Banking

  • January 23, 2018

    Audit Watchdog, KPMG Face Big Hit To Credibility

    The Public Company Accounting Oversight Board and KPMG have suffered significant blows to their credibility stemming from criminal charges levied Monday that former employees of the audit watchdog gave stolen confidential information to high-placed accountants at the Big Four firm, experts said Tuesday.

  • January 23, 2018

    Fed Won’t Nix Ex-Barclays Forex Head’s Ban, $1.2M Fine

    The Federal Reserve Board announced Tuesday it had rejected a bid by Barclays Bank PLC’s former global head of foreign exchange spot trading to void a $1.2 million fine and ban from the banking industry for his role in the manipulation of benchmark currency rates.

  • January 23, 2018

    Clayton Warns Lawyers Over Their Advice On ICOs

    Lawyers who take lax attitudes toward securities law compliance when advising on initial coin offerings should be on their guard, U.S. Securities and Exchange Commission Chairman Jay Clayton warned in a speech Monday.

  • January 23, 2018

    Feds Say Pair Impersonated SEC Officials In Fee Scam

    Federal prosecutors charged a Boston resident and an Orlando fast-food worker on Tuesday with posing for the last three years as U.S. Securities and Exchange Commission officials in an attempt to revictimize dozens of people who were recouping investments from an unregistered broker.

  • January 23, 2018

    Ex-Brokers Ask 2nd Circ. To Ax IBM Insider Trading Verdict

    A pair of former brokers found liable for insider trading in connection with a $1.2 billion IBM deal on Tuesday asked the Second Circuit to set aside the verdict, saying no reasonable jury could have found they knew they were trading on information obtained by a lawyer purportedly breaching a duty to his firm.

  • January 23, 2018

    Mulvaney Says He’ll Stop ‘Pushing The Envelope’ At CFPB

    Mick Mulvaney, the acting commissioner of the Consumer Financial Protection Bureau, backed off on his predecessor Richard Cordray’s vows to “push the envelope” in enforcement matters, saying Tuesday that the agency would carry out its mission with more “humility and prudence” than it has in the past.

  • January 23, 2018

    Lloyd's Must Cover $10M Deal In Omni Execs Suit: 11th Circ.

    Lloyd's of London can't duck a $10 million payout to settle claims that executives of insured Omni National Bank spearheaded a risky program to renovate foreclosed properties instead of selling them, the Eleventh Circuit said Tuesday, affirming a lower court's ruling that exclusions cited by the insurer don't apply.

  • January 23, 2018

    Real Estate Rumors: Rockwood, Goldman, TotalBank

    Rockwood Capital has reportedly sold a Florida hotel and retail property that includes a Buffalo Wild Wings for $19.6 million, a Goldman Sachs venture is said to be dropping roughly $108 million on an Illinois apartment tower, and TotalBank has reportedly loaned $15.22 million for a Miami hotel construction project.

  • January 23, 2018

    Epstein Becker Adds Financial Services, Arbitration Atty

    Epstein Becker Green PC added a former Proskauer Rose LLP senior counsel with experience representing financial service companies in court and in arbitration as a partner in its New York office.

  • January 23, 2018

    CFPB Drops Investigation Into World Acceptance Corp.

    Consumer lender World Acceptance Corp. said Monday that it has been informed by the Consumer Financial Protection Bureau that the agency has wrapped up its investigation into the company’s marketing and lending practices and doesn’t plan to recommend enforcement action.

  • January 23, 2018

    Morgan Stanley Beats Dark Pool Contractor’s Fraud Appeal

    A New York state appeals court on Tuesday rejected a trading technology company’s effort to resuscitate large parts of its fraud suit against Morgan Stanley over the pair’s dark pool collaboration, keeping the case limited to damages that the bank has said it’s willing to pay.

  • January 23, 2018

    Ex-GE Capital GC Joins Baker Donelson In Baltimore

    Baker Donelson Bearman Caldwell & Berkowitz PC has broadened its financial services transactions practice group with the addition of General Electric Capital’s former general counsel, who spearheaded tens of billions of dollars’ worth of equipment financing.

  • January 23, 2018

    11th Circ. Won’t Rethink Revival Of TCPA Suit Against Bank

    The Eleventh Circuit on Monday denied a bid for rehearing by Comenity Bank after the court reinstated a suit accusing the bank of violating the Telephone Consumer Protection Act by bombarding consumers with autodialed calls.

  • January 23, 2018

    Discover Unlikely To Secure Quick Exit In Antitrust Fight

    Discover Financial Services Inc. on Tuesday pushed back against class action claims that it took part in a collusive shift of credit card fraud risk onto retailers that happened during the rollout of microchip-enabled cards in the U.S., but a New York federal judge made clear that the credit card giant is likely stuck with the case for now.

  • January 23, 2018

    AmEx Merchant Rules Enhance Competition, Justices Told

    A pair of economists on Tuesday urged the U.S. Supreme Court to uphold a Second Circuit decision in favor of American Express Co. in a suit challenging rules that prevent merchants from steering customers to other credit cards, arguing the steering provisions enhance competition.

  • January 23, 2018

    Citi Sanctioned For Bid To 'Reaffirm' Discharged Debt

    Citigroup Inc.’s mortgage unit was hit with sanctions Tuesday by a New York bankruptcy court, after the lender attempted to force a Chapter 7 debtor to “reaffirm” $102,000 in debt that had already been wiped out.

  • January 23, 2018

    Senate Confirms Powell To Lead The Fed By Wide Margin

    The U.S. Senate overwhelmingly voted to confirm Jerome Powell to be the next chairman of the Federal Reserve on Tuesday.

  • January 23, 2018

    Judge Aids BuzzFeed Hunt For Cypriot Info In Defamation Suit

    A Florida federal judge on Monday asked Cyprus’ judiciary for help securing for BuzzFeed News information from bank executives who allegedly refused to lend money to Aleksej Gubarev after he was named in a dossier published by BuzzFeed alleging Russia had compromising information on President Donald Trump.

  • January 23, 2018

    DC Circ. Agrees To Expedite Appeal In CFPB Leadership Fight

    A federal appellate court on Tuesday agreed to an expedited briefing schedule in the struggle over the temporary leadership of the Consumer Financial Protection Bureau.

  • January 23, 2018

    $250M Citi, Barclays Libor Deals Look Worthy, Judge Says

    A Manhattan federal judge said Tuesday that she anticipates approving $250 million of proposed payments by Citigroup Inc. and Barclays Bank PLC to exit litigation by investors who say the two megabanks are part of a group that unlawfully manipulated the London Interbank Offered Rate.

Expert Analysis

  • Lessons From President Trump's Failed Judicial Nominations

    Arun Rao

    On Tuesday, the Trump administration announced 12 new judicial nominations. In the coming weeks, we will discover whether these candidates learned from the mistakes of the three judicial nominees forced to withdraw in December after bipartisan concerns arose over their qualifications, says Arun Rao, executive VP of Investigative Group International and a former member of the White House vetting team during the Obama administration.

  • When Attorneys Get Ensnared In FCPA Misconduct

    Louis Ramos

    The prosecutions of veteran lawyers at two multinational corporations — Keppel and PetroTiger — offer a sobering truth: Those responsible for protecting their companies from corruption-related risks can be held criminally accountable for their lapses in judgment. Recently unsealed court documents shed light on potential pitfalls for both legal and compliance professionals, say Louis Ramos and Benjamin Klein of DLA Piper.

  • In New York, A Trust Beneficiary Has Powerful Rights

    Thomas Wiegand

    New York law gives beneficiaries powerful tools to investigate and combat corporate trustees’ wrongdoing, as seen in two recent state court decisions. Nobody should assume that a prior release is the end of the story, say Thomas Wiegand and Justin Ellis of MoloLamken LLP.

  • The Challenges Of Marijuana Banking Just Got Bigger

    Elizabeth Khalil

    A series of issuances from the U.S. Department of Justice during the Obama era provided the basis for the only federal guidance on banking services for the marijuana sector. With Attorney General Jeff Sessions' recent rescission of these DOJ memos, the future of the banking guidance is now unclear, says Elizabeth Khalil of Dykema Gossett PLLC.

  • How To Control Data As Technology Complicates E-Discovery

    Peter Ostrega

    While technology is making certain aspects of e-discovery faster and easier, it is also creating new challenges as quickly as we can provide solutions. The good news is that there are concrete steps businesses can take to address those challenges, says Peter Ostrega of Consilio LLC.

  • Rebutting Presumption Of Reliance: Lessons From 2nd Circ.

    Brad Karp

    The Second Circuit's decision in Arkansas Teachers v. Goldman Sachs reminds district judges that the opportunity to introduce evidence in opposition to class certification and rebut the fraud-on-the-market presumption of reliance needs to be a meaningful one, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • How The Cybersecurity Legal Landscape Changed In 2017

    Jonathan Kolodner

    Over the last year, the existential risk posed by cyberattacks and data security vulnerabilities has become one of the top concerns for boards of directors, management, government agencies and the public. 2017 was punctuated by a series of headline-grabbing breaches, fast-moving regulatory developments around the globe, and record-breaking settlements by companies, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • The Rise And Fall Of Statistical Sampling In RMBS Cases

    Amanda Lawrence

    In the early days of the residential mortgage-backed securities and repurchase litigation that followed the 2008 crisis, plaintiffs’ strategy of proving their allegations through statistical sampling was highly successful. However, in recent years, a new trend has emerged, say attorneys with Buckley Sandler LLP.

  • What To Do With Performance Bonds When Projects Default

    Gary Strong high rez.jpg

    Sureties have surety defenses which sometimes allow them to disclaim coverage under performance bonds. However, this often requires a long and lengthy litigation in which the surety must sustain multiple burdens of proof, says Gary Strong of Seiger Gfeller Laurie LLP.

  • Fraud Section Under New Management: Takeaways From 2017

    Kevin Muhlendorf

    The U.S. Department of Justice’s "Fraud Section Year in Review" report provides a useful overview of what the Criminal Division’s largest litigating section accomplished in 2017, comparisons to years past, and important hints at what the future holds for individuals and entities whose activities come within the Fraud Section’s broad reach, say Kevin Muhlendorf and Madeline Cohen of Wiley Rein LLP.