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Banking

  • June 7, 2018

    Lehman's Bid For Preferred Stock Swap Comes Under Fire

    Seeking to block Lehman Brothers Holdings Inc. from issuing preferred stock as a substitute for potentially more valuable creditor interests in U.K.-based debt instruments, attorneys for Barclays Bank and Deutsche Bank argued Thursday that Lehman’s bankruptcy court request is a bid to rewrite history.

  • June 6, 2018

    Wendy's Data Breach Claims To Be Governed By Ohio Law

    A Pennsylvania federal judge on Wednesday accepted a magistrate’s recommendation that a lawsuit against fast-food chain Wendy’s by a group of financial institutions in 16 states be governed by Ohio law for negligence claims involving a 2016 payment card data breach.

  • June 6, 2018

    CFPB To Dissolve Consumer Advisory Board, 2 Other Groups

    The Consumer Financial Protection Bureau told members of its consumer advisory board on Wednesday that it's letting them go, two days after some board members accused the agency's acting director, Mick Mulvaney, of trying to sideline the statutorily-required group.

  • June 6, 2018

    Activist Investor Opposes Goldman Compensation Suit Deal

    An activist investor objected Wednesday to a proposed settlement of a Delaware shareholder suit over excessive director compensation, saying the deal provides no value to the company or stockholders and is part of a pattern of litigation by a serial plaintiff.

  • June 6, 2018

    Fintech-Focused Blank Check Co. Upsizes IPO To $500M

    Far Point Acquisition Corp., a special purpose acquisition company backed by hedge fund Third Point LLC and run by former NYSE Group President Tom Farley in order to buy a fintech company, on Wednesday increased the funding target of its initial public offering to $500 million.

  • June 6, 2018

    $600M Russian Bond Dispute Can Be Arbitrated In London

    An English judge on Wednesday halted Russian litigation brought by a bank that claimed to have purchased $600 million in fraudulent bonds through certain financing transactions with several real estate investment companies, rejecting arguments that the dispute did not belong before a London arbitral tribunal.

  • June 6, 2018

    Agreement Reached In Puerto Rico Sales Tax Revenue Fight

    A long and contentious battle between municipal bondholders and other creditors over claims to more than $17 billion in pledged Puerto Rico sales tax collections may have reached an end, as representatives for the warring groups filed court papers Tuesday saying they’ve come to an agreement in principle.

  • June 6, 2018

    1st Circ. Unsure If Date Flap Dooms Lehman Whistleblower

    A First Circuit panel on Wednesday questioned whether missing a filing deadline by a single day was enough to doom a complaint brought by a former Lehman Brothers Inc. employee who said she was fired and harassed for trying to blow the whistle on the company before it went belly up.

  • June 6, 2018

    Credit Suisse To Pay $47M To End Probe Into Hiring Practices

    Credit Suisse has agreed to pay $47 million to resolve a U.S. Department of Justice investigation into the bank’s hiring practices in Asia between 2007 and 2013, the bank said Wednesday.

  • June 6, 2018

    Jailed Racer's Ferrari Allowed To Be Sold In $1.3B FTC Case

    A court-appointed monitor has gotten the go-ahead to sell imprisoned ex-race car driver Scott Tucker's special edition Ferrari to help satisfy the Federal Trade Commission's $1.3 billion judgment against him for running tribe-affiliated predatory lending companies.

  • June 6, 2018

    BNY Fights Investors' Bid For Cert. In ADR Overcharge Suit

    The Bank of New York Mellon on Tuesday told a Manhattan federal judge that the American depositary receipt holders alleging the bank overcharged them for the conversion of foreign currency dividends to U.S. dollars do not have standing to represent an entire class of ADR holders because each contract and conversion was unique.

  • June 5, 2018

    Real Estate Co. Escapes Fine Over DQ Bid For JAMS Judge

    A California Superior Court judge Tuesday decided not to fine a real estate company for seeking to disqualify a retired judge aiding proceedings over a loan for a San Francisco apartment complex, sidestepping accusations the disqualification bid made a "mockery of the judicial process" by finding the sanctions motion couldn’t pass procedural muster.

  • June 5, 2018

    Dem AGs Urge CFPB To Keep Complaint Database Open

    A coalition of 14 state attorneys general urged the Consumer Financial Protection Bureau on Monday to maintain public access to its consumer complaint database on the financial industry, joining a chorus of lawmakers and enforcers who say the database is vital for spotting problems in the industry.

  • June 5, 2018

    SocGen Cops To FCPA Charge For Libyan Bribery Scheme

    A Société Générale SA subsidiary on Tuesday admitted to conspiring to violate the Foreign Corrupt Practices Act, one day after the bank said it had agreed to pay more than $1.3 billion for a multiyear bribery campaign in Libya and benchmark interest rate manipulation.

  • June 5, 2018

    Advisory Board Members Say CFPB Tuning Them Out

    Nearly a dozen members of the Consumer Financial Protection Bureau’s consumer advisory board have accused the agency of repeatedly canceling meetings and otherwise brushing them off since Mick Mulvaney took over as its acting director.

  • June 5, 2018

    Manafort Must Answer To Witness Tampering Claims By Friday

    A D.C. federal judge on Tuesday gave Paul Manafort until the end of the week to respond to allegations of witness tampering from Special Counsel Robert Mueller that could land the former Trump campaign chairman behind bars while he awaits trial on charges arising from the Russia investigation.

  • June 5, 2018

    Former Boston Exec Devised State Street Fraud, Jury Hears

    Federal prosecutors pinned a post-recession hidden fee scandal at State Street Corp. on an executive at the bank’s Boston headquarters, telling jurors on Tuesday that it was his idea to add pennies to the individual trades within multibillion-dollar transactions to conceal massive, illegal commissions in 2010 and 2011.

  • June 5, 2018

    Ex-Nomura RMBS Trader Scores New Trial After Litvak Ruling

    A Connecticut federal judge on Tuesday granted a new trial to a former Nomura Securities International Inc. residential mortgage-backed securities trader accused of padding transactions with secret commissions, citing the Second Circuit’s Litvak ruling.

  • June 5, 2018

    2nd Circ. Wary Of Dead CEO's $194M Cash-For-Stock Tax Win

    Two Second Circuit judges looked unhappy Tuesday with a U.S. Tax Court decision letting the estate of deceased Monster.com founder Andrew McKelvey avoid liability on $194 million that two banks gave him in exchange for an obligation to turn over chunks of his lode of the employment website's stock.

  • June 5, 2018

    Consumers Win Certification In Bank Autodialing Suit

    A New Mexico federal judge on Tuesday certified a class of consumers alleging they received autodialed calls from First Community Bancshares Inc. and a subsidiary after they informed the bank it had the wrong number and they were not customers, finding the consumers met the requirements for certification.

Expert Analysis

  • What ABA’s Position On Harassment Means For Employers

    Minjae Song

    In the #MeToo era, the American Bar Association’s recently passed Resolution 302 is a reminder of harassment policy best practices to all employers, and it should be of particular interest to employers in the legal industry, say attorneys with Hunton Andrews Kurth LLP.

  • Takeaways From 2nd Circ. Reversal Of Litvak Conviction

    Harry Sandick

    One wonders if the Second Circuit’s reversal of Jesse Litvak’s securities fraud conviction in the District of Connecticut, together with prosecutors’ recent loss at trial in United States v. Demos, will impact the government’s decision to prosecute further the other bond traders who are currently facing charges in the same courthouse, say Harry Sandick and Michael Schwartz of Patterson Belknap Webb & Tyler LLP.

  • Practical Considerations For Litigating Proportionality

    Elizabeth McGinn

    By incorporating an explicit requirement that discovery must be “proportional to the needs of the case,” the 2015 amendments to the Federal Rules of Civil Procedure garnered much speculation as to their impact on courts’ decision-making processes. Now that the rules have been implemented for over two years, several themes have emerged, say attorneys with Buckley Sandler LLP.

  • Supporting Nontraditional Data Types In E-Discovery

    Jason Paroff

    The advancement in connected technologies and software has created an explosion of nontraditional data sources that present challenges to e-discovery practitioners. Many tools and techniques used to process traditional data may not be practical for these new data types, say Jason Paroff and Sagi Sam of Epiq.

  • How Tax Authorities Are Responding To Cryptocurrency

    Mark Rush

    The features that make cryptocurrencies attractive to their users — relative anonymity and mobility — have created heightened concerns among tax agencies in the U.S. and abroad. Providers of financial services to cryptocurrency holders should take steps to ensure that they are not enabling tax evasion, say members of K&L Gates LLP and Navigant Consulting Inc.

  • Volcker Rule Will Likely Change, But When And By How Much?

    Michael Silva

    It is difficult to say exactly what the ultimate changes to the Volcker Rule will be. However, certain political realities on the legislative side and a convergence of statements by policymakers on the regulatory side suggest that there are at least a few broad changes that can be reasonably forecast, say Michael Silva and Paola Ronquillo of DLA Piper.

  • After Trump’s Policy Purges, Who Speaks For The Victims?

    Daniel Karon

    Under President Donald Trump, federal agencies have killed or delayed key regulations and imposed drastically fewer penalties against corporate wrongdoers — thus enabling cheaters, victimizing consumers and compromising well-behaving companies. It falls to state attorneys general, as well as the private bar — plaintiffs and defense attorneys together — to pick up the slack, says Daniel Karon of Karon LLC.

  • FDCPA Cases Continue To Define What Congress Did Not

    Ellen Silverman

    The Second Circuit's decision in Taylor v. Financial Recovery Services exemplifies the nuances and often difficult interpretations faced by courts seeking to determine what constitutes an “abusive” practice under the Fair Debt Collection Practices Act, say attorneys with Hinshaw & Culbertson LLP.

  • The Fastest Federal Civil Court For A Decade

    Bob Tata

    Out of 94 district courts nationwide, the Eastern District of Virginia has the fastest civil trial docket in the country, now for at least the 10th straight year. The modern EDVA bench clearly takes pride in efficiently dispensing justice, and this dedication to efficiency has continued even in the face of increased filings, says Bob Tata of Hunton Andrews Kurth LLP.

  • Reining In Abusive Alien Tort Statute Cases

    Perlette Jura

    The most obvious takeaway from the U.S. Supreme Court's decision in Jesner v. Arab Bank is that non-U.S. corporations no longer need to fear Alien Tort Statute liability. But tucked within the decision’s holding and its various concurring opinions are other key points, say attorneys with Gibson Dunn & Crutcher LLP.