Banking

  • April 08, 2024

    Citibank Can't Dodge Liability After Escrow Theft

    A Washington state appeals court said Monday that Citibank and a predecessor lender can't avoid liability after an escrow agent allegedly embezzled nearly $1 million from a real estate company's refinancing deals, in an opinion that said the trial court failed to correctly apply controlling case law still "good" after 70 years.

  • April 08, 2024

    Mich. Regulators' Fraud Fears Are 'Nonsense,' Developer Says

    A real estate developer has told Michigan's high court that the state is raising unfounded concerns that Michigan will become a haven for fraudsters if the top court does not adopt a federal judicially created test to determine when an investment is a security, telling the justices Michigan's own securities law is controlling.

  • April 08, 2024

    Credit Reporters Falling Short On Trafficking Rule, CFPB Says

    The Consumer Financial Protection Bureau said Monday that its examiners have been seeing problems in the credit reporting industry with the accuracy and integrity of information that companies are relaying about consumers, including violations of certain recent protections for human trafficking survivors.

  • April 08, 2024

    FTC's Slaughter Defends International Cooperation

    Several federal agency leaders said Monday they are working across the government to help boost competition, as Federal Trade Commissioner Rebecca Kelly Slaughter touted the importance of cooperation on competition issues at home and abroad.

  • April 08, 2024

    Canada's High Court Enforces Award In Greek Defense Suit

    The Supreme Court of Canada has affirmed the enforcement of an arbitral award in a dispute over a contract between aircraft manufacturer Bombardier Inc. and Greece's Ministry of National Defence, saying a Canadian bank had to refuse payment to the beneficiary of a letter of credit because of fraud.

  • April 08, 2024

    Wells Fargo Knew Of Ex-Texas Atty's Fraud, Victims Claim

    Victims of a former Texas attorney's multimillion-dollar fraud urged a Lone Star State federal court on Monday to keep alive their lawsuit accusing Wells Fargo Bank NA of enabling the scheme, arguing the bank was aware the lawyer was misusing clients' money and profited from the arrangement.

  • April 08, 2024

    2nd Circ. OKs Turnover Order In HNA $185M Award Feud

    The Second Circuit on Monday affirmed an order forcing a subsidiary of Chinese conglomerate HNA Group to turn over its most valuable North American asset to an SL Green Realty Corp. affiliate owed about $185 million, following a dispute stemming from the affiliate's $148 million investment in a Manhattan skyscraper.

  • April 08, 2024

    FINRA Fines Broker-Dealer, CEO In Text Messaging Action

    Dawson James Securities Inc. and its CEO have agreed to pay the Financial Industry Regulatory Authority a combined $510,000 to end the broker watchdog's allegations that the firm failed to review thousands of business-related text messages and had an inadequate supervisory system.

  • April 08, 2024

    Goldman Investors Closer To Class Cert. In 1MDB Bribery Suit

    A proposed class of Goldman Sachs investors alleging losses from the 1MDB bond bribery scandal is one step closer to clinching class certification, with a magistrate judge recommending that a New York federal court grant partial approval to their request.

  • April 08, 2024

    3 Firms Score $885K Fee In Synchrony Investor Deal

    A Connecticut federal judge has approved $885,000 in fees and expenses for three law firms that won corporate governance changes at Synchrony Financial after investors sued the bank's leaders during an offshoot of a securities case that netted a $34 million judgment over consumer credit card practices.

  • April 08, 2024

    Catching Up With Delaware's Chancery Court

    Last week, a much-watched Chancery Court Match.com decision got reversed, a Philip Morris motion got stubbed out, and a long-frozen Blue Bell Creameries suit started churning again. Delaware's Court of Chancery also saw new suits filed for legal fees, arguments over multibillion-dollar pay packages, and a judge flummoxed over Truth Social.

  • April 08, 2024

    Plot Holes Doom JPMorgan 'Fraud' Narrative, Frank Exec Says

    The founder of a startup meant to help college students apply for financial aid said an indictment claiming she duped JPMorgan Chase & Co. into a buyout should be dismissed because it fails to identify her alleged co-conspirators or fraudulent statements.

  • April 08, 2024

    Schumer Seeks More Data, Details About Capital One Deal

    Senate Majority Leader Chuck Schumer said Monday that he has requested more information about Capital One and Discover Financial Services' planned $35.3 billion merger, including data on the interest rates they charge and details about any potential layoffs that could stem from the deal.

  • April 05, 2024

    PNC Must Face Customer's Suit, Judge Says After Fixing Error

    A federal judge in Philadelphia reissued an opinion Friday requiring PNC Bank NA to face a customer's breach of contract suit after an earlier decision mischaracterized parties involved in an alleged check-forging scheme as PNC employees.

  • April 05, 2024

    5th Circ. Blocks Biden Admin's Predatory College Loan Rule

    The Fifth Circuit has ordered a preliminary injunction blocking the Biden administration's changes to a program providing student loan forgiveness to borrowers defrauded by higher education institutions, finding that the plaintiff representing for-profit colleges demonstrated a likelihood of suffering irreparable harm without the injunction.

  • April 05, 2024

    BofA Objects To Allowing Zelle Fraud Claim To Proceed

    Bank of America took umbrage with certain recommendations a federal magistrate judge made in allowing to proceed a proposed class action over alleged fraud on the peer-to-peer payment service Zelle.

  • April 05, 2024

    Chrisley Must Pay $755K For Slandering Ga. Tax Worker

    Former reality star and convicted fraudster Michael "Todd" Chrisley must pay $755,000 in damages after a federal jury found this week that he slandered a Georgia Department of Revenue employee who played a bit role in his criminal investigation.

  • April 05, 2024

    5th Circ. Reels Back Banks' Late-Fee Rule Suit To Texas

    The Fifth Circuit on Friday ordered a return to Texas for a bank industry-backed legal challenge to the Consumer Financial Protection Bureau's $8 credit card late fee standard, throwing out a Texas federal judge's decision to send the case to D.C. federal court.

  • April 05, 2024

    UBS Beats Blockchain Co.'s Spoofing Suit, For Now

    UBS Securities LLC has, for now, escaped a suit accusing it of a so-called spoofing campaign against blockchain company Phunware's stock, with a New York federal judge saying that while Phunware has adequately alleged the spoofing scheme took place, it has failed to show how it was impacted or injured by it. 

  • April 05, 2024

    Judge Wary Of Foley & Lardner Exit Bid From SEC Suit

    A request by Foley & Lardner LLP attorneys to stop representing a Malta-based registered investment adviser in a $75 million suit by the U.S. Securities and Exchange Commission is hanging in the balance after a North Carolina federal judge expressed concerns about their exit holding up the case.

  • April 05, 2024

    Green Energy Co. Duped Investors Out Of $40M, Suit Says

    A proposed class of investors has hit a purported Chicago green energy outfit and its executives with a federal suit claiming they used promises of extravagant returns to get the plaintiffs to invest but never created any energy or produced the returns they promised. 

  • April 05, 2024

    Justices Urged To Mull Hezbollah-Tied Bank's Immunity 'Now'

    U.S. victims of terrorist attacks in Iraq warned the U.S. Supreme Court that forgoing review on whether a defunct Lebanese bank can claim sovereign immunity from allegations the bank funded Hezbollah would have negative implications on disputes involving foreign trade.

  • April 04, 2024

    CFPB's Privacy Efforts Extend Beyond Banks, Chopra Says

    The Consumer Financial Protection Bureau is looking to wield its "significant" power to crack down on data privacy abuses to tackle a range of issues that go beyond traditional banking activities, including by crafting new restrictions on data brokers' ability to amass personal data and exploring risks facing consumers in the digital gaming market, the agency's head Rohit Chopra said Thursday.

  • April 04, 2024

    CFPB Says Online Games May Pose Financial Risks To Users

    The Consumer Financial Protection Bureau said Thursday that it sees significant financial and privacy risks facing consumers in the multibillion-dollar digital gaming market and will be keeping a close eye on online game and "virtual world" business practices as these platforms become increasingly financialized.

  • April 04, 2024

    MoneyLion's Woes Draw Del. Suit Against SPAC Insiders

    Investors have sued the sponsor of a blank-check company and several of its directors and controllers in Delaware's Chancery Court, accusing them of overvaluing a merger with digital finance platform MoneyLion, which was sued by the Consumer Financial Protection Bureau in 2022.

Expert Analysis

  • Tips For CCOs Submitting Annual Compliance Reports

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    Recent settlement actions by the U.S. Commodity Futures Trading Commission, coupled with statements made by both CFTC and U.S. Securities and Exchange Commission leadership, demonstrate why this year's chief compliance officer annual report filing is no ordinary exercise, and highlight the increasing importance of the report and its usage, say attorneys at Steptoe.

  • Avoiding Jurisdictional Risks From Execs' Remote Work

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    Following a California federal court's recent decision in Evans v. Cardlytics — where the case was remanded to state court because the company’s executives worked remotely in California — there are several steps employers can take to ensure they will not be exposed to unfavored jurisdictions, says Eric Fox at Quarles & Brady.

  • Fintech 'Prenups': Planning For A Card Program Breakup

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    After a year of economic downturns, some banks and their fintech partners are realizing they may have rushed to the altar without a good prenup, but planning ahead can curb both foreseeable and unexpected issues in the event of a termination of a bank-fintech card-issuing agreement, say Andrew Grant at Ketsal and Richard Malish at Community Federal Savings Bank.

  • SEC's Final Climate Disclosure Rules: What Cos. Must Know

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    While the U.S. Securities and Exchange Commission's scaled-back final rules requiring public companies to disclose certain climate-related information still face challenges in court, companies should begin preparing now to comply with the rules, say Celia Soehner and Erin Martin at Morgan Lewis.

  • 3 Notification Pitfalls To Avoid With Arbitration Provisions

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    In Lipsett v. Popular Bank, the Second Circuit found that a bank's arbitration provision was unenforceable due to insufficient notice to a customer that he was bound by the agreement, highlighting the importance of adequate communication of arbitration provisions, and customers' options for opting out, say attorneys at Covington.

  • BIPA's Statutory Exemptions Post-Healthcare Ruling

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    The Illinois Supreme Court's November opinion in Mosby v. Ingalls Memorial Hospital, which held that the Biometric Information Privacy Act's healthcare exemption also applies when information is collected from healthcare workers, is a major win for healthcare defendants that resolves an important question of statutory interpretation, say attorneys at Quinn Emanuel.

  • 2nd Circ.'s Nine West Ruling Clarifies Safe Harbor Confusion

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    The Second Circuit’s recent ruling in Nine West’s Chapter 11 suit clarifies that courts in the circuit will apply a transfer-by-transfer analysis to determine the applicability of Section 546(e) of the Bankruptcy Code, and that to be safe harbored, a financial institution must act as an agent with respect to the specific transfer at issue, says Leonardo Trivigno at Carter Ledyard.

  • What Fed's Credit-Linked Note FAQ Means For Capital Relief

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    U.S. banks that seek to mitigate their loss of liquidity under the Basel III capital requirements by issuing direct credit-linked notes should turn to recent Federal Reserve FAQs for insight into how this new use of synthetic securitizations may reshape risk and regulation in the U.S. market, says Cris Cicala at Stinson.

  • Fintech Compliance Does Not Always Equal Bank Compliance

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    Recent enforcement actions are a reminder for banks working with financial technology providers — whether as partners to extend their reach or as internal resources to support existing operations — that few areas of risk need more frequent attention than Bank Secrecy Act and anti-money laundering compliance, says Christopher Couch at Phelps Dunbar.

  • Del. Dispatch: How Moelis Upends Stockholder Agreements

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    The Delaware Court of Chancery's Moelis decision last month upended the standard corporate practice of providing governance rights in stockholder agreements and adds to a recent line of surprising decisions holding that long-standing, common market practices violate Delaware law, say attorneys at Fried Frank.

  • Business Litigators Have A Source Of Untapped Fulfillment

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    As increasing numbers of attorneys struggle with stress and mental health issues, business litigators can find protection against burnout by remembering their important role in society — because fulfillment in one’s work isn’t just reserved for public interest lawyers, say Bennett Rawicki and Peter Bigelow at Hilgers Graben.

  • Fla. Bankruptcy Ruling Is Cautionary Tale For Debt Collectors

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    A Florida bankruptcy court recently rejected the assertion that a debt purchaser was entitled to enforce a debt not correctly listed on the debtor's bankruptcy schedules, and the sanctions imposed provide a stark reminder on due diligence in debt collection practices, say Deborah Kovsky-Apap and Stefanie Jackman at Troutman Pepper.

  • A New Push To Clear Up Marijuana's Foggy Legal Status

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    A recently publicized U.S. Food and Drug Administration recommendation to reschedule marijuana has reignited discourse over the drug's federal legal status — and although rescheduling would mitigate the legal risks for the industry and drastically increase the resources available for industry participants, the path forward will not be clear cut, say Joseph Cioffi and Louis DiLorenzo at Davis+Gilbert.

  • Series

    Skiing Makes Me A Better Lawyer

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    A lifetime of skiing has helped me develop important professional skills, and taught me that embracing challenges with a spirit of adventure can allow lawyers to push boundaries, expand their capabilities and ultimately excel in their careers, says Andrea Przybysz at Tucker Ellis.

  • How Breach Reporting Is Changing For Financial Institutions

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    In May, the Federal Trade Commission's amended Safeguards Rule will extend the data protections that apply to information held by banks to information held by nonbanking financial institutions — and sweep even more broadly in some critical aspects, say Evan Yahng and Kurt Hunt at Dinsmore.

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