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Banking
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November 12, 2024
Ex-FDIC Head Urges Banks To 'Push Back' Against Examiners
A former top Trump banking regulator on Tuesday called for bank executives to show "backbone" and push back when they are challenged with bad exam findings from their regulators, urging resistance as an antidote to perceived excesses in bank oversight.
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November 12, 2024
Trump Taps Elon Musk To Head New 'Gov't Efficiency' Dept.
President-elect Donald Trump announced Tuesday that billionaire Elon Musk and former presidential candidate Vivek Ramaswamy will lead a newly created "Department in Government Efficiency" for his administration come January.
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November 12, 2024
Merrill Lynch Disfavors Black And Female Advisers, Suit Says
Two longtime Merrill Lynch financial advisers have filed a proposed class action against Bank of America and its subsidiary Merrill Lynch alleging the firms' policies systematically discriminate against African American and female advisers by favoring white male colleagues in teaming and account distribution practices.
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November 12, 2024
5th Circ. Won't Reopen CFPB Payday Rule Fight
The Fifth Circuit on Tuesday denied a bid from a lender to reopen an industry legal challenge to the Consumer Financial Protection Bureau's payday loan rule that previously foundered at the U.S. Supreme Court, clearing the way for the rule to take effect.
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November 12, 2024
Businessman Blames Dentons For Failed $54M Currency Swap
A Venezuelan businessman involved in a $54 million bolivar-to-dollars currency swap told a Miami jury on Tuesday that a former Dentons US LLP attorney told him several times that he needed to deposit more bolivars to meet a threshold minimum in order to receive U.S. dollars, but those promises never materialized.
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November 12, 2024
Ex-Capital One Workers Lodge $43M 401(k) Forfeiture Suit
A group of former Capital One employees has brought a proposed class action in New York federal court accusing the financial institution and its top brass of improperly using $42.65 million in forfeited employee funds that were paid into the company's retirement plan to reduce its own contributions to the plan.
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November 12, 2024
Visa To Fight Market Definition In DOJ Antitrust Case
Attorneys for Visa told a New York federal judge on Tuesday that the company plans to argue the U.S. Department of Justice's debit card monopolization case should be tossed because it ignores a key payment method and attacks legitimate contracts.
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November 12, 2024
Fed Bans Ex-Bank Leaders Over Alleged COVID Relief Fraud
The Federal Reserve Board of Governors announced Tuesday that it has prohibited two former top brass with Nano Banc from future participation in the banking industry, alleging they fraudulently obtained loans and grants through the federal CARES Act.
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November 12, 2024
Comerica Sues CFPB To Stop 'Ultra Vires' Benefits Card Probe
Comerica Bank has sued the Consumer Financial Protection Bureau in a Texas federal court, accusing it of carrying out an overreaching and unlawful investigation into the bank's handling of a government program for distributing federal benefits via debit cards.
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November 12, 2024
Huawei Urges Judge To Toss US IP Theft, Fraud Charges
China's Huawei Technologies and its affiliates have asked a Brooklyn federal judge to dismiss the majority of a criminal indictment, slamming allegations that it tried to steal intellectual property from U.S. rivals and deceived banks and the U.S. government about its business dealings with sanctioned countries.
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November 12, 2024
Peru Agrees To Pay Hedge Fund $40M To Settle Bond Dispute
A D.C. federal judge held Tuesday that the Republic of Peru must pay Gramercy Funds Management LLC $40 million, following the parties' joint motion last week saying they have settled their dispute over enforcement of a $100 million arbitral award.
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November 12, 2024
Stop Bank Impersonation Scams 'Without Delay,' FCC Told
Several banking organizations and a consumer rights group urged the Federal Communications Commission to forge ahead on rules aimed at stamping out scam texts that fraudsters use to impersonate banks.
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November 12, 2024
Nationstar Gets COVID-19 Loan Aid Suit Tossed For Good
Nationstar Mortgage has beaten for good a lawsuit alleging it wrongly denied COVID-19 loss mitigation assistance for delinquent mortgages, with a Pennsylvania federal judge ruling homeowners did not amend their suit to prove the company violated the law.
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November 12, 2024
Fla. Man Guilty In $1M Cash-To-Bitcoin Laundering Scheme
A Boston federal jury has convicted a Florida resident of helping launder drug proceeds and enabling transfers of funds from fraud victims to romance scammers by converting more than $1 million in cash to bitcoin through his unlicensed "no questions asked" money transfer business.
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November 12, 2024
Former FTX Top Atty Joins Lowenstein Sandler In NY
Lowenstein Sandler LLP announced Tuesday that the former general counsel at crypto exchange FTX will join the firm's New York office as a partner and chair of its new commodities, futures and derivatives practice group.
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November 08, 2024
Payments Co. Never Returned $1.5M, Tribal Authority Claims
An Oklahoma tribal financial services authority has sued two owners of a payment processor, alleging that they defrauded the authority out of $1.5 million by confiscating funds purportedly held in reserve before the termination of their relationship.
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November 08, 2024
Pawn Shop Must Face CFPB's Military Law Claims, Judge Says
In a matter of first impression, a Texas federal judge has ruled that national pawn shop company FirstCash Inc. cannot use a "bona fide error" defense to argue that its alleged violation of the Military Lending Act was an unintentional mishap, saying the defense only applies to private borrower claims, not federal agency suits.
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November 08, 2024
SEC Sues Ex-Fed Examiner For Insider Trading On Bank Stocks
The U.S. Securities and Exchange Commission filed suit against a former senior banking supervisor with the Richmond Federal Reserve Bank, accusing him of insider trading on stocks of New York Community Bancorp and Capital One Financial Corp.
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November 08, 2024
NJ Appeals Panel Rejects Convicted Ex-Atty's Bid For Relief
The New Jersey Appellate Division turned down on Friday a former attorney's bid for review of her conviction on participating in an $873,000 mortgage fraud scheme, in which she claimed she was barred from the full range of cross-examination at trial that she should have had the right to.
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November 08, 2024
FTX Investment Firm Seeks Return Of $11M In Crypto Assets
Alameda Research, an investment arm of the now-bankrupt FTX digital asset empire, has filed a lawsuit against cryptocurrency exchange Crypto.com in Delaware bankruptcy court, seeking the return of $11.4 million in assets still held on the platform despite multiple requests from the debtor.
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November 08, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen collapsed German airline Air Berlin take action against its former auditor KPMG, the associate editor at The Spectator hit with a libel claim by a mosque over the far-right riots that took place in August and British licensing authority the Performing Right Society sue Parklife Manchester and four other festival organizers. Here, Law360 looks at these and other new claims in the U.K.
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November 08, 2024
Katten Adds Private Credit Partner From Weil In NY
Katten Muchin Rosenman LLP has added a former Weil Gotshal & Manges LLP banking and finance counsel, who joined the team in New York as a private credit partner.
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November 07, 2024
Ex-Celsius CEO OK'd To Seek Testimony From Abroad
A New York federal judge Thursday gave former Celsius Network CEO Alex Mashinsky the green light to seek deposition testimony from witnesses reading abroad that he claims is crucial to his defense, but declined to narrow the case against the founder of the now-bankrupt cryptocurrency-lending platform.
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November 07, 2024
Flagstar Customer Asks 6th Circ. To Revive Overdraft Fee Suit
A Flagstar Bank customer has urged the Sixth Circuit to revive her class claims alleging the bank charged surprise overdraft fees, arguing that a Michigan district court failed to follow the "settled rules" dictating that ambiguous contract terms should be interpreted against the drafter.
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November 07, 2024
Ill. Judge Anticipates 'Massive' Outcome Investor Restitution
An Illinois federal judge signaled Thursday that he anticipates three former Outcome Health executives will pay a "massive" amount in restitution to investors such as Goldman Sachs and CapitalG that were persuaded to give Outcome money in a fraudulent effort to grow the company.
Expert Analysis
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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UCC Article 12 Offers Banks A Chance To Dive Into 'DePINs'
The 2022 update to Article 12 of the Uniform Commercial Code, which provides a legal framework for decentralized physical infrastructure networks, could offer trade and commodity finance banks attractive opportunities, like the energy-related DePIN projects that have recently made headlines, says Chris McDermott at Cadwalader.
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11th Circ. Ruling Offers Refresher On 'Sex-Plus' Bias Claims
While the Eleventh Circuit’s recent ruling in McCreight v. AuburnBank dismissed former employees’ sex-plus-age discrimination claims, the opinion reminds employers to ensure that workplace policies and practices do not treat a subgroup of employees of one sex differently than the same subgroup of another sex, say attorneys at Bradley Arant.
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Ex-Chicago Politician's Case May Further Curb Fraud Theories
The U.S. Supreme Court recently agreed to hear Thompson v. U.S. to determine whether a statement that is misleading but not false still violates federal law, potentially heralding the court’s largest check yet on prosecutors’ expansive fraud theories, with significant implications for sentencing, say attorneys at the Law Offices of Alan Ellis.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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How DOJ's Visa Debit Monopolization Suit May Unfold
The U.S. Department of Justice's recently filed Section 2 monopolization suit against Visa offers several scenarios for a vigorous case and is likely to reveal some of the challenges faced by antitrust plaintiffs following the U.S. Supreme Court's split 2018 American Express decision, say attorneys at Mintz.
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New Export Control Guidance Raises The Stakes For Banks
Recent guidance from the Bureau of Industry and Security alerts banks that they could be liable for facilitating export control violations, the latest example of regulators articulating the expectation that both financial institutions and corporations serve as gatekeepers to mitigate crime and aid enforcement efforts, say attorneys at Freshfields.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Why Diversity Jurisdiction Poses Investment Fund Hurdles
Federal courts' continued application of the exacting rules of diversity jurisdiction presents particular challenges for investment funds, and in the absence of any near-term reform, those who manage such funds should take action to avoid diversity jurisdiction pitfalls, say attorneys at Sher Tremonte.
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The Ups And Downs Of SEC's Now-Dissolved ESG Task Force
The U.S. Securities and Exchange Commission's Climate and ESG Enforcement Task Force, which was quietly disbanded sometime over the summer, was marked by three years of resistance from some stakeholders to ESG regulation, a mixed record in the courts and several successful enforcement actions, say attorneys at Crowell & Moring.
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FDIC Guidance Puts Next-Gen ATMs In Regulatory Spotlight
The boring existence of ATMs is changing thanks to the emergence of new-age interactive teller machines, prompting the Federal Deposit Insurance Corp. to sound off in a potentially influential August letter to branches on which services might need regulatory approval, says Thomas Walker at Jones Walker.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Understanding New ACH Network Anti-Fraud Rules
Many of the National Automated Clearing House Association’s recent amendments to ACH network risk management rules went into effect this month, so financial institutions and corporations must review and update their internal policies as needed, says Aisha Hall at Taft.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.