Banking Law

Fla. Lawyer Fights Charges He Hid Bank Losses

A government lawyer argued yesterday that a former partner at Greenberg Traurig covered up crimes at a Miami bank that was eventually shut down for fraud. The Office of Comptroller of the Currency is seeking a $250,000 fine and a cease-and-desist order against Carlos Loumiet to prevent him from giving…

Mar 12, 2008 5:18 PM CDT

Lawyers Await New Century Examiner’s Report

A bankruptcy examiner’s report about problems at subprime lender New Century Financial could be unsealed as early as this week. The report is likely to address advice by auditor KPMG, which was involved in accounting changes that forced New Century to restate earnings in February, the Recorder reports. The audit…

Mar 10, 2008 1:40 PM CDT

Foreclosure Data Hits New Record High

Mortgage foreclosure data released today puts defaults on home loans at a new record high. But even worse numbers may be on the horizon. “The Mortgage Bankers Association reported Thursday that the number of loans past due or in foreclosure jumped to 7.9 percent, from 7.3 percent at the end…

Mar 6, 2008 9:59 PM CST

Two Florida Lawyers Accused of Making ‘Sham’ Claims for Credit Card Holders

Two Florida lawyers and their affiliated firms are accused in a lawsuit of making “sham” claims on behalf of consumers seeking to avoid payment of credit card debt. The suit by Chase Bank claims the lawyers falsely tell customers that the credit card company violated the federal Fair Credit Billing…

Mar 6, 2008 1:42 PM CST

McGuireWoods Merges With N.C. Law Firm

McGuireWoods is merging with a 120-lawyer firm in North Carolina, a move that will increase the larger firm’s roster to almost 900 lawyers. Currently McGuireWoods has just one North Carolina office, in Charlotte. The merger gives it additional offices in Raleigh and Wilmington and increases the number of lawyers in…

Mar 6, 2008 11:43 AM CST

Lawyer, Client Sanctioned $29K for Client’s Profanity-Laced Deposition

U.S. District Judge Eduardo Robreno of Philadelphia has tallied the number of times a litigant dropped the F-word or a variant in a deposition—it was 73 times—and calculated the sanction he and his lawyer should pay—it is more than $29,000. The client, Aaron Wider, is CEO of HTFC Corp., a…

Mar 5, 2008 2:39 PM CST

Stricter Bank Regulation Likely, Following Mortgage Meltdown

Next month, a limited phase-in of newly revised international banking standards known as “Basel II,” after the Swiss city in which they were developed, is planned in the U.S. The revised rules call for financial institutions to be given more discretion to run their own businesses, because they are, in…

Mar 4, 2008 10:22 PM CST

Hedge Fund Sues Banks Over Collateral Demands in Credit Default Swaps

A hedge fund has sued Citigroup Inc. and Wachovia Corp., claiming the banks made it pay increasing amounts of collateral to back insurance it had sold on subprime mortgages bundled into securities. In one of the suits, VCG Special Opportunities Master Fund Ltd. says Citigroup breached the insurance agreement, known…

Mar 4, 2008 7:12 PM CST

New Spin on Dechert Layoffs

Today is the deadline for 13 unlucky associates in Dechert’s finance and real estate group to decide whether to accept a severance package or shift to a busier practice area. But even if they opt to stay, the Philadelphia-based international firm is only guaranteeing another two months of employment, according…

Mar 4, 2008 7:09 PM CST

Finding It Hard to Be a Loan

Courts are tossing out foreclosure cases, citing lawyers for lacking the right papers

Mar 1, 2008 9:06 PM CST

U.S. Trustees Seek Countrywide Sanctions, Allege Widespread Abuses

In a highly unusual action, U.S. trustees in three states are seeking sanctions against Countrywide Financial Corp., contending that the major mortgage lender has abused the bankruptcy process by making inaccurate filings and imposing unauthorized fees. The rare concerted filings today by U.S. trustees in Florida, Georgia and Ohio ask…

Mar 1, 2008 1:02 AM CST

Spy Saga Sparked Liechtenstein Tax Probe

Liechtenstein is a small country the size of Washington, D.C., wedged between Austria and Switzerland. But it has been big news recently as a growing number of countries focus on the bank accounts there that many noncitizens reportedly have established to avoid paying taxes at home. Meanwhile, it appears that…

Feb 27, 2008 6:30 PM CST

Worried Lenders Watch for Appellate Ruling in Mortgage Class Action

A federal appeals court will soon decide a closely watched case that seeks to undo mortgage loans that are based on mistakes in disclosure documents. A Wisconsin couple is seeking class action status for their suit filed a few years ago against Chevy Chase Bank. Worried lenders fear a negative…

Feb 27, 2008 4:46 PM CST

‘Huge Disconnect’: Banks Say They Work With Borrowers, But May Not

One way to resolve the current mortgage meltdown is for lenders to work with borrowers and modify their home loans to make them affordable. This can be in the lender’s own interest, because foreclosing, especially in the current housing market, is expensive and likely to result in a lowball resale…

Feb 27, 2008 4:34 PM CST

NYT Supports Bill Allowing Bankruptcy Judges to Rewrite Mortgages

The New York Times is urging passage of a law that would allow bankruptcy courts to rewrite the terms of borrowers’ mortgages. An editorial says some big banks are getting behind other bailout proposals in an attempt to head off passage of the legislation. If the measure passes, it would…

Feb 27, 2008 2:56 PM CST