Banking

  • October 5, 2017

    Watchdog Says CFPB Needs To Work On Data Protection

    The Consumer Financial Protection Bureau’s internal watchdog has concluded that the agency needs to improve its handling of consumers’ personal data and confidential investigation information, noting in a report that the regulator’s lacking data protection practices could put sensitive details at risk.

  • October 5, 2017

    Navient Hit With Suit Over 'Deceptive' Student Loan Practices

    Pennsylvania's attorney general Thursday accused Navient Corp., the nation’s largest servicer of student loans, of unscrupulous conduct in both originating private student loans and servicing private and federal loans.

  • October 5, 2017

    HSBC's US Arm Eyed In Potential UK Forex Manipulation Suit

    The U.S. subsidiary of HSBC Bank PLC has been added to a U.K. currency firm’s attempts to force the lender to turn over documents as it looks to sue the banking giant for allegedly manipulating foreign exchange markets and misusing confidential information linked to trades worth hundreds of millions of dollars.

  • October 5, 2017

    CFPB Applies 'Ability-To-Repay' Standard To Payday Loans

    The Consumer Financial Protection Bureau on Thursday rolled out first-of-their-kind rules for the payday lending market, mandating that lenders conduct a “full-payment test” to determine whether borrowers can afford a loan before issuing one.

  • October 5, 2017

    Senate Confirms Quarles To Lead Fed Supervisory Efforts

    The U.S. Senate on Thursday voted to confirm Randal Quarles to be the first-ever Federal Reserve vice chair for supervision, in which he will lead the central bank’s regulatory efforts and play a key role in the Trump administration's push to roll back some rules for banks.

  • October 4, 2017

    HSBC Trader Dishes On Forex Collusion At Exec's Fraud Trial

    A former HSBC Bank PLC foreign currency exchange trader gave a detailed account on Wednesday of the collusion between banks that antitrust prosecutors claim was used to rig currency markets, as the government’s case in the trial of former HSBC executive Mark Johnson nears its end.

  • October 4, 2017

    6th Circ. Won't Revive Ponzi Victims' Suit Against PNC Bank

    A Sixth Circuit panel on Wednesday affirmed an Ohio federal court’s dismissal of a proposed class action brought against PNC Bank NA by investors in a couple’s $70 million Ponzi scheme, finding that the investors’ allegations about the bank’s handling of the couple’s accounts weren’t enough to establish its liability as a participant in the scheme.

  • October 4, 2017

    Del. Justices Ponder Bank Biz Judgment In $51M Pay Row

    Delaware’s Supreme Court on Wednesday pressed Investors Bancorp Inc.'s attorney on the limits of stockholder-ratification and business-judgment protections, as counsel for shareholders argued for the revival of claims that a $51.5 million equity award to directors went too far.

  • October 4, 2017

    Colo. Atty Walks Fine Line At Racer's $2B Loan Fraud Trial

    A Colorado lawyer versed in Native American law painted a complicated and often shaky picture of his relationship with racer Scott Tucker Wednesday, as Tucker offered Manhattan jurors a risky advice-of-counsel defense against charges that he ran a $2 billion criminal payday lending empire.

  • October 4, 2017

    Venezuelan Agency Goes MIA, Ex-Counsel Gets Suit Tossed

    After Venezuela's deposit insurance agency failed to appoint new counsel in its suit against Diaz Reus & Targ LLP, a Florida federal judge on Wednesday dismissed the agency's claims against the law firm over $6.9 million in fees from the Lehman Brothers bankruptcy.

  • October 4, 2017

    Ex-PNC Staffer's OT Suit Survives, Sales Award Claims Don't

    PNC Bank must continue to face a suit brought by a former employee who claims that she was not properly paid for overtime work but is free from claims that she is still owed commission, an Illinois federal judge ruled Tuesday.

  • October 4, 2017

    Wells Fargo To Refund Some Mortgage Rate Lock Fees

    Wells Fargo & Co. on Wednesday announced that it would refund customers who were wrongly charged for extending the lock on mortgage rates just a day after the bank’s chief executive mentioned the repayments at a contentious Senate hearing.

  • October 4, 2017

    Objectors Can't Undo $65M Stanford Scam Insurance Deal

    A Texas federal judge on Tuesday shot down three separate motions seeking to undo a $65 million settlement between the receiver for jailed Ponzi schemer R. Allen Stanford’s companies and three insurance underwriters, saying their arguments were already addressed or had been waived.

  • October 4, 2017

    A Guide To Marijuana Legalization In Massachusetts

    Massachusetts residents in November voted to legalize recreational marijuana in the state, and since then attorneys have been keeping an eye on how to have retail businesses ready to run when license applications open next spring.

  • October 4, 2017

    DOJ Says Allen Ruling Already Chilling Int'l Enforcement

    The U.S. Department of Justice on Monday urged the full Second Circuit to rehear a three-judge panel's ruling reversing two former Rabobank traders' Libor-rigging convictions, saying it has “already elected to forgo worthy cross-border investigations” because of the July ruling.

  • October 4, 2017

    Sens. Hammer Ex-Equifax CEO Over Data Breach Response

    Former Equifax Inc. Chairman and CEO Richard Smith on Wednesday faced hostile questioning over the devastating breach that led to personal information for over 145.5 million Americans getting exposed, as well as concerns about the future and purpose of the consumer credit reporting industry.

  • October 4, 2017

    Treasury Plans To Change Or Ax 8 Obama Tax Regulations

    The U.S. Department of the Treasury said Wednesday it would amend or completely do away with eight tax regulations issued under the Obama administration, including rules regarding corporate debt and transfers of estates, as part of an effort to simplify the tax code.

  • 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.

Expert Analysis

  • 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.

  • 10 Tips For Banks Responding To Regulatory Requests

    Tilcia Toledo

    Responding to regulatory requests is a normal part of a bank’s operations, but a poorly written or confusing response may cause an agency to make assumptions about a bank that are not true. Tilcia Toledo of FTI Consulting Inc. offers 10 ways financial institutions can avoid sending negative messages in their responses.

  • Harvey Crisis: How State Laws Will Protect Service Members

    Jeffrey Naimon

    During natural disasters, governors often activate members of the National Guard to assist in rescue and recovery efforts, and Hurricane Harvey is no different. When service members enter harm’s way, several state laws provide additional protections for their civilian obligations, say Jeffrey Naimon and Sasha Leonhardt of Buckley Sandler.

  • The Difficulty With Classifying Employees As Exempt

    Camilo Echavarria

    In McKeen Chaplin v. Provident Savings Bank, the Ninth Circuit recently held that mortgage underwriters who worked for the bank were not “administrative employees,” and thus did not qualify for exemption from Fair Labor Standards Act overtime protections. In doing so, the court deepened a split among the circuits on this issue, say Camilo Echavarria and Beatrice Nuñez-Bellamy of Davis Wright Tremaine LLP.

  • An Emerging Patchwork Of Cybersecurity Rules

    Michael Bahar

    With the recent adoption of cybersecurity regulations governing broker-dealers and investment advisers registered in Colorado and Vermont, the landscape of cybersecurity regulation continues to evolve. For businesses not yet covered by cyber regulations, these latest moves indicate that the day of reckoning may be coming, say attorneys with Eversheds Sutherland.

  • Practicing Law In The Era Of 3rd-Party Litigation Funding

    David Silver

    The growth of third-party litigation funding has added a distinct variable to the world of civil litigation. Such funding has and will continue to change the calculus for many corporations and their defense counsel as to the tipping point between settling or pursuing a case to a court decision, says David Silver of Silver Public Relations.