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Banking
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August 13, 2025
Trump's 'Debanking' Push May Run Up Against Biden-Era Wall
President Donald Trump wants federal regulators to punish banks that they find have unfairly closed accounts belonging to conservatives, but those plans could collide with a court decision that his administration chose to stop fighting earlier this year.
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August 13, 2025
Bank Of America Can't Escape 401(k) Forfeiture Suit
A North Carolina federal judge refused to toss a proposed class action against Bank of America alleging the bank misspent 401(k) plan forfeitures, finding allegations that the bank's decision to reduce obligations to other employees' accounts instead of defraying plan expenses had stated a claim for violating federal benefits law.
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August 13, 2025
BakerHostetler Hires Cooley Securities Litigation Atty
BakerHostetler has added an experienced litigator to its white collar, investigations and securities enforcement litigation and securities and governance litigation teams in New York, bringing with him more than 25 years of BigLaw experience, including most recently with Cooley LLP.
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August 13, 2025
Pa. Attorney Sues To Thaw $1.5M In Frozen Crypto Assets
A Pittsburgh-area attorney says his cryptocurrency assets worth more than $1.5 million across three platforms were improperly frozen, and he asked a Pennsylvania state court to order his accounts unfrozen.
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August 13, 2025
NY AG Says Zelle Parent Enabled $1B In Customer Losses
New York Attorney General Letitia James on Wednesday sued the big bank-controlled parent company of popular electronic payments platform Zelle, alleging in state court that lax security measures allowed scammers to make off with over $1 billion of user funds.
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August 13, 2025
Mass. Loan Biz Morphed Into $7.6M Ponzi Scheme, State Says
A Massachusetts woman turned her family's small auto financing business into a $7.6 million Ponzi scheme, the state's Securities Division alleged in a complaint.
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August 12, 2025
Goldman Sachs Objector's $517K Fee Bid Slashed To $50K
A Delaware vice chancellor has slashed an objector's counsel fee and expense request from $517,000 to $50,000 as part of a settlement in a derivative suit against Goldman Sachs directors, and awarded the plaintiffs their sought-after $612,500 in fees.
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August 12, 2025
Bank Groups Call For Closing Stablecoin Law's 'Loopholes'
The American Bankers Association and more than 50 state counterparts on Tuesday urged Senate lawmakers to close several "loopholes" in a recently enacted federal law to regulate stablecoins with recommended additions to a separate proposal to regulate crypto markets.
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August 12, 2025
Terraform Founder Cops To $40B Crypto Fraud Scheme
The founder and former CEO of Terraform Labs on Tuesday admitted to perpetrating a multibillion-dollar fraud by deceiving investors about its decentralized finance-based ecosystem of crypto products, a scheme that wiped out $40 billion in market value when it collapsed.
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August 12, 2025
NJ Judge Trims Ex-Bank Regulator's Discrimination Suit
A New Jersey state judge has trimmed a discrimination and retaliation suit brought by a former acting director at the state's Department of Banking and Insurance, tossing her unequal pay and hostile work environment claims, but allowing her retaliation and failure to promote claims to proceed.
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August 12, 2025
Truist Wants Out Of Law Firm's $94K Wire Scam Suit
Truist Financial Corp. has asked a Delaware federal judge to dismiss a law firm's suit over a botched real estate wire transfer, arguing in a dismissal motion that the firm named the wrong entity in its complaint, but that even if the correct Truist had been named, the claims must fail as a matter of law.
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August 12, 2025
Uber's Tip Led FBI To $5M 'Grandparent Scam' Ring, Feds Say
A suspicious pattern of Uber trips to banks by older people led the company to contact the FBI, uncovering a multinational "grandparent scam" operation that stole $5 million from at least 400 people, Massachusetts federal prosecutors said Tuesday.
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August 11, 2025
5th Circ. Backs Mexican Banks' Subpoena For Fraud Case
The Fifth Circuit on Monday refused to revive a Mexican businessman's motion to quash a subpoena stemming from major Mexican financial institutions' efforts to obtain discovery as they pursue claims that the businessman absconded with $32 million in loans, saying it detected "no error" in a lower court's denial.
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August 11, 2025
2nd Circ. Revives Hezbollah Terrorism Suit Against Bank
The Second Circuit held Monday that a Lebanese bank is subject to the personal jurisdiction of New York courts on claims over its predecessor's alleged assistance to Hezbollah, citing the state highest court's certified answer in the case while also reasoning that the bank being subjected to the state's jurisdiction was foreseeable.
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August 11, 2025
Calif. Trader To Pay SEC $358K Over Spoofing Allegations
A former day trader has agreed to give the U.S. Securities and Exchange Commission nearly $358,000 to end claims he manipulated options markets by means of so-called spoofing, illegally making about $234,000.
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August 11, 2025
'Flipping NJ' Developer Fights Charges, Citing Habba's Role
A New Jersey real estate developer and influencer, who is accused of running a Ponzi-like investment fraud scheme and laundering drug money, on Monday became the latest defendant to seek dismissal of his indictment over what he says was the illegal appointment of Alina Habba as acting U.S. attorney for the Garden State.
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August 11, 2025
FINRA Fines Goldman Over IPO Conflicts Of Interest
Investment banking giant Goldman Sachs has agreed to pay the Financial Industry Regulatory Authority $250,000 to end claims it failed to bring in an independent underwriter to work on a registration statement for a $700 million initial public offering in which Goldman had a conflict of interest.
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August 11, 2025
Paxos Is Latest Crypto Firm To Seek OCC Bank Charter
Stablecoin issuer Paxos Trust Co. LLC said Monday that it has applied to become licensed and supervised by the Office of the Comptroller of the Currency, joining a wave of digital asset firms that are now pursuing U.S. banking charters from the agency.
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August 11, 2025
Justices Told USAA's $218M Win Threatened By Inconsistency
The Federal Circuit's decision to let the Patent Trial and Appeal Board invalidate patents at the heart of the United Services Automobile Association's recently reversed $218 million infringement verdict against PNC Bank, endorsed allowing government agencies to issue contradictory rulings without explaining themselves, USAA has told the U.S. Supreme Court.
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August 11, 2025
2nd Circ. Revives Ex-Fed Worker's COVID Vax Exemption Suit
The Second Circuit has revived a former employee's claims against the Federal Reserve Bank of New York over its COVID-19 vaccination requirement, saying Monday there was a disputed issue of fact over whether the executive assistant had a genuine religious objection.
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August 11, 2025
CRE Fintech Firm Securities Paused For Possible Arbitration
A proposed class action accusing real estate platform CrowdStreet of enabling a $63 million fraud was paused Monday to allow individual arbitration to decide if the investors' claims can proceed.
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August 11, 2025
Judge To Order Bond, Sanctions In Crypto Miner's Ch. 11
A Delaware bankruptcy judge said Monday she would require the creditors that petitioned to force a cryptocurrency mining operation into Chapter 11 to post a multimillion-dollar bond in case their petition is dismissed.
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August 11, 2025
3 Firms Guide Western Union's $500M Purchase Of Intermex
Financial services firm Western Union Co. will acquire money transfer service International Money Express Inc., known as Intermex, in a $500 million all-cash deal led by Sidley Austin LLP, Holland & Knight LLP and Cravath Swaine & Moore LLP.
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August 11, 2025
Mayer Brown Adds Ex-Jones Day Partner To Finance Team
Mayer Brown LLP expanded its financial advisory resources in Chicago with the recent addition of an attorney who moved his transactional practice after more than seven years at Jones Day.
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August 11, 2025
Terraform Founder Set To Plead Out Of $40B Fraud Case
Terraform founder Do Kwon is on track to enter a guilty plea in his $40 billion criminal fraud case, a Manhattan federal judge said Monday, in an order that comes ahead of a scheduled 2026 trial and amid weeks of talks between his lawyers and prosecutors.
Expert Analysis
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Strategies To Limit Inherent Damage Of Multidefendant Trials
As shown by the recent fraud convictions of two executives at the now-shuttered education startup Frank, multidefendant criminal trials pose unique obstacles, but with some planning, defense counsel can mitigate the harm and maximize the chances of a good outcome, says Kenneth Notter at MoloLamken.
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Russia Sanctions Spotlight: Divergent Approaches Emerge
With indications of greater divergence and uncertainty in Russia sanctions policy between the U.K., European Union and U.S., there are four general principles and a range of compliance steps that businesses should bear in mind when assessing the impact of a potentially shifting landscape, says Alexandra Melia at Steptoe.
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CFTC Memos Clarify When 'Sorry' Still Gets You Subpoenaed
A pair of Commodity Futures Trading Commission advisories released in February and April open a new path to self-reporting but emphasize that serious breaches still warrant a trip to the penalty box, prompting firms to weigh whether — and how — to disclose potential violations in the future, say attorneys at Pryor Cashman.
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Reassessing Corporate Separateness After Explosion Of LLCs
Following the dramatic increase of limited liability companies in the U.S., the Corporate Transparency Act's enactment and the Trump administration's subsequent narrowing of that law, it's worth revisiting the underlying legal principles that govern shell companies in order to remedy the problems that initially motivated the CTA, says Jeff Newton at Omni Bridgeway.
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What Banks Should Note As Regulators Plan To Nix CRA Rule
While federal bank regulators’ recently announced intent to rescind a Biden-era Community Reinvestment Act final rule will loosen the framework for evaluating banks’ lending, service and investing activities, the decision means industry innovations and changes will remain unaddressed, say attorneys at Alston & Bird.
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Series
Playing Guitar Makes Me A Better Lawyer
Being a lawyer not only requires logic and hard work, but also belief, emotion, situational awareness and lots of natural energy — playing guitar enhances all of these qualities, increasing my capacity to do my best work, says Kosta Stojilkovic at Wilkinson Stekloff.
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Crisis Management Lessons From The Parenting Playbook
The parenting skills we use to help our kids through challenges — like rehearsing for stressful situations, modeling confidence and taking time to reset our emotions — can also teach us the fundamentals of leading clients through a corporate crisis, say Deborah Solmor at the Wisconsin Alumni Research Foundation and Cara Peterman at Alston & Bird.
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CFPB Vacatur Bid Sheds Light On Agency Decision-Making
While the CFPB's joint motion to vacate the settlement it reached with Townstone Financial last year won't affect precedent on the Equal Credit Opportunity Act's scope, it serves as a road map to CFPB decisional processes and provides insight into how other regulators make similar decisions, says Jason McElroy at Saul Ewing.
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The Potential Efficiencies, Risks Of Folding PCAOB Into SEC
Integrating the Public Company Accounting Oversight Board into the U.S. Securities and Exchange Commission offers the potential for regulatory efficiencies, as well as a more streamlined and consistent enforcement approach, but it also presents constitutional and operational uncertainties, say attorneys at Hilgers Graben.
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Series
Adapting To Private Practice: From NY Fed To BigLaw
While the move to private practice brings a learning curve, it also brings chances to learn new skills and grow your network, requiring a clear understanding of how your skills can complement and contribute to a firm's existing practice, and where you can add new value, says Meghann Donahue at Covington.
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Reviewing Trump Admin's Rapid Pro-Crypto Regulatory Pivot
The digital asset industry has received a boost from the explicitly pro-crypto Trump administration, which in its first few months reversed Biden-era rules and installed industry proponents at regulatory agencies, marking one of the biggest regulatory about-faces by a government in recent memory, says Robert Appleton at Olshan Frome.
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Top 3 Litigation Finance Deal-Killers, And How To Avoid Them
Like all transactions, litigation finance deals can sometimes collapse, but understanding the most common reasons for failure, including a lack of trust or a misunderstanding of deal terms, can help both parties avoid problems, say Rebecca Berrebi at Avenue 33 and Boris Ziser at Schulte Roth.
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How Attys Can Use A Therapy Model To Help Triggered Clients
Attorneys can lean on key principles from a psychotherapeutic paradigm known as the "Internal Family Systems" model to help manage triggered clients and get settlement negotiations back on track, says Jennifer Gibbs at Zelle.
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Tracking The Evolution Of Liability Management Exercises
As liability management exercises face increasing legal scrutiny, understanding the history of these debt restructuring tools can help explain how the playbook keeps adapting — and why the next move is always just one ruling or transaction away, say attorneys at Weil.
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How Banks Can Manage Risk As AI Adoption Expands
Following new, supportive comments from financial regulatory leaders about the use of artificial intelligence in the industry, banks may move toward wider, less-tentative adoption of the technology, but will also need to deploy important risk management measures, say attorneys at WilmerHale.