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Banking
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November 27, 2024
Ga. CPA Must Pay SEC $850K For Ponzi Scheme Role
An Atlanta certified public accountant accused of serving as a front man for a convicted former Oppenheimer & Co. adviser's $110 million Ponzi scheme was hit with a money judgment of more than $854,000 by a Georgia federal judge.
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November 27, 2024
Conn. High Court Snapshot: Bank Regulation, Workers' Comp
When it convenes for the third term of the season, the Connecticut Supreme Court will hear cases that could affect the scope of the state banking department's authority to determine its own jurisdiction and clarify a workers' compensation benefits law.
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November 27, 2024
WSFS Sues Sign-Maker After Letter Falls From Philly Rooftop
Wilmington Savings Fund Society FSB is suing the manufacturer and installer of logo signs placed at the top of buildings in Philadelphia, Pennsylvania and Wilmington, Delaware, alleging breach of contract and professional negligence claims after a large portion of the 'W' on its Philly building broke off and fell 40 stories to the ground.
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November 27, 2024
SEC Exempts More Debt Securities From New Trading Rules
The U.S. Securities and Exchange Commission is relieving broker-dealers who quote unlisted stocks from increased information-gathering requirements that would have also applied to many fixed-income securities, a development attorneys say will prove welcome for debt issuers.
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November 27, 2024
Ballard Spahr Hires Fintech Assistant GC In Atlanta
Ballard Spahr LLP has brought on the assistant general counsel for financial technology company Fidelity National Information Services Inc. to its Atlanta office, strengthening its intellectual property litigation focus with an attorney who has litigated patents extensively.
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November 26, 2024
King & Spalding Partner Selected As Trump's Trade Rep
President-elect Donald Trump on Tuesday announced that King & Spalding LLP international trade partner Jamieson L. Greer was his pick for U.S. trade representative, noting that Greer played a "key role" in imposing tariffs on China during Trump's first term.
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November 26, 2024
Developer Accuses Fla. Attys Of 'Fraudulent Billing' Scheme
A real estate developer embroiled in a dispute with Conrad & Scherer LLP over unpaid legal fees has filed a new lawsuit against two of the firm's partners, claiming they operated a "bait and switch" scheme to overbill him for their work in litigation over a loan to finance construction of a $76 million Aspen home.
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November 26, 2024
Bulgarian Co. Says Fight Over $7M Can't Go To Arbitration
A Bulgarian contractor has asked an Illinois federal court not to pause a local bank's litigation seeking to determine the proper owner of $7 million it's holding in escrow related to a dispute over a natural gas construction project, saying a parallel arbitration proceeding is irrelevant.
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November 26, 2024
Mexican Lender Seeks US Recognition Of UK Reorg
The England and Wales-based subsidiary of a Mexican industrial equipment leasing and financing group has asked a New York bankruptcy court to grant Chapter 15 recognition of insolvency proceedings it launched in the U.K. to deal with about $351 million of debt.
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November 26, 2024
Customers Sue Fintech Partner Banks After Processor Failure
Five banks holding funds for customers of fintech platforms face proposed class action claims of gross mismanagement after "significant ledger irregularities" totaling $85 million were discovered in the wake of an intermediary software company's bankruptcy.
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November 26, 2024
Wells Fargo Dodges 2nd Circ. Rehearing In $500M Plunge Suit
The Second Circuit has rejected a rehearing bid by two investors seeking to revive their proposed class action accusing Wells Fargo Securities LLC of causing a Chicago fund manager lose at least $500 million by wrongfully forcing the liquidation of its mutual fund and other investments.
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November 26, 2024
5th Circ. Says CFPB Payday Rule Can Take Effect Next Year
The Fifth Circuit said Monday that the Consumer Financial Protection Bureau can begin requiring compliance with its payday lending rule in just a few months as planned, sidestepping a request from lender trade groups to keep a court-ordered stay in place for longer.
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November 26, 2024
BofA Blames ID Fraudsters For Fake Accounts Behind Suit
Bank of America told a North Carolina federal court that third-party identity theft is to blame for the alleged fake accounts that prompted proposed class claims, and cited Wells Fargo's escape from a similar suit as a reason to toss the case.
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November 26, 2024
California's Top Bank, Fintech Regulator To Exit At Year's End
The top banking and fintech regulator for California is departing from the state's Department of Financial Protection and Innovation in a little more than a month, an agency spokesperson told Law360 on Tuesday.
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November 26, 2024
Mexico Floats Retaliation Against New Trump Tariffs
Hours after President-elect Donald Trump threatened new tariffs on China, Canada and Mexico, Mexican President Claudia Sheinbaum signaled that her government would respond with levies of its own Tuesday, imploring Trump to take a more diplomatic approach.
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November 26, 2024
Ropes & Gray Atty Is Kirkland's Latest Debt Finance Hire
Kirkland & Ellis LLP announced the latest of several recent additions to its debt finance group on Monday, a Ropes & Gray LLP partner with a host of multibillion-dollar deals under his belt.
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November 26, 2024
Retirees Fight For Class Cert. In US Bancorp Benefits Suit
Three U.S. Bancorp retirees urged a Minnesota federal judge to certify a 2,300-member class action claiming the bank holding company shorted them on early retirement benefits, arguing that the institution's contentions with its expert's analysis of the pension plan shouldn't block certification.
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November 25, 2024
Trump Vows Tariffs For Canada, Mexico, China On Day One
President-elect Donald Trump announced on social media Monday that he will implement steep tariffs on America's allies Canada and Mexico, as well as China, immediately after taking the oath of office on Inauguration Day.
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November 25, 2024
Geico, Travelers To Pay NY $11.3M To Settle Data Security Row
New York's financial services regulator and attorney general revealed Monday that they've hit Geico and Travelers with $11.3 million in penalties for the auto insurers' alleged failure to adequately secure driver's license numbers, birth dates and other personal information that was compromised as part of a hacking campaign targeting online rate quote tools.
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November 25, 2024
'Shameful': Dems Rip Credit Bureaus Over Scrapped Hearing
Democratic senators on Monday lit into the Big Three credit bureaus for allegedly backing out of preelection commitments to testify last week before the Senate Banking Committee, calling the move "shortsighted and shameful."
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November 25, 2024
Fla. Man Wants New Trial Over $1M Cash-To-Bitcoin Scheme
A financial services provider convicted of facilitating fraud through $1 million worth of cash-to-bitcoin conversions told a Boston federal judge he deserves a new trial, saying the exclusion of a key expert hamstrung his defense.
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November 25, 2024
Credit Bureaus Freed From VantageScore Antitrust Suit
An Illinois federal judge has ruled there is no evidence the three major credit bureaus conspired with the Fair Isaac Corporation to engage in a monopoly, reasoning there was no impetus for them to do so, but also found that credit score buyers sufficiently backed some of their antitrust claims against FICO.
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November 25, 2024
Colo. Law Could Imperil Dual Banking System, 10th Circ. Told
Texas, Utah and other Republican-led states have joined industry calls for the Tenth Circuit to affirm a court-ordered hold on a Colorado law targeting higher-cost online lending, warning the measure could lead to the unraveling of the dual banking system.
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November 25, 2024
TMX Moves For Emergency Block On $52M Pa. Fine Hearing
An affiliate of TMX Finance asked a Texas federal court to pause Pennsylvania regulators' efforts to enforce the state's anti-usury laws against it, claiming it faced a "Hobson's choice" of responding to an enforcement proceeding whose legality was being questioned, or waiving its arguments and facing a $52.7 million fine.
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November 25, 2024
Calif. Board Seeks Comment On AI Rules Amid Pushback
The California Privacy Protection Agency on Friday opened the public comment period for its latest rulemaking package proposing expansive draft rules regulating technologies fueled by artificial intelligence — including in the employment, education, healthcare, consumer protection, banking and insurance contexts — which business groups have already criticized as being overly broad and burdensome.
Expert Analysis
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Missouri Injunction A Setback For State Anti-ESG Rules
A Missouri federal court’s recent order enjoining the state’s anti-ESG rules comes amid actions by state legislatures to revise or invalidate similar legislation imposing disclosure and consent requirements around environmental, social and governance investing, and could be a blueprint for future challenges, say attorneys at Paul Hastings.
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3 Patent Considerations For America's New Quantum Hub
Recent developments signal an incredibly bright future for Chicago as the new home of quantum computing, and it is crucial that these innovators — whose technology has the potential to transform many industries — prioritize intellectual property strategy, says Andrew Velzen at McDonnell Boehnen.
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Navigating A Potpourri Of Possible Transparency Act Pitfalls
Despite the Financial Crimes Enforcement Network's continued release of guidance for complying with the Corporate Transparency Act, its interpretation remains in flux, making it important for companies to understand potentially problematic areas of ambiguity in the practical application of the law, say attorneys at Sidley.
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A Preview Of AI Priorities Under The Next President
For the first time in a presidential election, both of the leading candidates and their parties have been vocal about artificial intelligence policy, offering clues on the future of regulation as AI continues to advance and congressional action continues to stall, say attorneys at Mintz.
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How Companies Are Approaching Insider Trading Policies
An analysis of insider trading policies recently disclosed by 49 S&P 500 companies under a new U.S. Securities and Exchange Commission rule reveals that while specific provisions vary from company to company, certain common themes are emerging, say attorneys at Gibson Dunn.
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What To Know About CFPB Stance On Confidentiality Terms
A recent circular from the Consumer Financial Protection Bureau represents a growing effort across government agencies to address overbroad confidentiality agreements, and gives employers insight into the bureau's perspective on the issue as it relates to the Consumer Financial Protection Act, say Holly Williamson and Elizabeth King at Hunton.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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What's Next For Federal Preemption In Financial Services
The Office of the Comptroller of the Currency's review of its preemption interpretations and growing pressure from state regulators signal potential changes ahead for preemption in U.S. financial services, and the path forward will likely involve a reevaluation of the entire framework, say attorneys at Clark Hill.
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Unpacking Jurisdiction Issues In 3rd Circ. Arbitration Ruling
The Third Circuit's recent ruling in George v. Rushmore Service Center could be interpreted to establish three principles regarding district courts' jurisdiction to enter arbitration-related orders under the Federal Arbitration Act, two of which may lead to confusion, says David Cinotti at Pashman Stein.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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'Pig Butchering': The Scam That Exploits Crypto Confusion
Certain red flags can tip off banks to possible "pig-butchering," and with the scam's increasing popularity, financial institutions need to take action to monitor entry points into the crypto space, detect suspicious activity and provide a necessary backstop to protect customers, say Brandon Essig and Mary Parrish McCracken at Lightfoot Franklin.
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Opinion
Agencies Should Reward Corporate Cyber Victim Cooperation
The increased regulatory scrutiny on corporate victims of cyberattacks — exemplified by the U.S. Securities and Exchange Commission's case against SolarWinds — should be replaced with a new model that provides adequate incentives for companies to come forward proactively and collaborate with law enforcement, say attorneys at McDermott.
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9 Liability Management Tips As Debt Maturity Cliff Looms
As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.
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How Transaction Lookbacks Can Guide Fintech Companies
As transaction lookbacks continue to be a key focus of enforcement actions, newer financial institutions like fintech companies should know they can benefit from proactively investigating their potential failure to identify suspicious activity, creating a compliance road map and building trust with regulators in the process, say attorneys at Jenner & Block.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.