Banking

  • April 28, 2017

    Banking Giants Hit With Indirect Investors' Forex Rig Suit

    JPMorgan Chase & Co., Bank of America Corp. and several other major banks are facing yet another proposed class action for allegedly manipulating the foreign exchange market, after investors who indirectly bought the firms' products sued Friday.

  • April 28, 2017

    BoA Gets Reverse FCA Suit Slashed On 2nd Look

    A Florida federal judge changed her mind Thursday and tossed most of a whistleblower suit claiming Bank of America Corp. dodged up to $10 billion in fines by falsely promising the U.S. government that the bank would change its foreclosure practices.

  • April 28, 2017

    Ex-CFO 'Has No Remorse' For $300M Ponzi Scheme, Feds Say

    Federal prosecutors in Florida slammed a convicted real estate executive's bid for leniency Wednesday, saying that the onetime chief financial officer behind a $300 million Ponzi scheme "has no remorse" for his crimes, and reiterated their sentence recommendation for 93 years' imprisonment and hundreds of millions of dollars in restitution and fines.

  • April 28, 2017

    Holland & Knight DQ'ed From Suit For Repping Both Sides

    A New York federal judge on Friday disqualified Holland & Knight LLP from representing First NBC Bank in an upcoming trial against ethanol distributor Murex LLC, saying that the firm offered legal services to both parties concurrently despite preparing the bank’s lawsuit against Murex over alleged sham transactions.

  • April 28, 2017

    9th Circ. Affirms US Bank's Quick Win In Age Bias Suit

    The Ninth Circuit declined Thursday to revive an age bias suit from a former U.S. Bancorp Inc. financial adviser, saying he was fired because of poor performance, not because he was past his 68th birthday.

  • April 28, 2017

    OCC Chief Says Fintech Charter Fight May Stifle Innovation

    U.S. Comptroller of the Currency Thomas Curry on Friday defended his agency’s proposal to grant special banking charters to financial technology firms, and said that critics of the move could be putting consumers at risk by not adapting to changes in the financial services industry.

  • April 28, 2017

    Eddie Bauer Wants Credit Union's Data Breach Suit Nixed

    Eddie Bauer urged a Washington federal judge Thursday to toss a proposed class action claiming financial institutions have had to pick up the pieces after a 2016 data breach, saying Iowa law applies because the credit union leading the suit is based there and the allegations don’t pass muster under that state's laws.

  • April 28, 2017

    Dems Blast House GOP Dodd-Frank Rollback Efforts

    House Democrats spent their Friday taking shots at a Republican bill that would functionally replace the Dodd-Frank Act, going so far as to call the legislation “immoral” and saying that their Republican colleagues had forgotten the lessons of the 2008 financial crisis.

  • April 27, 2017

    Nomura Trader Seeks Split From Conspirators In RMBS Case

    One of three traders at Nomura Securities International Inc. accused of juicing profits by lying to customers about mortgage bond prices asked a Connecticut federal court on Thursday for his own separate trial, warning that if he were tried along with his colleagues he could be found guilty by association.

  • April 27, 2017

    EFH Judge Again Rejects Del. Trust Bid To Boost Recovery

    A Delaware bankruptcy judge on Thursday again rejected a bid by Energy Future Holdings Corp. first-lien lender Delaware Trust Co. for a larger recovery share, ruling that even though the power giant had a new Chapter 11 plan confirmed, the relevant terms of the new strategy have not changed.

  • April 27, 2017

    Fannie Investors Can't Revive Suit Against Deloitte

    A Florida federal judge on Thursday rejected a request by Fannie Mae shareholders to reconsider his decision to kill their lawsuit against Deloitte & Touche LLP, saying they waited too long to raise a new argument and cited irrelevant case law.

  • April 27, 2017

    Giuliani, Mukasey Not On Legal Team, Turkey Banker Says

    Rudy Giuliani of Greenberg Traurig LLP and Michael Mukasey of Debevoise & Plimpton LLP aren’t representing a Turkish banking executive accused of cloaking millions of dollars in transactions for Iran, attorneys told a New York federal judge on Thursday to clarify the lawyers’ roles in the case.

  • April 27, 2017

    Nuclear Plant Owners Fight IP Clause In Westinghouse Loan

    The owners of a nuclear power plant in Georgia being constructed by bankrupt nuclear energy giant Westinghouse Electric Co. LLC told a New York court on Wednesday that the contractor is unnecessarily putting the project in danger by pledging its intellectual property in exchange for an $800 million loan.

  • April 27, 2017

    SquareTwo Beats Creditor Objection To $59M DIP Loan

    Consumer and commercial debt collector SquareTwo Financial Services Corp. received a New York bankruptcy judge's permission on Thursday to enter into a $59 million interim loan over objections by unsecured creditors that the money was not needed.

  • April 27, 2017

    Deals Rumor Mill: West Corp., Party City, Precision Capital

    Apollo Global is nearing an acquisition of call center operator and debt collection company West Corp., Party City may be for sale, and Precision Capital is considering a sale of its roughly $1.5 billion stake in Banque Internationale a Luxembourg.

  • April 27, 2017

    OCC May Face Trouble Defeating States’ Fintech Charter Suit

    A Wednesday lawsuit filed by state banking regulators seeking to block the Office of the Comptroller of the Currency’s national charters to financial technology firms marks the latest pushback against its efforts to provide a uniform fintech regulatory standard, and could ultimately lead to the effort being abandoned.

  • April 27, 2017

    Singapore Rate-Rigging Suit Sent Back To Drawing Board

    U.S. District Judge Alvin K. Hellerstein called a Manhattan suit targeting big banks across the world for alleged rate-rigging in Singapore a “huge, amorphous mess,” saying Thursday it does not sufficiently detail a jurisdictional hook to New York, antitrust damages or a viable racketeering theory. 

  • April 27, 2017

    House Votes To Subject Fannie Mae And Freddie Mac To FOIA

    The House on Thursday passed a bill to subject Fannie Mae and Freddie Mac to the Freedom of Information Act while they remain in government conservatorship, with some tweaks.

  • April 27, 2017

    CFPB Sues Tribal Online Lenders For Illegal Debt Collecting

    The Consumer Financial Protection Bureau on Thursday announced that it has filed a suit in Illinois federal court against four online lenders owned and incorporated by the Habematolel Pomo of Upper Lake Indian tribe, alleging that they deceived customers by collecting debts they weren’t owed legally.

  • April 27, 2017

    Ocwen Hit With Another Investor Suit After CFPB Action

    Ocwen Financial Corp. was hit Wednesday in Pennsylvania federal court with another class action by investors who claim the mortgage company, which is being sued by the Consumer Financial Protection Bureau for wrongfully foreclosing on more than 1,000 people, made misleading statements to investors about staying up-to-date with regulations.

Expert Analysis

  • 2nd Circ. May Clarify 5th Amendment Issue In Libor Case

    Mark Racanelli

    A pending Second Circuit case raises an interesting constitutional question for practitioners whose clients are subject to parallel, cross-border white collar investigations: When someone gives compelled testimony to foreign law enforcement officials, does the Fifth Amendment bar U.S. prosecutors from using her statements, directly or indirectly, to criminally prosecute her? say Mark Racanelli and Michael Simeone of O’Melveny & Myers LLP .

  • The Mediator’s Proposal As A Tool For Litigants

    Dennis Klein

    Mediators’ proposals, which call for an unconditional and confidential acceptance or rejection, are resolving high-value disputes on a regular basis. Dennis Klein of Critical Matter Mediation examines why this is happening and the tactical implications for litigants in anticipating that a mediator’s proposal could resolve litigation.

  • Another Aggressive CFPB Position Leads To DC Circ. Rebuke

    Ori Lev

    The D.C. Circuit’s recent refusal to enforce a civil investigative demand issued by the Consumer Financial Protection Bureau to a for-profit school accrediting agency is likely to have broad implications for CFPB enforcement investigations. It is possible that the agency’s aggressive posture colored the court’s analysis of the legal question before it, say Ori Lev and James Williams of Mayer Brown LLP.

  • Expectations After The Trump Administration's First 100 Days

    Jim Flood

    In its first 100 days, the Trump administration has had mixed results and may be behind where it wants to be. The biggest threat to President Donald Trump’s domestic policy agenda beyond the first 100 days is the difficulty of reconciling the Freedom Caucus Republicans, moderate Republicans and Democrats, say Jim Flood and Cari Stinebower of Crowell & Moring LLP.

  • A Do-Over: Takeaways From Florida Court's Ober Revisit

    Paul Rush

    A Florida state court's recent reversal of its own 2016 decision in Ober v. Town of Lauderdale-By-The-Sea affirms the long-standing interpretation of Florida’s lis pendens statute. However, lenders should be on alert, for this ruling may not be the end of the road for Ober, says Paul Rush of Trenam Law.

  • Thinking Fast And Slow About Class Action Reform

    Michael Donovan

    Corporate interests lobbying for H.R. 985, the anti-class action bill recently passed by the U.S. House of Representatives, are the same ones that pushed the Class Action Fairness Act in 2005. That law caused most significant class actions to migrate to federal courts. Ironically, the new bill could return many class actions to state courts, says Michael Donovan of Donovan Litigation Group LLC.

  • In New York Lending Agreements, The Contract Rules

    Richard H. Epstein

    In some states, borrowers may invoke the “implied covenant of good faith and fair dealing” to circumvent certain express loan terms. The recent decision in Transit Funding Associates v. Capital One Equipment Finance made clear that such arguments will be rejected by New York’s First Department, says Richard Epstein of Sills Cummis & Gross PC.

  • The 9-Year Winning Streak Of Virginia ‘Rocket Docket’

    Bob Tata

    Out of 94 district courts, the Eastern District of Virginia has been the fastest civil trial docket in the country for nine straight years. Without micromanaging the process, the EDVA's judges, magistrate judges, and clerks and staff continue to perform at a stunningly efficient level, says Bob Tata of Hunton & Williams LLP.

  • Ability-To-Repay Enforcement Comes To Auto Finance

    John Redding

    In recent years, regulators and enforcement agencies have eagerly exercised their authority to prosecute what they perceive as unfair or deceptive acts and practices. Recent events suggest that they may be gearing up to hit the accelerator by using UDAP theories to extend ability-to-repay principles to auto finance, say attorneys with Buckley Sandler LLP.

  • 5 Principles To Simplify Compliance For Fintech Startups

    Sean Wagner

    As fintech companies grow, so too will their compliance burdens. Small and emerging companies can engage in principle-based compliance to identify and minimize the risks that will most likely land them in a regulator’s crosshairs, say Sean Wagner and Nathan Viebrock of Bradley Arant Boult Cummings LLP.