Banking

  • January 17, 2017

    Ex-Cravath Atty, Hedge Fund Runner Get 2nd CFTC Seat Try

    Just days before stepping out of office, the Obama administration on Tuesday renewed a bid to fill a pair of vacancies at the U.S. Commodity Futures Trading Commission, re-nominating a former Cravath Swaine & Moore LLP attorney and a hedge fund manager who didn’t advance last year.

  • January 17, 2017

    High Court Wrestles With Clash Over Stale Debt In Bankruptcy

    The U.S. Supreme Court on Tuesday pressed a professional debt collector to explain why it should not face legal liability if it pursues stale debt in bankruptcy proceedings, and questioned to what extent the U.S. Bankruptcy Code may preclude debtors from filing consumer protection law reprisals.

  • January 17, 2017

    Southport, US Bank Hit In Asset Misappropriation Scheme

    The former owners of two insurance companies launched a lawsuit in Delaware Chancery Court on Tuesday accusing the companies' buyers of hatching a scheme to replace the companies’ assets with worthless investments that, with the aid of U.S. Bank NA, cost the sellers hundreds of millions of dollars.

  • January 17, 2017

    Capital One Says $57M Loan Guarantee Is Enforceable

    Capital One told a New York appellate panel Tuesday that a lower court should have forced loan guarantors to cough up $57 million for a defaulted loan for taxi medallions, saying that the contract language calling the guarantees absolute, irrevocable and unconditional entitles the bank to collect from the guarantors.

  • January 17, 2017

    Texas Bank Can’t Leapfrog To Full DC Circ. In CFPB Case

    A D.C. federal judge on Tuesday shot down a Texas bank's bid to join an appeal before the full D.C. Circuit concerning the constitutionality of the Consumer Financial Protection Bureau’s single-director leadership, rejecting the bank’s arguments the move would serve the interest of “judicial economy.”

  • January 17, 2017

    Secret Client In JPM Whistleblower Case To Be Named

    The anonymous Client A, who is at the center of a lawsuit against JPMorgan Chase & Co. by an ex-executive who claims the bank fired her for flagging possible fraud, will be identified at trial and may be called as a witness by the former banker, a New York federal judge said Tuesday.

  • January 17, 2017

    Deals Rumor Mill: Vitanas, Tata Group, Abraaj Group

    German nursing home operator Vitanas could sell for up to €550 million; India's Tata Group intends to increase the stakes it owns in a number of its own listed companies, including an automaker; and emerging economy-focused private equity shop Abraaj Group is interested in buying a stake in Barclays' South African business.

  • January 17, 2017

    Deutsche Bank Finalizes $7.2B MBS Settlement

    The U.S. Department of Justice finalized a $7.2 billion deal with Deutsche Bank AG on Tuesday, releasing new details about how Germany’s largest bank misled investors in selling subprime mortgage-backed securities that led to the 2007 financial crisis.

  • January 17, 2017

    Cadwalader Closing Houston Office

    Cadwalader Wickersham & Taft LLP said on Tuesday that it will close its Houston office as part of the firm’s decision to consolidate around its core client base of large corporations and the financial sector, including banks and hedge funds.

  • January 17, 2017

    NY Says OCC Fintech Charter Puts Consumers At Risk

    New York’s top financial watchdog on Tuesday blasted a federal regulator’s proposal to create a new charter for nonbank online lenders and other financial technology firms, saying that the new charters would open the door to weakening state consumer protection laws.

  • January 17, 2017

    Tragic Juror Issues Delay Litvak Deliberations

    Deliberations have halted in the retrial of former Jefferies & Co. trader Jesse Litvak after an alternate juror died over the weekend and another was involved in a serious car accident, a spokesman for the Connecticut federal prosecutor's office confirmed Monday.

  • January 17, 2017

    Mary Jo White Says SEC Must Remain An Independent Agency

    Outgoing U.S. Securities and Exchange Commission Chair Mary Jo White said Tuesday the agency must remain independent in the face of “partisan tides” and constricting legislation in order to fulfill its mission of protecting investors.

  • January 17, 2017

    Ex-Nova Bank Board Chairman Asks For No Prison Time

    The former board chairman of now-defunct NOVA Bank has asked a Pennsylvania federal judge for leniency when sentencing him next week for devising a circular lending scheme in a failed effort to deceive federal regulators into investing in the bank, arguing that a probationary punishment should be handed down.

  • January 17, 2017

    Senate Dems Won’t Negotiate CFPB's Makeup, Schumer Says

    Senate Democrats will not negotiate to replace the Consumer Financial Protection Bureau's single-director leadership with a commission structure similar to that of other financial regulatory bodies, the party’s leader in that chamber said Tuesday.

  • January 17, 2017

    2 Disputes Lawyers Move To Covington Amid KWM Collapse

    Covington & Burling LLP on Monday announced that it has hired two top financial disputes lawyers formerly with King & Wood Mallesons LLP for its London office, making it the latest firm to recruit arbitration and litigation professionals from KWM as the firm’s European branch enters administration.

  • January 17, 2017

    Supreme Court Rejects Banks’ Appeal In Libor Rigging Suit

    The U.S. Supreme Court on Tuesday rejected a bid by banks seeking to shut down an antitrust lawsuit from investors alleging widespread rigging of a key benchmark interest rate that a lower court had earlier brought back to life.

  • January 17, 2017

    British Gov't Seeks Clean Break From EU Single Market

    U.K. Prime Minister Theresa May on Tuesday outlined plans for a clean break from the European Union, including its single market for goods and services and the jurisdiction of the European Court of Justice, but held out hope for possible transitional arrangements for legal and financial services.

  • January 13, 2017

    Moody's To Pay $864M To US, States Over Crisis-Era Conduct

    Moody’s Corp. said Friday it has agreed to pay $864 million in a settlement with the U.S. Department of Justice and 21 states over the ratings agency’s work on residential mortgage backed securities and other products whose crashes led to the financial crisis.

  • January 13, 2017

    11th Circ. Revives Suit Alleging JPMorgan Aided $1.3M Scam

    The Eleventh Circuit on Friday revived a Florida man’s suit accusing JPMorgan Chase of helping a fraudster siphon $1.3 million of his money out of a Chase account, ruling the man had presented sufficient evidence that bank employees knew a scam was underway. 

  • January 13, 2017

    Ex-Title Agent Pleads Guilty In $6M Fake Mortgage Scam

    A Panama City, Florida, title agent on Friday pled guilty to charges that she participated in a scheme to rip off banks by setting up fraudulent third-party purchases of more than $6 million worth of properties in northwest Florida.

Expert Analysis

  • Long-Arm Jurisdiction In A Post-Daimler Era

    Muhammad U. Faridi

    A New York state court’s recent decision in Ace Decade Holdings v. UBS, dismissing a $500 million fraud suit against Swiss bank UBS, highlights the nuanced issues involved in personal-jurisdiction disputes and demonstrates that Daimler has significantly limited general “doing business” jurisdiction over out-of-state defendants, say Muhammad Faridi and Jordan Engelhardt of Patterson Belknap Webb & Tyler LLP.

  • Understanding How Blockchain Could Impact Legal Industry

    R. Douglas Vaughn

    Blockchain is essentially a computerized public ledger that can apply to almost anything that a person might save into a database or spreadsheet. This versatile technology may enhance the legal industry by providing an improved record keeping system, setting up "smart contracts" and tracking intellectual property and land records, say R. Douglas Vaughn and Anna Outzen of Deutsch Kerrigan LLP.

  • State Attorneys General Play Growing Data Privacy Role

    Jasen Eige

    State attorneys general play an active role in data privacy and security, bringing evolving state laws and broad consumer protection authority to bear on changing technologies and threats. Private sector custodians of personal data such as retailers, financial institutions, technology companies and health systems must understand the role of state attorneys general before a crisis occurs, say Jasen Eige and Kassie Schroth of McGuireWoods LLP.

  • The Incoming SEC Chairman As I Know Him

    Kevin J. Lavin

    The natural tendency of Democrats will be to criticize President-elect Donald Trump's nominee for U.S. Securities and Exchange Commission chairman as a “Wall Street insider” who won’t be sensitive to regular working-class Americans. I’m a registered Democrat and would enjoy being able to criticize Trump’s selection, but I’ve known Jay Clayton since 1995 and he is no ideologue, says Kevin Lavin of Arnold & Porter Kaye Scholer LLP.

  • Future FCC Leadership Could Mean Big Changes For TCPA

    David N. Anthony

    Litigation involving the Telephone Consumer Protection Act has become one of the leading types of consumer lawsuits in the U.S. However, the election of Donald Trump as president may prove to be a watershed moment for the TCPA, with the Federal Communications Commission's leadership switching to a majority of Republican appointees including a sharp critic of the FCC’s past handling of the TCPA, say attorneys at Troutman Sanders LLP.

  • Curbing The Power Of Pari Passu Clauses

    Sergio J. Galvis

    The New York courts’ interpretation of the pari passu clause in Argentine bonds to provide a basis for a powerful injunctive remedy was widely viewed as novel. But a new ruling out of the Southern District of New York will likely limit the precedential effect of the earlier rulings on sovereign debt restructurings for the large number of still-outstanding securities that contain pari passu clauses, say attorneys with Sullivan & Cromwell LLP.

  • Initial Reactions To Bank Charter Plan For Fintech Cos.

    Alan W. Avery

    While many financial technology companies will welcome the decision by the Office of the Comptroller of the Currency to provide fintech companies with the option to become chartered as special-purpose national banks, some banks and state regulators may have some concerns, say attorneys with Latham & Watkins LLP.

  • Deciphering RJR Nabisco's 'Domestic Injury' Requirement

    Robert P. Reznick

    Since the U.S. Supreme Court's decision in RJR Nabisco v. European Union last year, courts have grappled with the ruling's articulation of the “domestic injury” requirement for private claims under the Racketeer Influenced and Corrupt Organizations Act, and their analyses and conclusions as to where an “injury” has occurred are all over the map, say attorneys at Orrick Herrington & Sutcliffe LLP.

  • Less Is More When Drafting 'All Assets' UCC-1 Descriptions

    Michael A. Karpen

    The Second Circuit sent a clear message with its recent decision in Ring v. First Niagara Bank — that secured creditors and their attorneys should exercise restraint in providing superfluous detail to “all assets” Uniform Commercial Code-1 collateral descriptions, say attorneys with Troutman Sanders LLP.

  • Court's Sensible Analysis Saves Banker Fees In Bankruptcy

    Michael Cook

    Thanks to a New York bankruptcy court’s sweeping opinion in Relativity Fashion, investment bankers now have powerful ammunition to resist a U.S. trustee’s attempt to second-guess a fixed-fee or contingent-fee retention under Bankruptcy Code Section 328(a), says Michael Cook of Schulte Roth & Zabel LLP.