The trial of former senior HSBC Holdings PLC executive Mark Johnson for scamming oil and gas developer Cairn Energy PLC began on Monday with jurors hearing that he used a $3.5 billion foreign currency exchange deal for the oil and gas developer to net illicit profits for the bank at its client’s expense.
Dollar General Corp., Expedia Inc., Tractor Supply Co. and retailer co-op NATM Buying Corp. lodged a suit in D.C. federal court Monday accusing Visa, Mastercard and a handful of banks of colluding to keep card-swiping fees unnaturally high, the latest action over interchange fees.
The trustee overseeing China Fishery Group Ltd. told a New York bankruptcy court that an investigation into HSBC’s “aggressive” prepetition collection efforts should continue even though the bank has appealed the order that kicked it off.
Attorneys for Wilmington Trust Corp. and four bank employees accused of conspiring to hide hundreds of millions in overdue loans from investors and regulators argued in Delaware federal court Monday that the U.S. Department of Justice built parts of its case on little more than “bad bank” claims.
Investors suing the Bank of New York Mellon over its alleged failures as trustee for a slew of residential mortgage-backed securities trusts have urged a New York federal judge to reconsider some of the quick wins she gave the bank earlier this month.
A Connecticut federal judge on Monday found that the investors accusing Higher One Holdings Inc. of having misled them about being back on the straight and narrow after a run-in with federal regulators have tightened up their complaint enough for the bulk of their proposed class action against the higher education financial services provider to proceed.
Puerto Rico’s fiscal advisory agency is hoping to prevent significant setbacks for the island’s bankruptcy-like restructuring cases in light of the devastation caused by Hurricane Maria, saying in court papers Monday that any matters able to be decided on legal issues alone “should proceed without delay.”
The U.S. Commodity Futures Trading Commission on Monday said that two Citigroup subsidiaries have agreed to pay a $550,000 fine to resolve the agency’s claims that they failed to properly report key identifying data for tens of thousands of swaps.
A New York federal judge on Monday dismissed claims against banks such as Royal Bank of Scotland PLC and Credit Suisse Group AG, which were accused by investors of manipulating the Swiss franc Libor.
A Massachusetts federal judge on Monday rejected Bank of New York Mellon’s request to cut a potential class representative who accuses the bank of investing trust assets irresponsibly and charging unauthorized tax preparation fees, saying Ashby Henderson knows enough about the case.
A Minnesota federal judge on Monday approved an agreement for the IRS to pay Wells Fargo & Co. $13.7 million plus interest, which is what remains of the bank’s tax refund after factoring in penalties related to a $1.25 billion securities transaction that the court ruled was a sham.
Massachusetts Attorney General Maura Healey on Monday backed state legislation meant to boost data breach protections, which would allow consumers to initiate and lift credit freezes for free and expand their access to free credit reports if their data is stolen.
The U.S. Securities and Exchange Commission has opened two separate investigations into the hack of EDGAR, a key electronic filing system for public company disclosures, the commission’s chairman said in written testimony submitted to a Senate panel on Monday.
The U.S. Senate is poised to vote to undo the Consumer Financial Protection Bureau’s rule that forbids class action bans in arbitration agreements, sources told Law360 on Monday.
Banks last week asked the Office of the Comptroller of the Currency to move forward with ways to simplify the Dodd-Frank Act’s ban on proprietary trading, and urged the national bank supervisor to get the other regulators charged with overseeing the ban to join the effort.
The trial of Turkish-Iranian financier Reza Zarrab and Turkish banker Mehmet Hakan Atilla on charges of evading U.S. sanctions against Iran was pushed back for at least a month and maybe longer by a New York federal judge on Monday.
A division of Morgan Stanley will pay $13 million to settle allegations by the Financial Industry Regulatory Authority that it failed to supervise workers who had advised investors in unit investment trusts to manage their holdings in ways that resulted in high fees, the regulator said Monday.
Counsel for a class of investors who purchased Libor-tied financial instruments directly from big banks have asked a New York federal court to award the over-the-counter investors $31.8 million in fees incurred in multidistrict litigation alleging the banks manipulated the benchmark rate.
Global accounting giant Deloitte on Monday confirmed it was hit by a cyberattack believed to have compromised emails and sensitive business data, but said "very few" of its clients were impacted.
The U.S. Securities and Exchange Commission provided companies with a crash course in what to do — and what not to do — when it recently revealed that its electronic public document filing system had been hacked last year.
Financial Crisis Anniversary
Given its creation in the wake of the financial crisis, there was no way the Consumer Financial Protection Bureau would be uncontroversial. But, acting with prudence and humility, the agency could have assuaged concerns and placed itself on firm political footing going forward. Unfortunately, this didn’t happen, says Brian Knight of George Mason University.
Financial Crisis Anniversary
The conclusion of the financial crisis coincided with substantial increases in the use of social media, providing the consumer with a loud and powerful presence in the regulatory dialogue and fundamentally altering the way financial services firms and regulators think about the consumer experience. It is now time — 10 years after the start of the crisis — to reassess current approaches, say attorneys with Buckley Sandler LLP.
What makes the practice of law so stressful? Our thesis is that it comes from being terrible to each other. As a plaintiffs lawyer and a defense lawyer, we asked what we believed our opposition thought about us and how our opposition judged us — and then we compared notes, say Daniel Karon of Karon LLC and Philip Calabrese of Porter Wright Morris & Arthur LLP.
The Consumer Financial Protection Bureau’s arbitration rule restores transparency and accountability to our justice system and allows people to exercise their Seventh Amendment rights. However, the House of Representatives has voted to block it and the rule is in jeopardy, says Jean Sternlight, director of the Saltman Center for Conflict Resolution at the UNLV Boyd School of Law.
The prosecution of HSBC’s former global head of foreign exchange spot trading — whose trial began on Monday in the Eastern District of New York — will test whether the government can turn sharp dealing and deception in the unregulated institutional spot forex market into criminal fraud, says Scott Schirick of Pryor Cashman LLP.
A new executive order represents a significant escalation of U.S. sanctions targeting North Korea and presents new compliance considerations for companies that conduct business with North Korean trading partners, including China, India and Russia, say Brendan Hanifin and Emerson Siegle of Ropes & Gray LLP.
In the aftermath of Kokesh, the U.S. Securities and Exchange Commission has continued filing enforcement actions in federal district courts seeking disgorgement, as if the import of the decision is only that disgorgement is subject to a five-year statute of limitations. This overlooks two far more significant ramifications of Kokesh for SEC enforcement practice, say attorneys with WilmerHale.
After four decades attempting to apply the commercial-activity exception of the Foreign Sovereign Immunities Act — the most significant exception to sovereign immunity — no court has ever decided the meaning of the heart of the exception, and with it the FSIA, says Robert W. Ludwig, a founding member of Ludwig & Robinson PLLC.
During its upcoming term, in Digital Realty Trust v. Somers, the U.S. Supreme Court will decide whether employees who report violations internally are protected under Dodd-Frank. If the court requires whistleblowers to report violations directly to the U.S. Securities and Exchange Commission, internal corporate compliance programs will be crippled, says Stephen Kohn of Kohn Kohn & Colapinto LLP.
In light of the Consumer Financial Protection Bureau's recent consent order with American Express, creditors, debt buyers and collection agencies should ensure that segmentation criteria for internal collection strategies, placement with external collection agencies, and the collection strategies employed by multiple external third-party debt collectors do not result in the disparate treatment of protected classes, says attorney Jonathan Joshua.