Banking

  • March 24, 2017

    SunEdison Lenders Fight To Ax Fraudulent Transfer Suit

    Secured SunEdison Inc. lenders fought back Thursday against the solar company's unsecured creditors’ allegations that the lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask SunEdison's deteriorating finances, calling the claims rooted in dismay over the prospect of getting no return.

  • March 24, 2017

    Fla. Man Pays Nearly $3M Over Bank Check Co. Scheme

    The U.S. Securities and Exchange Commission on Thursday agreed to accept nearly $3 million in disgorgement and interest from a Florida man to settle charges he schemed to defraud investors by creating and selling “blank check” public companies he claimed were promising startups.

  • March 24, 2017

    $4M Deal OK'd In PayPal Funds-Hold Saga

    A federal judge in California gave final approval Friday to a $4 million settlement of class claims that PayPal Inc. improperly placed holds on account funds, bringing a close to litigation that saw a previous proposal rejected.

  • March 24, 2017

    Ex-Mortgage Banker Gets 150 Months Over $30M Scheme

    The former head of a mortgage lending bank was sentenced Friday by a New York federal judge to 150 months in prison in connection with a $30 million scheme to rip off lenders by lying about property values, according to the U.S. Department of Justice.

  • March 24, 2017

    Citigroup Won't Seek $9.4M Fees, Costs In Arbitration Spat

    Citigroup has told a New York federal court it will drop its bid to recover more than $9.4 million in attorneys' fees and costs incurred during litigation to confirm a 2016 arbitration award, which rejected a claim brought by Abu Dhabi's massive sovereign wealth fund over money lost in a $7.5 billion investment deal soured by the financial crisis.

  • March 24, 2017

    CFPB Gives Mortgage Lenders Flexibility In Fair Lending Law

    The Consumer Financial Protection Bureau on Friday proposed a rule change that would give mortgage lenders more flexibility in collecting information about the ethnicity and race of potential borrowers, potentially making it easier for lenders to comply with a key fair lending law.

  • March 24, 2017

    Fed, FDIC Seek Improvements In Northern Trust’s Living Will

    Federal banking regulators on Friday said that plans submitted by 16 U.S. regional banks outlining how they could be taken apart through bankruptcy were largely credible, but said that Northern Trust Corp. did not sufficiently address questions about how its international units could be taken apart.

  • March 23, 2017

    5 Takeaways From Clayton's SEC Confirmation Hearing

    President Donald Trump's nominee to chair the U.S. Securities and Exchange Commission, Sullivan & Cromwell LLP partner Jay Clayton, scored points with Republican lawmakers at his confirmation hearing Thursday by lamenting a recent decline in IPOs, but did little to reassure Democrats about his conflicts of interest and financial industry connections. Here are five key takeaways from Thursday's hearing.

  • March 23, 2017

    Full Fed. Circ. Told 'Radical' Rulings Threaten CBM Program

    Recent Federal Circuit rulings limiting the scope of the America Invents Act's covered business method patent review program fly in the face of congressional intent and threaten to gut the program, U.S. Bank NA said Thursday in a petition for en banc rehearing.

  • March 23, 2017

    Former CFTC General Counsel Joins Skadden In DC

    The former general counsel for the U.S. Commodity Futures Trading Commission has joined Skadden Arps Slate Meagher & Flom LLP’s derivatives group in Washington, D.C., the firm announced on Thursday.

  • March 23, 2017

    LendingClub Investors Can Proceed With Trimmed Stock Suit

    A California federal judge said Thursday he’ll trim claims from a putative investor class action alleging LendingClub hid internal control problems that led to its stock plunge, but refused to throw out the investors’ case against the company, saying they’d provided evidence of a “wink wink” agreement to inflate loan sales.

  • March 23, 2017

    Ex-UBS Exec Says FINRA Testimony Got Him Fired

    UBS Financial Services Inc. was slapped with a whistleblower suit in New Jersey federal court on Wednesday by a former executive claiming he was fired for a bogus reason after he told the Federal Industry Regulatory Authority about how a coworker facilitated the misuse of an elderly client’s funds. 

  • March 23, 2017

    Deals Rumor Mill: Credit Suisse, Pret A Manger, Shell

    Credit Suisse may sell more than $3 billion worth of stock in its Swiss business, private equity-backed sandwich chain Pret A Manger is readying for a New York IPO, and Royal Dutch Shell is in discussions to sell its last remaining asset in California.

  • March 23, 2017

    Fed Orders Santander To Boost Oversight Of Auto Unit

    The Federal Reserve on Thursday ordered the Spanish bank Banco Santander SA’s U.S. unit to increase its oversight of its subprime auto lending operation, the second time in two years that the bank’s oversight for consumer protection violations has been cited by the central bank.

  • March 23, 2017

    IRS Calls $50M In Tax Assessments On Estate ‘Protective’

    The IRS has admitted to the U.S. Tax Court that it assessed $50 million in taxes plus interest against the estate of charcoal tycoon James P. Keeter only as a “protective” measure in ongoing litigation over allegedly sham tax shelters and that it would happily freeze the assessments if the court finds that the agency's earlier deficiency notices in the dispute were valid.

  • March 23, 2017

    CFPB Fines Experian $3M For Deceptive Marketing

    The Consumer Financial Protection Bureau on Thursday fined consumer credit reporting firm Experian $3 million for false marketing practices that led consumers to believe that the scores they received were the same as those used by lenders.

  • March 23, 2017

    India Floats Draft Text Of WTO Services Agreement

    India has circulated a new proposal outlining its vision for a World Trade Organization services agreement, which could loosen up cross-border rules for financial services, telecommunications and scores of other lucrative industries, the WTO said Thursday.

  • March 23, 2017

    MF Global, PwC Settle $2B Malpractice Claim

    MF Global and PricewaterhouseCoopers have settled a $2 billion professional malpractice case in New York federal court to the "mutual satisfaction of the parties," the litigants said Thursday.

  • March 22, 2017

    Justices Urged To Resolve Split Over Key To $234M Tax Row

    Santander Holdings USA Inc. asked the U.S. Supreme Court to hear its effort to win back a $234 million foreign tax credit refund the First Circuit had overturned, arguing that different courts had conflicting rulings on a key component of the case.

  • March 22, 2017

    Lien Spat Certified As Question Of Import To Fla. High Court

    The town of Lauderdale-by-the-Sea, Florida, will get one more shot in its dispute with a landowner over liens on a property bought at a foreclosure sale after an appeals court Wednesday certified the issue as a question of great importance to the Florida Supreme Court.

Expert Analysis

  • Expect More CFPB Scrutiny Of Nonbank Mortgage Servicers

    Craig Nazzaro

    Citigroup's plans to exit the mortgage servicing business and sell off a $97 billion portfolio to a nonbank servicer continues the trend of nonbanks capturing more market share year after year. The Consumer Financial Protection Bureau is well aware of this trend, and the call for more oversight will only get louder, says Craig Nazzaro of Baker Donelson Bearman Caldwell & Berkowitz PC.

  • Google, NASA, Planes And A Stronger Legal Team

    Nicholas Cheolas

    Why did minor mechanical issues bring down two airplanes, while a catastrophic engine explosion did not bring down a third? The answers lie, in part, in research conducted by NASA in the wake of those crashes and, more recently, by Google. And those answers can help organizations build better teams to meet today’s legal industry challenges, says Nicholas Cheolas of Zelle LLP.

  • Madden Creates More Uncertainty For Marketplace Lenders

    Joseph Cioffi

    The Second Circuit's 2015 decision in Madden v. Midland Funding created significant risk for marketplace lenders that rely on a partner bank origination model to avoid state usury caps. Now, a district court decision in the case has seemingly added another layer of uncertainty, say Joseph Cioffi and Massimo Giugliano of Davis & Gilbert LLP.

  • 10 Tips For Better Legal Negotiations

    Marc J. Siegel

    Like everything else, the art of negotiation starts by having a conversation. It’s about being respectful, finding common ground, knowing what you want and, most importantly, listening. A conversation between two lawyers can be complicated at best, but by employing a few techniques and tactics, it doesn’t have to be that way, says Marc Siegel of Siegel & Dolan Ltd.

  • Basel III And The Move Toward Uncommitted Lines Of Credit

    Mark C. Dempsey

    The Basel III regulations have impacted the types of subscription credit facilities lenders are putting in place, and there are a few key components of the U.S. Basel III framework that can be linked to the recent increase in the use of uncommitted lines of credit, say attorneys with Mayer Brown LLP.

  • Monthly Column

    Gray Matters: Decision Error

    Gray Matters

    Lawyers make hundreds of decisions during the course of advising a client, consummating a transaction or litigating a case. In this new column, dispute resolution experts Bob Creo and Selina Shultz explore the theory, science and practical aspects of how decisions are made in the legal community.

  • New NY Cybersecurity Regs Will Have National Reach

    Romaine Marshall

    Given the national reach of the New York Department of Financial Services, the impact of New York's new cybersecurity regulations for the financial services sector will be felt far beyond the state of New York. The new rules may drive similar changes to other state and federal information protection laws, becoming the baseline standard for the industry, say Romaine Marshall and Matt Sorensen of Holland & Hart LLP.

  • Beware Antitrust Risks In Syndicated Lending

    Joshua Shapiro

    Despite their pro-competitive benefits, syndicated loan arrangements involve communication and collaboration among competitors and thus raise potential antitrust concerns. While U.S. regulators have yet to probe this industry, a recent European Commission statement may portend future regulatory scrutiny in this area, say Joshua Shapiro and Puja Patel of Allen & Overy LLP.

  • Law Schools And Law Firms: Seeking Common Ground

    Randy Gordon

    What we don’t know is whether the teaching and practice of law are undergoing massive structural changes or we’re still digging out from the worst economic collapse since the Depression. But what we do know is that the missions of the most forward-looking law schools and law firms are converging in ways that were unimaginable 10 years ago, says Randy Gordon, a partner at Gardere Wynne Sewell LLP and executive professor of law at Te... (continued)

  • How Lenders Can Minimize Risks Of Borrowing Base Fraud

    Nathan Novak

    Major financial institutions lend millions of dollars to companies every day based on little more than their borrowers’ own word as to the existence and value of their collateral — referred to as a “borrowing base.” Such an arrangement, if not properly managed, presents significant opportunity for fraud, says Nathan Novak of Orrick Herrington & Sutcliffe LLP.