Banking

  • September 21, 2017

    $30M Settlement In Investors' Suit Against Lender Wins OK

    A Pennsylvania federal judge on Wednesday signed off on a $30 million settlement between payday lender DFC Global and a class of institutional investors who alleged that it violated securities laws by misrepresenting its financial health and quality of lending practices.

  • September 21, 2017

    Sheppard Mullin Adds New Corporate Partner To SF Office

    Sheppard Mullin Richter & Hampton LLP added a partner from Manatt Phelps & Phillips LLP with expertise in financial services to its corporate practice group in San Francisco this week.

  • September 21, 2017

    CFTC Accuses Brooklyn Programmer Of $600K Bitcoin Scam

    The U.S. Commodity Futures Trading Commission sued a Brooklyn computer programmer on Thursday in Manhattan federal court for allegedly stealing $600,000 in bitcoin from dozens of investors in his company and claiming that he had been hacked in an effort to cover it up.

  • September 21, 2017

    CEO's Oversight Doesn't Merit $1M Tax Penalty, Judge Says

    A Pennsylvania federal judge on Wednesday sided with a pharmaceutical CEO challenging a nearly $1 million tax penalty, ruling after a bench trial that while the executive may have been negligent when he failed to disclose a Swiss bank account, he didn’t willfully violate an IRS reporting requirement.

  • September 21, 2017

    Trump Lines Up Bank-Targeted North Korea Sanctions

    U.S. President Donald Trump said Thursday that his administration will impose new sanctions on any international banks or other companies that conduct business with North Korea, a move aimed at curbing the country’s nuclear weapons program.

  • September 21, 2017

    SEC Previously Warned Of Lax Cyber Defenses

    A July government watchdog report warned the U.S. Securities and Exchange Commission that it had not fully put in place a system for monitoring cyber intrusions on its financial systems, even as the hack of a key electronic filing system for public company disclosures, which was revealed Wednesday, may have enabled insider trading.

  • September 21, 2017

    AIA Pays $3B For Australia, NZ Life Insurance Units

    Commonwealth Bank of Australia said Thursday it will sell its Australia and New Zealand life insurance units to AIA Group for AU$3.8 billion ($3 billion), vaulting AIA into a spot as a major life insurance player in both countries.

  • September 21, 2017

    Miller & Chevalier Adds Ex-DOJ National Security Counsel

    Miller & Chevalier Chtd. has nabbed a former national security counsel for the U.S. Department of Justice in Washington, D.C., bolstering its international practice with his background in export controls and economic sanctions, foreign direct investment and cybersecurity.

  • September 20, 2017

    SEC Says Hackers Hit Its Database, May Have Traded Off Info

    The U.S. Securities and Exchange Commission’s electronic filing system for public company disclosures was hacked last year, and the agency last month learned that the cyber-intruders may have traded off the nonpublic information that was exposed, agency Chairman Jay Clayton said in a statement Wednesday night.

  • September 20, 2017

    Wilmington Trust Fights Student Loan Fund's Block On Exit

    Wilmington Trust Co. accused a troubled student loan investment fund of seeking to “conscript” WTC into extended administrative service Tuesday, despite the company's formal resignation in the wake of chronic control disputes, alleged improper instructions and widening litigation.

  • September 20, 2017

    Greenberg Traurig Pays $9.8M To Settle Lender's Claims

    Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.

  • September 20, 2017

    White Collar 'Goes Dark' With Rise Of Secret Messaging Apps

    White collar suspects’ use of email and other electronic communications about their illicit activity has been a boon to prosecutors for decades, but the rise of encrypted messaging apps and other new technology may be a roadblock to Wall Street prosecutors accustomed to a run of successes.

  • September 20, 2017

    DOL's Proposed Fiduciary Rule Delay Draws 131 Comments

    The comment period on the U.S Department of Labor's proposal to delay parts of its fiduciary rule for retirement account advisers closed Friday, with a chorus of industry stakeholders, investor advocates and think tanks weighing in on what freezing key provisions of the rule until July 2019 might mean. Here, Law360 looks at what financial groups, politicians, individuals and others had to say.

  • September 20, 2017

    After Nev. HOA Foreclosures Hobbled, Deutsche Prods Suit

    Deutsche Bank asked a Nevada federal judge Tuesday to restart its suit accusing a homeowners association of illegally canceling a mortgage the bank was owed, saying the U.S. Supreme Court’s effective death knell to such foreclosures clears the way for the case to continue.

  • September 20, 2017

    Sunoco Seeks Redo At 3rd Circ. Over Credit Card Claims

    Sunoco Inc. on Tuesday asked the Third Circuit to review its split decision refusing to let the energy giant force arbitration in a credit card customer’s proposed class action over an allegedly broken promise for rewards at gas stations, saying that the majority “misperceived” contract law and contravened relevant court precedents.

  • September 20, 2017

    Cordray Defends CFPB's Role In Wells Fargo Settlement

    The head of the U.S. consumer finance watchdog on Wednesday defended his agency, and himself, against allegations by Republican lawmakers that they were too quick to settle with Wells Fargo & Co. over its fraudulent account generation.

  • September 20, 2017

    DOJ Says Madoff Victim Payouts To Begin By Year's End

    The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.

  • September 20, 2017

    US Warns Banks To Watch Out For Corrupt Venezuelan Cash

    A government financial crimes watchdog on Wednesday warned U.S. banks to be on the lookout for attempts by Venezuelan government officials to funnel illicit funds into American real estate and other markets.

  • September 20, 2017

    Yellen Says Fed Looking At Potential Wells Fargo Sanctions

    Federal Reserve Chair Janet Yellen on Wednesday warned that the central bank was looking closely at taking actions against Wells Fargo & Co. for its “egregious and unacceptable” sales practices and other problems.

  • September 20, 2017

    Madoff Trustee Can Proceed With $2.2M Clawback Suit

    The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.

Expert Analysis

  • Opinion

    Digital Realty Trust V. Somers May Kill Corporate Compliance

    Stephen Kohn

    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.

  • CFPB Says Using Multiple Debt Collectors Poses ECOA Risk

    Jonathan Joshua

    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.

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.

  • 'Per-Doc' Pricing Can Improve Document Review

    file folder

    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • Opinion

    We Must Protect Consumers From Illegal Debt Collectors

    Maura Healey

    Companies are allowed to collect the money they are owed, but they cannot break the law or cheat people in the process. Some of the biggest players in the debt collection industry are not focused on getting it right, says Massachusetts Attorney General Maura Healey.

  • The Regulatory Risks Of A Deregulatory Environment

    Mark Schonfeld

    Now that we are several months into an administration with an agenda of financial deregulation, one might reasonably believe financial institutions are in for several years of relative quiet from regulators. However, at least two factors raise the potential risk for a future wave of investigative activity, says Mark Schonfeld of Gibson Dunn & Crutcher LLP.

  • Fast And Frictionless: Key Legal Issues In POS Loans

    David Bright

    In order to deliver the fast lending experience that today's consumers want, the strategic partnerships in a point-of-sale loan program must be carefully negotiated and crafted to arrive at an approach that complies with consumer loan regulations and other laws. In addition, these partnerships must allow for critical "behind the scenes" sharing and coordination, says David Bright of Holland & Knight LLP.

  • Financial Crisis Anniversary

    2 Pillars Of Commonsense Reform

    Norm Champ

    The financial crisis was deepened by the unintended consequences of government action, and recovery was stifled by a regulatory response that neither addressed the fundamental causes of the crisis nor helped protect against a future one, says Norm Champ, partner at Kirkland & Ellis LLP and former director of the SEC Division of Investment Management.

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Financial Crisis Anniversary

    Trends In Credit Crisis Settlements

    Faten Sabry

    Between 2007 and July 2017, settlements related to the financial crisis totaled $133.2 billion. Ten years after the onset of the crisis, members of NERA Economic Consulting analyze the “settlement ratio” for select mortgage-backed securities settlements and other trends.