Banking Law

Norton Rose Fulbright raids Sidley for 17-lawyer practice group and opens new San Francisco office

Megafirm Norton Rose Fulbright announced Thursday that it has hired Sidley Austin’s entire public finance practice group. The group includes six partners, and seven of the lawyers will establish a new San Francisco office for Norton Rose Fulbright—the 3,800-attorney megafirm’s 12th in the U.S. and 53rd worldwide, according to the…

Jun 3, 2016 9:47 AM CDT

CFPB announces proposed rule to curb ‘payday debt trap’ lending to consumers

Short-term “payday loans” can potentially be a real benefit to individuals like John Charette. The 47-year-old Maine man, like many Americans, has bad credit and lacks savings. So he took out a $250 payday loan in Portland to update his vehicle registration, knowing that a ticket would cost him even…

Jun 3, 2016 8:00 AM CDT

In 156 government cases against big banks, only 47 people have been charged

Only 47 people have been charged in 156 criminal and civil cases filed by the government since 2009 against the nation’s 10 largest banks, according to a newspaper analysis. Most of those charged had junior or midlevel jobs at the banks, according to the findings by the Wall Street Journal…

May 27, 2016 5:45 AM CDT

Appeals court overturns $1.27 billion penalty for Countrywide’s sale of risky mortgages

A federal appeals court has overturned a $1.27 billion civil penalty against Bank of America for risky loans sold to Fannie Mae and Freddie Mac by its Countrywide unit. The New York-based 2nd U.S. Circuit Court of Appeals ruled on Monday that the government had failed to prove Countrywide acted…

May 24, 2016 2:20 PM CDT

Chance to work on ‘biggest disputes in trial work’ lures small litigation boutique to Boies Schiller

A small New York boutique known for its lawyers’ complex litigation skills will be joining forces with Boies, Schiller & Flexner next month. Former federal prosecutor Sean O’Shea, 59, who served as business securities fraud section leader for the U.S. Attorney’s office in Brooklyn before forming his own firm 20…

May 24, 2016 6:18 AM CDT

Law firm loses bid to hold banks accountable for its $287K loss in cashier’s check fraud

A New York lawyer who was defrauded of $287,450 in a cashier’s check scam by a purported client has lost an initial effort to recover from the bank that deposited the check in his trust account, as well as the bank that purportedly issued the check. Apparently victimized in what…

May 23, 2016 5:05 PM CDT

‘John Doe’ says he leaked law firm’s Panama Papers to show why income inequality is a big problem

An individual reportedly behind a massive leak of confidential documents from a Panama-based law firm says he was driven by the issue of “income inequality” to made the material public. As the documents show, “massive, pervasive corruption” is why many people find themselves on the wrong side of an ever-widening…

May 6, 2016 5:05 PM CDT

New Treasury Dept. rule requires banks to identify owners of shell companies that open accounts

The U.S. Treasury Department has issued a long-awaited rule for the financial industry that will require banks and other institutions to obtain ownership information for shell companies when they open accounts. Anyone who owns at least 25 percent of the company, or controls it, must be identified under the new…

May 6, 2016 4:50 PM CDT

CFPB seeks to ban mandatory arbitration of consumer disputes over banking, credit cards and loans

Updated: In a proposed rule (PDF) that could potentially affect hundreds of millions of accounts, the Consumer Financial Protection Bureau is seeking to ban mandatory arbitration clauses in a wide range of consumer contracts. Under the rule, which is to take effect next year after a public comment period, mandatory…

May 5, 2016 9:45 AM CDT

Supreme Court upholds Iran reparations law; dissent sees separation of powers violation

The U.S. Supreme Court has upheld a law that allows victims of Iran-sponsored terrorism to satisfy unpaid judgments with assets held in New York by the Iran’s central bank. The U.S. Supreme Court upheld the law in a 6-2 decision (PDF) that found no violation of the separation of powers.…

Apr 20, 2016 11:27 AM CDT

Another bank settles with DOJ over sales of risky mortgages; did it get a better deal than others?

Goldman Sachs Group has agreed to pay $5.06 billion to settle government claims that it sold risky mortgage securities to investors without disclosing the problems. The settlement includes $1.8 billion for consumer relief, nearly $2.39 billion in federal civil penalties, and $875 million to settle other federal and state claims,…

Apr 12, 2016 9:46 AM CDT

Corporate lawyer with ‘spotless record’ faces RICO case over client’s payday loan business

Wheeler K. Neff, 67, is a corporate and banking lawyer with “a spotless record with the Delaware bar” during his 40-year legal career, his lawyer tells a local newspaper. Yet he has been indicted, along with a client with similar upper-echelon credentials. They face a federal racketeering case that claims…

Apr 8, 2016 10:30 AM CDT

Massive leak of law firm documents reveals offshore wealth of politicians and celebrities

One of the largest data leaks ever to occur resulted in more than 11 million documents from a Panamanian law firm that specializes in offshore incorporations and wealth management reportedly being sent to a German newspaper, Süddeutsche Zeitung. Shared by the newspaper through the International Consortium of Investigative Journalists (ICIJ)…

Apr 4, 2016 11:50 AM CDT

Judge rules MetLife isn’t too big to fail; stripped label means less oversight

A federal judge in Washington, D.C., has ruled for insurer MetLife in its battle to cast aside a designation that allowed for stricter scrutiny by the Federal Reserve and possible higher capital requirements. U.S. District Judge Rosemary Collyer said in an order that MetLife is not “too big to fail,”…

Mar 31, 2016 10:47 AM CDT

Longtime lawyer and CEO of failed bank gets 11 years in fraud case

A longtime Nebraska lawyer who later served as the CEO of TierOne Bank when it became insolvent was sentenced Wednesday to an 11-year federal prison term. He was also ordered to pay a $1.2 million fine and undetermined restitution. Gilbert Lundstrom, 74, was accused by the government of causing more…

Mar 23, 2016 5:00 PM CDT