Banking

  • September 22, 2021

    Senators Probe SPAC Creators Over Possible Market Abuses

    Four Democratic U.S. senators Wednesday sent letters to six creators of special purpose acquisition companies, or SPACs, raising concerns about potentially "significant market dysfunction" connected to the alternate funding vehicles and requesting information for possible congressional or regulatory action.

  • September 22, 2021

    New York's Amalgamated Bank To Buy Chicago's For $98M

    New York-based Amalgamated Bank announced Wednesday that it has entered a definitive agreement to acquire Amalgamated Bank of Chicago, an unaffiliated lender despite the similar name, for roughly $98.1 million in a deal steered by Nelson Mullins Riley & Scarborough LLP and Hinshaw & Culbertson LLP.

  • September 22, 2021

    NY Eatery Exec Was Fired For Alleging PPP Fraud, Suit Says

    The former operations director for a group of New York restaurants claimed in a Brooklyn federal court suit Wednesday that he was fired in retaliation for raising alarms about alleged pandemic loan fraud.

  • September 22, 2021

    Citi Wants Grand Jury Docs In Ex-Trader's Forex Probe Suit

    Citigroup Inc. asked a New York federal judge Tuesday for access to records from the grand jury that indicted a former London-based trader on foreign exchange-rigging charges, saying the documents undermine the acquitted trader's $112 million malicious prosecution suit.

  • September 22, 2021

    Cooley-Guided Freshworks' $1B IPO Leads 4 New Offerings

    Cooley-led customer engagement software firm Freshworks Inc. went public Wednesday after pricing a $1 billion initial public offering above its range, leading a quartet of newly minted public companies that made their trading debuts after raising $2 billion combined.

  • September 22, 2021

    Treasury GC Nominee Takes Heat From Warren Over Recusals

    The Davis Polk partner tapped to be President Joe Biden's top lawyer for the U.S. Treasury Department declined at his confirmation hearing Wednesday to commit to a more extensive recusal from matters involving former clients despite repeated prodding from Sen. Elizabeth Warren, D-Mass.

  • September 22, 2021

    Senate Panel Grills Biden's Pick For HHS Watchdog

    The U.S. Senate Finance Committee on Wednesday doled out tough, and at times politically charged, questions to President Joe Biden's pick to be the U.S. Department of Health and Human Services' next watchdog, but nonetheless appeared on board with her nomination.

  • September 21, 2021

    Treasury Sanctions Crypto Firm Over Ransomware Ties

    The U.S. Department of the Treasury on Tuesday blacklisted a Russia-based company that allegedly helped cybercriminals launder extortion payments, in a first-of-its-kind move that aims to make ransomware attacks less profitable.

  • September 21, 2021

    SEC Dumps FINRA Fine Against Brokerage In 'Rare' Rebuke

    The U.S. Securities and Exchange Commission has vacated $1.6 million in fines and additional sanctions that the Financial Industry Regulatory Authority had levied against Scottsdale Capital Advisors Corp. and three of its officers, in a decision that the firm's defense counsel on Tuesday hailed as an "extremely rare" win for defendants.

  • September 21, 2021

    OCC's Chief Warns Of 'Fool's Gold Rush' In Crypto

    The Office of the Comptroller of the Currency's acting chief on Tuesday sounded an alarm about a "fool's gold rush" in the digital assets space, comparing the recent boom in cryptocurrencies to the proliferation of exotic financial instruments before the 2008 financial crisis.

  • September 21, 2021

    Deutsche Bank Can't Nix Class Action Over Traders' Spoofing

    An Illinois federal judge ruled that Deutsche Bank can't yet ax a proposed class action seeking to hold it responsible for two former traders' alleged 2013 illegal spoofing schemes, finding that further information is needed to determine if trading firm Rock Capital Market and others behind the lawsuit have established standing.

  • September 21, 2021

    NY Banking Agency Pitches Small Biz Loan Disclosure Rule

    New York State's top financial regulator said Tuesday it is seeking public comment on a plan to standardize what lenders have to disclose to small businesses when extending financing of less than $2.5 million.

  • September 21, 2021

    CFPB Sues Software Biz For Helping Illegal Credit Repair Cos.

    The Consumer Financial Protection Bureau has filed a lawsuit in California federal court against software company Credit Repair Cloud for allegedly assisting illegal credit repair businesses.

  • September 21, 2021

    FINRA Seeks To Demystify The Social Media 'Influencer'

    The Financial Industry Regulatory Authority is playing a game of catch-up as it seeks to understand how broker-dealers may be using social media "influencers" to tout their services, an effort to determine whether action is needed to ensure that a new generation of investors isn't being misled.

  • September 21, 2021

    Crypto Platforms To See More SEC Crackdowns, Gensler Says

    U.S. Securities and Exchange Commission Chairman Gary Gensler said Tuesday that regulators expect to step up enforcement against cryptocurrency trading and lending platforms, concerned that many such venues continue to operate outside the bounds of securities laws.

  • September 21, 2021

    Congress Urged To Strengthen Protections For Financial Data

    Consumers need better options to understand and meaningfully choose how their information is used and shared by financial service providers, witnesses told the U.S. House of Representatives' Task Force on Financial Technology on Tuesday.

  • September 21, 2021

    Akin Gump Lands Senior SDNY Fraud, Cybercrime Prosecutor

    Akin Gump Strauss Hauer & Feld LLP has pulled in veteran prosecutor Ian McGinley from his most recent role co-leading complex fraud and cybercrime cases for the Manhattan U.S. Attorney's Office, the firm announced Tuesday.

  • September 21, 2021

    Ex-Locke Lord Atty, Others Escape Investors' OneCoin Suit

    Disbarred and convicted former Locke Lord LLP partner Mark S. Scott, along with two associates and Bank of New York Mellon, have dodged an investor suit in New York federal court over the $4 billion OneCoin cryptocurrency scam.

  • September 21, 2021

    Senate Dems Push Chopra's CFPB Nom Toward Finish Line

    Senate Democrats moved one step closer late Tuesday to finally approving the Biden administration's nomination of Rohit Chopra as permanent director of the Consumer Financial Protection Bureau.

  • September 21, 2021

    Simpson, Sullivan & Cromwell Rep Bank's $8B MUFG Buy

    Simpson Thacher-led U.S. Bancorp will pay $8 billion to acquire the U.S. regional banking business of Japan-based Mitsubishi UFJ Financial Group, advised by Sullivan & Cromwell, the companies said Tuesday, in a transaction that is meant to significantly bolster the buyer's presence in California, Washington and Oregon.

  • September 20, 2021

    Girardi's Ex-Partners Suffer Setback In Suing Nano Banc

    A California judge on Monday dismissed fraud and other claims brought by former partners of disgraced attorney Thomas Girardi alleging Nano Banc improperly entered into loan agreements with Girardi on a partnership property he used as collateral without their knowledge, but the court ruled the lawyers can amend their complaint and also add new claims.

  • September 20, 2021

    SEC Chair Frets About 'Clothesless' Libor Alternative

    The chair of the U.S. Securities and Exchange Commission on Monday put in a plug for his preferred alternative to the soon-to-be-retired London Interbank Offered Rate, saying the option that some lenders prefer could amount to swapping "one clothesless emperor with another."

  • September 20, 2021

    OCC Cites MUFG Bank Unit For Tech, Operational Risk Issues

    The Office of the Comptroller of the Currency on Monday issued a cease-and-desist order against California-based MUFG Union Bank for unsafe or unsound practices regarding technology and operational risk management and the bank's alleged noncompliance with the Interagency Guidelines Establishing Information Security Standards.

  • September 20, 2021

    Minority BitMEX Owner Wants Out Of CFTC Suit

    A minority owner of BitMEX has asked a New York federal judge to dismiss him from a suit brought by the U.S. Commodity Futures Trading Commission, saying there are no individualized allegations showing he had the power to control the offshore cryptocurrency derivatives exchange. Correction: An earlier version of this story misstated the nature of the CFTC suit. The story has been updated to correct this and to include a comment from Delo's counsel.

  • September 20, 2021

    Officials Should Be Canned Over Pandemic Trades, Fed Told

    The millions of dollars in trading executed by top Federal Reserve officials amid COVID-19 should be enough to "disqualify them from their positions," and an investigation with the SEC and other regulators is needed to uncover the full scope of the potentially illegal conduct, the CEO of Better Markets has told Chairman Jerome Powell.

Expert Analysis

  • How To Avert Media Narrative And Get A Fair High-Stakes Trial

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    Corporate defendants in bet-the-company litigation may face an uphill battle to a fair trial when the media paints an entire industry, and every entity within it, as a villain — but some strategic tools can help build a more constructive defense and counteract damaging outside spin, says Jessie Zeigler at Bass Berry.

  • CFPB's New Foreclosure Limits Will Be Tough On Servicers

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    While the Consumer Financial Protection Bureau's new Regulation X rules are touted as paving the way for a smooth transition as federal foreclosure moratoriums end this month, implementing the changes puts a heavy burden on loan servicers with only weeks to ensure compliance by the Aug. 31 deadline, say Allison Schoenthal and Matthew Sheldon at Goodwin.

  • Why And How To Link ESG Metrics With Exec Compensation

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    By using various methods to connect executive remuneration with environmental, social and governance metrics, companies can effectively advance their long-term goals and keep up with the increasing public demand for ESG initiatives, say O'Kelly E. McWilliams III and Jennifer Budoff at Mintz.

  • Opinion

    Federal Tech, Trade Bill Needs IP Owner Transparency Tweaks

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    A pending federal bill to advance innovation contains an amendment, aimed at exposing Chinese interests in U.S. patent assignments, that needs refinement to involve proper legislative channels and boost patents' value, say former U.S. Patent and Trademark Office Director David Kappos, now at Cravath, and former Federal Circuit Chief Judge Paul Michel.

  • Tit-For-Tat Sanctions With China May Put Companies In A Bind

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    With President Joe Biden amending and expanding a Trump-era ban on investment in Chinese military companies, U.S. entities and individuals must consider not only the consequences of noncompliance with recent executive orders, but also how compliance could affect their operations in the face of Chinese counter-sanctions, say attorneys at Winston & Strawn and YuandaWinston.

  • Rebuttal

    In Defense Of Expedited Bankruptcies

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    A recent Law360 guest article decrying due process concerns with expedited bankruptcies fails to acknowledge why a quick Chapter 11 process has become so appealing: the skyrocketing costs, says Kenneth Rosen at Lowenstein Sandler.

  • Opinion

    State Courts' Stark Lack Of Diversity Demands Action

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    With state judiciaries lagging their federal counterparts in demographic and professional diversity, law firms, state bar associations and other stakeholders should help build a path for more people with diverse backgrounds to become state judges, say Janna Adelstein and Alicia Bannon at the Brennan Center for Justice.

  • What If Market Snubs SOFR As New Benchmark Interest Rate?

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    As financial institutions express doubts over whether the Secured Overnight Financing Rate is the best replacement for Libor, drafters of new syndicated credit agreements should consider incorporating more flexible language should the market move away from SOFR and toward another benchmark interest rate, say attorneys at Stroock.

  • The Road To Class Action May Be Harder After TransUnion

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    The U.S. Supreme Court's recent ruling in TransUnion v. Ramirez promises to intensify battles over Article III standing, with new limits on class action size and damages theories potentially disfavoring plaintiffs under federal statutes, say Greg Marshall and Andrew Jacobs at Snell & Wilmer.

  • FINRA's Short Data Reporting Idea May Spell Long-Term Pain

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    The Financial Industry Regulatory Authority’s recent proposal to expand and alter short interest reporting obligations would introduce heavy operational burdens on brokerages and leave long-standing industry challenges and investor confusion unresolved, says Timothy Foley at Alston & Bird.

  • A Confusing Split Over 'Reasonable Consumer' In Fla. Courts

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    Courts are divided over what counts as a reasonable consumer regarding determining liability under the Florida Deceptive and Unfair Trade Practices Act — including whether it is a judge or jury who makes that call — and with ample case law for either side of the issue, the only thing certain is that lawyers and clients will remain frustrated on the issue, say Aaron Weiss and James Czodli at Carlton Fields.

  • Giuliani Suspension Highlights Ethical Pitfalls For All Lawyers

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    Rudy Giuliani’s false public statements regarding the 2020 elections that resulted in his recent suspension from practicing law in New York may seem uncommonly flagrant, but the sanction underscores four ethics risks all attorneys should bear in mind, says Hilary Gerzhoy at Harris Wiltshire.

  • Managing Risk After SEC's Cyber Enforcement Action

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    The U.S. Securities and Exchange Commission's recent enforcement action against First American Financial over deficient cybersecurity disclosures shines a light on risk management and reporting best practices as financial regulators ramp up cybersecurity scrutiny, say Ira Rosner and Shardul Desai at Holland & Knight.

  • How Lenders Can Get SBA Payment On Defaulted PPP Loans

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    Even though Paycheck Protection Program loans are unsecured, not guaranteed by the borrower's principals and fully guaranteed by the Small Business Administration, lenders are still expected to collect on those that have defaulted, including by engaging in workouts, researching the borrower's assets and forming a litigation plan, says Harriet Wallace at Fox Rothschild.

  • Managing Risks Of Algorithmic Bias In Corporate Decisions

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    As machine learning is increasingly used to automate decision-making — from job applicant screening to price setting to fraud detection — attorneys and business leaders should take measures to guard against systematic bias and the accompanying legal and reputational risks, say economists at FedEx and Econ One Research.

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