Banking

  • May 26, 2017

    Plane Speaking Judge Rips Aircraft Firm's Cash Stockpile

    An airplane leasing company with no airplanes that socked away $190 million it was supposed to return to its lenders was called out Friday by a New York federal judge who said the business had no right to hoard the cash based on an “imagined” Brazilian legal risk and other “vague and conclusory” obligations.

  • May 26, 2017

    Deals Rumor Mill: Linde, State Bank of India, PepsiCo

    The supervisory board of German industrial gas company Linde will vote on the company's blockbuster merger with U.S. peer Praxair on June 1, State Bank of India is preparing a $2 billion share sale, and PepsiCo might buy the owner of Vita Coco water.

  • May 26, 2017

    Atty's Assets Frozen Over $4.5M Judgment Dispute

    A Nevada federal judge brought the hammer down on a lawyer who was accused by an electronic payments company of dodging a $4.5 million judgment by hiding assets in trusts and businesses controlled by his wife, ripping the attorney’s “recalcitrant and contumacious conduct” in a Thursday ruling and freezing all the defendants’ assets.

  • May 26, 2017

    Discover's Debt Collector Disclosed Credit Scores: Suit

    Discover Bank and a debt collector it employs publicly filed confidential credit scores of consumers who owed debt without prior permission, a violation of federal consumer protection laws, according to a putative class action filed in Wisconsin federal court on Friday.

  • May 26, 2017

    Chipotle Hit With 2nd Suit From Financial Institution Over Hack

    The legal backlash against Chipotle over a late-April data breach continued to mount on Friday, as the second financial institution in less than a month filed a proposed class action in Colorado federal court accusing the restaurant chain of failing to maintain adequate security measures.

  • May 26, 2017

    Accused Tax Dodger Can't Duck $1K-A-Day Contempt Fine

    U.S. District Judge William H. Pauley III declined Thursday to absolve an art consultant charged with dodging taxes on a $3.5 million inheritance of contempt for failing to timely retrieve Swiss bank records subject to grand jury subpoenas, setting up a possible Second Circuit fight over her remaining obligations.

  • May 26, 2017

    Ocwen Says Loan Auditor Billed Strip Clubs, Bloated Hours

    A lawsuit filed by Ocwen Financial Corp. alleges that the monitor hired by California regulators as part of a June 2015 mortgage servicing settlement fraudulently inflated monthly rates and attempted to bill Ocwen for employees’ outings to strip clubs and casinos.

  • May 26, 2017

    'Sham' Auto Title Lender Shut Down In Mass., AG Says

    An auto title lender that charged 600 percent interest rates and forced consumers to resolve any disputes in New Zealand is now barred from doing business in Massachusetts, the state attorney general said.

  • May 26, 2017

    SquareTwo Looks To Confirm Ch. 11 Plan After Creditor Deal

    Consumer and commercial debt collector SquareTwo Financial Services Corp. made its case Friday to have its proposed Chapter 11 reorganization plan approved by a New York bankruptcy court, saying all creditors entitled to a distribution support its restructuring scheme.

  • May 26, 2017

    Bankrupt China Fishery Gets 6-Month Exclusivity Extension

    Defunct China Fishery Group Ltd. was granted a six-month extension of exclusive control over its Chapter 11 case on Friday despite strong pushback from creditors, with a New York federal bankruptcy court giving the debtor until November to file a plan.

  • May 26, 2017

    2nd Circ. Eyes Trader's Recordings In $83M Lehman Pay Spat

    A fabulously wealthy former Barclays Capital Inc. trader invited the Second Circuit on Friday to order the Lehman Brothers Inc. estate to make him richer by $83 million, but a three-judge panel seemed hard-pressed to ignore once-secret recordings the trader made that prompted lower courts to deny him the extra haul.

  • May 26, 2017

    Investors To Appeal Dismissal Of Fannie, Freddie Suit

    Investors seeking to challenge the sweep of profits from Fannie Mae and Freddie Mac instituted by the Obama administration on Thursday said they intend to appeal a Texas federal judge’s decision that dismissed their complaint against the Treasury Department and the Federal Housing Finance Agency.

  • May 26, 2017

    BNC Bancorp Investor Sues Over $1.9B Pinnacle Merger Docs

    A putative class of BNC Bancorp shareholders slapped the bank and Pinnacle Financial Partners Inc. with a suit in North Carolina federal court on Thursday, alleging that key details of the bank holding companies’ proposed $1.9 billion merger weren’t adequately disclosed in shareholder materials.

  • May 25, 2017

    Fla. Court Freezes Fake Student Loan Debt Relief Operator

    A Florida federal court has temporarily shut down student loan debt relief company Strategic Student Solutions, which the Federal Trade Commission says bilked customers out of millions of dollars by promising to reduce or eliminate their loan debt, the FTC said Thursday.

  • May 25, 2017

    LendingClub Stock Drop Suit Moves Forward Mostly Intact

    A California federal judge allowed the bulk of a proposed class action accusing LendingClub Corp. of hiding defective internal controls to go forward on Thursday, but ruled that the investors behind the suit will need to tighten up some of their claims.

  • May 25, 2017

    TD Bank Nears Class Action Settlement Over Account Freezes

    A putative class accusing TD Bank NA of improperly freezing money exempt from judgment in customer accounts and imposing fees asked a New York federal judge Thursday for final approval of a $500,000 settlement that will also make it easier for judgment debtors to access their funds, ending seven years of litigation.

  • May 25, 2017

    5th Circ. Remands Texas Credit Card Surcharge Case

    The Fifth Circuit on Thursday sent a case challenging a Texas law that bars retailers from imposing credit card surcharges back to a lower court following a U.S. Supreme Court ruling that a similar statute in New York may have unconstitutionally restricted merchants’ free speech rights.

  • May 25, 2017

    Judge Will OK Wells Fargo Class’ $142M Deal After Tweaks

    A California federal judge on Wednesday declared that he will approve a $142 million settlement in a class action between Wells Fargo and the owners of 3.5 million unauthorized bank accounts that were surreptitiously opened in their names, saying that certain changes need to be made to the settlement first.

  • May 25, 2017

    Subprime Auto Loan Co. Execs Cop To $11M Fraud

    Two Massachusetts men pled guilty in Boston federal court Thursday to an $11 million fraud scheme in which they falsely told investors that their subprime auto loan company could accept tax-advantaged retirement account funds.

  • May 25, 2017

    Exxon, Shell Seek Nigerian Bank Docs In $1.8B Award Suit

    Exxon Mobil Corp. and Royal Dutch Shell PLC subsidiaries trying to confirm a $1.8 billion arbitration award against a Nigerian state-owned oil company have urged a New York federal judge to deny an attempt from the country’s central bank to hold on to records related to its foreign accounts.

Expert Analysis

  • Glass-Steagall Revival Could Have Profound Impact

    V. Gerard Comizio

    The financial services industry faces the real possibility of a bipartisan effort to reinstate the portions of the Glass-Steagall Act that separated commercial and investment banking. Depending on the final form any new legislation takes, the changes could go further than merely reinstating the status quo as of 1999, say V. Gerard Comizio and Nathan Brownback of Fried Frank Harris Shriver & Jacobson LLP.

  • My Milkshake Is Better Than Yours: Part 2

    Jill Dessalines

    In the second installment of this two-part series on disruptive innovation among mid-size law firms, Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former senior vice president at McKesson Corp., explores a number of ideas for keeping clients and maintaining market position.

  • An Illinois Court's Lesson For Senior Lenders

    Jason Hirsh

    When does a modification “substantially impair” a junior lender’s priority? While not adopting a bright-line rule to answer this question, an Illinois state appeals court in Bowling Green Sports Center v. GAG LLC offered examples of where it would find “substantial impairment,” resulting in a senior lender losing its priority status, say Jason Hirsh and Erin Mayer Isaacson of Levenfeld Pearlstein LLC.

  • Questions Following Prevezon Money Laundering Settlement

    Elizabeth Prewitt

    The Prevezon case stands out as an example of the extraordinary lengths the U.S. government can and will go to assert jurisdiction over matters involving foreign entities and persons who commit crimes abroad to the detriment of foreign countries and citizens. However, since the matter settled, the government’s case was not tested at trial, say attorneys with Hughes Hubbard & Reed LLP.

  • My Milkshake Is Better Than Yours: Part 1

    Jill Dessalines

    As I sat there listening, incredulous to learn that "Milkshake" was not only a real song but also a chart-topper, it reminded me of Harvard Business School Professor Clayton Christensen’s work on disruptive innovation — and how it pertains to mid-size law firms, says Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former assistant general counsel of McKesson Corp.

  • FHFA Should Free Captive Insurer Capital

    Jeffrey Murphy

    The Federal Housing Finance Agency's ruling that prevents captive insurance companies from becoming members of the Federal Home Loan Bank system is forcing billions of dollars of private capital out of the U.S. residential mortgage market. Hopefully, the Trump administration and members of Congress will be able to convince FHFA Director Melvin Watt to reverse this ruling, says Jeffrey Murphy of Dentons.

  • An Overview Of Silent 2nd-Lien Loans In The US And Europe

    Frederick Fisher

    Although used often in deal negotiations, the term “silent second” has different meanings for different institutions and different meanings in the United States and Europe. Capital structures that include silent second-lien debt can therefore be complicated, particularly in cross-border transactions involving different insolvency or contract laws, say attorneys with Mayer Brown LLP.

  • Attorneys, Your Input Is Needed On Deposition Rule

    Frank Silvestri, Jr.

    Every lawyer who’s handled a civil case in federal court knows about Rule 30(b)(6), governing deposition procedures. But for many real-world deposition dilemmas, the rule offers little guidance. Last year, an Advisory Committee on Civil Rules subcommittee began considering whether the rule should be amended. Now attorneys must advise the subcommittee how to proceed, says Frank Silvestri Jr. of Verrill Dana LLP.

  • Fate Of The SEC In-House Court: Careful What You Wish For

    Matthew Solomon

    As the D.C. Circuit hears arguments on Wednesday regarding the constitutionality of the U.S. Securities and Exchange Commission’s administrative tribunals, Cleary Gottlieb attorneys consider whether the current strong movement away from using the administrative forum is universally positive for defendants.

  • The FX Global Code And Its Enforcement: What To Expect

    Matthew Kulkin

    With the second phase of the Foreign Exchange Global Code releasing this week, Matthew Kulkin and Micah Green of Steptoe & Johnson LLP analyze how U.S. courts have historically looked to or relied upon financial services global codes of conduct or industry best practices documents.