Banking

  • May 15, 2018

    DOJ 'Sandbagging' With New Theory In Libor Trial, Judge Says

    A Manhattan federal judge said Tuesday that she may push the trial of two former Deutsche Bank traders accused of rigging the Libor to September, saying she felt “sandbagged” by U.S. Department of Justice prosecutors’ new theories a month before trial.

  • May 15, 2018

    Trump's Fed Board Nominees Back Tailoring Of Bank Rules

    Two of President Donald Trump’s nominees to the Federal Reserve Board of Governors told senators Tuesday that they support the concept of tailoring post-financial crisis rules to better fit banks’ differing risk profiles so long as it doesn’t undermine the safety and soundness of the financial system.

  • May 15, 2018

    Class Seeks Quick Win Over Scratch-Off Sweepstakes Mailers

    A class of consumers alleging a scratch-off sweepstakes card deceived them into thinking they had won a prize asked an Illinois federal judge Tuesday for a quick win against HMI Industries, arguing it proved the air filtration company is liable for shoddy business practices under state law.

  • May 15, 2018

    Manafort Can't Slip DC Charges From Mueller Investigation

    A Washington, D.C., federal judge refused to toss money laundering and other charges against former Trump campaign chairman Paul Manafort on Tuesday, ruling Acting Attorney General Rod Rosenstein was within his authority to authorize Special Counsel Robert Mueller to investigate “any links” that arose from investigating Russian election interference.

  • May 15, 2018

    SEC Actions Against Public Companies Plunged Yet Again

    Enforcement activity by the U.S. Securities and Exchange Commission against public companies continued to fall during the first half of the current fiscal year, according to a study released Tuesday, a further sign the regulator is backing away from the frequent and large sanctions it imposed against such issuers under the Obama administration.

  • May 15, 2018

    Ch. 11 Sale Of Jeweler Linked To Indian Bank Fraud Delayed

    An $8 million bankruptcy sale of a jewelry business dragged into the wide-scale bank fraud alleged against Indian billionaire Nirav Modi was put on temporary hold Tuesday by a New York bankruptcy judge who said he needed more information about the company’s value and connection to Modi, now a fugitive.

  • May 15, 2018

    SEC Pegs 4 Fraudsters For $34M Penny Stock Scheme

    The U.S. Securities and Exchange Commission on Tuesday accused four individuals in New York federal court of perpetrating a $34 million penny stock scheme by making illegal trades on artificially inflated stock belonging to the microcap company Biozoom Inc., then allegedly covering it up with offshore bank accounts and sham legal documents.

  • May 15, 2018

    Toyota Unit Gets Early Exit From DOJ Fair Lending Deal

    Toyota’s auto lending branch said in a filing with the U.S. Securities and Exchange Commission on Tuesday that the U.S. Department of Justice and Consumer Financial Protection Bureau agreed the company has satisfied the requirements for early termination of a consent order reached in 2016 over allegations of unfair lending practices.

  • May 15, 2018

    Rothschild PE Unit Closes Fund With $776M Committed

    The investment division of Rothschild & Co. has closed its European mid-market direct lending fund, Five Arrows Direct Lending, with €655 million ($775.9 million) in commitments, the company said on Tuesday.

  • May 15, 2018

    3rd Circ. Clarifies Time Limit For FDCPA Suits

    The Third Circuit ruled Tuesday that the time limit to challenge debt collection practices isn’t tolled just because a debtor doesn’t discover alleged wrongdoing until after the fact, issuing a precedential decision departing from other federal appeals courts’ findings that the so-called discovery rule applies in such cases.

  • May 15, 2018

    Investors Back $141M Attys' Fees Bid In Swaps-Rate Deals

    An Alaskan pension fund on Monday told a New York federal judge that not a single class member has opposed giving lead counsel $140.5 million in attorneys' fees and expenses for reaching 10 settlements with major banks over the alleged manipulation of a benchmark interest rate used to set terms for swaps transactions.

  • May 15, 2018

    Deutsche Bank Wants New Evidence Nixed In $86B RMBS Suit

    Deutsche Bank National Trust Co. on Monday urged a New York federal court to refuse new evidence submitted by a group of bondholders seeking class certification to challenge the bank’s handling of $85.8 billion in residential mortgage-backed securities trusts, arguing the investors lack standing for their claims because they suffered no out-of-pocket losses.

  • May 15, 2018

    US Seeks To Sink Challenge To Trump's '2-For-1' Order

    The federal government has told a D.C. district court that public interest groups have again failed to show that they properly brought suit against President Donald Trump's executive order that said for every new regulation, two have to be repealed, arguing that the groups can't demonstrate the order caused specific harm.

  • May 15, 2018

    Pot Cos. Thriving With Relaxed Bank Rules: Ex-DOJ Official

    Despite Attorney General Jeff Sessions’ reversal of an Obama-era policy not to prosecute legal marijuana businesses, a federal crackdown hasn’t occurred and the industry is benefiting from selective enforcement of financial regulations, a former U.S. Department of Justice official said recently at a tax conference.

  • May 14, 2018

    Feds Blast Manafort's Bid For Hearing Into Grand Jury Leaks

    Federal prosecutors Monday filed an opposition to former Trump campaign chairman Paul Manafort's request that a Virginia federal court conduct a hearing about alleged leaks related to his pending case on bank fraud charges, saying the press reports Manafort pointed to did not provide specific evidence of wrongdoing.

  • May 14, 2018

    Three Indicted In $25M Crypto Card ICO Fraud Scheme

    A federal grand jury in New York has returned an indictment charging three Floridians with securities and wire fraud, based on allegations that they defrauded investors of $25 million by lying about their startup’s cryptocurrency debit card ahead of its initial coin offering, the U.S. Attorney’s Office announced Monday.

  • May 14, 2018

    5 Points To Consider As Overseas Disclosure Program Ends

    While the IRS' termination of the Offshore Voluntary Disclosure Program has left many hopeful it will be extended or replaced, potential violators who have yet to disclose their foreign bank accounts need to weigh their options, with the most important question being whether to enter the program before it shuts down. Here are five topics for tax practitioners and their clients to discuss.

  • May 14, 2018

    NY Judge Urges Tilton Deposition, But Won't Sanction Her

    A New York state judge said Monday that she wouldn't tolerate any more delays in the deposition of flamboyant private equity investor Lynn Tilton and other witnesses in a $45 million suit brought against her firm Patriarch Partners LLC by a German bank, but said the situation wasn't so serious as to merit sanctions.

  • May 14, 2018

    Royal Park Defends Class Cert. Bid In US Bank RMBS Suit

    Royal Park Investments has told a New York federal judge that two recent decisions denying its class certification bids in residential mortgage-backed securities litigation against Wells Fargo and Deutsche Bank National Trust Co. shouldn’t doom its effort to secure class action status for a similar suit it’s brought against U.S. Bank NA.

  • May 14, 2018

    Puerto Rico Rejects Bondholders' $10B Sales Tax Deal

    Two groups of Puerto Rican bondholders on Monday announced a proposal to cut the island's debt by $10 billion by putting a portion of sales tax revenue in a trust to be split between them, but the island’s government and financial overseers predicted fiscal woes if the plan were adopted.

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.