Banking

  • October 02, 2024

    NY Man Posed As Exec To Steal $810K Tax Refund, Feds Say

    A New York man has been charged with intercepting an unnamed Connecticut investment firm's $810,337 tax refund and then impersonating an executive of the company to steal most of it.

  • October 02, 2024

    Panel Revives Fraud Suit On Merchant Cash Advance Cos.

    An Ohio state appeals court revived part of S&T Bank Inc.'s suit against more than 30 merchant cash advance companies that it accused of working with convicted fraudster Harold Sosna to help him run a check-kiting scheme that cost the bank $58 million.

  • October 02, 2024

    Wells Fargo, AAA Misrepresent Arbitration Process, Suit Says

    Wells Fargo and the American Arbitration Association have been hit with a proposed class action accusing them of colluding to fraudulently induce consumers into accepting a fundamentally unfair arbitration process, thereby giving up their right to litigate claims over allegedly unfair overdraft fees.

  • October 02, 2024

    Crypto Fund Manager Bitwise Files Plans For XRP-Tied Fund

    Crypto-focused asset manager Bitwise filed a registration statement Wednesday that proposes to list the first exchange-traded product tied to the price of XRP, a digital currency that has long faced regulatory resistance.

  • October 02, 2024

    Wells Fargo Says Atty Can't Blame It For Getting Scammed

    Wells Fargo has asked a Colorado state judge to dismiss claims brought by an attorney and conservative political figure alleging the bank failed to cancel his wire transfer from a client's account to what ended up being a scammer's Hong Kong account.

  • October 02, 2024

    4th Circ. Says Murdaugh Can't Appeal Fraud Sentence

    Former South Carolina attorney Alex Murdaugh, who is serving life in prison for murder, was denied an appeal of a separate 40-year sentence after pleading guilty to stealing at least $9 million from clients by a Fourth Circuit panel that said he'd waived his right to appeal.

  • October 02, 2024

    SEC's Top Cop Departing After Record-Breaking Tenure

    The U.S. Securities and Exchange Commission announced Wednesday that enforcement director Gurbir Grewal will be leaving the agency next week following a three-year tenure, during which the agency brought in record penalties and frequently clashed with crypto industry participants objecting to a string of lawsuits brought under Grewal's leadership.

  • October 02, 2024

    Conn. Receiver Gains Access To Apt. Co-Op's BofA Accounts

    Bank of America agreed to provide a court-appointed receiver with access to a distressed housing cooperative's bank accounts Wednesday amid efforts by the municipalities of Bridgeport and Stratford, Connecticut, to obtain a court order.

  • October 02, 2024

    Fried Frank's M&A Co-Head Views Rate Cuts, AI With Caution

    While it might be tempting to jump with joy about the Federal Reserve's recent rate cut, Philip Richter, co-head of Fried Frank's mergers and acquisitions practice, takes a more measured view. Here, Law360 talks to Richter about the rate cut, the upcoming presidential election, artificial intelligence and more.

  • October 01, 2024

    CFPB Warns On Collecting 'Invalid,' Unverified Medical Debt

    The Consumer Financial Protection Bureau on Tuesday cautioned debt collectors about significant potential compliance risks when working in the medical debt market, issuing guidance that identified a number of practices as illegal and capable of triggering "strict liability" under federal law.

  • October 01, 2024

    Merrill Lynch To Pay $2M FINRA Fine Over Trade Report Flaws

    Merrill Lynch Pierce Fenner & Smith Inc. has agreed to pay the Financial Industry Regulatory Authority $2 million to settle allegations of trade-reporting compliance shortcomings, including its alleged failure to properly trace millions of relevant retail customer transactions for over a decade.

  • October 01, 2024

    CFTC Fines Barclays, 3 Others Over Swap Rule Violations

    Barclays Bank PLC on Tuesday agreed to pay the Commodity Futures Trading Commission $4 million for swap reporting violations, and three other swaps market participants copped to reporting and safeguards violations and agreed to pay more than $2 million combined in settlements that drew criticism from one commissioner.

  • October 01, 2024

    Rocket Cos. Investors Lose Cert Bid In Post-Goldman Ruling

    A Michigan federal judge has declined to grant class status to Rocket Cos. investors suing over the company's post-pandemic loan portfolio, saying that optimistic statements about the firm's future were too generic to be relied upon in light of a recent U.S. Supreme Court ruling in Goldman Sachs' favor that dealt with a similar issue.

  • October 01, 2024

    Chancery Tosses Class Suit Over TransUnion CFPB Violations

    Observing that "imperfect compliance is not bad faith," a Delaware vice chancellor dismissed on Tuesday a stockholder derivative suit seeking damages on behalf of consumer credit reporting company TransUnion for alleged board and officer failures to comply with a Consumer Financial Protection Bureau order issued in 2017.

  • October 01, 2024

    Amex Sued By Merchants Over 'Anti-Steering' Rule

    American Express violates federal antitrust laws by effectively preventing nearly all businesses that accept credit cards from incentivizing customers to use other cards with lower fees, a proposed class action alleges.

  • October 01, 2024

    CFPB, NY Pan Subprime Auto Lender's 'Attempt To Distract'

    The Consumer Financial Protection Bureau and the state of New York have fired back at subprime auto lender Credit Acceptance Corp.'s bid to exit its predatory lending lawsuit in New York federal court, slamming its move as a Wizard of Oz-like effort to escape scrutiny "behind the curtain."

  • October 01, 2024

    Verdict Stands In Fifth Third Bank Cash Advance Suit

    An Ohio federal judge refused to override a jury's verdict that Fifth Third Bank breached its contracts with the class of borrowers who participated in its Early Access loan program, and also said he would not order a partial new trial for the borrowers after that same jury denied them damages.

  • October 01, 2024

    Willis Towers Watson Inks $632M Sale Of Tranzact To PE Firms

    Insurance company Willis Towers Watson Plc, advised by Weil Gotshal & Manges LLP, on Tuesday announced that it is divesting its direct-to-consumer insurance distribution business Tranzact and selling it to Kirkland & Ellis LLP-advised private equity firm GTCR and Willkie Farr & Gallagher LLP-led technology services investment platform Recognize for $632.4 million.

  • October 01, 2024

    Big Banks Urge Panel To Toss NJ Bond Marketing Claims

    A New Jersey state judge erred when he applied a recent change in state law to deny a bid by JPMorgan Chase & Co. and other big banks to toss a suit accusing them of a scheme to inflate the interest rates of certain bonds, the banks argued Tuesday before a state appellate panel.

  • October 01, 2024

    Estate Exaggerating Value Of Exec's Tax Tipoff, DC Circ. Told

    A Dutch bank executive's estate is "vastly" overstating the significance of his tips to the IRS in seeking a whistleblower award for his reporting of tax schemes, the U.S. government told the D.C. Circuit, urging it to uphold the U.S. Tax Court's denial of the award.

  • September 30, 2024

    AI Safety Bill Veto Shows Calif. Taking Regulatory 'Baby Steps'

    The California governor's rejection of sweeping legislation to ensure the safe deployment of large-scale artificial intelligence models — and his simultaneous embrace of more targeted proposals to regulate the technology — is likely to result in the wider creation of regimes that favor "baby steps" over broad strokes, experts say. 

  • September 30, 2024

    9th Circ. Partly Revives Crypto Investor's Suit Against AT&T

    The Ninth Circuit on Monday partially revived a cryptocurrency investor's suit accusing AT&T of failing to protect his information amid a fraudulent SIM swap that cost him $24 million, finding there to be a triable question whether AT&T gave hackers access to his proprietary information through the scheme.

  • September 30, 2024

    Zelle Fraud Victims Fight Uphill To Save Contract Breach Suit

    Zelle users urged a California federal judge Monday to rethink his tentative decision to dismiss their proposed class action alleging breach of express contract and implied covenant of good faith over Bank of America's refusal to reimburse them for fraudulent transactions, arguing the bank conducted insufficient investigations before denying their claims outright.

  • September 30, 2024

    MoneyGram Beats Investor Suit Over Anti-Fraud Compliance

    An Illinois federal judge on Monday tossed a proposed securities class action accusing MoneyGram International of lying about its anti-fraud compliance, finding that the suing investors did not adequately plead any misleading statements or that MoneyGram's executives acted with an intent to deceive.

  • September 30, 2024

    TD Securities To Pay $28M In Treasuries Spoofing Settlements

    Brokerage firm TD Securities has agreed to pay nearly $28 million to avoid prosecution and end regulatory investigations into its role in a spoofing scandal that will soon see the former head of its U.S. Treasuries trading desk brought before a jury, government officials announced Monday.

Expert Analysis

  • SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early

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    After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.

  • Cyber Incident Response Checklist For SEC Compliance

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    In light of recent guidance from the U.S. Securities and Exchange Commission, which clarified the distinction between two types of cybersecurity incident disclosures, companies should align their materiality assessment, incident response and disclosure control processes to bolster compliance and provide a measure of protection, say attorneys at Troutman Pepper.

  • 2 Rulings Serve As Conversion Fee Warnings For Banks

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    A comparison of the different outcomes in Wright v. Capital One in a Virginia federal court, and in Guerrero v. Bank of America in a North Carolina federal court, highlights how banks must be careful in describing how currency exchange fees and charges are determined in their customer agreements, say attorneys at Weiner Brodsky.

  • Expect CFPB To Enforce Warning Against 'Coercive' Fine Print

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    The recent Consumer Financial Protection Bureau warning against unenforceable terms "deceptively" slipped into the fine print of contracts will likely be challenged in court, but until then, companies should expect the agency to treat its guidance as law and must carefully scrutinize their consumer contracts, say attorneys at Ballard Spahr.

  • Loss Causation Ruling Departs From Usual Securities Cases

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    A California federal court recently dismissed Ramos v. Comerica, finding that the allegations failed to establish loss causation, but the reasoning is in tension with the pleading-stage approaches generally followed by both courts and economists in securities fraud litigation, say Jesse Jensen and Aasiya Glover at Bernstein Litowitz.

  • Playing The Odds: Probing Sports Betting Allegations

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    With gambling-related controversies becoming a mainstay of the athletics landscape, it's essential for in-house and outside counsel to stay abreast of best practices for conducting sports betting investigations, say attorneys at Steptoe.

  • Opinion

    Now More Than Ever, Lawyers Must Exhibit Professionalism

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    As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.

  • What FTX Case Taught Us About Digital Asset Recoverability

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    FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.

  • 'Outsourcing' Ruling, 5 Years On: A Warning, Not A Watershed

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    A New York federal court’s 2019 ruling in U.S. v. Connolly, holding that the government improperly outsourced an investigation to Deutsche Bank, has not undercut corporate cooperation incentives as feared — but companies should not completely ignore the lessons of the case, say Temidayo Aganga-Williams and Anna Nabutovsky at Selendy Gay.

  • Series

    Serving In The National Guard Makes Me A Better Lawyer

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    My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.

  • Big Business May Come To Rue The Post-Administrative State

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    Many have framed the U.S. Supreme Court’s recent decisions overturning Chevron deference and extending the window to challenge regulations as big wins for big business, but sand in the gears of agency rulemaking may be a double-edged sword, creating prolonged uncertainty that impedes businesses’ ability to plan for the future, says Todd Baker at Columbia University.

  • Series

    After Chevron: Impact On CFPB May Be Limited

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    The U.S. Supreme Court's decision in Loper Bright Enterprises v. Raimondo is likely to have a limited impact on the Consumer Financial Protection Bureau's regulatory activities, and for those who value due process, consistency and predictability in consumer financial services regulation, this may be a good thing, says John Coleman at Orrick.

  • A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates

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    Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.

  • Synapse Bankruptcy Has Ripple Effects For Fintech Industry

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    Synapse Financial Technologies’ recent bankruptcy filing marks a significant moment in the fintech industry's evolution, highlighting that stringent compliance and risk management in fintech partnerships are essential to mitigate risk and protect consumers, say Joann Needleman and Ryan Blumberg at Clark Hill.

  • A Checklist For Lenders Preparing For CRE Loan Defaults

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    Considering the recent interest rate environment, lenders should brush up on the proper steps that they should take when preparing to respond to a borrower's default on a commercial real estate loan, and borrowers should understand what lenders will be reviewing, says attorney Norma Williams.

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