Banking

  • January 21, 2020

    Citibank Fined $18M Over Uninsured Flood-Prone Homes

    Citibank will pay nearly $18 million to settle a federal banking regulator's claim that it dithered in buying mandatory flood insurance for borrowers whose homes were in flood-prone areas, the regulator said Tuesday.

  • January 21, 2020

    US Bank Seeks Win On Ambac's Last Trust Insurer Claim

    U.S. Bank NA is looking for a victory on the final claim left in Ambac Assurance Corp.'s lawsuit over the bank's handling of proceeds from a mortgage-backed securities trust allegedly backed by bad Countrywide loans.

  • January 20, 2020

    Execs Invented Barclays' Favored Status With Qatar, Jury Told

    Two former Barclays executives on trial for fraud invented the concept that the bank would become a preferred provider of banking services to Qatar via a side deal to emergency fundraising launched by the lender, a Serious Fraud Office prosecutor told a jury in London on Monday.

  • January 17, 2020

    Fed's Quarles Pitches 'Transparency' Push In Supervision

    The Federal Reserve's supervisory czar said Friday that he wants to bring more clarity and predictability to the agency's oversight of banks, outlining a series of proposals including creating an online database of old rule interpretations and reining in examiners' use of regulatory warnings.

  • January 17, 2020

    Gemini Rolls Out $200M Insurance Policy For Crypto Clients

    Cameron and Tyler Winklevoss’ cryptocurrency exchange Gemini Trust Company LLC has launched its own insurance carrier to shield customers against the loss of their holdings on the company’s offline servers, with coverage of up to $200 million.

  • January 17, 2020

    Lender Curo Denies Wrongdoing In Answer To Investor Suit

    Online lender Curo is fighting back against investors' proposed securities class action accusing it of concealing the impact of an aggressive product transition on its bottom line, saying shareholders have failed to show how the company misled them.

  • January 17, 2020

    Former RBC Analyst Avoids Prison For Insider Trading

    A Manhattan federal judge on Friday allowed a former RBC Capital Markets junior analyst to avoid prison for reaping $126,000 of profit via insider trading, including trading ahead of a secret private equity deal, crediting his quick guilty plea and remorse.

  • January 17, 2020

    PR Board Says Bondholders Can't Claim Highway Money

    Puerto Rico's financial oversight board is continuing its fight with the bondholders and insurers of the island's highway authority by filing another adversary action to block their attempt to stake a claim on tax revenues for tolls and fuel.

  • January 17, 2020

    Feds Seek To Jam Revolving Door In High-Profile Cases

    Federal prosecutors are questioning whether a Skadden attorney should be disqualified from defending a former trader at JP Morgan against spoofing charges in the latest example of the U.S. Department of Justice claiming an ex-government attorney may have brought too much inside information through the revolving door.

  • January 17, 2020

    SEC Fights Bahamian Adviser's Bid To Kill Fraud Suit

    The U.S. Securities and Exchange Commission urged a Colorado federal court to keep alive its suit accusing Mediatrix Capital Inc. of defrauding investors out of millions through unregistered offerings and stolen funds, arguing that contrary to the adviser's argument, the investment funds they sold do constitute securities.

  • January 17, 2020

    Western Union Brass Accused Of Shoddy Anti-Fraud Efforts

    An investor has filed a derivative suit in Delaware Chancery Court asserting that Western Union’s officers failed for years to implement effective anti-fraud measures, resulting in the money transfer company having to pay hundreds of millions in fines and penalties.

  • January 17, 2020

    Texas Justices Won't Review Frack Co.'s Atty Malpractice Suit

    The Texas Supreme Court on Friday denied a fracking equipment leasing company's bid for the justices to review whether the business waited too long to sue an attorney who allegedly drafted a deal that effectively allowed company items to be seized.

  • January 17, 2020

    Fintech Blank-Check Co. East Stone Readies $100M IPO

    East Stone Acquisition Corp. on Friday filed to raise up to $100 million in an initial public offering, as the special purpose acquisition company looks to fund a future combination with a fintech company. 

  • January 17, 2020

    Dechert Nabs 2 Real Estate Attys From Sullivan & Worcester

    Dechert LLP has hired a pair of lawyers from Sullivan & Worcester LLP in a move that bolsters the firm's real estate financing capabilities in New York, Dechert announced this month.

  • January 17, 2020

    Citi Debuts $150M Impact Fund To Target US Private Sector

    Citi launched a $150 million impact fund that will target investments in U.S.-based private sector companies that are making a positive impact on society, the bank said Friday.

  • January 17, 2020

    BB&T Escapes Ex-Employee's FMLA Claim, For Now

    Branch Banking and Trust Co. dodged a Family Medical Leave Act claim Thursday in a wrongful termination suit brought by a former employee who had requested paternity leave, after a Texas federal judge found that the plaintiff was not actually eligible for FMLA benefits.

  • January 17, 2020

    RBS Demands £24M From Insurers Over Madoff Fraud Losses

    The Royal Bank of Scotland has taken aim at five insurers who wrote computer fraud policies for one of its subsidiaries, saying it is owed more than £24 million ($31.3 million) for losses caused by Bernard Madoff’s investment vehicle.

  • January 17, 2020

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

    The past week in London has seen a tech company sue an online football stock exchange, a number of seafood distributors and their insurers sue cargo company Maersk, and several hotels add to Visa and MasterCard's swipe-fee class action woes. Here, Law360 looks at these claims and more. 

  • January 17, 2020

    Jail Talk Was 'Shorthand' For Qatar Deal Risks, Jury Told

    A former Barclays executive accused of fraud testified Friday that his jokes about avoiding prison because of the bad food and "worse sex" while organizing a crucial cash injection from Qatar during the financial crisis were “shorthand” for ensuring the transaction was legal.

  • January 16, 2020

    Bid To Move Crypto Suit Overseas Called 'Pious' Pretense

    A motion to end a proposed federal cryptocurrency class action stateside — and move the claims to Italy — is a thinly disguised attempt to kill the allegations altogether, according to a California man who claims he lost $260,000 on a defective digital currency exchange.

  • January 16, 2020

    Pot Lobbies Urge Key Senator Not To Undermine Banking Bill

    Cannabis lobbies pressed a key Senate committee leader to back off on a suggested change to a marijuana banking bill in a letter Thursday, saying a proposed 2% cap on THC potency is a poison pill that would doom the legislation.

  • January 16, 2020

    Wells Fargo Won't Settle With Calif. Class In Mortgage Suit

    Wells Fargo told a California federal judge on Thursday that it is not open to negotiating a settlement with only a California class of mortgage borrowers who claim they were wrongfully denied a loan modification.

  • January 16, 2020

    Deal In Nationstar Mortgage Tax Suit Gets Final Approval

    A settlement between homeowners and a mortgage company formerly known as Nationstar to resolve claims of inaccurate information reporting that led to denials of tax credits has received final approval from a California federal judge.

  • January 16, 2020

    Outspoken SEC Commissioner Jackson To Leave Agency

    U.S. Securities and Exchange Commissioner Robert Jackson, who has vigorously opposed many of the agency's deregulatory moves that he considered a threat to investor protection, said Thursday he will leave office on Feb. 14 to teach at New York University School of Law.

  • January 16, 2020

    SEC Urges Justices Not To Cuff Its Disgorgement Power

    The U.S. Securities and Exchange Commission told the U.S. Supreme Court that closing off the agency's ability to obtain disgorgement in federal court cases would throw a wrench into enforcing securities law, pushing back against challengers that argue such relief strays beyond the bounds of the agency's statutory authority.

Expert Analysis

  • 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.

  • 3rd Circ. Sheds Light On Ch. 11 Liability Release Approval

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    In Millennium Lab, the Third Circuit recently upheld the Delaware bankruptcy court's authority to approve a Chapter 11 plan containing nonconsensual liability releases, offering guidance on the factors courts may consider in deciding whether to approve them, says Jane VanLare of Cleary.

  • OFAC's New Iran Sanctions May Not Signal Seismic Change

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    While President Donald Trump’s recent executive order expands the ability of the U.S. Office of Foreign Assets Control to sanction non-U.S. entities doing business with Iran, it remains to be seen whether OFAC will pursue aggressive enforcement of its strengthened secondary sanctions authority, say attorneys at Ropes & Gray.

  • Bankruptcy Ruling Signals Lenience For Student Debtors

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    A New York bankruptcy court's recent ruling in Rosenberg v. N.Y. State Higher Education Services, discharging over $200,000 of a law school grad's student loan debt, could portend a tidal change toward a more pragmatic interpretation of the Bankruptcy Code, and lead to more education loan bankruptcy filings, say attorneys at Rivkin Radler.

  • FinCEN's Most Lethal AML Weapon Against Foreign Banks

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    As the U.S. Financial Crimes Enforcement Network plans to increase its use of so-called special measures under the USA Patriot Act, it is a good bet FinCEN will focus its efforts to exile foreign banks it believes pose a money laundering threat to the U.S. financial system, says Arthur Middlemiss at Lewis Baach.