Banking

  • October 14, 2019

    Barclays Exec 'Fretted' Qatar Fees Looked Like Bribe

    A former Barclays executive told in-house lawyers he was worried that a secret payment to Qatar to secure an investment as part of an emergency fundraising during the financial crisis would be seen as a bribe, prosecutors said at a London fraud trial Monday.

  • October 11, 2019

    Bear Stearns, Reed Smith Settle $500M Malpractice Suit

    Two now-defunct Bear Stearns investment funds have agreed to end a malpractice suit in New York court accusing Reed Smith LLP of bungling its representation of the funds to the tune of half a billion dollars during a suit against ratings agencies.

  • October 11, 2019

    New CFPB 'Task Force' To Review Consumer Financial Law

    The Consumer Financial Protection Bureau said it's putting together a "task force" to conduct a wide-ranging survey of the consumer financial regulatory landscape and recommend improvements, a project that some consumer advocates worry could just wind up providing cover for industry-friendly rule changes.

  • October 11, 2019

    Look Beyond Crypto Labels, SEC, CFTC And FinCEN Warn

    A trio of federal financial regulators released a joint statement on Friday urging anyone dealing with digital currencies to ensure they are adhering to obligations under anti-money laundering and countering the financing of terrorism regulations, regardless of what those digital assets are called.

  • October 11, 2019

    Feds Call Ex-Deutsche Traders 'Emblematic' Of Banking Ills

    Federal prosecutors say two former Deutsche Bank traders’ deserve substantial prison time for Libor rigging as a crime “emblematic” of big banks’ bad behavior, while the traders argue that they had already suffered enough as two of the few to be prosecuted over the international scandal.

  • October 11, 2019

    Boustani Heads To Trial In $2B Mozambique Fraud Case

    The long-awaited trial of Privinvest executive Jean Boustani over his role in a securities fraud, bribery and kickback scheme involving $2 billion in Mozambican government loans is scheduled to commence on Tuesday.

  • October 11, 2019

    CVR Loses Bid To Reignite Malpractice Fight With Wachtell

    A New York federal judge axed CVR Energy Inc.’s malpractice suit against Wachtell Lipton Rosen & Katz on Wednesday and said the oil company’s request to retool its complaint “blatantly disregards” an earlier order that limited the scope of revisions CVR was already allowed to make.

  • October 11, 2019

    DC Circ. Presses SEC To Justify Exchange Fee Program

    The D.C. Circuit on Friday seemed skeptical that the U.S. Securities and Exchange Commission had identified an existing problem warranting a two-year pilot program that could cap the fees major exchanges receive.

  • October 11, 2019

    OCC Fines Citibank $30M Over Foreclosed Property Handling

    Citibank NA has been fined $30 million by the Office of the Comptroller of the Currency for what the agency said were violations related to rules on how long banks can hold foreclosed property, also known as “other real estate owned,” or OREO.

  • October 11, 2019

    Chicago's Ex-Chief Judge Turns To 'Unfinished Business'

    After 25 years on the federal bench in Chicago, former Chief U.S. District Judge Rubén Castillo is returning to private practice as a man with a mission, ready to tackle "unfinished business."

  • October 11, 2019

    NY Judge Charged With Obstructing Credit Union Probe

    A Brooklyn state court judge was arrested Friday on charges of obstructing Manhattan federal prosecutors' probe into corruption at Municipal Credit Union, while an ex-cop was charged with embezzling from the credit union and peddling pills to its convicted CEO.

  • October 11, 2019

    Terrorism Aid Claims Are Too Late, Standard Chartered Says

    Standard Chartered Bank on Thursday urged a New York federal judge not to revive a lawsuit alleging the bank knowingly helped terrorists, arguing that the military families and veterans who made the claims did so too late and hadn't shown the bank did anything wrong.

  • October 11, 2019

    Visa, MasterCard, EBay Drop Out Of Libra Association

    MasterCard, eBay and Visa confirmed to Law360 on Friday that they won't be joining the Facebook-led Libra digital currency project, a move that comes one week after PayPal announced it was ending its involvement.

  • October 11, 2019

    US, China Reach Truce To Delay Next Tariff Wave

    The Trump administration will hold off on raising tariffs against Chinese goods, according to a Friday announcement that marks a moment of conciliation in the sprawling trade conflict that has enveloped the two nations for over a year.

  • October 11, 2019

    Reed Smith Nabs Ex-Morrison & Foerster Capital Markets Atty

    Reed Smith LLP has added a capital markets attorney from Morrison & Foerster LLP as a partner in its global corporate practice in New York.

  • October 11, 2019

    Ballard Spahr Brings Back Ex-Fannie Mae Public Finance Atty

    Ballard Spahr LLP has welcomed back a public finance attorney after his two-year stint at Fannie Mae, saying his experience with low-income tax credits and affordable multifamily housing development are a key addition to the firm’s public finance group.

  • October 11, 2019

    Biotech, Bank Raise Combined $276M In Low-Priced IPOs

    Drug developer Vir Biotechnology Inc. and Chicago-area bank HBT Financial Inc. made their debuts in public markets Friday after raising nearly $276 million combined in initial public offerings that priced at the bottom of their ranges, capping off a mild week for IPOs.

  • October 11, 2019

    9 Months For Ex-Accountant Who Leaked Secrets To KPMG

    A Manhattan federal judge hit former Public Company Accounting Oversight Board accountant Jeffrey Wada with nine months in prison Friday for passing inspection secrets from the financial watchdog to KPMG, calling him a “crucial” component of an illegal scheme that led to six convictions.

  • October 11, 2019

    Congress Looks To Expand Financial Whistleblower Definition

    Congress seems poised to broaden the relatively narrow definition of whistleblower as it pertains to reporting violations of securities laws that was laid out by the U.S. Supreme Court last year, a development attorneys say would benefit potential whistleblowers and their employers alike.

  • October 11, 2019

    EY Hires Former Microsoft Tax Atty With Treasury Experience

    A former tax counsel with Microsoft has joined EY as a principal in its tax controversy practice, bringing experience in audits and transfer pricing matters, as well as in-house work with Treasury, the firm recently announced.

  • October 11, 2019

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

    The past week has seen asset manager BlueCrest drag a U.S. hedge fund into court following its expansion into the U.K., a City watchdog sue a Panamanian connected to an illegal land sale scheme and a Hong Kong food distributor file suit against shipping giant MSC. Here, Law360 looks at those and other new claims in the U.K.

  • October 11, 2019

    Ex-Barclays Execs Faked Paper Trail To Hide Fraud, Jury Told

    Barclays executives who conspired to pay £322 million ($396 million) in secret fees to secure capital from Qatar during the financial crisis created a fake “audit trail” to cover their tracks, prosecutors told a London jury Friday during the bankers’ fraud trial.

  • October 10, 2019

    Ex-Locke Lord Atty Denies New Charge In $400M Crypto Case

    A former Locke Lord LLP attorney accused of laundering money in connection with an alleged $400 million cryptocurrency scam on Thursday pled not guilty to a new indictment that further charged him with bank fraud.

  • October 10, 2019

    Fed Wraps Up Work On Revamped Big Bank Rules

    The Federal Reserve on Thursday finalized a revamped framework of capital, liquidity and stress-testing standards for large U.S. and foreign banks, completing a major effort to “tailor” post-crisis financial rules in the wake of last year’s banking regulatory relief bill.

  • October 10, 2019

    State Bank Supervisors Seek Input On Model Payments Law

    The Conference of State Bank Supervisors has asked the payments industry to weigh in on proposed model legislation that could drive the standardization of state money transmission laws, the consortium of banking regulators said in a statement Thursday.

Expert Analysis

  • How Emotionally Intelligent AI Could Assist With E-Discovery

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    While artificial intelligence has already revolutionized the e-discovery field, the development of emotionally intelligent AI promises to explore data in an even more nuanced and human way, thereby further reducing the burden on legal teams, say Lisa Prowse and Brian Schrader at e-discovery services provider BIA.

  • FinCEN 'Travel Rule' Update Sets Challenges For Crypto Cos.

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    It is unclear how the virtual currency sector will find a practical way to comply with the recent expansion of the Financial Crimes Enforcement Network regulation known as the travel rule, but any solution is likely to have both unintended consequences and unintended benefits, say attorneys with King & Spalding.

  • Sports Gambling Compliance: Big Money Worth The Wager

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    As America teeters on the edge of a sports betting revolution, both prudent betting operators and the banks they use should roll out tailored compliance programs that effectively manage reputational, regulatory and business risks to avoid civil or criminal penalties, say attorneys at Cadwalader.

  • Revising Cloud Contracts In Light Of Capital One Cyberattack

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    In 2019, there have been 3,494 cyberattacks against financial institutions, including, most notably, Capital One. Until regulatory action is taken, financial institutions, which are on their own when it comes to addressing potential cloud service risks, should incorporate liability and security provisions into cloud service contracts, say Nicholas Smith and Rita Ganguli of Milbank.

  • 2nd Circ. Ruling May Cause Int'l Discovery Flurry In NY

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    The Second Circuit's recent Section 1782 decision in Application of Antonio Del Valle Ruiz could be particularly burdensome for New York–based offices of multinational companies, which may now be compelled to produce documents located abroad despite not being involved in any domestic litigation, say attorneys at Ropes & Gray.

  • Preventable Risks Your Law Firm May Be Overlooking

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    Although most lawyers are well-prepared to defend or justify the value of an insurance claim for clients, often law firms have not clearly identified their own potential liabilities, planned for adequate insurance or established prudent internal risk management practices, says Victor Sordillo at Sompo International.

  • 6 Ethics Tips For Attorneys Making Lateral Transfers

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    With lateral transfers between law firms on the rise, it is more important than ever for partners to understand the steps they must take to adhere to ethics rules and other requirements when making a transition, say attorneys at Harris Wiltshire.

  • CFPB Abusiveness Claims Aren't Dead Yet

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    Initially, it appeared that Consumer Financial Protection Bureau Director Kathy Kraninger would avoid abusiveness claims, but a recent supervisory finding and an enforcement action alleging a mortgage relief services provider misled consumers suggest that Kraninger will not be shy about using the agency’s abusiveness authority, says Ori Lev at Mayer Brown.

  • Fraud As An Operational Risk For Banks

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    For banks, an effective approach to preventing, detecting and resolving fraud is one that focuses on the objectives of recent publications from the Office of the Comptroller of the Currency and is appropriately integrated into the bank’s risk management system, say Neil Bloomfield and Kristina Whittaker at Moore & Van Allen.

  • The Ins And Outs Of SEC's Expanded 'Test The Waters' Rule

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    The U.S. Securities and Exchange Commission’s recent expansion of permissible prefiling communications between issuers and certain potential investors may allow issuers to be in a better position to gauge interest in the market in a cost-effective manner, say attorneys at Debevoise.

  • Email Notice Lessons From 7th Circ. Debt Collection Ruling

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    The Seventh Circuit's decision in Lavallee v. Med-1 doesn't mean that debt validation notices can’t be sent through email, and it’s unlikely to affect the Consumer Financial Protection Bureau’s proposed debt collection rule, but it does make clear that collectors must be careful when using electronic communications, say John Redding and Marshall Bell at Buckley.

  • Regulatory Scrutiny Exposes Crypto Oversight Challenges

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    A recent U.S. House Committee on Financial Services hearing highlights the lack of clarity on cryptocurrencies' legal obligations, as well as potentially shifting expectations as legislators and regulators consider how to oversee cryptocurrencies as a consumer financial product, say Duane Pozza and Antonio Reynolds at Wiley Rein.

  • 5 Steps Toward Broker Conduct Rule Compliance

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    As the June 30 deadline to comply with the U.S. Securities and Exchange Commission's Regulation Best Interest approaches, broker-dealers must start translating their implementation strategies into concrete actions, say attorneys at Eversheds Sutherland.

  • Consider The Power Of Tactical Empathy

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    By employing tactical empathy techniques to understand the interests behind the positions taken by others, attorneys can gain the upper hand in deal negotiations and litigation while still promoting and preserving long-term relationships with opponents, judges and others, say Shermin Kruse of TEDxYouth@Wrigleyville and Ursula Taylor of Strategic Health.

  • Post-Libor Rate Comes With Interest Accrual Concerns

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    The way the Alternative Reference Rates Committee calculates interest for its proposed backup successor to Libor results in an accrual hybrid that is analytically problematic in its suspension of compounding on nonbusiness days, says Thomas Volet at Moses & Singer.