Banking

  • October 3, 2017

    Transmar Ordered To Hand Over Docs On $8.2M In Lost Cocoa

    A New York bankruptcy judge on Tuesday ordered bankrupt cocoa trader Transmar Commodity Group Ltd. to hand over documents and find an employee to be deposed regarding $8.2 million worth of cocoa butter and powder whose whereabouts is unknown after Transmar allegedly bought it.

  • October 3, 2017

    Dormant Ch. 11 Case Reopened To Go After Indicted Ex-CEO

    An entrepreneur with a winding trail of fraud allegations may be back on the hook for a $24 million judgment for misappropriating funds while serving as CEO of a computerized trading firm after a New York bankruptcy court reopened the company’s Chapter 11 case on Monday.

  • October 3, 2017

    Cairn Exec Says He Didn't Suspect HSBC Tanked $3.5B Deal

    An executive for Cairn Energy PLC told a Brooklyn federal jury Tuesday that he didn’t suspect HSBC traders were lying to him when they said a Russian bank’s trading had caused the Scottish oil and gas developer’s $3.5 billion foreign exchange transaction to go south and noted that Cairn took legal action only after a top HSBC trader was arrested.

  • October 3, 2017

    Former DOJ Prosecutor Rejoins Covington In Washington

    A former Covington & Burling LLP associate who racked up awards as a prosecutor in the U.S. Department of Justice’s fraud section has rejoined the firm as a partner in its Washington D.C. office, Covington announced Tuesday.

  • October 3, 2017

    Chief Counsel To Ex-CFTC Commissioner Rejoins WilmerHale

    The chief counsel for former Commissioner Sharon Bowen of the U.S. Commodity Futures Trading Commission will rejoin WilmerHale, bolstering its futures and derivatives practice group in Washington, D.C., the firm said Tuesday.

  • October 3, 2017

    Bank Of America Fights Class Cert. In Rigged-Appraisal Case

    Bank of America Corp. urged a California federal judge Monday not to recognize a proposed class of borrowers who accuse BofA and Countrywide Financial Corp. of making them use a crooked home appraisal company, saying the alleged wrongdoing varies too widely for a class action to be appropriate.

  • October 3, 2017

    Chief Recounts 'Awkward' Lunch With Racer At $2B Loan Trial

    Miami Nation Chief Doug Lankford told a Manhattan jury Tuesday that he once angered racer Scott Tucker over lunch by artlessly suggesting that his tribe controlled assets at the heart of the federal case charging Tucker with running a $2 billion criminal payday loan empire along with his lawyer Timothy Muir. 

  • October 3, 2017

    House OKs Bill To Equalize Muni Bonds In Liquidity Rules

    The U.S. House of Representatives passed a bipartisan bill Tuesday that would spread a Federal Reserve rule on the treatment of municipal securities across the financial industry.

  • October 3, 2017

    CFPB, NY AG Ask Court To Order Debt Firms To Give Up Docs

    The Consumer Financial Protection Bureau and the New York Attorney General’s Office on Monday asked a federal judge to force defendants in an illegal debt collection lawsuit to turn over documents related to their operations.

  • October 3, 2017

    Chinese Lender Qudian Leads 2 IPO Launches Totaling $869M

    Chinese online lender Qudian Inc. launched an estimated $769 million initial public offering on Tuesday, adding to a growing IPO pipeline along with private equity-backed medical device company OptiNose Inc., which set terms on a projected $100 million offering.

  • October 3, 2017

    Ex-Equifax CEO Defends Breach Response To Skeptical Reps

    U.S. House members grilled Equifax’s former CEO on Tuesday about the credit bureau’s handling of a data breach that impacted the personal information of 145.5 million people, blasting his refusal to acknowledge that consumers were likely to face harm and floating proposals to establish national data security standards and force businesses to pay consumers for such hacks.

  • October 3, 2017

    Judge Shuts Door On AmEx Investors' Suit But Opens Window

    A New York federal judge has dismissed a proposed class action by American Express Co. shareholders who say that the company hid the importance of its co-branding agreement with Costco Wholesale Corp. and wasn’t upfront about the chances it would lapse, but the investors will get a second chance.

  • October 3, 2017

    Kasowitz Benson Can't Exit Ampal Ch. 7 Case, Judge Rules

    A New York bankruptcy judge on Tuesday found the CEO of energy investment holding company Ampal-American Israel Corp. in contempt for failing to respond to discovery and denied his attorneys permission to withdraw until the issue is settled.

  • October 3, 2017

    CRS Trustee Files $7M Clawback Suit Against Wells Fargo

    The trustee for bankrupt human resources contractor Corporate Resource Services Inc. and co-debtors filed a $7 million adversary suit Monday against Wells Fargo Bank NA for “forcing them into liquidation” and charging millions of dollars in unfair fees.

  • October 3, 2017

    Senate Dems Roast Wells Fargo CEO Over Accounts Scandal

    Wells Fargo & Co. CEO Tim Sloan faced questions from Senate Democrats about whether he should be fired, whether the bank would enforce arbitration agreements on customers who had been the victim of the bank’s fake accounts scandal and whether Wells Fargo should have its charter revoked at a raucous Senate hearing on Tuesday.

  • October 2, 2017

    US Bank Branch Managers Lose Conditional Cert. In OT Suit

    A California federal judge dissolved a conditionally certified collective of U.S. Bank in-store branch managers Monday, saying that the workers’ testimony varies too greatly for them to sustain allegations that the company denies them overtime while making them perform mostly nonexempt work.

  • October 2, 2017

    HSBC Exec Admits Role In Russian Forex Buyer Tale

    The HSBC executive testifying Monday against a top foreign exchange trader peddled the story to Cairn Energy PLC that a Russian buyer was pounding the dollars for sterling exchange market, leading to a price spike that Brooklyn federal prosecutors said was caused by illegal front-running.

  • October 2, 2017

    BNP Paribas Escapes Claims It Funded '98 Embassy Attacks

    A D.C. federal judge Friday tossed a suit claiming French bank BNP Paribas S.A. helped fund two 1998 al-Qaida bombings of U.S. embassies by skirting sanctions against the Sudanese government, saying the plaintiffs had failed to state any viable claims.

  • October 2, 2017

    Wells Fargo CEO To Outline Changes At Scandal-Ridden Bank

    Wells Fargo CEO Tim Sloan will outline the progress that his bank has made in changing a culture that led to the creation of millions of unauthorized accounts when he appears before a Senate committee on Tuesday, according to written testimony released a day earlier.

  • October 2, 2017

    Citibank To Return $1.74B In Deal With Lehman Bros.

    Citibank NA has agreed to return $1.74 billion to the Lehman Brothers estate after reaching a settlement with the defunct investment firm and its unsecured creditors several weeks into a bankruptcy court trial over the valuation of about 30,000 derivatives trades that went into default after Lehman's collapse.

Expert Analysis

  • A Pro-Consumer, Pro-Arbitration Approach At The CFPB

    Eric Mogilnicki

    The U.S. Senate’s upcoming vote on the Consumer Financial Protection Bureau’s arbitration rule need not involve a choice between preserving or ending the status quo on arbitration. Instead, a vote to preserve arbitration by defeating the bureau’s arbitration rule could open the door to a solution that strengthens consumers’ ability to resolve disputes with financial institutions, say Eric Mogilnicki and Eitan Levisohn of Covington & Burling LLP.

  • Opinion

    The Misconception That Bank Directors Have Unique Risks

    Jonathan Hightower

    Respected attorney and industry commentator Thomas Vartanian recently asked in an opinion piece in The Wall Street Journal, “Why would anyone sane be a bank director?” Well, sane people are serving as bank directors every day, and in doing so they are benefiting the economy without exposing themselves to undue risk, says Jonathan Hightower of Bryan Cave LLP.

  • If The CFPB Is Remiss, The Court Must Dismiss

    Joann Needleman

    Last month, a Georgia federal court took the extraordinary step of dismissing an enforcement action brought by the Consumer Financial Protection Bureau against various payment processors due to the bureau's conduct during depositions despite orders from the court to the contrary, say attorneys with Clark Hill PLC.

  • Shkreli Trial And Other Magic Tricks: A Chat With Ben Brafman

    Randy Maniloff

    Ben Brafman’s clients don’t need a lawyer — they need a magician. And for 40-plus years, the man has been pulling rabbits out of hats, most recently finding jurors able to sit fairly in judgment of Martin Shkreli, called “the most hated man in America.” Last month I visited Brafman to discuss his remarkable career, says Randy Maniloff of White and Williams.

  • Revisiting Bishop In Light Of Escobar

    Andrew Schilling

    Last year, the Second Circuit in Bishop v. Wells Fargo handed the banking industry some much-needed ammunition to fight back against False Claims Act suits premised on broad certifications of compliance. It seems unlikely that the court’s upcoming reconsideration of the case in light of the U.S. Supreme Court's Escobar decision will change the outcome, say Andrew Schilling and Megan Whitehill of Buckley Sandler LLP.

  • Making Sense Of 9th Circ. Spokeo Decision On Remand

    Christina Vitale

    The Ninth Circuit recently issued its long-awaited opinion on remand in Robins v. Spokeo Inc., holding that Thomas Robins had standing to pursue his claims in federal court. While the result was largely expected, the analysis the court used to reach that result is significant in at least three ways, say attorneys with Morgan Lewis & Bockius LLP.

  • How New US Sanctions On Venezuela Target Financing

    Satish Kini

    Based on reports from the few days since the sanctions were issued, it appears likely the new sanctions will have their intended effect of restricting access to U.S. financial markets by the Venezuelan government and its state-owned enterprises, such as Petróleos de Venezuela SA, according to attorneys with Debevoise & Plimpton.

  • The Psychology Of Hourly Fee Arrangements

    J.B. Heaton

    The range of possible and better fee agreements is wide. But such alternatives will become popular only if litigants confront the psychological tendencies shaping their existing fee arrangements, says J.B. Heaton, a partner at Bartlit Beck Herman Palenchar & Scott LLP.

  • CareFirst And Constitutional Standing: A Post-Spokeo Review

    Cinthia Granados Motley

    When it comes to the issue of Article III standing in data breach cases, the D.C. Circuit’s recent decision in Attias v. CareFirst demonstrates the analysis many appellate courts now seem to be applying, say attorneys with Sedgwick LLP.

  • A Very Active Year For The CFTC So Far

    Anne Termine

    Despite the lack of appointed commissioners until recently and the turnover of leadership, the U.S. Commodity Futures Trading Commission has announced more than 20 enforcement actions, proposed four rules and launched two new initiatives this year. The agency has been particularly active in bringing enforcement actions against individuals for fraud, misappropriation and false statements, say attorneys with Covington & Burling LLP.