Banking

  • September 12, 2023

    Influencer To Pay Up To End Pa. AG's Suit Over Ad Scam

    Social media influencer Dana Chanel has agreed to pay restitution, legal costs and civil penalties to resolve Pennsylvania Attorney General Michelle Henry's allegations she misled her following and customer base when she hyped up businesses she co-owned, according to a Tuesday announcement from Henry's office.

  • September 12, 2023

    Bankman-Fried Can't Get Out Of Jail To Prep For Trial

    A Manhattan federal judge on Tuesday rejected an effort by FTX founder Sam Bankman-Fried to be released from jail to prepare for his trial in three weeks, ruling he was unpersuaded by the failed crypto boss's unsupported claims that he can't access electronically stored discovery while in a Brooklyn detention center.

  • September 12, 2023

    Organizations Urge Texas Courts To Curb 'Judge Shopping'

    A group of organizations called on Texas' four chief judges to crack down on "judge shopping," saying that parties are abusing the state's case-assignment rules to ensure that lawsuits challenging nationwide policies go before sympathetic judges.

  • September 12, 2023

    PacWest Investor Says Bank Understated Rate Hike Exposure

    PacWest Bancorp was hit with a proposed class action by an investor who alleges that the California regional bank understated its exposure to rising interest rates and ignored warning signs posed by the collapse of Silicon Valley Bank this spring, causing its stocks to plummet.

  • September 12, 2023

    SEC's Gensler Calls On Congress To Fund AI, Crypto Efforts

    The U.S. Securities and Exchange Commission needs more funding for emerging technology such as artificial intelligence as it tries to root out a "daunting" amount of fraud in the crypto sector, Chair Gary Gensler told a Senate committee Tuesday as he defended his agency's rulemaking pace and process.

  • September 12, 2023

    Deutsche Bank Can't Undo $95M Verdict Over Ponzi Scheme

    Deutsche Bank was denied a new trial by a Florida federal judge after being hit with a $95 million verdict in April on allegations it ignored signs of fraud and allowed a group of clients to continue running a Ponzi scheme.

  • September 12, 2023

    SEC Sues Virtu Over Information Security Safeguards

    The U.S. Securities and Exchange Commission on Tuesday sued Virtu Americas LLC and its parent company in a New York federal court, alleging the broker-dealer misled customers and the markets about its safeguards for sensitive customer data.

  • September 12, 2023

    Former FTX GC Taps Crisis Experience To Build New Boutique

    Less than a year on from the stunning collapse of cryptocurrency exchange FTX, its former U.S. general counsel Ryne Miller has opened a New York-based firm that plans to steer clients through crisis management, regulatory investigations and trading and markets regulation.

  • September 12, 2023

    Former Acting OCC Head Rejoins O'Melveny As Fintech Pro

    A top banking executive and financial regulator has rejoined O'Melveny & Myers LLP as a Los Angeles-based partner in its growing financial services and fintech groups, the firm said Tuesday.

  • September 11, 2023

    SBF Cites 5th Amendment In Bid To Stall FTX Customers' Suit

    Sam Bankman-Fried on Monday asked a Florida federal court to pause FTX customers' proposed class action against him until his upcoming criminal trial has concluded, arguing that his Fifth Amendment rights would be "severely and impermissibly jeopardized" if he's forced to defend the customers' claims before the trial.

  • September 11, 2023

    Retail Lessor Banned In $36M Deals With CFPB And States

    Tempoe, an alternative finance company that partnered with Kmart, Sears and other retailers, has agreed to pay $2 million in fines, cancel more than $33 million owed by consumers and exit the leasing business as part of parallel federal and state regulatory settlements unveiled Monday.

  • September 11, 2023

    Fulton Bank To Settle Third-Party Breach Suit With Borrowers

    A Georgia federal judge has given final approval to a $750,000 settlement between Fulton Bank NA and its customers after the bank and a third-party service provider allegedly failed to safeguard the personal information of more than 111,000 borrowers.

  • September 11, 2023

    Former Exec Escapes Investor Challenge To $1.1B 'Sham' Deal

    Lenders suing Genesis Global Capital, a now-bankrupt subsidiary of cryptocurrency venture capital company Digital Currency Group Inc., have agreed to let a former executive out of a class action alleging that the company's leaders hid an impending $1.1 billion collapse from investors by failing to register securities.

  • September 11, 2023

    Off Lease, Ally Bank Work On Deal For Cash Use In Ch. 11

    A Delaware bankruptcy judge Monday gave Off Lease Only and its largest lender a day to work out a deal on the used car dealer's use of the lender's collateral to fund its Chapter 11 case until it can be determined what the cars still on its lots are worth.

  • September 11, 2023

    Voyager Reaches Post-Confirmation Intercompany Claim Deal

    Cryptocurrency platform Voyager Digital Holdings Inc. proposed a settlement of tens of millions of dollars in intercompany claims within its corporate structure, telling a New York judge that the post-confirmation deal resolves ongoing litigation among the Voyager parties.

  • September 11, 2023

    Catching Up With Delaware's Chancery Court

    Delaware's Court of Chancery last week approved an "extraordinary" $167.5 million settlement but sent back two others, largely upheld a $480.7 million damage request, and lamented the difficulties of enforcing court orders for faraway litigants. New disputes involved a brewery, a famous grill maker, a medical imaging company, and a supply chain company. In case you missed any of it, here's the latest from Delaware's Chancery Court.

  • September 11, 2023

    Mark-To-Market Appropriate For Crypto Traders, Tax Attys Say

    Traders of digital assets such as cryptocurrencies should be treated similarly to commodities dealers and allowed to elect to use the mark-to-market accounting method, the American Bar Association Section of Taxation told Senate tax writers.

  • September 11, 2023

    FTX Sues To Claw Back $100M From Virgin Islands Firm

    The bankruptcy estates of FTX Trading, Alameda Ventures Ltd. and FTX U.S. have opened an adversary suit in Delaware bankruptcy court seeking to recover more than $100 million transferred from the debtors to Virgin Islands-based LayerZero Labs Ltd., its former chief operating officer and another entity just before FTX's collapse.

  • September 11, 2023

    Developers Embezzled Millions From Chicago Bank, Jury Told

    Two property developers conspired with the president of a now-shuttered Chicago bank to embezzle millions in funds through purported real estate loans they had no intention of paying back and instead used the money for their own personal expenses, prosecutors told an Illinois federal jury on Monday.

  • September 10, 2023

    CFPB Loses Texas Court Battle Over Anti-Bias Exam Policy

    A Texas federal judge has rejected a Consumer Financial Protection Bureau examination policy intended to expand the scope of the agency's anti-discrimination scrutiny, upholding a legal challenge brought by the U.S. Chamber of Commerce and several banking industry trade groups.

  • September 08, 2023

    FDIC Admits It Flubbed Some Of Its First Republic Oversight

    The Federal Deposit Insurance Corp. said Friday that it could have been "more forward-looking" in anticipating and addressing the toll that rising interest rates would take on First Republic Bank, which failed this spring amid the turmoil brought on by Silicon Valley Bank's demise.

  • September 08, 2023

    Fed Official Says Stablecoin Policy Isn't 'Hurdle' To Banks

    A Philadelphia Federal Reserve senior official on Friday defended the central bank's recent guidance requiring banks it oversees to obtain pre-approval before offering stablecoins, saying he doesn't see it as a "hurdle" for getting involved with the digital assets.

  • September 08, 2023

    FDIC Asks Judge To Nix Venture Capitalist's Suit Against SVB

    The Federal Deposit Insurance Corp., acting on behalf of the failed Silicon Valley Bank, has asked a California federal judge to dismiss a 2018 suit alleging that the bank's unauthorized transfer of $4.25 million into the account of a venture capitalist firm created the false appearance of embezzlement and caused significant damage to the firm.

  • September 08, 2023

    Wells Fargo Investors Land Final Approval Of $1B Deal

    A New York federal judge on Friday signed off on a massive $1 billion deal between Wells Fargo and its shareholders, terminating a three-year legal battle accusing the bank of misleading investors about the progress it was making in overhauling its internal compliance program in an effort to get out from under government scrutiny.

  • September 08, 2023

    FinCEN Calls On Banks To Spot 'Pig Butchering' Red Flags

    The Financial Crimes Enforcement Network issued an alert on Friday identifying several red flags that banks and financial institutions should be on the lookout for concerning virtual currency investment scams known as "pig butchering."

Expert Analysis

  • The FTC May Be Expanding Its Monetary Relief Toolbox

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    The Federal Trade Commission's recent settlement with crypto exchange Celsius — which resolved a Gramm-Leach-Bliley Act pretexting count — reveals an attempt to significantly expand the FTC's authority to obtain monetary relief in ordinary matters regarding unfair or deceptive acts or practices, says Nikhil Singhvi at Covington.

  • EU's AI Act Is A Glimpse Into Future Compliance Landscape

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    As the EU's groundbreaking Artificial Intelligence Act moves to the final stage of adoption, its proposed language provides valuable insight into the substantial compliance hurdles that companies across all jurisdictions will face in using generative AI, so U.S. organizations should consider what they can be doing now, say Vivien Peaden and Alexander Koskey at Baker Donelson.

  • Leveraged Finance Market May Rebound After Cruel Summer

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    It has been a challenging summer for the leveraged finance market due to the economic climate and tight credit conditions, but cooling inflation and signs of life in the syndicated loan market suggest brighter days ahead, say attorneys at Weil.

  • FTC's Proposed HSR Changes Will Complicate Merger Filings

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    Attorneys at Mayer Brown explore the proposed sweeping revisions to Hart-Scott-Rodino Act premerger notification rules and what the change would mean for deal terms, including the increased cost, uncertainty and risk added to the process.

  • 4 Ways Company Execs Can Prep For SEC Cybersecurity Rule

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    In light of the U.S. Securities and Exchange Commission’s recent, and final, cybersecurity disclosure requirements, company leaders should undertake four factual assessments now to prepare their companies to respond quickly and agilely to the seemingly inevitable cyberattack, says Jennie Wang VonCannon at Crowell & Moring.

  • How High Court Is Assessing Tribal Law Questions

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    The U.S. Supreme Court's four rulings on tribal issues from this term show that Justice Neil Gorsuch's extensive experience in federal Native American law brings helpful experience to the court but does not necessarily guarantee favorable outcomes for tribal interests, say attorneys at Dorsey & Whitney.

  • In-Office Engagement Is Essential To Associate Development

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    As law firms develop return-to-office policies that allow hybrid work arrangements, they should incorporate the specific types of in-person engagement likely to help associates develop attributes common among successful firm leaders, says Liisa Thomas at Sheppard Mullin.

  • Shifts In The CRE Landscape Demand Creative Loan Solutions

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    An increase in commercial real estate loan workouts makes it critical for borrowers, lenders and other CRE participants to examine all the available options and remedies, including mortgage and mezzanine foreclosures, bankruptcy filings and property short sales, say attorneys at Goulston & Storrs.

  • Trends Emerge In High Court's Criminal Law Decisions

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    In its 2022-2023 term, the U.S. Supreme Court issued nine merits decisions in criminal cases covering a wide range of issues, and while each decision is independently important, when viewed together, key trends and takeaways appear that will affect defendants moving forward, says Kenneth Notter at MoloLamken.

  • Global Analysis Of Climate Suits Reveals Strategic Focus

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    A recent report from the Grantham Institute, reviewing climate lawsuits around the world and identifying eight types of so-called strategic litigation, offers insights that may help companies reduce their exposure and protect their reputations, say Jason Halper and Sharon Takhar at Cadwalader.

  • Terror Funding Suit Could Affect Inherited Jurisdiction In NY

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    Depending on how New York’s highest court answers two questions certified from the Second Circuit in a case litigating companies’ liability for terrorist attacks, foreign companies with no relevant New York contacts may be subject to suit in state courts by virtue of an asset purchase, say attorneys at Norton Rose.

  • Perspectives

    A Judge's Pitch To Revive The Jury Trial

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    Ohio state Judge Pierre Bergeron explains how the decline of the jury trial threatens public confidence in the judiciary and even democracy as a whole, and he offers ideas to restore this sacred right.

  • How SEC Money Market Fund Reform Diverges From Proposal

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    The U.S. Securities and Exchange Commission's final amendments to a rule that governs money market funds include several differences from the proposed rule, namely the elimination of swing pricing, the imposition of a new liquidity fee framework, and certain regulatory reporting requirements, say attorneys at K&L Gates.

  • 5 Quick Takeaways From Feds' New Bank Capital Proposals

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    The federal banking agencies' recent proposed rulemaking on capital requirements is the culmination of a holistic review of U.S. capital standards initiated by the Federal Reserve, and at over 1,000 pages, the proposal will take some time to fully digest, but there are a few items that can be immediately highlighted, say attorneys at Simpson Thacher.

  • How To Recognize And Recover From Lawyer Loneliness

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    Law can be one of the loneliest professions, but there are practical steps that attorneys and their managers can take to help themselves and their peers improve their emotional health, strengthen their social bonds and protect their performance, says psychologist and attorney Traci Cipriano.

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