Capital Markets

  • July 28, 2017

    SIFMA Backs Banks' Cert Bid In FDIC's $140M Mortgage Suit

    The Securities Industry and Financial Markets Association urged the U.S. Supreme Court on Friday to overturn a Second Circuit decision allowing the Federal Deposit Insurance Corp. to move forward with a $140 million mortgage securities suit against a group of five major banks.

  • July 28, 2017

    Banks Say New Precedent Dooms Swiss Franc Libor Suit

    European financial firms accused of rigging a benchmark interest rate for interbank borrowing of Swiss franc-denominated funds have told a New York federal judge that a recent U.S. Supreme Court ruling on jurisdiction strengthens their argument for dismissing investors' class allegations against the banks.

  • July 28, 2017

    Morgan Stanley, Banks Ink Deals Worth $111M In Forex Suit

    Five more banks, including Morgan Stanley, on Friday reached settlements totaling $111.2 million with investors in the wide-ranging suit accusing the world’s largest banks of rigging foreign exchange rates, bringing total relief in the case to more than $2.1 billion.

  • July 28, 2017

    Real Estate Co. Redfin Rakes In $138.5M In Above-Range IPO

    Redfin Corp. on Friday raised $138.5 million in an initial public offering priced above the company's initial range of $12 to $14, as the private-equity-backed online real estate agency made a splash during its first day of trading.

  • July 28, 2017

    Bids For More Puerto Rico Creditor Committees Under Fire

    The U.S. bankruptcy watchdog Friday asked a Puerto Rican federal court to deny requests to expand the creditors’ committees in the island’s ongoing restructuring case, saying one request was unnecessary and the other not allowed.

  • July 28, 2017

    MSRB Says Underwriters Need Independent Attys

    The Municipal Securities Rulemaking Board issued a notice Thursday criticizing municipal securities issuers that select counsel for their underwriters, saying the practice could result in conflicts of interest and even lead to a loss of confidence in the muni market.

  • July 28, 2017

    OCC Says State Regulators’ Fintech Suit ‘Fatally Premature’

    The Office of the Comptroller of the Currency said Friday that a challenge by state bank regulators to the OCC's proposed special charter for financial technology firms was “fatally premature” and should be rejected because to date no charters have been issued.

  • July 28, 2017

    FINRA Fines Deutsche, Others $4.8M For Supervision Failures

    Four financial institutions including Deutsche Bank and JPMorgan have agreed to collectively pay $4.8 million to end the Financial Industry Regulatory Authority’s claims that they failed to have adequate risk controls in place when letting customers access markets through their systems.

  • July 28, 2017

    Trump Admin. To End Obama’s Retirement Accounts Program

    The Trump administration on Friday said it planned to end an Obama-era initiative aimed at increasing retirement savings for people without access to private accounts, citing the costs of the program and its limited sign-up rate.

  • July 28, 2017

    Surprise Debt Rule Tweak Threatens EU Securitization Reform

    After years of bruising talks thrashing out new rules for the European Union securitization market, the whole process could now be undermined by a last-minute wording change to rules banning self-certified mortgage loans from securitized debt products.

  • July 28, 2017

    Kelley Drye Adds M&A Pro In Texas To Lead Practice Group

    A former K&L Gates LLP attorney with a diverse practice involving mergers and acquisitions and capital markets matters has joined Kelley Drye & Warren LLP and will take over as head of the firm’s corporate practice in its Texas offices, located in Houston and Austin.

  • July 27, 2017

    Cadwalader, Simpson, Cleary, Willkie Aided Top CMBS Loans

    The first half of 2017 saw five commercial mortgage-backed securities loans north of $1 billion and a small group of law firms working on the largest deals, with Cadwalader Wickersham & Taft LLP, Simpson Thacher & Bartlett LLP, Cleary Gottlieb Steen & Hamilton LLP and Willkie Farr & Gallagher LLP each handling multiple matters.

  • July 27, 2017

    National Events Creditor Nabs Remaining Assets, Ch. 7 Looms

    The messy bankruptcy of ticket reseller and alleged Ponzi scheme vehicle National Events Holdings LLC entered a new phase Thursday, as a New York bankruptcy court finally let its largest creditor collect on the company’s $730,000 in remaining assets, opening the door for a Chapter 7 trustee to take over.

  • July 27, 2017

    Regulators Focused On Bad Actor Brokers

    Officials with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority said Thursday they’ll be keeping an eye on broker-dealers in high-risk areas and encouraged firms to help them root out bad brokers and protect investors.

  • July 27, 2017

    Guidelines, Shmidelines: Rakoff Gives Forex Fraudster 1.5 Yrs

    A Staten Island man who admitted to conspiracy to commit commodities fraud while running a sham foreign exchange trading firm that took in $2.4 million from 100-plus investors was sentenced Thursday to 18 months in prison, after Judge Jed S. Rakoff swatted the prosecution for pushing a guideline sentence.

  • July 27, 2017

    Gov’t Says No Contract Guarantee For Fed Bank Dividends

    The U.S. government urged a Federal Claims judge on Thursday to nix a banking industry group’s proposed class action claiming that Congress improperly slashed dividend payments from regional Federal Reserve Banks to large banks, contending in oral arguments that the banks haven’t demonstrated a valid contract on which they relied.

  • July 27, 2017

    CFTC Nominees Talk Position Limits, Swaps Regs In Hearing

    President Donald Trump’s three nominees for the U.S. Commodity Futures Trading Commission told the U.S. Senate Agriculture Committee on Thursday that they’re prepared to review the de minimis threshold for swap dealer registration and tackle a final rule limiting speculative trading.

  • July 27, 2017

    Mnuchin Calls For Raising Threshold For Enhanced Bank Rules

    U.S. Treasury Secretary Steven Mnuchin said Thursday that he wants to raise the $50 billion asset threshold used to subject a bank to enhanced supervision and that regulators should be able to exempt from the regime, banks that are big but not overly complex.

  • July 27, 2017

    2nd Circ. Saves FXCM ‘Flash Crash’ Case Over New Evidence

    A three-judge panel of the Second Circuit brought a proposed shareholder class action against trading firm FXCM Inc. back to life Thursday, ruling that the lower court could consider evidence of fraud from a regulatory probe that surfaced after the case's dismissal.

  • July 27, 2017

    SEC Gives Noncompliant Whistleblower A $1.7M Award

    The U.S. Securities and Exchange Commission announced Thursday that it was paying a $1.7 million whistleblower award to a company insider who helped stop an ongoing fraud, despite the insider not complying with all of the whistleblower program’s rules and having some culpability in the fraud.

Expert Analysis

  • Seeding Period Extensions After New Volcker Guidance

    V. Gerard Comizio

    With a new letter from the Federal Reserve Board, banking entities now have a standardized procedure to request extension of the permissible period for providing seed funding under the Volcker Rule. While the letter might suggest increased willingness on the part of the Fed to grant such requests, caution is warranted, say V. Gerard Comizio and Nathan Brownback of Fried Frank Harris Shriver & Jacobson LLP.

  • Be Careful What You Share With Your Local Regulator

    Nick Morgan

    The U.S. Security and Exchange Commission's recent $2.5 million award to a government tipster marks the first time it deemed a government employee eligible for a whistleblower payout. This determination raises significant policy and practical concerns about a government employee’s ability to provide information and documents to the SEC, say attorneys with Paul Hastings LLP.

  • Monthly Column

    Gray Matters: Clients Are Not Really 'Emotional'

    Gray Matters

    When you look at your client through the "survival circuit" lens, what first appeared as an emotional mess is now valuable information about what is important to them, what needs have to be met to settle the case, or what further clarity your client requires before moving forward, say dispute resolution experts Selina Shultz and Robert Creo.

  • CFTC LedgerX Approval Is A Big Step For Bitcoin

    Daniel Nathan

    LedgerX this week became the first platform to operate as both a bitcoin swap exchange and a clearinghouse under the U.S. Commodity Futures Trading Commission’s oversight. This approval removes various previous barriers to widespread trading on bitcoin’s value, say attorneys with Morvillo LLP.

  • Having A Chief Privacy Officer Reassures Your Firm's Clients

    Rita Heimes

    When a law firm appoints a chief privacy officer, not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but clients see how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.

  • Weekly Column

    Innovating For Wise Juries: Discussions Before Deliberations

    Richard Lorren Jolly

    To be sure, allowing jurors to discuss evidence before final deliberations proved to be among the least popular of our recommended innovations. But empirical evidence belies these fears, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Jay Clayton's Enforcement Philosophy

    Lou Mejia

    Recent remarks made by U.S. Securities and Exchange Commission Chairman Jay Clayton suggest an enforcement approach that will consider factors beyond impact on the specific victims. Clayton’s remarks also signal that the SEC may proceed with caution on cybersecurity enforcement as it relates to public companies, says Lou Mejia, former SEC chief litigation counsel now with Perkins Coie LLP.

  • 2nd Circ. Libor Ruling Won’t Slow Cross-Border Enforcement

    Jason Linder

    Many commentators predict the Second Circuit's Allen decision last week will substantially chill the government's cross-border law enforcement efforts, but the truth is that the government won't have to make major changes to its increasingly robust coordination with foreign law enforcement to avoid similar problems in the future, say Jason Linder and John Long of Irell & Manella LLP.

  • Pay-To-Play Rules Are Here To Stay

    Thomas Potter

    In recent years, the U.S. Securities and Exchange Commission has expanded the reach of rules aimed at preventing pay-to-play practices by municipal securities dealers to include investment advisers, municipal advisers and broker-dealers. With the Sixth Circuit rejecting the latest constitutional challenge in Tennessee Republican Party v. SEC, the issue has escaped judicial review for now, says Thomas Potter III of Burr & Forman LLP.

  • 5 Questions Firms Should Ask When Evaluating Litigation AFA

    Gregory Lantier

    Law firm management should understand the client’s reasons for requesting an alternative fee arrangement, and whether approving the fee will help grow the relationship with the client, say attorneys with WilmerHale.