Banking Law

Two Law Firms that Passed Up Treasury Request: Davis Polk, Wachtell Lipton

Updated: Before the Treasury Department chose Simpson Thacher on Friday to provide advice on acquiring ownership stakes in banks, it asked six law firms for proposals. Only two, including Simpson Thacher, provided them. Two of the four law firms that didn’t respond were Davis Polk & Wardwell and Wachtell, Lipton,…

Oct 14, 2008 11:16 AM CDT

Law Students Pursue Securities Cases for Small Investors

With an expected surge in civil and criminal fraud cases on the horizon over questions about the conduct of those involved in making mortgage loans blamed for a worldwide credit crisis, several law schools will soon be graduating a new crop of students who already have trial experience in the…

Oct 13, 2008 7:04 PM CDT

Simpson Thacher Advising U.S. on Acquiring Bank Ownership Stakes

The Treasury Department is relying on the law firm Simpson Thacher & Bartlett to help it boost the economy. Simpson Thacher will advise the department on how to take ownership stakes in banks, a Treasury official said in a speech today. Neel Kashkari, assistant secretary for financial stability, told an…

Oct 13, 2008 1:15 PM CDT

We Won’t Evict Unless You Do Your Job, Illinois Sheriff Tells Lenders

In an unusual act of rebellion against an apparent defect in a number of foreclosure cases, the sheriff of Cook County has made national headlines this week by saying his officers wouldn’t enforce court orders and evict occupants of foreclosed homes in and around Chicago until lenders could prove that…

Oct 10, 2008 4:42 PM CDT

Citigroup Abandons Wachovia Bid, but not its Lawsuit

Citigroup has given up its bid for Wachovia, but it hasn’t abandoned a state court lawsuit over what it contends is a violation of an exclusivity agreement it had with the bank as it worked out details of its $2.2 billion buyout offer. Citigroup plans to seek $60 billion in…

Oct 10, 2008 1:59 PM CDT

What Weil Wants for Lehman Bros. Bankruptcy Work: $355 to $950/Hour

Nice work if you can get it: In a fee application filed yesterday in federal bankruptcy court in New York, one of the nation’s most renowned corporate bankruptcy law practice groups revealed what it hopes to get for its work in the nation’s biggest bankruptcy case. The petition by Lehman…

Oct 9, 2008 9:52 PM CDT

Wall Street Crisis Creates Too Much Work for Weary Bank Lawyers

Amidst what one consultant describes as a horrible year for major corporate law firms, one practice area is red-hot: advising struggling financial institutions, for those considered expert in the practice area. One unnamed lawyer billed 450 hours last month—that’s 15 per day, every day, according to Bloomberg. Others, according to…

Oct 9, 2008 9:00 PM CDT

Hot Topic: Are Lawyers Liable for Client Trust Accounts at Failed Banks?

If the bank holding my client trust funds fails, could I be held responsible? That is the question many attorneys are now asking bar associations after the recent failure of California-based IndyMac Bank, and the answer appears to be a qualified yes, according to the National Law Journal. Disciplinary authorities…

Oct 9, 2008 6:37 PM CDT

Wall Street’s Go-To Lawyer Describes his ‘Five Weeks in Hell’

H. Rodgin Cohen has so many financial clients that he had to turn some away as Wall Street faltered. The Sullivan & Cromwell chairman in demand for his intricate knowledge of the banking system says his “five weeks in hell” began with a phone call. Cohen told the Wall Street…

Oct 9, 2008 1:13 PM CDT

Wachovia Lawyer Cites Talks on ‘Grand Solution,’ but Some Snags Reported

Wachovia lawyer David Boies said talks between Wachovia Corp. and possible buyers Citigroup and Wells Fargo center on “a possible grand solution,” according to a transcript of a teleconference with a New York federal judge. But the talks may be encountering some snags. The Associated Press obtained a transcript of…

Oct 9, 2008 12:36 PM CDT

Suspended Mo. Attorney Gets 4 Years in $866K Bank Fraud

A Missouri lawyer who was previously suspended from practice in an unrelated matter has been sentenced to 50 months in federal prison for defrauding a bank of more than $866,000. Dawn Renee Harpster, 38, pleaded guilty last year to five counts of bank fraud. Doing business as Northwest Missouri Title…

Oct 8, 2008 8:13 PM CDT

Despite S&L Debacle Decades Ago, Most Hard-Hit States Didn’t Amp Up Regulation

Despite the savings and loan meltdown that hit the country some 20 years ago, many states at the center of that maelstrom apparently didn’t learn the obvious lesson: Regulation is needed to keep dubious mortgage lending practices in check. Now, many of the same states that suffered the most from…

Oct 8, 2008 5:44 PM CDT

Ex-General Counsel of UBS Settles Insider Trading Probe by NY AG

The former general counsel of investment bank UBS AG has agreed to pay $6.5 million to resolve an insider trading investigation by the New York attorney general. The settlement calls for lawyer David Aufhauser to give up a $6 million bonus he received and pay a $500,000 civil penalty, the…

Oct 7, 2008 6:05 PM CDT

Bailout Bill Allows Lawsuits Against Treasury, Banks

The $700 billion bailout bill passed by Congress last week allows damage suits against the Treasury Department for any misconduct in the distribution of aid. The original plan advanced by the administration would have shielded the department from judicial review. The new plan permits damage suits but not injunctions because…

Oct 6, 2008 5:56 PM CDT

Growing as Planned, Sonnenschein Opens New Office in Switzerland

Taking another step towards its previously announced plan for a bigger global footprint, Sonnenschein Nath & Rosenthal has opened a new office in Switzerland. To do so, Sonnenschein has acquired a Zurich boutique run by partners Heinz Bloch and Robert Schlup that is known for its hotel-related practice, the firm…

Oct 6, 2008 3:00 PM CDT