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Banking

  • January 4, 2019

    Cryptocurrency Nano Hit With 2nd Suit Over $170M Loss

    The people behind the cryptocurrency Nano and the trading website BitGrail were hit with a second proposed class action in California federal court on Thursday claiming they tricked investors into using a vulnerable trading platform that purportedly resulted in the loss of some $170 million in digital assets.

  • January 4, 2019

    Deloitte Says Judge Erred In Denying Access To Investor Docs

    Deloitte objected Thursday to an Oregon federal judge's decision to deny it access to information about the finances of investors suing it and other law and financial firms for allegedly aiding a Ponzi scheme, saying the judge committed more than one "legal error" in his order.

  • January 4, 2019

    Attys Head To JPMorgan Conference In Shaky Deals Climate

    Deals lawyers heading to San Francisco to work the JPMorgan Healthcare Conference, an annual networking extravaganza beginning on Monday that is designed to jump-start the year’s transactions, face a more uncertain climate compared with the bullish mood one year ago.

  • January 4, 2019

    Nine West Creditors Fight $22M DIP Loan Plan

    Creditors of fashion company Nine West Holdings Inc. asked a New York bankruptcy court Thursday to reject the company’s bid for $22 million in new debtor-in-possession financing, saying there is a better proposal on the table.

  • January 4, 2019

    NY Court Seeks UK's Aid In Bloomberg's Misused Data Suit

    A New York federal judge on Thursday asked an English court for judicial assistance in compelling a London-based company’s cooperation with evidence requests in Bloomberg Finance LP's lawsuit accusing UBS AG of unlawfully redistributing its proprietary data.

  • January 3, 2019

    Countrywide Can't Slip Fraud Claim In Ambac's RMBS Case

    A New York state judge has declined to pare Ambac Assurance Corp.'s long-running lawsuit over a slew of pre-crisis, Countrywide-sponsored residential mortgage-backed securitizations that it insured and expects to pay out about $2 billion in claims on all told, denying bids that sought, among other things, to ditch Ambac's fraud claim and split the case up for trial.

  • January 3, 2019

    Current SEC Shutdown May Set New Record

    From halted compliance examinations to frozen cases and delayed stock offerings, experts expressed concern Thursday about the effect of what could be the U.S. Securities and Exchange Commission's longest shutdown.

  • January 3, 2019

    Ex-Credit Suisse Bankers Aided $2B Fraud In Africa: Feds

    Former Credit Suisse bankers, a Lebanese businessman and top officials in Mozambique participated in a scheme to siphon funds from more than $2 billion in government-backed loans for fraudulent projects in the African nation, according to an indictment unsealed Thursday in New York federal court.

  • January 3, 2019

    Wells Fargo Can’t Dodge Advisers' OT Class Arbitration

    A New York federal judge on Wednesday rejected a bid by Wells Fargo Advisors LLC to undo an arbitrator’s decision letting financial advisers pursue class arbitration of their unpaid overtime claims, saying the bank chose the binding arbitration process and must now live with the result.

  • January 3, 2019

    USAA Bank Settles With CFPB In $15.5M Deal

    The Consumer Financial Protection Bureau said Thursday that USAA Federal Savings Bank will pay a $3.5 million fine and more than $12 million in restitution to customers to settle agency claims stemming from a probe of the bank’s stop-payment, error resolution and account reopening practices.

  • January 3, 2019

    Russian Auto Co.'s $58M Suit Against Banker Revived

    A New York state appeals court revived a $58 million lawsuit by a Russian auto sales company against a former banker on Thursday, saying a Manhattan judge was wrong to find that a related case in federal courts had addressed the same issues.

  • January 3, 2019

    Parker Drilling Authorized To Tap $50M Ch. 11 DIP Loan

    A Texas bankruptcy court Thursday gave Parker Drilling Co. permission to take up to $50 million in debtor-in-possession financing to stay in operation through the offshore drilling services provider's Chapter 11 restructuring.

  • January 3, 2019

    Wells Fargo Tells 8th Circ. IBM Benefits Suit 'Wrongly Decided'

    Wells Fargo employees incorrectly pointed to a decision in a suit against IBM that was “both wrongly decided and distinguishable” from their suit in their bid to revive a proposed class action alleging that the bank illegally let its 401(k) plan invest in overvalued company stock, Wells Fargo told the Eighth Circuit on Wednesday.

  • January 3, 2019

    2 Cos. Fight Mellon Over Legal Fees In Puerto Rico Bond Row

    Ambac Assurance Corp., Whitebox Multi-Strategy Partners and the Bank of New York Mellon are sparring in a Puerto Rico federal court over who will pay for Mellon’s defense against Ambac and Whitebox’s claims that it mismanaged the island’s sales tax bonds.

  • January 3, 2019

    Deals Rumor Mill: Mr.DIY, Petrobras, UBS

    Mr.D.I.Y. is considering going public, Petróleo Brasileiro SA has received offers for a shallow water oilfield from bidders including PetroRio and Karoon Energy Ltd., and UBS’ chairman put the kibosh on rumors that the bank could merge with Deutsche Bank or other banks.

  • January 3, 2019

    Boies Schiller Partner Hit With Misconduct Claims In $3M Suit

    A Chinese billionaire seeking political asylum in the U.S. has accused Boies Schiller Flexner partner Josh Schiller of misconduct in a $3 million malpractice suit that claims Schiller mishandled the billionaire’s confidential information, harassed his staff and threatened his daughter.

  • January 3, 2019

    2nd Circ. Sides With Citi In Forex Traders' Markup Suit

    The Second Circuit on Thursday said a pair of Mexican foreign exchange traders could not revive a lawsuit alleging Citibank took $20 million by illegally marking up their foreign exchange spot orders without their knowledge or consent, saying the men failed to demonstrate the existence of a breach of contract or fraudulent activity.

  • January 3, 2019

    Overstock To Pay Certain Ohio Business Taxes In Bitcoin

    Online retailer Overstock.com said Thursday it would become the first company to pay part of its Ohio state taxes in bitcoin, following the Buckeye State’s announcement in November that it would accept tax payments based on the cryptocurrency.

  • January 2, 2019

    Deals Rumor Mill: Riyad Bank, FrontFour Capital, Apollo

    A pair of Saudi Arabian banks are looking for advisers related to potential plans to merge, FrontFour Capital Group is lobbying for board seats at MDC Partners, and Apollo Global Management is discussing a deal to buy Arconic Inc.

  • January 2, 2019

    3rd Circ. Kills Class But Won't Touch FLSA Cert. In RBS Suit

    The Third Circuit has overturned a decision that certified a class of RBS Citizens Bank NA loan officers who allegedly got stiffed on overtime pay, but refused to review the lower court's ruling certifying the suit as a Fair Labor Standards Act collective action.

Expert Analysis

  • Arbitration In Bankruptcy Isn't Dead After Anderson

    Deborah Reperowitz

    In Anderson v. Credit One Bank, the Second Circuit declined to enforce a mandatory arbitration provision, despite a long-standing U.S. Supreme Court mandate. While Anderson seems to mark a departure for bankruptcy cases with arbitration provisions, it may simply reflect a narrow exception, says Deborah Reperowitz of Stradley Ronon Stevens & Young LLP.

  • Assessing A New Path To Compliance For ICO Issuers

    Meagan Olsen

    The Airfox and Paragon settlements last month represent the U.S. Securities and Exchange Commission's acceptance of a new road map for initial coin offering issuers eager to remove the taint from past illegal offers. The approach is not perfect but signals a lighter regulatory construct, say attorneys with Paul Hastings LLP.

  • Crypto Addresses As OFAC Identifiers

    Maxwell T.S. Thompson

    Last week, the Office of Foreign Assets Control took the significant step of adding two digital currency addresses to its list of identifiers for certain individuals related to an Iranian hacking enterprise. This should immediately alert entities that transact in digital assets, says Maxwell T.S. Thompson of Murphy & McGonigle PC.

  • A Welcome DOJ Shift On Cooperation Credit

    John Nowak

    Changes announced last week by Deputy Attorney General Rod Rosenstein will likely make it easier for a company to obtain cooperation credit in criminal and civil cases, while also potentially reducing some of the costs and burdens associated with complying with the prior U.S. Department of Justice policy, says John Nowak of Paul Hastings LLP.

  • Series

    Judging A Book: Ginsburg Reviews 'The Curse Of Bigness'

    Judge Douglas Ginsburg

    When reading Tim Wu’s new book, "The Curse of Bigness: Antitrust in the New Gilded Age," lawyers, economists and historians will find its broad brush maddening, and the generalist reader will simply be misled, says D.C. Circuit Judge Douglas Ginsburg.

  • 5 Things You Should Know About New Rule 23 Amendments

    John Lavelle

    For the first time in 15 years, Federal Rule of Civil Procedure 23, governing class actions, has been amended. There are five key changes that will likely impact future federal class action litigation and settlements, say John Lavelle and Terese Schireson of Morgan Lewis & Bockius LLP.

  • 2nd Circ. Opines On Variable Prepaid Forward Contract Gains

    Lawrence Hill

    Reversing the U.S. Tax Court, the Second Circuit recently found that the late Monster.com founder’s estate potentially owed $41 million in taxes for variable prepaid forward contract extensions and remanded calculation to the Tax Court. Lawrence Hill and Kevin Platt of Winston & Strawn LLP discuss Estate of McKelvey v. Commissioner.

  • Money Transmitters Face Ambiguity In State, Federal Law

    Madison Thompson

    Over the past five years, Venmo has been the subject of enforcement actions by both federal and state actors. Madison Thompson of Troutman Sanders LLP provides an overview of the current oversight regime and insight for other money transmitters navigating the regulatory space.

  • State Net

    State Lawmakers Face Familiar Challenges In 2019

    Korey Clark

    Many of the issues that are most likely to draw the attention of state lawmakers next year — including cybersecurity, internet and data privacy, blockchain and cryptocurrencies, sales taxes on remote sellers, transportation and telecommunications infrastructure, and marijuana — are already familiar, says Korey Clark of State Net Capitol Journal.

  • Société Générale: Sanctions Enforcement Is Alive And Well

    Ama Adams

    The recent settlement between Société Générale and U.S. regulators illustrates that U.S. sanctions enforcement authorities may be shifting their attention back to large financial institutions after several years of relatively quiet enforcement across the financial services industry, say attorneys with Ropes & Gray LLP.