Banking

  • February 12, 2024

    Fired Wells Fargo Exec Nabs Partial Win In Retaliation Suit

    A California magistrate judge on Monday granted a partial win to a former Wells Fargo executive who sued the bank for allegedly firing him because he was a whistleblower, rejecting arguments that the bank is preempted by a provision of the National Banking Act.

  • February 12, 2024

    BigLaw Slams Hochul Plan To Divert Client Trust Interest Cash

    A long list of BigLaw attorneys, firm leaders and legal groups have urged New York Gov. Kathy Hochul to reconsider her plan to divert $100 million in interest earned on lawyer trust accounts that typically goes toward legal aid for low-income New Yorkers, calling the move "misguided" and cautioning that it could create "an existential threat" to civil legal services.

  • February 12, 2024

    Chancery Partly Shoots Down Moelis Founder Control Suit

    Global investment bank Moelis & Co. lost much of its bid Monday for summary dismissal of a stockholder suit seeking to invalidate stockholder agreements said to have wrongly ceded board powers to company founder and CEO Kenneth Moelis, Delaware's Court of Chancery ruled late Monday.

  • February 12, 2024

    Bank Trade Chief Warns Of Rules 'Masquerading As Guidance'

    The American Bankers Association's chief executive fired off a warning shot at federal regulators on Monday over their use of agency guidance, cautioning that several recent documents addressing certain bank fees and other practices are no substitute for formal rulemaking.

  • February 12, 2024

    Debt Collector Signs $2.45M Deal In Ransomware Breach Suit

    Convergent Outsourcing will pay $2.45 million to settle a proposed class action stemming from a ransomware attack two years ago that potentially exposed the names, contact information and Social Security numbers of over 640,000 people, according to a renewed preliminary approval motion filed Friday in Washington federal court.

  • February 12, 2024

    Man Who Laundered $30M Gets 18 Years After Fiery Hearing

    An Atlanta man was sentenced to 18 years in prison Monday for his role in a $30 million money-laundering scheme following a heated two-day hearing in which he became so argumentative that the overseeing judge reminded him he'd been a lawyer longer than the man had been alive.

  • February 12, 2024

    Flagstar Takes Aim At 'Nonsensical' $3M Signature Fraud Suit

    Flagstar Bank has urged a New York federal judge to toss a cash advance lender's suit that seeks millions of dollars allegedly stolen from its account at Signature Bank years before the bank failed, saying the theory that Flagstar should be on the hook for Signature's liabilities as its acquirer is "nonsensical."

  • February 12, 2024

    NC High Court Snapshot: Philip Morris Fights Tax Credit Limit

    North Carolina's top court will return in February from an extended hiatus to weigh whether a home healthcare company was correctly ejected from the state's Medicaid program, and if regulators were right to limit state export tax credits for tobacco giant Philip Morris.

  • February 12, 2024

    Del. Justices Refuse Deutsche Bank's Vik Case Appeal

    A missed deadline has sunk Deutsche Bank's hopes for Delaware Supreme Court review of a Chancery Court ruling rejecting its midcase appeal in a long-running recovery suit targeting $50 million allegedly controlled by holdings of Norwegian billionaire investor Alexander Vik.

  • February 12, 2024

    Siblings Fail To Escape SEC's $112M Pump-And-Dump Suit

    A brother and sister named in a U.S. Securities and Exchange Commission case concerning an alleged pump-and-dump scheme that defrauded investors of $112 million failed to escape the suit after a Texas federal judge ruled that the SEC successfully showed that the siblings had at least a general awareness of their role in the scheme, among other things.

  • February 12, 2024

    Financial Services Co. Underpaid Women Execs, Ex-VP Says

    Trustly Inc. vastly underpaid female executives compared to their male colleagues in keeping with a misogynistic "tech-bro culture," according to a former vice president who claimed in a complaint filed in New Jersey federal court that she was discharged for raising concerns about the pay disparity.

  • February 12, 2024

    Lotto Scammer Impersonated SDNY Criminal Chief, Feds Say

    A Costa Rican national was charged with impersonating law enforcement officials, including the chief of the criminal division of the U.S. Attorney's Office for the Southern District of New York, as part of a scheme to trick elderly victims into wiring him millions under the false pretense that they'd won a lottery prize.

  • February 12, 2024

    Frank Execs Say JPMorgan Is Withholding Communications

    Charlie Javice and Olivier Amar, the indicted former executives of student loan startup Frank, asked a Manhattan federal judge Saturday for an extension of time to decide on raising an advice-of-counsel defense at their trial, saying they can't make a decision yet because JPMorgan is withholding discovery of their communications with Frank's general counsel.

  • February 12, 2024

    Loan Broker Defied FCRA By Sharing Financial Info, Suit Says

    Auto loan broker OpenRoad was has been hit with a proposed class action accusing it of harming customers by sharing their personal financial information with its lending partners without consent.

  • February 09, 2024

    No More Shady Trading For Ex-FBI Trainee After BigLaw Theft

    The former FBI trainee who secretly traded nonpublic information that he stole from his BigLaw associate ex-girlfriend has agreed to a civil judgment against him permanently barring him from violating securities laws, a judgment entered just months after he pled guilty to insider trading.

  • February 09, 2024

    Merrill Customer Sues Over Lax WhatsApp Supervision

    A Merrill customer has filed suit against two of the broker-dealer's branch managers for allegedly failing to supervise advisers who used WhatsApp to communicate about risky options strategies that ultimately wiped out his account.

  • February 09, 2024

    Honda Finance Arm Discloses CFPB Credit-Reporting Probe

    Honda's U.S. automotive finance arm told investors Friday that the Consumer Financial Protection Bureau is investigating its consumer credit-reporting practices.

  • February 09, 2024

    2nd Circ. Won't Revive Credit Suisse Delisted Trade Note Suit

    The Second Circuit declined on Friday to revive a proposed class action accusing Credit Suisse of causing retail investors substantial losses by delisting a popular exchange-traded note, saying the bank gave adequate warnings of the risks investors faced and cautioned them against holding the note for more than a day, among other things.

  • February 09, 2024

    SEC's 'Orwellian' Trade Database Is Unlawful, 11th Circ. Told

    Citadel Securities LLC and the American Securities Association have laid out their objections to a U.S. Securities and Exchange Commission directive that requires brokerage firms to fund the buildup of a database known as the consolidated audit trail, telling the Eleventh Circuit that the tool created an "Orwellian surveillance regime" that puts American investors at risk of being hacked.

  • February 09, 2024

    Seattle YWCA Says BNY Mellon Mismanaged $20M Fund

    A Seattle-area chapter of the nonprofit Young Women's Christian Association has sued BNY Mellon alleging the bank's mismanagement of an investment portfolio caused $1.4 million in losses for the organization.

  • February 09, 2024

    2nd Circ. Revives Investors' Mexican Bond-Rigging Claims

    The Second Circuit on Friday reinstated U.S. investor claims accusing major banks of a yearslong collusion to rig Mexican government bond prices, saying a New York district court wrongly found it didn't have jurisdiction over the matter.

  • February 09, 2024

    Apartment Sellers Didn't 'Cook' The Books, Mich. Panel Rules

    A lender stuck with a failed $19 million student apartment deal can't blame the seller for trying to entice them into a bad deal because the original buyers ignored red flags about the property and went ahead anyway, a Michigan appellate panel has ruled. 

  • February 09, 2024

    NY AG Wins $77M Judgment For Predatory Lending Suit

    New York Attorney General Letitia James has secured a $77 million judgment against three merchant cash advance companies and their principals accused of harming small businesses through high-interest loans and undisclosed fees.

  • February 09, 2024

    FCRA Immunity Waiver Ruling Tees Up Compliance Frenzy

    A U.S. Supreme Court ruling that the Fair Credit Reporting Act waives federal agencies' immunity from lawsuits will not only open the door to more litigation against government lenders but may also trigger housecleaning to ensure that debts are correctly reported, experts told Law360.

  • February 09, 2024

    Jordan Calls For Investigation Into DOJ's Deal With IRS Leaker

    House Judiciary Committee Chairman Jim Jordan is investigating whether federal prosecutors were politically motivated to allow the former IRS contractor who leaked former President Donald Trump's tax returns to plead guilty to a single count of illegal disclosure, calling the arrangement "a sweetheart deal."

Expert Analysis

  • In The World Of Legal Ethics, 10 Trends To Note From 2023

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    Lucian Pera at Adams and Reese and Trisha Rich at Holland & Knight identify the top legal ethics trends from 2023 — including issues related to hot documents, artificial intelligence and cybersecurity — that lawyers should be aware of to put their best foot forward.

  • Strategies For Wire Fraud Prevention As Risk Is On The Rise

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    Wire transfer fraud is increasingly affecting investment managers, nonbank fintech companies and their clients, but there are steps financial institutions can take to mitigate this increasing risk, like testing cybersecurity effectiveness and sending fake phishing emails, says Casey Jennings at Seward & Kissel.

  • Fed's New Swipe At Debit Fees Stirs Up Dilemma For Banks

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    The Federal Reserve's proposal to reduce the cap on debit card interchange fees charged or received by card issuers and payment networks comes as other bank account fees are taking regulatory hits, which could all culminate in an overall decline in access to banking products and services, says Kristen Larson at Ballard Spahr.

  • SEC, NY Cybersecurity Rules Create Complexity For Insurers

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    Two separate cybersecurity rules recently adopted by the New York Department of Financial Services and the U.S. Securities and Exchange Commission pose distinct challenges for insurance industry participants, with important interactions, and potential tensions, for those required to comply with both frameworks, say attorneys at Debevoise.

  • How Attorneys Can Be More Efficient This Holiday Season

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    Attorneys should consider a few key tips to speed up their work during the holidays so they can join the festivities — from streamlining the document review process to creating similar folder structures, says Bennett Rawicki at Hilgers Graben.

  • Top 10 Whistleblowing And Retaliation Events Of 2023

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    The U.S. Securities and Exchange Commission and federal and state courts made 2023 another groundbreaking year for whistleblower litigation and retaliation developments, including the SEC’s massive whistleblower awards, which are likely to continue into 2024 and further incentivize individuals to submit tips, say attorneys at Proskauer.

  • A Look At FedNow Liability Allocation And A 4th Circ. Toss-Up

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    Dsu-Wei Yuen and Andrew Lorentz at Davis Wright break down the current legal requirements that are directly applicable to common electronic payment systems like FedNow and Automated Clearing House and how they could be affected by a decision in Studco v. 1st Advantage Credit Union, currently on appeal in the Fourth Circuit.

  • Series

    Children's Book Writing Makes Me A Better Lawyer

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    Becoming a children's book author has opened doors to incredible new experiences of which I barely dared to dream, but the process has also changed my life by serving as a reminder that strong writing, networking and public speaking skills are hugely beneficial to a legal career, says Shaunna Bailey at Sheppard Mullin.

  • The State Of CFPB Focus On Credit Reporting Of Medical Debt

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    An increase in credit reporting complaints and the Consumer Financial Protection Bureau's recent annual report on the Fair Debt Collection Practices Act — which focuses on medical debt in credit reporting — are both evidence of the fact that the bureau will continue to prioritize oversight of credit reporting of medical debt, says Kristen Watson at Burr & Forman.

  • Parsing 2023's Energy Markets Enforcement

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    A review of the Federal Energy Regulatory Commission's and Commodity Futures Trading Commission's recently released fiscal year 2023 enforcement reports highlight the significant energy market enforcement activities, litigation pursued and settlements reached by both agencies, as well as their respective strategic goals and focus areas, say attorneys at Morgan Lewis.

  • A Review Of 2023's Most Notable Securities Litigation

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    There is much to be learned from the most prominent private securities cases of 2023, specifically the Tesla trial, the U.S. Supreme Court's Slack decision and the resolution of Goldman Sachs litigation, but one lesson running through all of them is that there can be rewards at the end of the line for defendants willing to go the distance, say attorneys at Fried Frank.

  • ESG Investing Caught In Culture War Crosshairs In 2023

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    As 2023 draws to a close, ESG investing remains a raging battleground in the U.S. culture wars, as illustrated by the array of legislative efforts across the country aimed variously at restricting or promoting the use of ESG investing — but it remains to be seen what practical impact, if any, these laws will have, say Amy Roy and Robert Skinner at Ropes & Gray.

  • 4 Key Ways CFIUS Affected Private Equity In 2023

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    Sponsors and investment professionals should note how escalated enforcement by the Committee on Foreign Investment in the United States in 2023 affected private equity deal making and evaluate their CFIUS-related procedures in preparation for the regulator's reach to expand further next year, say attorneys at Kirkland.

  • 3 FinCEN Fraud Alerts To Remember In 2024

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    With financial fraud now the largest source of illicit proceeds in the U.S., banks should review this year's key Financial Crimes Enforcement Network alerts to ensure their employees know the warning signs of three types of rising scams and understand how to effectively report suspicious activity, says Memrie Fortenberry at Jones Walker.

  • How Clients May Use AI To Monitor Attorneys

    Excerpt from Practical Guidance
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    Artificial intelligence tools will increasingly enable clients to monitor and evaluate their counsel’s activities, so attorneys must clearly define the terms of engagement and likewise take advantage of the efficiencies offered by AI, says Ronald Levine at Herrick Feinstein.

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