Banking

  • May 11, 2017

    JPMorgan Investor Blasts SEC $75M Distribution Plan

    An investor in residential mortgage-backed securities has objected to the U.S. Securities and Exchange Commission’s plan to distribute a $75 million judgment against J.P. Morgan Securities LLC for hiding delinquent loans, saying the plan leaves out investors.

  • May 11, 2017

    Deals Rumor Mill: Abercrombie, Dominion Diamond, HCG

    Express or American Eagle could look to buyout Abercrombie & Fitch, multiple companies are interested in an acquisition of Dominion Diamond, and Home Capital Group hopes to sell $1.46 billion worth of assets to help pay off a high-interest loan ahead of a potential sale of the company.

  • May 11, 2017

    Firm Faces Another Sanctions Bid In Call-Recording Row

    A company accused of secretly recording telemarketing calls asked an Illinois federal judge Wednesday to sanction the law firm representing small businesses bringing the suit for allegedly relying on fraudulent documents to bolster some claims, a week after the owners of the corporation that purchased the telemarketer made a similar request.

  • May 11, 2017

    Prevezon Loses Bid to Sink Money Laundering Suit

    A New York federal judge on Wednesday struck down a Cypriot holding company’s bid to quash a civil forfeiture action related to alleged efforts to launder proceeds from a $230 million Russian mob fraud scheme through New York real estate investments.

  • May 11, 2017

    Clearing Broker Ducks $68M Loss Claim In FINRA Arbitration

    Broker-dealer C.L. King & Associates Inc. has slipped a claim for $68 million in damages brought by several trusts that suffered deep losses on trades the financial firm cleared, according to a recent decision by arbitrators with the Financial Industry Regulatory Authority.

  • May 11, 2017

    Banks Say South Africa Can't Reach Them In Forex Rig Case

    Big banks accused by South Africa's competition authority of fixing prices in currency trading markets involving the rand and U.S. dollar have asked for the case's dismissal, saying the agency’s allegations are vague and do not establish jurisdiction against the banks.

  • May 11, 2017

    CFPB Says Treasury, Not AGs, Should Get Sprint's $15M

    The Consumer Financial Protection Bureau told a New York federal judge on Thursday that $15 million in undistributed funds from a settlement with Sprint Corp. should go to the U.S. Treasury Department, arguing against a bid by Sprint and several state attorneys general to redirect the funds.

  • May 10, 2017

    Trustees Press Ponzi-Scheme Insurance Case At 11th Circ.

    The trustees for bankrupt Rothstein Rosenfeldt Adler PA told the Eleventh Circuit on Tuesday that the professional services exclusion in a directors and officers insurance policy does not bar coverage of a $50 million judgment owed by a bank over its alleged role in enabling a $1.2 billion Ponzi scheme run out of the law firm.

  • May 10, 2017

    Bank Can't Force Arbitration Of Payday Loan Suit: 4th Circ.

    The Fourth Circuit on Wednesday refused to let BMO Harris Bank arbitrate claims that it collected illegal payday loans through a tribal lender, labeling the arbitration agreement as a calculated attempt to skirt federal laws.

  • May 10, 2017

    SEC Keeps Up Aggressive Wrap Fee Enforcement, For Now

    The U.S. Securities and Exchange Commission stepped up the pace of its pursuit of programs charging a supposedly all-inclusive wrap fee on Wednesday, fining Barclays Capital Inc. $97 million over charging fees for services that weren't delivered, but experts said it's too early to tell if the agency will keep up the hunt under new SEC Chairman Jay Clayton.

  • May 10, 2017

    CFTC Seeks $390K Fine, Lifetime Ban For Menacing Trader

    The U.S. Commodity Futures Trading Commission has asked a New York federal court to put would-be rogue traders on notice by imposing a $390,000 fine and lifetime trading ban on a New York man who was accused of illegally operating a commodity pool and then convicted of threatening the officials investigating him.

  • May 10, 2017

    Australian Co. Seeks Ch. 15 In Wake Of Tax Avoidance Case

    An Australian borrowing and lending entity that operated within a complex group of companies targeted by Australian authorities for 25 years of tax avoidance asked a New York bankruptcy court on Tuesday for Chapter 15 protection, hoping to avoid obstructions in the process of winding down.

  • May 10, 2017

    Barclays To Pay SEC $97M For Investment Client Overcharges

    A unit of Barclays PLC will pay $97 million to settle claims by the U.S. Securities and Exchange Commission that it overcharged thousands of investors over a six-year period for services it never actually provided, the regulator announced Wednesday.

  • May 10, 2017

    CFPB's Prepaid Card Rule Evades Repeal, But Tweaks Coming

    With a Thursday deadline looming, it appears the Consumer Financial Protection Bureau’s regulations for prepaid cards and digital wallets will survive a brush with a Republican-led repeal effort, but the rule may look at least somewhat different when it takes effect next April.

  • May 10, 2017

    No End In Sight For Russia Sanctions After Comey Ouster

    President Donald Trump’s bombshell decision to fire FBI Director James Comey amid the agency’s probe of White House ties to the Russian government has all but erased the already faint possibility of loosening U.S. sanctions on Moscow’s banking, energy and defense sectors.

  • May 10, 2017

    Prevezon Wary Of Anti-Russian Jury Bias In $230M Fraud Trial

    Prevezon Holdings Ltd. asked a New York federal court on Tuesday to allow it to use a questionnaire to ferret out “anti-Russian bias” in potential jurors in its upcoming trial on charges it benefited from a $230 million Russian tax fraud, saying “negative media attention” may affect the trial.

  • May 10, 2017

    Investor Says Ky. Bank Is Preventing Director Nominations

    The largest investor in a Kentucky bank accused the board in a Delaware Chancery Court suit Tuesday of trying to prevent the nomination of an opposing slate of director candidates through a draconian limitation of the qualifications of such nominees.

  • May 10, 2017

    Solomon Gets Nearly $5M In Spirogen Sale Dispute

    A New York federal judge on Wednesday awarded investment banking advisory firm Peter J. Solomon Co. LP nearly $5 million in fees and interest from the $200 million sale of the British biotech formerly known as Spirogen Ltd. to an to an AstraZeneca PLC subsidiary.

  • May 10, 2017

    Schiff Hardin Nabs Ex-Stetler & Rotert White Collar Partner

    One of the founding partners of Stetler & Rotert Ltd. has joined Schiff Hardin LLP as a partner in the litigation practice group, the firm announced on Wednesday.

  • May 10, 2017

    McKool Smith Adds 2 Financial Litigation Principals In NY

    McKool Smith PC revealed Wednesday the forthcoming addition of two principals to its New York-based financial litigation practice, bringing on experienced commercial litigators Christopher P. Johnson and Zachary W. Mazin from Kasowitz Benson Torres LLP.

Expert Analysis

  • Justice Deferred: What High Court Won't Review In Lakeridge

    Steven Wilamowsky

    The U.S. Supreme Court recently granted certiorari in Village at Lakeridge to consider the deferential standard of review for determining nonstatutory insider status in Chapter 11, but has left other important questions unaddressed, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.

  • Material-Event Disclosures Under New SEC Proposal

    Richard B. Stephens

    It is likely that municipal issuers will not want to judge the materiality of each event or circumstance under the U.S. Securities and Exchange Commission’s recently proposed material-event notice requirements. In most instances, issuers will likely post the full text of each applicable agreement on the Electronic Municipal Market Access system, which could defeat the purpose of disclosure, say attorneys with Holland & Knight LLP.

  • Predicting Brexit's Lasting Impact On US And UK Markets

    Zoë Connor

    The U.K.'s triggering of Article 50 has possible ramifications for banks, asset managers, insurers and other financial service providers in the European Economic Area, but there can be little doubt that the U.S. and the U.K. will continue to trade successfully as they have done for centuries, say attorneys with Haynes and Boone LLP.

  • Satire

    A Law Firm Ranking Model By 'Fake News & Distorted Reports'

    Alan B. Morrison

    Suffering from law firm ranking fatigue? Bewildered by the methodologies? If so, you're in good company. Alan Morrison, associate dean for public interest and public service law at George Washington University Law School, wonders just how far law firm ranking efforts may go.

  • Calif. High Court Creates Exception To Concepcion

    Kathleen Taylor Sooy

    The California Supreme Court's recent decision in McGill v. Citibank is the latest entry in the court's well-known history of limiting what rights consumers may waive through arbitration agreements — potentially setting the stage for another review by the U.S. Supreme Court, say attorneys with Crowell & Moring LLP.

  • Financial Adviser Fee Disclosures After Vento V. Curry

    James E. Langston

    Prior to the Delaware Chancery Court's ruling last month in Vento v. Curry, it was not uncommon for the acquisition financing fees a buy-side financial adviser would receive to be omitted from a proxy statement. That will likely change in light of Vento, says James Langston of Cleary Gottlieb Steen & Hamilton LLP.

  • Taxpayers Face Offshore Account Disclosure Dilemma

    Kaitlyn Gardner

    The IRS has two choices for taxpayers to voluntarily disclose and pay taxes on offshore assets: a more permissive but more expensive and time-consuming compliance program, and a second option with lower penalties and easier filing, but stricter qualifications. With no definitive guidance, this choice is a risky gamble, say Kaitlyn Gardner and Christopher Karachale of Hanson Bridgett LLP.

  • Has The Law Of Manipulation Lost Its Moorings?

    Dan Waldman

    In recent years, the U.S. Commodity Futures Trading Commission's power to influence policy and punish violators, even when there is no wrongful intent, has grown significantly. Nowhere have these trends been more evident than in the developing law of manipulation, says Dan Waldman, former general counsel of the CFTC now with Arnold & Porter Kaye Scholer LLP.

  • When Arbitration Clauses Collide With Bankruptcy Laws

    Laura M. Fontaine

    A bankruptcy trustee or a debtor in possession has several specific powers that frequently come into conflict with a nondebtor’s desire to invoke an arbitration clause. The Fifth Circuit’s recent decision in Janvey v. Alguire pushed back on a trend of expanding the nonsignatory related parties that can be swept into arbitration, says Laura Fontaine of Gruber Elrod Johansen Hail Shank LLP.

  • Crowdfunding For Legal Cases: 5 Trends Reshaping Justice

    Julia Salasky

    Most people have never had an opportunity to personally take part in a legal case that directly challenges laws or policies they don’t agree with. Now that crowdfunding is available for legal cases, people can engage directly with legal change in the community and be a check on the powerful, says Julia Salasky, CEO of CrowdJustice.