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Banking
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October 31, 2024
NJ Agency Accused Of Wrongfully Firing Legal Professional
A former legal professional for the New Jersey Economic Development Authority has filed a lawsuit against her ex-employer in state court, alleging the agency discriminated against her because of her disability and wrongfully fired her during a trying time in her life.
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October 31, 2024
MVP: Paul Hastings' Morgan Bale
Morgan Bale of Paul Hastings LLP's global finance practice leads investment and commercial banks — including Bank of America, Barclays, Citi, Goldman Sachs, JPMorgan Chase & Co., Morgan Stanley and Wells Fargo — in acquisition finance and other complex multibillion-dollar lending transactions, earning him a spot as one of the 2024 Law360 Banking MVPs.
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October 31, 2024
3rd Circ Rejects Charter Co. Exec's Ineffective Counsel Claims
The co-founder and former executive of a now-defunct public air charter operator has lost a bid to escape a fraud conviction on the grounds her lawyers provided ineffective counsel in her criminal trial, with a unanimous Third Circuit panel determining the jury would not have been swayed by a different trial strategy.
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October 31, 2024
The 2024 Law360 Pulse Leaderboard
Check out the Law360 Pulse Leaderboard to see which firms made the list of leaders in all-around excellence this year.
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October 31, 2024
Firms' Hiring Strategies Are Evolving In Fight For Top Spot
Competition for top talent among elite law firms shows no signs of slowing down, even amid economic uncertainty, with financially strong firms deploying aggressive strategies to attract and retain skilled professionals to solidify their market position.
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October 31, 2024
Davis Wright Tremaine Adds Bank Regulatory Attorney In DC
A bank regulatory attorney who worked previously with the International Monetary Fund and the Federal Deposit Insurance Corp. has joined Davis Wright Tremaine LLP as a partner, the firm announced Wednesday.
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October 31, 2024
Meta Says CFPB Mulling Enforcement Action Over Advertising
Meta, the parent company of Facebook and Instagram, said Thursday that it is facing a potential Consumer Financial Protection Bureau enforcement action following an agency probe into financial-related advertising on its platform.
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October 30, 2024
CFTC's Mersinger Wants Cooperation, Self-Reporting Reforms
The Commodity Futures Trading Commission should reform its process for crediting those who self-report, cooperate and remediate in connection to enforcement proceedings, one of the agency's commissioners said Wednesday.
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October 30, 2024
PayPal Says CFPB Is Probing Its Credit Product, Digital Wallets
PayPal has disclosed that it received an investigative demand from the Consumer Financial Protection Bureau over its PayPal Credit-branded product, as well as digital wallet payment options.
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October 30, 2024
Capital One Says It Disclosed Sale Of Consumer Account Data
Capital One has urged a California federal judge to toss a proposed class action alleging that it surreptitiously disclosed the personal financial information of millions of consumers to Meta, Google, Microsoft and other third parties without consumers' consent, saying it "fully disclosed" to customers the bank's use of routine marketing and analytics software.
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October 30, 2024
Mortgage Co. Says Pension Fund Can't Jump In To Lead Suit
Rocket Companies Inc. has told a Michigan federal judge to reject a renewed class certification bid in a shareholder suit accusing the mortgage business of concealing a downturn in loan volume, arguing that the pension fund trying to take over as lead plaintiff is inadequate to represent the proposed class, among other things.
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October 30, 2024
Equifax Doesn't Report Ch. 7 Discharges, Suit Says
Credit reporting bureau Equifax was recently hit with a proposed class action accusing it of failing to note discharged debts when debtors converted their bankruptcy cases from Chapter 13 to Chapter 7.
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October 30, 2024
TD Bank Hit With Suit Over 'Cash-Like' Advance Loans
TD Bank was hit with a proposed class action accusing the bank of violating its cardholder agreement by considering undisclosed transactions "cash-like," and keeping the policies around what is considered a cash advance hidden from consumers while charging fees and interest.
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October 30, 2024
Amazon Escapes Biometric Data Suit Over Call Center Tech
Amazon Web Services Inc. beat the last remaining claim in a proposed biometric privacy class action in Delaware federal court Wednesday, with a judge saying there's no evidence the tech giant's cloud-based call center service collects customer voice data.
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October 30, 2024
Judge Embraces 'Law School Geekiness' In Ill. Swipe Fee Row
An Illinois federal judge said Wednesday that she'd be "going back to law school" to study up after hearing more than two hours of robust arguments about whether she should block a first-of-its-kind Illinois law restricting certain credit card fees, as the banking industry said at least one bank was "freaking out" over possible compliance.
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October 30, 2024
Mass. AG Seeks To Bar 'NYSE' Crypto Trading Scheme
The Massachusetts attorney general has filed a complaint attempting to shut down a cryptocurrency investment scheme that allegedly uses the acronym of the New York Stock Exchange to dupe its victims.
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October 30, 2024
Feds Say No Time Left For Nebraska Tribal Debt Claims
The Indian Health Service is asking a federal court to dismiss a challenge by a Nebraska tribe that claims the agency tried to collect millions on an already paid debt for construction of a wellness center, arguing that the lawsuit is time-barred and lacks merit.
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October 30, 2024
FTX Witness Who Saw Bankman-Fried's 'Evil' Avoids Prison
A Manhattan federal judge allowed FTX's former chief engineer to avoid prison Wednesday, crediting his trial testimony against the crypto exchange's founder Sam Bankman-Fried, his ongoing cooperation and his relatively small role in the $11.2 billion fraud.
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October 30, 2024
Canadian Lender Seeks Ch. 15 With Wind-Down Or Sale Plans
A Toronto-based specialty lender and 13 affiliates filed for Chapter 15 recognition of their Canadian insolvency proceedings on Wednesday, with Chesswood Group Ltd. blaming a rise in interest rates and U.S. regional bank failures for heavy losses that added to its over $148 million in debt.
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October 30, 2024
MVP: Sullivan & Cromwell's Mitch Eitel
Mitch Eitel has had a busy year with Sullivan & Cromwell LLP's financial services practice group — from advising UBS Group AG in a $3.2 billion takeover of Credit Suisse that was one of the most significant bank deals since the 2008 financial crisis, to advising Fulton Bank on its acquisition of failed Republic First Bank — earning him a spot among the 2024 Law360 Banking MVPs.
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October 29, 2024
Alameda Research Wants Crypto Exchange To Return $50M
Alameda Research, the crypto trading affiliate of the bankrupt FTX digital asset empire, has sued the operators of KuCoin cryptocurrency exchange in Delaware bankruptcy court seeking the return of $50 million of assets that continue to be held on the platform despite the debtors' requests.
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October 29, 2024
DOJ Will Restrict Data Swapping With 'Countries Of Concern'
The U.S. Department of Justice has proposed new rules that will make it the regulator of any type of transaction that would put certain kinds of sensitive privacy data in the hands of any "covered persons" or "country of concern."
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October 29, 2024
Wells Fargo Fights To Ax Suit Over Identify Fraud Accounts
Wells Fargo urged a California federal judge Tuesday to toss a proposed class action accusing the bank of violating the Fair Credit Report Act by accessing consumers' credit reports after fraudsters applied to open accounts with stolen information, saying Wells Fargo followed industry standards and the alleged damages are "conclusory."
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October 29, 2024
BofA Faces Scrutiny Of AML Program, Zelle Payment Handling
Bank of America Corp. disclosed Tuesday that its anti-money laundering program is a focus of ongoing "discussions" with federal regulators and said it is mulling litigation with the Consumer Financial Protection Bureau over a potential enforcement action related to digital payment network Zelle.
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October 29, 2024
Yieldstreet Investors' $9M Deal Over Risky Offerings OK'd
A New York federal judge has given his preliminary blessing to a settlement worth up to $9 million resolving a class action by Yieldstreet investors who accused the online platform of offering "riskier-than-junk-bond investments" to the public that caused the plaintiffs to lose millions of dollars in defaulted loans.
Expert Analysis
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Proposed Mortgage Assistance Rule: Tips For Servicers
The Consumer Financial Protection Bureau's recent proposal to alter Regulation X mortgage servicing procedures to broadly construe requests for assistance, and stay foreclosure proceedings during loss mitigation review, will, if finalized, require mortgage servicers to make notable procedural changes to comply, says Louis Manetti at Locke Lord.
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Antitrust In Retail: Why FTC Is Studying 'Surveillance Pricing'
The Federal Trade Commission's decision to study targeted "surveillance pricing" should provide greater clarity into the nature of the data aggregation industry, but also raises several issues, including whether these practices are in fact illegal under any established interpretations of U.S. antitrust law, say attorneys at Holland & Knight.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q3
In the third quarter of the year, California continued to be at the forefront of banking regulation as it enacted legislation on unfair banking practices and junk fees, and the state Department of Financial Protection and Innovation notably initiated enforcement actions focused on crypto-assets and student loan debt relief, say Stuart Richter and Eric Hail at Katten.
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What 2 Key Rulings Mean For Solicitation Under TCPA
Two recent rulings from federal district courts in New York and California — each of which came to a different conclusion — bring to light courts' continued focus on and analysis of when an alleged communication constitutes a solicitation under the Telephone Consumer Protection Act, say Felix Shipkevich and Jessica Livingston at Shipkevich.
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Series
NY Banking Brief: All The Notable Legal Updates In Q3
In a relatively light few months for banking legal updates in New York, the state Department of Financial Services previewed its views on banking sector artificial intelligence use via insurer guidance, and an anti-money laundering enforcement action underscored the importance of international monitoring processes, say Eric McLaughlin and Dana Bayersdorfer at Davis Polk.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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A Look At Recent Case Law On Expedited Judgment In NY
A number of recent New York state court decisions clarify and refine the contours surrounding Civil Practice Law and Rule 3213, providing landlords, lenders and other payees guidance on how to seek accelerated judgment in certain litigation, says Alexander Lycoyannis at Holland & Knight.
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Series
A Day In The In-House Life: Best Egg CLO Talks Power Of Prep
On a typical Monday in her life, Best Egg Chief Legal Officer Amy Thoreson Long chronicles a remote workday in which she makes time for everything from getting ahead on regulatory issues and researching recent Supreme Court decisions to dog walks and podcast breaks.
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Secret Service Failures Offer Lessons For Private Sector GCs
The Secret Service’s problematic response to two assassination attempts against former President Donald Trump this summer provides a crash course for general counsel on how not to handle crisis communications, says Keith Nahigian at Nahigian Strategies.
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Managing Sanctions Defense Across Multiple Jurisdictions
Companies called before multiple regulators to account for the same conduct in this era of increased global sanctions and import-control enforcement should consider national differences in law and policy, and proactively coordinate their responses in certain key areas, say attorneys at Baker McKenzie.
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Series
Colorado Banking Brief: All The Notable Legal Updates In Q3
In the third quarter of 2024, Colorado's banking and financial services sector faced both regulatory updates and changes to state law due to recent federal court decisions — with consequences for local governments, mortgage lenders, state-chartered trust companies and federally chartered lenders serving Colorado consumers, says Sarah Auchterlonie at Brownstein Hyatt.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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Series
In The CFPB Playbook: No Lazy, Hazy Days Of Summer
The Consumer Financial Protection Bureau is headed for a brisk fall season, on the heels of a heated summer, which included the U.S. Supreme Court's ruling that the CFPB funding structure is constitutional, and in advance of the November election, says Eamonn Moran at Holland & Knight.