Banking

  • October 16, 2019

    Boustani Accuses Feds Of 'Misdirection' As Trial Begins

    An attorney for Privinvest Group executive Jean Boustani on Wednesday told a New York jury his client was involved in payments to government officials in Mozambique, which prosecutors say were part of a $2 billion fraud scheme, but denied that he defrauded investors or laundered any funds.

  • October 16, 2019

    Kraninger Takes Heat On Settlements, Constitutionality Stance

    House Democrats on Wednesday slammed the head of the Consumer Financial Protection Bureau for approving agency settlements without consumer restitution and stopping the agency's court defense of its structure's constitutionality, with Republicans objecting to one lawmaker's comments as over the line.

  • October 16, 2019

    Hy-Vee's Poor Data Security Caused Breach, Suit Says

    A pair of consumers have launched a proposed class action against Hy-Vee Inc., alleging that the supermarket chain's poor security practices made it easy for thieves to install malware that collected the credit card information of millions of accounts.

  • October 16, 2019

    Justices Question If FDCPA Fraud Claim Based On Mistake

    The U.S. Supreme Court on Wednesday appeared skeptical of a Pennsylvania man’s argument that a debt collection suit served twice to the wrong person amounted to fraud, wondering if it wasn’t just an innocent mistake on the part of the serving lawyer.

  • October 16, 2019

    Ailing Ex-NFL Player Fights Contempt Bid Over $475K Loan

    A retired NFL player is fighting back against litigation funder Thrivest's attempt to throw him in jail for not depositing $1.25 million in escrow to pay off a $475,000 loan, telling the Pennsylvania federal judge overseeing the concussion settlement he's dead broke and suffering from severe brain damage.

  • October 16, 2019

    Fed Board Member Lays Out Challenges Facing Libra

    A top Federal Reserve official highlighted Wednesday a number of challenges Facebook's digital currency Libra will have to confront before its launch, including the need for protections against fraud and data breaches.

  • October 16, 2019

    Banks Must Face Bond Price-Fixing Suit Post-Deutsche Deal

    A New York federal judge ruled Tuesday that banks he'd previously dismissed from a bond price-fixing lawsuit cannot escape claims again in light of information investors gleaned from a settlement with Deutsche Bank.

  • October 16, 2019

    Lehman Lost Right To Recoup Bad Loans, Mortgage Cos. Say

    Counsel for some of the mortgage originators facing $1.2 billion in claims from Lehman Brothers for allegedly selling it bad loans told a New York bankruptcy judge Wednesday that the bankrupt investment firm gave up its indemnification rights against them.

  • October 16, 2019

    Tanzania Owes Standard Chartered $185M In ICSID Arbitration

    Tanzania owes the Hong Kong subsidiary of Standard Chartered Bank $185 million for breaching a power plant operation contract, an International Center for the Settlement of Investment Disputes tribunal has ruled.

  • October 16, 2019

    Stanford Bank Defends £75M Negligence Suit Against HSBC

    Stanford Bank has argued that its negligence suit against HSBC for missing signs of the $7 billion Ponzi scheme that brought down the Antigua-based lender was not too late because the bank could only have discovered the fraud against it within the past three years.

  • October 16, 2019

    Barclays Hiked Qatar Fees Amid Bailout Fears, SFO Says

    Three senior Barclays bosses drastically increased the fees the bank agreed to pay Qatar for "pretend" advisory services as it fought to secure the country’s investment during the financial crisis, a prosecutor told a London jury Wednesday during a high-profile fraud trial.

  • October 16, 2019

    Fried Frank Assists As Permira Clinches €11B Buyout Fund

    European private equity shop Permira, guided by Fried Frank, said Wednesday it has clinched its seventh flagship buyout fund after receiving €11 billion ($12.1 billion) from limited partners, with plans to target investments in sectors like technology, consumer products, financial services and health care.

  • October 15, 2019

    Capital One Urges Fed. Circ. Rethink On IV Antitrust Decision

    Capital One wants the Federal Circuit to rethink a panel decision holding that antitrust claims against patent licensing firm Intellectual Ventures could not move forward in Maryland federal court because they had already been rejected by a Virginia federal judge.

  • October 15, 2019

    Forex Fee Objector's $300K Deal Gets No Support In NY Court

    Signing off on a settlement that would see a lone objector drop his opposition to a $300 million attorney fee award in exchange for a slice of the pie would set a bad precedent, a New York federal judge has ruled.

  • October 15, 2019

    Deutsche Must Face Some RMBS Claims After NCUA Gets Sub

    A New York federal judge said Tuesday that the National Credit Union Administration may swap in an additional plaintiff to fix standing issues that arose in its residential mortgage-backed securities trustee suit against Deutsche Bank, but he ruled that a chunk of the refreshed case's claims won't be moving forward.

  • October 15, 2019

    Bradley Arant Hires Leading Crypto Compliance Pro In DC

    A leading voice in the cryptocurrency compliance space has joined Bradley Arant Boult Cummings LLP, where she will lead the firm’s work on regulatory, enforcement and compliance matters for digital currency and blockchain clients.

  • October 15, 2019

    US Charges Turkish Bank In Scheme To Evade Iran Sanctions

    Federal prosecutors in Manhattan brought an indictment against Turkey's Halkbank on Tuesday for allegedly flouting U.S. sanctions on Iran by allowing the country to access some $20 billion in funds, including proceeds from oil and gas sales to Turkey.

  • October 15, 2019

    Investor Group Pans FINRA Broker Expungement Proceedings

    Brokers and brokerages seeking to erase investor complaints from their records through Financial Industry Regulatory Authority arbitration proceedings have been working with their law firms to pick the arbitrators most likely to grant their requests, an investor advocacy group said Tuesday.

  • October 15, 2019

    Ex-Holographics Exec Ducks Prison In Case With Intel Link

    A finance executive who cooperated in the Manhattan U.S. attorney's prosecution of former American Banknote Holographics Inc. CEO Morris Weissman for a $115 million fraud avoided prison Tuesday, more than 18 years after his guilty plea in a case apparently linked to U.S. intelligence.

  • October 15, 2019

    Supervisor To Pay $150K In Latest ADR Settlement, SEC Says

    A former supervisor for the Industrial and Commercial Bank of China Financial Services LLC will pay $150,000 to settle allegations of lax oversight of the broker-dealer's securities lending desk, the U.S. Securities and Exchange Commission announced Tuesday.

  • October 15, 2019

    2nd Circ. Agrees Monster Job Site Doesn't Owe $8.9M In Fees

    The Second Circuit on Friday affirmed a New York federal judge's ruling that Monster Worldwide Inc. doesn't owe an investment bank $8.9 million in fees from work related to potential transactions for the employment search site.

  • October 15, 2019

    Justices Won't Hear Suit Over UBS Brokers' Enron Knowledge

    The U.S. Supreme Court said Tuesday it will not hear an attempt by a group of Enron investors to revive their claims that UBS AG's brokerage units broke securities laws by failing to warn stock option-holding employees of the energy company’s infamous fraud scheme.

  • October 15, 2019

    Justices Struggle Over Need To Confirm PR's Oversight Board

    U.S. Supreme Court justices peppered attorneys for the Financial Oversight and Management Board for Puerto Rico with questions Tuesday about the board's powers in administering the commonwealth's $125 billion Chapter 9 restructuring efforts and whether its members need to be confirmed by the U.S. Senate.

  • October 15, 2019

    Spotify, Uber Among 21 Libra Association Founding Members

    The Libra Association announced Monday that 21 founding members officially signed on to the association’s charter, including Spotify, Uber, Coinbase and Andreessen Horowitz.

  • October 15, 2019

    Barclays Exec Panicked Over Bonus, Court Told In Fraud Trial

    Panic over what a government takeover would do to his bonus kept a senior Barclays banker up at night at the height of the financial crisis, prosecutors told a jury Tuesday hearing charges that the bank's former executives committed fraud to avoid a bailout.

Expert Analysis

  • 8 Best Practices For Cannabis Transaction Due Diligence

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    Given the extraordinary risks and evolving regulatory landscape in the rapidly expanding cannabis industry, investors should consider due diligence matters across a wide swath of legal fields when evaluating cannabis-focused transactions, say attorneys with Epstein Becker.

  • Why Trump's Orders On Agency Guidance Are Significant

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    ​Two recent executive orders ​​on the use of guidance documents by federal agencies​ represent a major change for virtually every executive agency ​and a historic assertion of the president’s authority under Article II to oversee the independent regulatory agencies, says Paul Noe, former counselor to the administrator of the White House Office of Information and Regulatory Affairs.

  • FX Fraud Decision Tests Limits Of Right-To-Control Theory

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    In United States v. Johnson, the Second Circuit’s decision affirming an ex-HSBC foreign exchange trader's wire fraud conviction highlights that the government and courts may not agree on the government's burden to prove tangible economic harm under the so-called right-to-control theory, say attorneys at White & Case.

  • Grading The Presidential Candidates On Cannabis Policy

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    Vince Sliwoski and Molly Nelson of Harris Bricken review all of the presidential candidates' stances on marijuana and rank them based on their current positions as well as their legislative history and prior rhetoric.

  • Opinion

    Courts Keep Rejecting Litigation Funding Discovery Campaign

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    As shown by recent case law, including a New Jersey federal court holding last month in Valsartan Products Liability Litigation, there is no "shifting tide" in favor of disclosing litigation funding arrangements, say Matthew Harrison and Stephanie Southwick of Bentham IMF.

  • How Emotionally Intelligent AI Could Assist With E-Discovery

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    While artificial intelligence has already revolutionized the e-discovery field, the development of emotionally intelligent AI promises to explore data in an even more nuanced and human way, thereby further reducing the burden on legal teams, say Lisa Prowse and Brian Schrader at e-discovery services provider BIA.

  • FinCEN 'Travel Rule' Update Sets Challenges For Crypto Cos.

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    It is unclear how the virtual currency sector will find a practical way to comply with the recent expansion of the Financial Crimes Enforcement Network regulation known as the travel rule, but any solution is likely to have both unintended consequences and unintended benefits, say attorneys with King & Spalding.

  • Sports Gambling Compliance: Big Money Worth The Wager

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    As America teeters on the edge of a sports betting revolution, both prudent betting operators and the banks they use should roll out tailored compliance programs that effectively manage reputational, regulatory and business risks to avoid civil or criminal penalties, say attorneys at Cadwalader.

  • Revising Cloud Contracts In Light Of Capital One Cyberattack

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    In 2019, there have been 3,494 cyberattacks against financial institutions, including, most notably, Capital One. Until regulatory action is taken, financial institutions, which are on their own when it comes to addressing potential cloud service risks, should incorporate liability and security provisions into cloud service contracts, say Nicholas Smith and Rita Ganguli of Milbank.

  • 2nd Circ. Ruling May Cause Int'l Discovery Flurry In NY

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    The Second Circuit's recent Section 1782 decision in Application of Antonio Del Valle Ruiz could be particularly burdensome for New York–based offices of multinational companies, which may now be compelled to produce documents located abroad despite not being involved in any domestic litigation, say attorneys at Ropes & Gray.

  • Preventable Risks Your Law Firm May Be Overlooking

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    Although most lawyers are well-prepared to defend or justify the value of an insurance claim for clients, often law firms have not clearly identified their own potential liabilities, planned for adequate insurance or established prudent internal risk management practices, says Victor Sordillo at Sompo International.

  • 6 Ethics Tips For Attorneys Making Lateral Transfers

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    With lateral transfers between law firms on the rise, it is more important than ever for partners to understand the steps they must take to adhere to ethics rules and other requirements when making a transition, say attorneys at Harris Wiltshire.

  • CFPB Abusiveness Claims Aren't Dead Yet

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    Initially, it appeared that Consumer Financial Protection Bureau Director Kathy Kraninger would avoid abusiveness claims, but a recent supervisory finding and an enforcement action alleging a mortgage relief services provider misled consumers suggest that Kraninger will not be shy about using the agency’s abusiveness authority, says Ori Lev at Mayer Brown.

  • Fraud As An Operational Risk For Banks

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    For banks, an effective approach to preventing, detecting and resolving fraud is one that focuses on the objectives of recent publications from the Office of the Comptroller of the Currency and is appropriately integrated into the bank’s risk management system, say Neil Bloomfield and Kristina Whittaker at Moore & Van Allen.

  • The Ins And Outs Of SEC's Expanded 'Test The Waters' Rule

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    The U.S. Securities and Exchange Commission’s recent expansion of permissible prefiling communications between issuers and certain potential investors may allow issuers to be in a better position to gauge interest in the market in a cost-effective manner, say attorneys at Debevoise.