegations filed the day after authorities raided the construction equipment maker amid an investigation of its tax practices, saying Caterpillar has been open with shareholders about the scrutiny and has not been accused of wrongdoing.

  • October 10, 2017

    'Pre-Hedging' Is Standard Practice, HSBC Forex Jury Hears

    The former head of foreign exchange trading for Deutsche Bank told the New York federal jury weighing the criminal case against an ex-HSBC executive Tuesday that “pre-hedging,” or making some of a large currency purchase in advance, is a standard practice that can be beneficial to the buyer because it keeps the price down.

Expert Analysis

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.

  • 'Per-Doc' Pricing Can Improve Document Review

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    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • Opinion

    We Must Protect Consumers From Illegal Debt Collectors

    Maura Healey

    Companies are allowed to collect the money they are owed, but they cannot break the law or cheat people in the process. Some of the biggest players in the debt collection industry are not focused on getting it right, says Massachusetts Attorney General Maura Healey.

  • The Regulatory Risks Of A Deregulatory Environment

    Mark Schonfeld

    Now that we are several months into an administration with an agenda of financial deregulation, one might reasonably believe financial institutions are in for several years of relative quiet from regulators. However, at least two factors raise the potential risk for a future wave of investigative activity, says Mark Schonfeld of Gibson Dunn & Crutcher LLP.

  • Fast And Frictionless: Key Legal Issues In POS Loans

    David Bright

    In order to deliver the fast lending experience that today's consumers want, the strategic partnerships in a point-of-sale loan program must be carefully negotiated and crafted to arrive at an approach that complies with consumer loan regulations and other laws. In addition, these partnerships must allow for critical "behind the scenes" sharing and coordination, says David Bright of Holland & Knight LLP.

  • Financial Crisis Anniversary

    2 Pillars Of Commonsense Reform

    Norm Champ

    The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Financial Crisis Anniversary

    Trends In Credit Crisis Settlements

    Faten Sabry

    Between 2007 and July 2017, settlements related to the financial crisis totaled $133.2 billion. Ten years after the onset of the crisis, members of NERA Economic Consulting analyze the “settlement ratio” for select mortgage-backed securities settlements and other trends.

  • 5 Ways To Fix The False Claims Act

    Krista Cooley

    In the mortgage industry, allegations abound that the U.S. Department of Justice has abused its power by cajoling and pressuring False Claims Act settlements with questionable legal foundation on the bet that few want to be sued by the federal government. Lenders may be more willing to sue and be sued by the government if the FCA more clearly defined what constitutes a violation, say Krista Cooley and Laurence Platt of Mayer Brown LLP.

  • Equifax Brings Early Lessons On Insider Trading Policies

    Gary Tygesson

    Insider trading allegations have surfaced at Equifax, where three executives sold nearly $2 million in shares of the company’s stock days after the cyberattack was discovered but before the news was announced. The situation raises a number of fundamental questions about Equifax’s insider trading policy, say Gary Tygesson and Cam Hoang of Dorsey & Whitney LLP.