Banking

  • January 24, 2020

    FCA's Epic Run In 2010s Will Be Hard To Match In 2020s

    After soaring to unprecedented prominence during the 2010s, the False Claims Act is flying into the 2020s against new headwinds, including executive branch actions to curtail cases, diminished litigation fodder and nettlesome decisions by the U.S. Supreme Court.

  • January 24, 2020

    Home Depot Breach Class Attys Score $15.2M After Fee Fight

    Attorneys representing banks and other financial institutions that sued over Home Depot's 2014 data breach won a $15.2 million fee award on Friday after the Eleventh Circuit nixed an earlier award and asked the Georgia federal court that handled the case to take another look.

  • January 24, 2020

    Real Estate Rumors: Cantor, Butters Construction, Elion

    Cantor Fitzgerald has reportedly renewed its leases at two midtown Manhattan buildings, Butters Construction & Development is said to have paid $13 million for a Florida office building, and Elion Partners has reportedly dropped $25.85 million on two Florida warehouses.

  • January 24, 2020

    $5M SocGen Deal Puts Libor Investors Up To $187M

    One of the investor classes pursuing the massive Libor-rigging litigation has sought preliminary approval for settlement with Societe Generale SA and in so doing disclosed a payout of just over $5 million in New York federal court that will put the class up to $187 million worth of settlements with major banks.

  • January 24, 2020

    3rd Circ. Won't Rehear Dispute Over Bear Stearns MBS Sale

    The Third Circuit said Friday it will not rehear a case over whether Bear Stearns & Co. Inc. skirted bankruptcy law by auctioning off to itself a set of mortgage-backed securities that it held as collateral on a defaulted loan to HomeBanc Mortgage Corp.

  • January 24, 2020

    Banking Group Of The Year: Cadwalader

    Cadwalader Wickersham & Taft LLP may be one of the oldest law firms in the country, but its banking attorneys are at the cutting edge of the financial services industry's efforts to leave behind what has been called the world's most important number, earning a spot among Law360's 2019 Banking Practice Groups of the Year.

  • January 24, 2020

    UK Litigation Roundup: Here's What You Missed In London

    The past week in London has seen two luxury car lenders drive a contract dispute into court, the liquidators of a Saudi billionaire's offshore holding company set its sights on a hedge fund, and a financial services company target the families behind a maritime engineering business. 

  • January 24, 2020

    AIG Wins Appeal In $108M Unpaid Bonuses Fight

    A London appeals court ruled on Friday that a subsidiary of AIG does not owe 23 former executives some $108 million in deferred bonuses earned before the financial crisis because the company took a massive loss when it was bailed out by the U.S. government.

  • January 23, 2020

    Chase Card Interest Case In Peril After Dismissal Endorsed

    A New York federal judge has given his thumbs-down to a Chase credit card holder's proposed class action that banking industry groups have warned could upend trillions of dollars in asset-backed securitizations, concluding that the state-law usury claims at issue in the case are preempted.

  • January 23, 2020

    Dems Criticize 'Dark Money' In CFPB High Court Case

    A trio of Senate Democrats took aim at what they say are "plainly inadequate" transparency rules for amicus briefs at the U.S. Supreme Court, saying a wave of recent court filings opposing the Consumer Financial Protection Bureau are the result of "a small and powerful cabal of self-interested entities."

  • January 23, 2020

    AGs Tell Justices Not To Scrap CFPB Over Removal Provision

    Nearly two dozen state attorneys general have told the U.S. Supreme Court that nixing a structural element of the Consumer Financial Protection Bureau doesn’t also require invalidating the agency entirely or related provisions of the Dodd-Frank Act, as a California law firm has asserted in its constitutional challenge to the agency.

  • January 23, 2020

    5 Countries Probing Central America Bank For Tax Evasion

    Tax authorities in five countries including the U.S. issued subpoenas and warrants this week as part of a joint investigation into a financial institution in Central America, the Internal Revenue Service said Thursday.

  • January 23, 2020

    Goldman Sachs Demands Diverse Boards For IPOs

    Goldman Sachs' chief executive revealed Thursday the investment bank will no longer take a company public in the U.S. or Europe if its board is composed entirely of white men, noting that board diversity is tied to better returns.

  • January 23, 2020

    DeVos Wants Boosted Contempt Bid Squashed

    The U.S. Department of Education has asked a California federal court not to jack up the $100,000 sanction it slapped Education Secretary Betsy DeVos with last year after her department violated a court order by billing thousands of students with loans tied to the disgraced and defunct Corinthian Colleges.

  • January 23, 2020

    Ex-Trader Seeks Time Served in Chicago Spoofing Case

    Federal prosecutors and a former trader who pled guilty to spoofing on the Chicago Mercantile Exchange have asked an Illinois federal court for a prison sentence that would send him home soon and credit him with time already served in American and Australian custody.

  • January 23, 2020

    Class Fights To Keep Cert. In Crypto 'Miners' Ponzi Case

    A class of purported victims of a cryptocurrency mining Ponzi scheme asked a Connecticut federal judge not to take away its certification at the behest of a crypto investor facing secondary liability claims over the scheme.

  • January 23, 2020

    Wells Fargo Ex-CEO Fined $17.5M For Role In Sales Scandal

    The Office of the Comptroller of the Currency said Thursday that it is bringing enforcement actions against five former Wells Fargo executives and has reached settlements with three others over their alleged roles in the bank's sales practices scandal, including a $17.5 million fine for former CEO John Stumpf.

  • January 23, 2020

    Credit Suisse Denies Knowledge Of $2B Mozambique Scam

    Swiss lender Credit Suisse denied knowing about a $2 billion fraud and bribery scam tied to loans the bank made to Mozambique, rejecting the African country’s claims that it’s liable for the actions of three of its former employees.

  • January 22, 2020

    Congress Weighs In On SEC Disgorgement Power Challenge

    Two dozen members of Congress told the U.S. Supreme Court on Wednesday that stripping the U.S. Securities and Exchange Commission's power to seek disgorgement in civil cases would upend decades of legislation and buck sound precedent undergirding the nation's securities laws.

  • January 22, 2020

    PNC Bank Pays $2.75M To Settle Workers' Unpaid Time Suit

    PNC Bank and its parent company have agreed to pay $2.75 million to put to rest two suits from customer service workers claiming they were forced to perform job tasks off the clock and without pay, according to a motion for settlement approval filed Tuesday.  

  • January 22, 2020

    21 States Urge OCC To Withdraw Proposed Madden Fix

    Twenty-one state attorneys general told the U.S. Office of the Comptroller of the Currency on Tuesday that its proposed rule addressing the fallout from the Second Circuit's Madden decision would enable predatory lending and goes beyond its statutory authority.

  • January 22, 2020

    Comptroller Balks At Calls For Extra Time On Lending Rules

    The head of the Office of the Comptroller of the Currency said Wednesday that he is not inclined to give more time for the public to weigh in on a proposed overhaul of regulations requiring banks to lend in underserved communities, despite objections from Democratic lawmakers and advocacy groups that the rules changes are being rushed through.

  • January 22, 2020

    Borden Dairy Defends Use Of Cash Reserves In Ch. 11 Case

    Bankrupt milk supplier Borden Dairy Co. defended its proposed use of cash reserves Wednesday, telling a Delaware bankruptcy judge that lenders' claims that they have liens on the cash are unfounded and not supported by the loan documents governing the secured debt.

  • January 22, 2020

    Spending Addiction Diagnosis Gets Power Broker Lesser Term

    A New Jersey federal judge sentenced Gilmore & Monahan PA name partner and onetime Republican power broker George Gilmore to a year and a day in prison for payroll tax violations and a falsified bank loan application, saying Wednesday that his psychological troubles warranted a shorter sentence than the government sought.

  • January 22, 2020

    Venator, Underwriters Score An Out From IPO Fraud Suit

    A Texas appellate court has tossed securities fraud claims brought by investors against pigment maker Venator Materials PLC, its executives and underwriters, ruling a state court has no jurisdiction over those groups and their alleged roles in delaying the release of information about a fire at a production facility.

Expert Analysis

  • ABA Rules For Departing Attys Set Unprecedented Limits

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    Groundbreaking rules from the American Bar Association impose new standards on how law firms can govern departing lawyers’ contact with clients, placing major restrictions on this ubiquitous practice, say Amy Richardson and Hilary Gerzhoy at Harris Wiltshire.

  • 11th Circ. Insurance Ruling Views Cybercrime Realistically

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    The Eleventh Circuit's recent opinion in Principle Solutions v. Ironshore demonstrates courts' willingness to adopt a reasonable view of insurance coverage for cybercrime, while the dissent serves as a warning against outdated provisions, say Patrick Cordova and Caroline Meneau of Jenner & Block.

  • Capitol Hill's Diversity Efforts Are Rubbing Off On Wall Street

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    Increasing congressional support for leadership, programs and legislation that prioritize corporate diversity and inclusion is pushing financial services companies to recognize the importance of equitable performance metrics that focus on results, say Weldon Latham and Michael Hatcher at Jackson Lewis.

  • Nissan Ex-CEO Illustrates Do's And Don'ts Of Image Repair

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    Lawyers can draw a number of useful lessons about reputation management from the efforts of former Nissan executive Carlos Ghosn — who recently escaped house arrest in Tokyo — to restore his sullied reputation, says Elizabeth Ortega at ECO Strategic Communications.

  • PCAOB's 2019 Enforcement Actions Hint At 2020 Focus

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    The Public Company Accounting Oversight Board's modest increase in enforcement actions in 2019 suggests the board's 2020 priorities will include non-U.S. firms, quality control standards, workpaper accuracy and independence violations, says Robert Cox of Briglia Hundley.

  • Baseball Scandal Highlights Compliance Lessons For Banks

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    The MLB's recent disciplinary action against the Houston Astros for stealing other teams' hand signals underscores compliance lessons for banks and other financial institutions, whose regulators are similarly focused on insufficient institutional controls, say Mitchel Kider and Michael Kieval at Weiner Brodsky.

  • SG Argument Likely Dooms Ariz. Tax Case At High Court

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    In Arizona's case challenging California's doing business tax, the solicitor general's recently filed amicus brief arguing that Arizona's constitutional challenge does not warrant the U.S. Supreme Court’s exercise of its original jurisdiction may signal the end of Arizona's attempt to bypass state court, say Robert Merten and Mike Le at Pillsbury.

  • FIRREA Remains Potent Civil Fraud Enforcement Tool

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    Last year, three court decisions addressing the Financial Institutions Reform, Recovery and Enforcement Act's civil monetary penalties provision — two at the final judgment stage and one at the pleadings stage — expanded FIRREA jurisprudence and remind us why this statute cannot be ignored, say attorneys at Morgan Lewis.

  • Managing Money Laundering Risk In The Art Trade

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    The Office of Foreign Assets Control's recent declaration that a Lebanese art dealer's gallery was used to conceal Hezbollah financing is a reminder to the art community of the need for strict compliance with U.S. criminal anti-money laundering laws, say Nicole Horowitz and Brendan Hanifin of Ropes & Gray.

  • How Associate Life Has Evolved Over The Past Decade

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    During the last 10 years, the need to embrace change was fundamental for law firms, and that change affected associates in many ways — most, but not all, for the better, says Brad Kaufman, co-president of Greenberg Traurig.

  • Justices Seem Keen To Solve ERISA Case's Article III Question

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    Oral arguments in Thole v. U.S. Bank suggested the U.S. Supreme Court is willing to explore whether Employee Retirement Income Security Act plaintiffs have constitutional standing to sue over an adequately funded plan — even though the lower courts sidestepped the issue, say attorneys at King & Spalding.

  • Tribune Ruling Charts Course For Bankruptcy Safe Harbor

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    In upholding the dismissal of fraudulent conveyance claims against former shareholders of the bankrupt Tribune Company, the Second Circuit may have laid out a path for parties looking to stay within a crucial Bankruptcy Code safe harbor provision, say attorneys at Cadwalader.

  • Fed's Real-Time Payments Idea Presents Risks, Challenges

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    The Federal Reserve's development of a real-time payment and settlement service raises important questions related to consumer protection, litigation risk, and fraud and overdraft liability, say Ling Ling Ang at NERA Economic Consulting and Judy Mok at Ballard Spahr.

  • Where The Fight Over FTC's Enforcement Authority Stands

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    A flurry of year-end activity, including three petitions before the U.S. Supreme Court and a spate of proposed legislation, requires a recap on the current status of the debate over the Federal Trade Commission's Section 13(b) authority to obtain permanent injunctions and restitution, say John Villafranco and Khoury DiPrima of Kelley Drye.

  • What To Expect If The CFPB Changes Course In 2021

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    Financial institutions should consider the implications of potential changes at the Consumer Financial Protection Bureau next year contingent on the U.S. Supreme Court’s pending Seila Law decision and the 2020 presidential election, say Eric Mogilnicki and David Stein at Covington.