Banking

  • February 22, 2017

    NY AG's Fraud Powers Face Political Pressure

    Former American International Group Inc. CEO Maurice "Hank" Greenberg was just the latest to criticize New York's Martin Act when he called the securities fraud law a "very dangerous weapon," but experts said the new Republican administration may find the time is ripe to curtail the powers of a liberal state attorney general.

  • February 22, 2017

    Latham Scores Skadden, Paul Hastings Trial Partners In LA

    Latham & Watkins LLP is bolstering its litigation team in the Los Angeles area, adding a pair of trial lawyers from Skadden Arps Slate Meagher & Flom LLP and Paul Hastings LLP with experience in securities disputes and other high-stakes trials for diverse clients including private equity firms, financial institutions and public companies and their executives, the firm said Wednesday.

  • February 22, 2017

    High Court Shouldn't Hear $7B Visa, MC Deal, Retailers Say

    A pair of merchant trade groups asked the Supreme Court on Tuesday to refuse to hear the appeal of retailers seeking to reinstate a $7.25 billion antitrust settlement with Visa and MasterCard over interchange fees that was shot down by the Second Circuit, calling the deal an “enormously unpopular and worthless mandatory settlement.”  

  • February 22, 2017

    Coin.mx Fraudster Takes Stand In Bitcoin Bribery Trial

    A Florida man who recently admitted to fraud and conspiracy charges in connection with the Coin.mx bitcoin exchange testified Wednesday that New Jersey pastor Trevon Gross and tech expert Yuri Lebedev were in on a plot to co-opt a small bank for use in a money-laundering operation.

  • February 22, 2017

    11th Circ. Affirms Wells Fargo Property Interest In Nadel Case

    The Eleventh Circuit on Wednesday said Wells Fargo did not lose its interest as a secured creditor in two properties in the wake of hedge fund manager Arthur Nadel's $168 million Ponzi scheme, saying a creditor’s property rights are granted under state law and a federal court can’t invalidate them for failure to submit a proof of claim.

  • February 22, 2017

    Wells Fargo Settles TCPA Suit For $15.7M

    A Georgia man has asked a federal judge to sign off on a $15.7 million settlement deal to end a proposed class action alleging that Wells Fargo violated the Telephone Consumer Protection Act by allegedly using an autodialer to make calls to about 3.4 million consumers.

  • February 22, 2017

    Chase Ducks $1.5M Superstorm Sandy Damage Suit

    A New Jersey federal judge on Tuesday tossed a $1.5 million suit alleging JPMorgan Chase Bank N.A. failed to force-place flood insurance on an oceanside home before Superstorm Sandy, saying the case could not be tried in federal court because the claims were based on state law.

  • February 22, 2017

    Wells Fargo To Pay $2M In TCPA Student Loan Call Suit

    Wells Fargo Bank N.A. will pay $2 million to around 446,000 consumers to end a Telephone Consumer Protection Act suit brought by student loan borrowers who say they were called with automatic dialers, according to a settlement filed in Georgia federal court on Wednesday.

  • February 22, 2017

    Saudi Aramco Picks Lead Underwriters For Massive IPO

    Saudi Arabia’s state-owned oil company Saudi Aramco has hired three investment banks to underwrite its monster initial public offering that is estimated to raise around $100 billion, expected to be the largest ever, according to reports on Wednesday.

  • February 22, 2017

    PE Giant Carlyle Eyes Butterfield Exit In Post-IPO Sale

    Private-equity giant Carlyle Group plans to exit its stake in Bank of N.T. Butterfield & Son, five months after the Bermuda-based bank completed a $288 million initial public offering, through a secondary offering filed Tuesday that calls for selling up to 11 million Butterfield shares.

  • February 22, 2017

    PE-Backed Cos., SPAC Merge In $2.8B Creation Of Exela Tech

    Private equity-backed firms SourceHOV and Novitex and special purpose acquisition company Quinpario will join forces in a $2.8 billion merger to create Exela Technologies, in a bid to find a stronger presence in the financial technology and business services industries, according to a Tuesday announcement.

  • February 22, 2017

    Deutsche Bank Says Russian Trade Statements Not Fraud

    Deutsche Bank AG asked a New York federal judge on Tuesday to throw out a suit that accuses it of misleading investors about its compliance with anti-money laundering laws even as regulators probed suspicious trades in its Moscow office, saying it made appropriate disclosures and can’t be held to “aspirational” pledges about ethical standards.

  • February 22, 2017

    WaMu Again Loses In Tax Refund Suit Over Thrift Deals

    Washington Mutual faced its latest setback in a yearslong fight with the federal government over federal tax refunds Tuesday, as a Federal Claims Court judge tossed its attempt to establish how much it overpaid after buying up faltering savings and loan associations.

  • February 22, 2017

    Holland & Knight Says Advisory Role Didn’t Cause Conflict

    Holland & Knight LLP told a New York federal judge on Tuesday that it should not be disqualified from its lawsuit on behalf of First NBC Bank over alleged sham transactions filed against ethanol distributor Murex LLC, saying unrelated work performed for Murex did not constitute legal services.

  • February 21, 2017

    Mortgage Servicer Rips Efforts To Intervene In CFPB Review

    A mortgage servicer that convinced a D.C. Circuit panel that the Consumer Financial Protection Bureau’s structure is unconstitutional asked the full court on Friday to reject a bid by advocacy groups, state attorneys general and members of Congress to let them fight the suit if President Donald Trump’s Justice Department stops defending against it.

  • February 21, 2017

    Wells Fargo Board Fires 4 Managers In Phony Accounts Probe

    Wells Fargo’s board of directors has voted to fire four senior managers in connection with an ongoing investigation stemming from last year’s scandal over 1.5 million phony bank accounts opened in customers’ names, the bank announced Tuesday.

  • February 21, 2017

    Citigroup, JPMorgan Face Euribor Antitrust Class Action

    A New York federal judge on Tuesday trimmed a putative class action brought by investors who say they lost money in derivatives transactions because big banks conspired to manipulate Euribor, the euro interbank offered rate. But two plaintiffs, including a California retirement fund, still have claims against JPMorgan and Citigroup.

  • February 21, 2017

    No Jail For Ex-Oil Co. CPA In $30M Bank Fraud Scheme

    A New York federal judge on Tuesday sentenced a fuel company employee who pled guilty to conspiring to commit a $30 million bank fraud to time served, backing off her stated intention to have him serve 90 days in a halfway house because he might meet bad people in there.

  • February 21, 2017

    Citi To Pay $5.3M To Settle S. Africa Forex Antitrust Case

    Citibank will pay about $5.3 million to settle with South Africa’s Competition Commission after it was accused of colluding with 15 other banks to rig prices in currency trading involving the rand and U.S. dollar as part of the so-called foreign exchange trading cartel, the commission said Tuesday.

  • February 21, 2017

    Fed. Circ. Clarifies Scope Of AIA Business Method Review

    The Federal Circuit on Tuesday offered clarification on what patents qualify for the covered business method review program under the America Invents Act, explaining in a published opinion that the Patent Trial and Appeal Board was too broad in its definition of a computer-security patent and that the patent was ineligible for review.

Expert Analysis

  • Opinion

    Calif. Court Gets Automatic Funding Disclosure Right

    Matthew D. Harrison

    Detractors of litigation funding have strained to characterize a recent decision from a California federal court as significant headway in their crusade against the litigation funding industry. However, in truth, this is a victory for both the industry and those in need of capital to bring meritorious claims against wrongdoers in an often prohibitively expensive legal system, say Matthew Harrison and Priya G. Pai of Bentham IMF.

  • Benefits Of Bringing Fraudulent Conveyance Actions In NY

    Dale A. Schreiber

    In the forthcoming Trumpian era of expected higher inflation and interest rates, insolvencies of highly leveraged public companies and large privately held concerns will likely increase exponentially. In scenarios involving limited liability entities organized or with principal places of business in New York, the New York Fraudulent Conveyance Act offers a uniquely creditor-friendly tool, say Dale Schreiber and Margaret Dale of Pro... (continued)

  • Health Care Deal Predictions From '17 JP Morgan Conference

    Amber McGraw Walsh

    Not surprisingly, many different views emerged at this year's J.P. Morgan Healthcare Conference on the future state of the Affordable Care Act and what it would mean for investors. After a long and seemingly endless cycle of election analysis, we’re happy to report some deal trends and predictions of our own, say attorneys with McGuireWoods LLP.

  • 2-For-1 Executive Order Leaves OMB To Work Out Details

    Laurence Platt

    While President Donald Trump’s recent executive order reducing regulations may seem appealing in its simplicity, the White House has provided agencies with little guidance on its implementation, instructing them to call the Office of Management and Budget with questions. Yet the OMB's ability to provide answers will be impaired by a lack of clear legal standards, say Laurence Platt and Joy Tsai of Mayer Brown LLP.

  • Anti-Money Laundering Expectations Under Trump

    Michael A. Mancusi

    We do not anticipate the new administration will ease anti-money laundering enforcement. In fact, it is more likely that enforcement of the Bank Secrecy Act is an area of supervision that will increase in the coming years, say attorneys with Arnold & Porter Kaye Scholer LLP.

  • Waive Goodbye: How Trump Might Attack The Iran Deal

    Anthony Rapa

    On the campaign trail, candidate Donald Trump attacked the Joint Comprehensive Plan of Action agreement regarding Iran’s nuclear program. But he suggested that rather than tearing the deal up, he would seek to improve it. One possible approach would be to engage in brinksmanship related to the statutory sanctions waivers President Obama issued in implementing the deal, says Anthony Rapa of Steptoe & Johnson LLP.

  • Reconsidering CFPB V. PHH

    Eric J. Mogilnicki

    If the D.C. Circuit had declined to act in Consumer Financial Protection Bureau v. PHH, President Donald Trump would have had a clear path to firing CFPB Director Richard Cordray. Instead, the court’s action granting the CFPB’s petition for rehearing creates fresh uncertainty about the scope and shape of the president’s authority over the CFPB, say Eric Mogilnicki and Andrew Smith of Covington & Burling LLP.

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    General counsels face the challenging task of understanding how companies can navigate the rules surrounding uses of artificial intelligence. To get smart on AI, general counsels must ask the right questions about areas such as human resources, intellectual property, liability and insurance, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • How A General Counsel Should Think About AI: Part 1

    Bruce J. Heiman

    Though the Trump administration has yet to make an official statement regarding artificial intelligence, support for AI is consistent with its expressed desire to promote American business. As such, general counsel will inevitably have to navigate what big data and AI mean for compliance with current and future laws and regulations, say Bruce Heiman and Elana Reman of K&L Gates LLP.