Banking

  • March 15, 2024

    Pa. Court Can Hear NY Borrowers' Class Action Against Bank

    The Pennsylvania Superior Court has ruled in a precedential opinion that a Philadelphia court can preside over class claims brought by borrowers from New York as well as Pennsylvania, claiming Five Star Bank violated both states' uniform commercial codes by repossessing their vehicles.

  • March 15, 2024

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

    The past week in London has seen Howard Kennedy face legal action by a London hotel chain, former racing boss Bernie Ecclestone and Formula One hit with a breach of contract claim by a Brazilian racecar driver, and a libel row between broadcaster Jeremy Vine and ex-footballer Joey Barton. Here, Law360 looks at these and other new claims in the U.K.

  • March 15, 2024

    Feds Say Bankman-Fried Deserves 40 To 50 Years In Prison

    Sam Bankman-Fried should spend 40 to 50 years in prison for engaging in a massive fraud that sank his FTX crypto exchange, Manhattan federal prosecutors argued Friday, pushing back against a request by defense counsel for a sentence of roughly six years.

  • March 15, 2024

    US Acquittals Don't Upend UK Libor Convictions, SFO Says

    The acquittals in the U.S. of two former bankers previously convicted of rigging Libor doesn't undermine the legal rationale — upheld on several appeals — for prosecuting traders in English courts, counsel for the Serious Fraud Office said Friday.

  • March 14, 2024

    Lehman Brothers Can't Undo Trial Loss Over Crisis-Era CDS

    A New York appeals court on Thursday affirmed a bench trial loss Lehman Brothers' bankrupt European unit suffered last year in a suit attempting to claw back nearly half a billion dollars from Assured Guaranty over losses on credit default swaps tied to the 2008 financial crisis.

  • March 14, 2024

    CFPB To Mull Official 'Standard Setters' In Open Banking Push

    Consumer Financial Protection Bureau Director Rohit Chopra outlined plans for his agency to start offering formal accreditation for open banking "standard-setting organizations" as it prepares to finalize a landmark new rule on data-sharing between banks and fintech firms.

  • March 14, 2024

    Apple Federal Credit Union Can't Shake Overdraft Fee Suit

    A Virginia federal judge has declined to toss a proposed class action against Apple Federal Credit Union that challenges the bank's alleged policy of assessing additional overdraft fees on already-authorized transactions, saying the credit union has violated its own contract terms and did not properly disclose the fees to customers.

  • March 14, 2024

    Barclays Hit With Short-Seller's Suit Over $17B Overissuance

    Barclays PLC and a few members of its top brass have been hit with a proposed securities class action in New York federal court over the bank's $17 billion overissuance of securities, which included exchange-traded notes designed to track volatility index futures.

  • March 14, 2024

    FINRA Ordered Less Restitution, More In Fines In 2023

    The Financial Industry Regulatory Authority brought fewer disciplinary actions and ordered less restitution in 2023 compared to 2022, but doled out a higher amount of fines, largely because of one major fine against Bank of America's securities unit, according to a new report by Eversheds Sutherland.

  • March 14, 2024

    Ex-Chase Banker Gets 4 Years For $2.4M Embezzlement

    A Manhattan federal judge sentenced a former JPMorgan Chase & Co. private bank teller to four years in prison Thursday for draining $2.4 million from client accounts, saying there's "no excuse" for the embezzlement scheme.

  • March 14, 2024

    Bankman-Fried Taps New Firm For SEC, CFTC Defense

    Convicted FTX founder Sam Bankman-Fried has swapped his Cohen & Gresser LLP counsel for attorneys at Montgomery McCracken Walker & Rhoades LLP in his stayed civil cases.

  • March 14, 2024

    JPMorgan Fined Nearly $350M Over Trade Surveillance

    Federal regulators said Thursday that they have ordered JPMorgan Chase & Co. to pay nearly $350 million in fines as part of enforcement actions tied to alleged deficiencies in the bank's program for monitoring employee and client trading activities.

  • March 13, 2024

    Sierra Club Joins Fray With SEC Climate Rule Suit

    The Sierra Club is the latest organization to sue the U.S. Securities and Exchange Commission over its newly passed greenhouse gas reporting requirements, with the environmentalists saying Wednesday that the finalized rules failed to fully shield investors from the risks of climate change.

  • March 13, 2024

    Ex-SEC Economists Urge 5th Circ. To Fix Short-Selling Rules

    A group of former chief economists at the U.S. Securities and Exchange Commission are supporting a request that the Fifth Circuit intervene and "correct" a pair of recent agency rules intended to bring transparency to the short-selling market, arguing that contradictions in the rules threaten to undermine public confidence in the regulator. 

  • March 13, 2024

    Feds Want 6.5 Years For Ex-Utility Commission Boss' Bribery

    The onetime head of San Francisco's Public Utilities Commission should spend six-and-a-half years in prison after his conviction on charges he accepted bribes from local businesses, federal prosecutors have argued.

  • March 13, 2024

    PNC Bank Can't Get $106M Judgment Covered By Insurers

    PNC Bank NA is not entitled to coverage by a group of excess insurers for a $106 million judgment it incurred in an underlying lawsuit alleging the bank's predecessor mismanaged funeral trust accounts, a Pennsylvania federal judge ruled Wednesday, saying the policies' exclusions bar coverage in this case.

  • March 13, 2024

    SEC Admits Errors In Marcum CPA's Administrative Case

    The U.S. Securities and Exchange Commission has miscalculated its administrative case against a certified public accountant and Marcum LLP partner who allegedly failed to properly supervise audits, reducing the number he is accused of mishandling.

  • March 13, 2024

    FCC Waives Bank Rating Rule For Rural Auctions For 1 Year

    Internet service providers that received letters of credit from banks that took a plunge in the ratings will have an extra year to find a suitably rated financial institution to back them so they can get their rural broadband auction funding, the Federal Communications Commission has declared.

  • March 13, 2024

    Genesis, Gemini Can't Ax SEC Suit Over Crypto Loan Program

    A New York federal judge refused Wednesday to toss the U.S. Securities and Exchange Commission's allegations that crypto exchange Gemini Trust Co. and bankrupt crypto lender Genesis Global Capital LLC violated securities laws by running the now-defunct investment program Gemini Earn that sold alleged unregistered securities.

  • March 13, 2024

    CFPB Slams 'Forum-Shopping' Bid To Halt Card Late-Fee Rule

    The Consumer Financial Protection Bureau is urging a Texas federal judge to refuse bank industry groups' request for an emergency injunction over the agency's recently finalized $8 credit card late-fee rule, arguing their case is too flimsy to justify putting the new rule on hold.

  • March 13, 2024

    Amazon Groups Ask To Meet Banks Over Oil Co. Financing

    A coalition of Indigenous people and fishing groups in Peru is asking to meet with leaders of JPMorgan Chase & Co. and Citigroup Inc. to discuss concerns about state-owned oil company Petroperú and demand that the banks not help it secure more financing, according to the nonprofit Amazon Watch.

  • March 13, 2024

    Ex-CFO Raided Corporate Funds, Trulieve Suit Claims

    Florida's largest medical marijuana company, Trulieve, is suing its former chief financial officer in federal court, claiming he misused his corporate credit card, charging "hundreds of thousands of dollars" for expensive clothing, vacations and attorney fees and fraudulently received reimbursement for personal expenses.

  • March 13, 2024

    Blackstone Closes $600M Credit Deal For Utah Data Center

    Blackstone Credit & Insurance has provided a $600 million senior secured credit facility for Aligned Data Centers' data center development project in West Jordan, Utah, the companies have announced.

  • March 13, 2024

    EB-5 Suit Says Hotel Project Tricked Non-English Speakers

    A real estate investment company is facing a proposed class action in California federal court alleging it took advantage of immigrant investors' limited English by fraudulently making them agree that the company and an Embassy Suites project could keep their investments indefinitely.

  • March 13, 2024

    Greenberg Traurig Hires Ballard Spahr Counsel In DC

    Greenberg Traurig LLP has hired a former Ballard Spahr LLP of counsel, who joins the firm's Washington, D.C., office to continue his practice focused on financial service regulatory matters, the firm announced Monday.

Expert Analysis

  • How High Court SEC Case Could Affect The ITC

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    While the U.S. Supreme Court’s upcoming ruling in U.S. Securities and Exchange Commission v. Jarkesy will likely spare the U.S. International Trade Commission from major operative changes, the ITC’s ability to issue penalties for violations of its orders may change, say Gwendolyn Tawresey and Ryan Deck at Troutman Pepper.

  • CFPB Overdraft Rule Could Mean Big Shift In Banking Biz

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    The Consumer Financial Protection Bureau has proposed "to close a longstanding loophole" in the Truth in Lending Act by changing how it regulates overdraft fees, but underneath the headline-grabbing proposal is a foundational shift in how the bureau views overdraft services, say attorneys at Katten.

  • Challenges Remain In Financing Energy Transition Minerals

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    COP28, the latest U.N. climate conference, reached a consensus on a just and equitable transition from fossil fuels to renewable energy, but more action and funding will be needed to ensure that developed countries responsibly source the minerals that will be critical for this process, say attorneys at Watson Farley.

  • $32.4M Fine For Info Disclosure Is A Stark Warning For Banks

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    The New York State Department of Financial Services and the Federal Reserve's fining of a Chinese state-owned bank $32.4 million last month underscores the need for financial institutions to have policies and procedures in place to handle confidential supervisory information, say attorneys at Sidley.

  • Loan Transparency Proposals May Bring Some Clarity

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    U.S. banking regulators' proposed revisions to rules that would require banks to disclose more granular information about loans made to nondepository financial institutions would somewhat clarify the size of the fund finance market, though full enlightenment does not look likely in the near future, says Chris van Heerden at Cadwalader.

  • Series

    Coaching High School Wrestling Makes Me A Better Lawyer

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    Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.

  • Debt Collector Compliance Takeaways From An FDCPA Appeal

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    A Consumer Financial Protection Bureau amicus brief last month in an ongoing First Circuit appeal focusing on an interpretation of the Fair Debt Collection Practices Act can serve as a reminder for debt collectors to understand how their technologies, like bankruptcy scrubs and letter logic, can prevent litigation, says Justin Bradley at Womble Bond.

  • SG's Office Is Case Study To Help Close Legal Gender Gap

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    As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.

  • A Closer Look At Novel Jury Instruction In Forex Rigging Case

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    After the recent commodities fraud conviction of a U.K.-based hedge fund executive in U.S. v. Phillips, post-trial briefing has focused on whether the New York federal court’s jury instruction incorrectly defined the requisite level of intent, which should inform defense counsel in future open market manipulation cases, say attorneys at Lankler Siffert.

  • How Proposed Bipartisan Bill Would Reform Bank Exams

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    If the Fair Audits and Inspections for Regulators’ Exams Act, which was recently introduced by a bipartisan group of senators, were to be enacted, it would particularly benefit small lenders and bank-fintech partnerships by promoting transparency, appellate rights and examiner accountability, say attorneys at Latham.

  • Opinion

    CFPB Shouldn't Ditch Prior Earned Wage Access Precedent

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    Recent statements from Consumer Financial Protection Bureau general counsel Seth Frotman indicate the CFPB may be concluding that some or all earned wage access products are credit under federal law, but doing so would threaten the existence of the products and cause consumers to turn back to costly alternatives, says Eric Goldberg at Akerman.

  • The Corporate Disclosure Tug-Of-War's Free Speech Issues

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    The continuing conflict over corporate disclosure requirements — highlighted by a lawsuit against Missouri's anti-ESG rules — has important implications not just for investors and regulated entities but also for broader questions about the scope of the First Amendment, say Colin Pohlman, and Jane Luxton and Paul Kisslinger at Lewis Brisbois.

  • Crypto Issues To Watch Amid Evolving Legal Landscape

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    This year will likely be a momentous one for crypto in the U.S., but whether it is successful or disastrous will depend on the outcome of high-profile court decisions and key regulatory actions, say attorneys at Venable.

  • Navigating The Sunset Of Sibor And Other Key Benchmarks

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    Similar to the recent transition away from Libor, the expected cessation deadlines of the Canadian Dollar Offered Rate and Singapore Interbank Offered Rate are nigh, so Canadian and Singapore dollar-denominated credit facilities will likely need to be amended, say attorneys at Cadwalader.

  • Stay Ruling Challenges Sovereign Debt Dynamics

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    The Southern District of New York’s recent ruling in Hamilton Reserve Bank v. Sri Lanka, which provides sovereigns with a de facto bankruptcy stay in restructuring scenarios, may create uncertain consequences for sovereign creditors and borrowers alike, says Jeff Newton at Omni Bridgeway.

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