Banking

  • August 8, 2017

    Navient Settles 6-Year-Old Calif. Student Loan Fee Suit

    A class of California borrowers who accused Navient Corp. of charging illegal late fees on their student loans asked a federal judge in San Francisco on Monday to let them move forward with a $275,000 settlement that would end six years of litigation.

  • August 8, 2017

    Home Lender PHH To Pay Nearly $75M Over Bad Mortgages

    Mortgage servicer PHH Corp. on Tuesday agreed to pay nearly $75 million over claims that it originated mortgages backed by three different federal agencies that did not meet the requirements for federal guarantees.

  • August 8, 2017

    Santander Gets EU Antitrust OK For Banco Popular Rescue

    The European Union’s antitrust regulator gave final clearance Tuesday to a plan for Spain's failing Banco Popular Espanol SA to be sold to rival Banco Santander SA for a token €1 ($1.17), saying the proposal would not breach the bloc’s competition laws.

  • August 7, 2017

    Citi Is 2nd Bank To Settle In OTC Libor Row, Will Pay $130M

    Citigroup Inc. struck a $130 million deal Monday in New York federal court with investors who bought the bank’s financial products tied to the London Interbank Offered Rate, making it the second bank to settle with the investors over allegations the benchmark rate was manipulated.

  • August 7, 2017

    Wells Fargo Card-Processing Unit Accused Of Overbilling

    A pair of small businesses hit Wells Fargo Merchant Services with a putative class action in New York federal court on Friday alleging it misleads customers and charged excessive fees for its credit- and debit-card-processing services.

  • August 7, 2017

    Debt Collection Firm Seeks To Arbitrate Privacy Suit

    A debt collection law firm told a Wisconsin federal judge on Monday that a proposed class action accusing it of disclosing the credit scores of Discover Bank customers must be arbitrated, as the named plaintiff consented to arbitration when she used her Discover credit card.

  • August 7, 2017

    Fed Move To Ease Bank Boards’ Load Isn't Pass On Oversight

    A recent Federal Reserve proposal to lift some oversight requirements should ease the workload for banks’ boards of directors, but experts say boards will still have more responsibilities than they did before the financial crisis and remain on the hook for major compliance failures.

  • August 7, 2017

    Chapman Adds 10 Finance Attorneys From Ashurst

    Chapman and Cutler LLP has added 10 attorneys, including seven partners, to its finance practice from Ashurst LLP, the firm announced Monday.

  • August 7, 2017

    Davis Polk Steers Colombia Banking Giant's $600M Bond Offer

    Davis Polk & Wardwell LLP said Thursday it guided Banco de Bogotá S.A., Colombia's oldest and second-largest financial institution, on a $600 million global bond offering that was more than seven times oversubscribed, while Simpson Thacher & Bartlett LLP advised initial purchasers.

  • August 7, 2017

    Wal-Mart, Visa Want Antitrust Case Paused To Work On A Deal

    Wal-Mart Stores Inc. and Visa Inc. on Friday asked a New York federal judge to stop the clock on their battle over card-swiping fees while they try to hammer out a settlement before discovery starts up after a nearly two-year hiatus.

  • August 7, 2017

    CFTC Fines Japanese Bank Over Spoofing

    A Japanese bank that found one of its traders used phony trade orders to manipulate prices for eurodollar and U.S. Treasury notes and came clean with the U.S. Commodity Futures Trading Commission about the misconduct will pay a $600,000 penalty, the regulator said Monday.

  • August 7, 2017

    Turkish Banker Is 'Incurable' Flight Risk, Feds Tell Judge

    An executive at Istanbul-based Türkiye Halk Bankası AŞ accused of helping Turkish trader Reza Zarrab evade U.S. sanctions against Iran is an "incurable" flight risk, federal prosecutors said Monday, opposing the banker's proposal to rent an apartment in New York and subject himself to monitoring.

  • August 7, 2017

    BNY Mellon Ducks $100M RMBS Case 'Full Of Holes'

    The first case against a residential mortgage-backed securities trustee to go to trial was spiked Friday by an Ohio judge, who said insurers' $100 million suit against BNY Mellon was “full of holes” and relied on a “grossly inappropriate” way of calculating damages.

  • August 7, 2017

    India's Securities Regulator Forms Panel To Study Fintech

    The Securities and Exchange Board of India has established a committee to study the impact of how advances in financial technology — broadly termed “fintech” — are impacting the country’s securities markets and how regulators should manage the trend.

  • August 7, 2017

    10th Circ. Upholds Conviction Of Kan. Bank Fraudster

    The Tenth Circuit on Friday upheld the bank fraud conviction of a Kansas man who applied for a mortgage using his father’s name and Social Security number, saying that even though the fraudster never completed the loan application, his misrepresentations were material and put the bank at risk of loss.

  • August 7, 2017

    Banks Announce Global Blockchain Trade Finance Milestone

    Eleven global banks have created a cross-border trade finance application for small and midsized companies using blockchain technology after 12 months of testing, it was announced Monday.

  • August 4, 2017

    Coinbase Gets Support From 3 Groups In IRS Summons Spat

    The Competitive Enterprise Institute and two digital currency advocacy groups asked a California federal court Thursday to let them support Coinbase Inc.’s challenge to an IRS summons that seeks customer names and other information from the virtual currency exchange company, calling the request overbroad.

  • August 4, 2017

    Borrower Wants Credit Fixed In Wells Fargo Car Loan Suit

    An Alabama borrower suing Wells Fargo and National General over unneeded auto insurance that was added to car loan bills urged a New York federal judge on Friday to order the firms to immediately begin repairing any car buyer’s credit report that suffered as a result of being charged for the coverage.

  • August 4, 2017

    Deutsche Pays Its Defense From Disputed Trusts, Suit Says

    An investor in 10 residential mortgage-backed securities trusts overseen by Deutsche Bank as trustee has slapped the bank with a proposed class action accusing it of improperly using funds from those trusts to pay for its defense in another suit brought in the same court by the same investor over the same trusts.

  • August 4, 2017

    CFPB Can Pursue Suit Over Navient's Loan Servicing

    The Consumer Financial Protection Bureau may continue with its suit accusing Navient Corp. of misleading borrowers, a Pennsylvania federal judge ruled Friday, rejecting the nation’s largest student loan servicer’s contention the suit should be tossed because the CFPB itself is unconstitutional.

Expert Analysis

  • CIMLA And The Confusion Around Maritime Liens

    Brian Maloney

    Although the Commercial Instruments and Maritime Lien Act was enacted to clarify confusion regarding the rights and remedies of participants in the shipping industry, recent global insolvencies of entities such as O.W. Bunker and Hanjin have forced courts to reconsider the text, history and purpose of a seemingly straightforward federal statute, say Brian Maloney and Laura Miller of Seward & Kissel LLP.

  • Seeding Period Extensions After New Volcker Guidance

    V. Gerard Comizio

    With a new letter from the Federal Reserve Board, banking entities now have a standardized procedure to request extension of the permissible period for providing seed funding under the Volcker Rule. While the letter might suggest increased willingness on the part of the Fed to grant such requests, caution is warranted, say V. Gerard Comizio and Nathan Brownback of Fried Frank Harris Shriver & Jacobson LLP.

  • Be Careful What You Share With Your Local Regulator

    Nick Morgan

    The U.S. Securities and Exchange Commission's recent $2.5 million award to a government tipster marks the first time it deemed a government employee eligible for a whistleblower payout. This determination raises significant policy and practical concerns about a government employee’s ability to provide information and documents to the SEC, say attorneys with Paul Hastings LLP.

  • Monthly Column

    Gray Matters: Clients Are Not Really 'Emotional'

    Gray Matters

    When you look at your client through the "survival circuit" lens, what first appeared as an emotional mess is now valuable information about what is important to them, what needs have to be met to settle the case, or what further clarity your client requires before moving forward, say dispute resolution experts Selina Shultz and Robert Creo.

  • FinCEN Goes Global In Bitcoin Enforcement

    Harry Dixon

    The U.S. indictment against bitcoin processor BTC-e unsealed Wednesday is the Financial Crimes Enforcement Network’s first action against a money service business based outside the U.S. Don’t be surprised if FinCEN and the U.S. Department of Justice continue to work with international law enforcement to pursue civil and criminal actions against foreign businesses, says Harry Dixon of Taylor English Duma LLP.

  • Petrobras Renounces 2nd Circ. 'Preference' For Class Cert.

    Jonah Knobler

    The hubbub over ascertainability has obscured another remarkable part of the Second Circuit's Petrobras decision — one that constitutes a major victory for the defense side, says Jonah Knobler of Patterson Belknap Webb & Tyler LLP.

  • Having A Chief Privacy Officer Reassures Your Firm's Clients

    Rita Heimes

    When a law firm appoints a chief privacy officer, not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but clients see how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.

  • Weekly Column

    Innovating For Wise Juries: Discussions Before Deliberations

    Richard Lorren Jolly

    To be sure, allowing jurors to discuss evidence before final deliberations proved to be among the least popular of our recommended innovations. But empirical evidence belies these fears, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • NY Cybersecurity Rules: Preparing For The August Deadline

    Theodore P. Augustinos

    On Aug. 28, many entities and individuals regulated by the New York Department of Financial Services, and even those subject to certain of the exemptions, will be required to be in compliance with several of the new cybersecurity regulation’s requirements, says Theodore Augustinos of Locke Lord LLP.

  • CFPB Shines Spotlight On Consumer Remittance Transfers

    Michelle Rogers

    No matter the results of the Consumer Financial Protection Bureau's plan to assess the effectiveness of its final rule governing consumer remittance transfers, increased scrutiny of providers in this area will likely continue without the benefit of any revisions to the rule or the CFPB’s practices. This makes it an opportune time for market participants to evaluate their own practices, say attorneys with Buckley Sandler LLP.