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Banking
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May 05, 2025
Credit Repair Specialist Gets 1 Year For Role In $14M Fraud
A Pittsburgh credit repair specialist was sentenced to a little more than a year in prison for her role in referring businesses to get falsified federal pandemic relief loans, with a judge weighing her relatively small part in the conspiracy against the overall size of the $14.5 million, multistate scheme Monday.
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May 05, 2025
Novelist Owes $715K In FBAR Penalties, US Says
A Japanese author with U.S. citizenship faces penalties exceeding $715,000 for failing to report accounts she held at a Swiss bank, the U.S. government told a California federal court.
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May 02, 2025
Head Of 'Mother Teresa' Ponzi Scheme Owes SEC $4.1M
A self-styled "Mother Teresa" serving a 20-year prison sentence for wire fraud conspiracy in a $194.1 million Ponzi scheme is liable for $4.1 million in connection with U.S. Securities and Exchange Commission fraud claims, though that debt is satisfied by the $186 million forfeiture order in her federal criminal case, a Florida federal judge has determined.
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May 02, 2025
Dems Urge Fed To Rethink $35B Capital One-Discover Deal
Democratic Sen. Elizabeth Warren of Massachusetts and Rep. Maxine Waters, D-Calif., have formally petitioned the Federal Reserve to pause and revisit its approval of Capital One's $35 billion acquisition of Discover, saying the central bank's analysis of the transaction had glaring gaps that make its conclusion legally unsustainable.
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May 02, 2025
Gores Group's Latest SPAC Leads 3 IPOs Totaling $792M
Gores Holdings X Inc., the latest of several special purpose acquisition companies formed by private equity firm The Gores Group, began trading Friday after pricing an upsized $312 million IPO, the largest of three new SPAC listings totaling $792 million.
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May 02, 2025
Texas-Led AGs Defend BlackRock Coal Investments Suit
A coalition of Republican states led by Texas are arguing that BlackRock Inc.'s public commitments to reducing its carbon footprint are evidence that it and two other leading asset managers teamed up to suppress the production of coal in the United States, asking a federal judge not to dismiss their case against the firms.
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May 02, 2025
With Lowell's New Firm, San Juan Bank Appeals NY Fed Loss
Abbe Lowell — the high-profile litigator who on Friday announced he will launch a boutique firm aiming to aid with "politicized investigations" after exiting the partnership of Winston & Strawn LLP — will help handle a Puerto Rico bank's appeal of an order affirming the closure of its Federal Reserve master account by federal regulators.
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May 02, 2025
CFPB Wins $43M Judgment Against Debt-Relief Provider
An Illinois federal judge has ordered the former owner of a defunct debt-relief provider to pay more than $43 million in restitution and penalties to settle claims that the firm preyed on student loan borrowers.
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May 02, 2025
More Crypto Easing For Banks Is 'Critical,' Trade Groups Say
A coalition of Wall Street trade groups urged the executive branch to continue removing "barriers" limiting financial institutions from engaging with digital assets in a joint letter calling for uniform risk-management expectations over processes that require firms to clear their crypto activities with banking regulators ahead of time.
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May 02, 2025
TD Bank Must Face Suit Over Name Used To Collect On Debt
Credit card issuer TD Bank NA can't nix a proposed class action alleging it violated West Virginia consumer credit laws prohibiting entities from using different names when collecting debt, after a federal judge said Friday it sought to collect under "Samsung Financing" and "TD Retail Card Services," neither of which is its true name.
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May 02, 2025
FinCEN Wants Banks To Monitor For Cartel Oil Smuggling
The U.S. Treasury's enforcement unit has alerted U.S. financial institutions to watch for Mexican cartels smuggling stolen crude oil across the southwest border and into the U.S., saying fuel theft "has become the most significant non-drug illicit revenue source for the cartels."
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May 02, 2025
Connecticut Firm Can't Reargue Ruling In Lawsuit Over Scam
Connecticut law firm Mancini Provenzano & Futtner LLC may not reargue an attorney fee and prejudgment interest awarded to a former client who was tricked by a fraudster into wiring $90,586 to an incorrect account due to the firm's lax security, a state superior court judge has ruled.
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May 02, 2025
Groups Seek Order Halting Trump's Restructuring Of Gov't
A California district court must stop federal agencies from moving ahead with President Donald Trump's directive to reorganize and terminate government workers, unions and other groups argued, calling for a temporary restraining order based on alleged harms from the administration's "radical restructuring."
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May 02, 2025
Sidley Adds 10 A&O Shearman Attys In DC, NY, Singapore
Sidley Austin LLP has hired 10 attorneys from Allen Overy Shearman Sterling in New York, Washington, D.C., and Singapore, including the U.S. leader of the firm's financial services regulatory group.
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May 02, 2025
Frank Execs Trade Blame In Dueling Bids For New Trial
Frank founder Charlie Javice and former executive Olivier Amar each requested new trials on charges alleging they tricked JPMorgan Chase & Co. into buying the student aid assistance startup for $175 million, with Javice asserting that her co-defendant acted as a second prosecutor and Amar saying he was unfairly lumped into what the government called a criminal scheme.
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May 02, 2025
Community Groups Accept Pause In CTA Litigation
A group of community associations has told the Fourth Circuit they aren't opposed to a government motion to pause litigation over the Corporate Transparency Act, even as they maintained the information disclosure law aimed at small businesses still carries constitutional flaws.
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May 01, 2025
Ex-Credit Union Regulator Says Suing Trump 'Had To Be Done'
One of two Democrats suing President Donald Trump for unlawful termination from the National Credit Union Administration warned Thursday of damaging potential ripple effects if their firings are allowed to stand, casting their decision to litigate as daunting but necessary.
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May 01, 2025
2 Firms To Co-Lead Block Investor Suit Over Cash App
Cohen Milstein Sellers & Toll PLLC and Lieff Cabraser Heimann & Bernstein LLP will represent a proposed class of investors in a suit alleging Jack Dorsey's fintech company Block Inc. created a "haven for criminal and illicit activities" on its Cash App and Square payment platforms despite touting its anti-money laundering protocols.
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May 01, 2025
Truist's $4.1M Robocall Class Settlement Gets Initial OK
A $4.1 million settlement between Truist Financial Corp. and a proposed class of cellphone users who say they got unwanted robocalls from the bank has received a North Carolina federal judge's initial green light.
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May 01, 2025
CFPB, Lenders Float Deal To Vacate Medical Debt Rule
The Consumer Financial Protection Bureau has agreed to a proposed consent judgment that would vacate a Biden-era rule banning an estimated $49 billion in medical debt from credit reports, striking a deal with lender trade groups that sued in Texas federal court to block the rule.
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May 01, 2025
Crypto Influencer Launches SPAC As 2 Acquirers Tap Market
A special purpose acquisition company led by crypto influencer Anthony Pompliano and advised by Reed Smith LLP has filed for an initial public offering to raise $200 million, while two other blank-check companies eyeing the fintech and tech sectors have raised more than $400 million combined.
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May 01, 2025
PetroSaudi Insists Pause Not Warranted In $380M Award Suit
A PetroSaudi unit continues fighting the Trump administration's bid to pause litigation to seize a $380 million arbitral award while related proceedings in Switzerland play out, saying a California federal judge has already denied its stay request once before.
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May 01, 2025
Bank Says Insurer Owes $1.8M In Vandalism Coverage
A bank accused a Berkshire unit and its insurance agent of underpaying coverage for property damage from "vandalism and/or theft," saying that while it's received roughly $105,000 in coverage to date, the insurer has yet to pay nearly $1.8 million.
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May 01, 2025
AT&T Win Is FDIC's Loss On In-House Cases, 5th Circ. Told
A banker challenging the Federal Deposit Insurance Corp.'s use of in-house proceedings to level a fraud judgment against him told the Fifth Circuit that its recent decision overturning a $57 million Federal Communications Commission fine against AT&T confirms that the FDIC cannot rely on a "public rights" exemption to impose fines without a jury trial.
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May 01, 2025
Sony Eyes $49B Semiconductor Unit Sale, Plus More Rumors
Sony could sell its semiconductor unit for $49 billion, while proxy advisory firm Glass Lewis is considering ending its practice of advising shareholder votes on politically charged topics, and AI startup Nscale plans to raise $2.7 billion in private capital to support the construction of data centers around the world.
Expert Analysis
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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3 Action Items For Innovators Amid Fintech Regulatory Pivot
As the federal banking agencies seek to smooth the way for banks to engage in crypto-related activities, banks and technology companies should take note of this new chapter in payments services, especially as leadership in digital financial technology becomes a national priority, says Jess Cheng at Wilson Sonsini.
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Opinion
GENIUS Act Can Bring Harmony To Crypto-Banking Discord
By embracing crypto innovation while establishing appropriate guardrails, the so-called GENIUS Act charts a path forward that promotes financial inclusion and technological advancement without compromising stability or constitutional rights, says J.W. Verret at George Mason University's Antonin Scalia Law School.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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Mass. AG Emerges As Key Player In Consumer Protection
Through enforcement actions and collaborations with other states — including joining a recent amicus brief decrying the defunding of the Consumer Financial Protection Bureau — Massachusetts Attorney General Andrea Campbell has established herself as a thought leader for consumer protection and corporate accountability, say attorneys at Troutman Pepper.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q1
Among the most notable developments in California banking in the first quarter of the year, regulators and legislators issued regulations interpreting debt collection laws, stepped up enforcement actions, and expanded consumer protections for those affected by wildfires, says Stephen Britt at Severson & Werson.
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Inside State AGs' Arguments Defending The CFPB
Recent amicus briefs filed by a coalition of 23 attorneys general argue that the Trump administration's efforts to dismantle the Consumer Financial Protection Bureau will irreparably harm consumers in several key areas, making clear that states are preparing to fill in any enforcement gaps, say attorneys at Kelley Drye.
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Series
Adapting To Private Practice: From DOJ Leadership To BigLaw
The move from government service to private practice can feel like changing one’s identity, but as someone who has left the U.S. Department of Justice twice, I’ve learned that a successful transition requires patience, effort and the realization that the rewards of practicing law don’t come from one particular position, says Richard Donoghue at Pillsbury.
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How The CRE Industry Is Adapting To Tariff Uncertainty
Amid uncertainty about pending tariffs and their potential ripple effects, including higher material costs, supply chain delays and tighter margins, commercial real estate industry players are focusing on strategic planning and risk mitigation, says Daniel Diaz Leyva at Day Pitney.
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Series
NY Banking Brief: All The Notable Legal Updates In Q1
The most noteworthy developments from the first quarter of the year in New York financial services include newly proposed regulations on overdraft fees, a groundbreaking settlement by the state attorney general, and a potentially precedent-setting opinion regarding the Electronic Fund Transfer Act, say attorneys at Quinn Emanuel.
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Law Firm Executive Orders Create A Legal Ethics Minefield
Recent executive orders targeting BigLaw firms create ethical dilemmas — and raise the specter of civil or criminal liability — for the government attorneys tasked with implementing them and for the law firms that choose to make agreements with the administration, say attorneys at Buchalter.
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The OCC's Newly Relaxed Approach To Bank Crypto Activity
With the early March rescission of Biden-era interpretive guidance, the Office of the Comptroller of the Currency has loosened its approach to regulating national banks and federal savings associations' crypto-asset activities, possibly removing one barrier to banks engaging in such activities, say attorneys at Debevoise.
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Firms Must Embrace Alternative Billing Models Or Fall Behind
As artificial intelligence tools eliminate inefficiencies and the Big Four accounting firms enter the legal market, law firms that pivot from the entrenched billable hour model to outcomes-based pricing will see a distinct competitive advantage, says attorney William Brewer.