Legal Book » bank

Money Laundering Investigation on the Agenda for HSBC’s New CLO

admin — Tue, 31 Jan 2012 07:15:23 +0000

HSBC Holdings’ new chief legal officer has his hands full as Europe’s largest bank faces scrutiny by U.S. agencies. Observers think the bank hired Stuart Levey, a veteran of the U.S

Jury says TD Bank liable for $67 million judgment

Master — Thu, 19 Jan 2012 05:33:53 +0000

A jury took less than five hours Wednesday to come back with a verdict finding TD Bank conspired with scammer Scott Rothstein, awarding $67 million to an investment group. Texas-based Coquina Investments sued TD Bank, saying the bank aided and abetted Rothstein in his $1.2 billion fraud.

Scott Rothstein says he had paralegal impersonate Bar staffer

admin — Tue, 03 Jan 2012 04:34:29 +0000

As his Ponzi scheme unraveled, Scott Rothstein fabricated numerous Florida Bar grievances to explain to investors why his bank accounts were being frozen and how he could not repay them. Rothstein said in a deposition that he even enlisted a paralegal to pose as a Bar staffer in a call with a worried investor.

Scott Rothstein says he had paralegal impersonate Bar staffer

admin — Tue, 03 Jan 2012 04:34:29 +0000

As his Ponzi scheme unraveled, Scott Rothstein fabricated numerous Florida Bar grievances to explain to investors why his bank accounts were being frozen and how he could not repay them.

Paul Weiss Beats Back Parmalat Appeal, Holds on to $431 Million Citigroup Win

admin — Fri, 23 Dec 2011 21:53:00 +0000

On Thursday a New Jersey appellate court upheld a jury verdict that Citigroup won three years ago on Citi’s counterclaims that Parmalat defrauded the bank. The decision is a big blow for Quinn Emanuel in its ongoing pursuit of damages against Parmalat’s former bankers and advisors.

A Deal Too Soon? Judge Dismisses Madoff Fund Investor Claims One Day After HSBC Agrees to Settle for $62.5 Million

Master — Thu, 01 Dec 2011 07:37:13 +0000

On Tuesday, a day after HSBC announced it had entered into a partial settlement with investors in Thema International Fund, a Manhattan federal district court judge dismissed all the claims against the bank and other defendants, largely on the grounds that the cases should be filed in Ireland and Luxembourg.

Judge Rejects SEC and Citigroup’s Proposed Settlement

Master — Mon, 28 Nov 2011 21:06:23 +0000

A judge has rejected Citigroup’s proposed settlement over the marketing of collateralized debt obligations it was also selling short, saying the bank created a billion-dollar fund “that allowed it to dump some dubious assets on misinformed investors” but would have been allowed to settle without admitting wrongdoing.

Judge Revives Employee Securities Class Action Against Citi

Master — Fri, 18 Nov 2011 07:28:09 +0000

Convincing a judge to change his mind is no small feat.

Paul Weiss Knocks Out Arbitration Claiming Citi Duped Abu Dhabi Sovereign Wealth Fund into $7.5 Billion Investment

admin — Sat, 05 Nov 2011 04:55:22 +0000

Arbitrators have dismissed all of the Abu Dhabi’s sovereign wealth fund’s claims against Citigroup alleging that it was duped into injecting $7.5 billion into the bank in November 2007 in exchange for an 11 percent dividend just as the subprime crisis was rearing its head.

Picard Looks to Avoid Clawback Pitfalls in $1 Billion BNP Paribas Suit

admin — Sat, 05 Nov 2011 04:55:20 +0000

After a series of bruising rulings in his ambitious clawback suits on behalf of Madoff investors and the Ponzi schemer’s estate, trustee Irving Picard has filed a streamlined suit against a unit of BNP Paribas over nearly $1 billion allegedly transferred to the bank by a Cayman Islands feeder fund.

Litigation Brews Over Wells Fargo’s Policy of Freezing Joint Accounts

admin — Fri, 04 Nov 2011 07:56:57 +0000

A putative consumer fraud class action can go forward over Wells Fargo Bank’s policy of freezing joint accounts when a bankruptcy is filed, a New Jersey federal judge has ruled. The lead plaintiff accuses the bank of turning a profit by freezing joint accounts without prior notice.

Panel Upsets Investor’s Suit Against Bank Over Illegal Tax Shelter

Master — Sat, 29 Oct 2011 02:58:43 +0000

German bank UniCredit Bank Aktiengesellschaft may not be liable for lending money to an American investor as part of a tax shelter scheme later shut down by the IRS, even though the bank admitted to wrongdoing in connection with the scheme, a New York state appeals panel ruled last week.

Million-Dollar Default Judgment Upheld Against Lawyer in Bank Collection Suit

admin — Thu, 27 Oct 2011 06:13:48 +0000

A New Jersey appeal court has upheld a $1 million default judgment against a lawyer who failed to lodge a timely challenge to a bank’s collection suit. There was no excusable neglect in Douglas Hanna’s not filing an answer, nor was there merit in his belated challenges to the bank’s standing to sue, the court found.

Bank of America Moves to Disqualify Quinn Emanuel From Representing AIG in $10 Billion MBS Suit

admin — Wed, 19 Oct 2011 23:02:00 +0000

Bank of America has filed a motion in federal court to disqualify Quinn Emanuel from representing AIG in its $10 billion suit against the bank, arguing that the firm is fatally conflicted because a London partner had represented Merrill Lynch and a subsidiary as a partner at Munger Tolles.

UBS’s $2 Billion ‘Rogue Trader’ Exposes Risk Management Failures

admin — Fri, 16 Sep 2011 05:11:19 +0000

After the subprime mortgage disaster four years ago, top management at UBS was called to task for having a Pollyanna-ish view of its risk exposure. Now, fallout from a $2 billion rogue-trading loss is again raising questions about the bank’s risk management systems.

Duane Morris Files $1 Billion Suit Against Temple-Inland on Behalf of Guaranty Bank Trustee

Master — Thu, 25 Aug 2011 05:07:57 +0000

The bankruptcy trustee for Guaranty Bank, whose collapse was the fourth-largest bank failure of the recent financial crisis, asserts that the bank’s former parent company and its executives and directors “acted with appalling self-interest” and looted the bank of over $1 billion.

The $10 Billion WaMu Hot Potato: Who’s Going To Face Claims by WaMu Investor Trustee?

Master — Thu, 25 Aug 2011 05:07:56 +0000

The FDIC took receivership of Washington Mutual Bank after it failed, and JPMorgan later bought the bank. So who assumed its liabilities? Each party insists the other is on the hook for the $10 billion that investors in WaMu mortgage-backed securities claim they’re owed.

Gibson Dunn’s Snyder Facing Off Against Boies in High-Stakes Fight Over Executive Non-Compete Contracts

admin — Fri, 19 Aug 2011 06:20:16 +0000

Two former executives sued by Capital One last month for violating the terms of their non-compete agreements have hired a heavy hitter for their defense: David Boies, who will now square off against the bank’s lead lawyer, Orin Snyder of Gibson, Dunn & Crutcher.

Allstate Files $122 Million Suit Against Goldman Sachs Over Mortgage-Backed ‘Monstrosities’

Master — Wed, 17 Aug 2011 04:28:35 +0000

Allstate Corp.

State Street Can’t Dodge Securities and ERISA Claims over Mortgage Crash and Forex Trades, Judge Rules

admin — Fri, 05 Aug 2011 05:46:03 +0000

Giving State Street Corp. the dubious pleasure of tackling both mortgage-backed securities and currency trading claims in a single case, a federal judge has denied the bank’s motions to dismiss consolidated class action suits alleging securities and ERISA violations.

Dreier LLP Trustee’s Bid to Recoup Funds From Bank Rejected

Master — Thu, 04 Aug 2011 03:39:43 +0000

The trustee in charge of liquidating the estate of the law firm of disgraced attorney Marc Dreier cannot recover funds from Wachovia Bank related to a $9 million loan the bank extended to Dreier shortly before the firm collapsed, a bankruptcy judge has ruled.

UBS Hit With $900 Million Mortgage-Backed Securities Suit

admin — Thu, 28 Jul 2011 04:27:07 +0000

Quinn Emanuel sued UBS in federal court Wednesday on behalf of the U.S. Federal Housing Finance Agency, accusing the bank of duping Fannie Mae and Freddie Mac into buying $4.5 billion in toxic mortgage-backed securities that led to $900 million in losses.

Backed by Trio of Plaintiffs Firms, Credit Union Regulator Expands MBS Assault with New Suit Against Royal Bank of Scotland

admin — Wed, 20 Jul 2011 04:57:12 +0000

In its third megasuit over soured mortgage-backed securities in less than a month, the National Credit Union Administration has filed a $629 million complaint against the Royal Bank of Scotland for allegedly hiding the true risks of securities the bank underwrote.

Williams & Connolly, Simpson Thacher Slam FDIC in Defense of WaMu Execs

admin — Wed, 06 Jul 2011 08:21:36 +0000

In motions to dismiss FDIC claims that three former top executives at Washington Mutual ran the bank into the ground, defense lawyers have accused the FDIC of allowing WaMu to fail and then recklessly permitting JPMorgan to acquire its banking assets for a song.

Federal Judge Deals Blow to Picard in $6.8 Billion JPMorgan Suit

admin — Tue, 24 May 2011 07:46:42 +0000

In a ruling explaining her reasoning for allowing JPMorgan to move Madoff trustee Irving Picard’s $6.8 billion case against it out of bankruptcy court and into federal district court, a federal judge seemed skeptical of many of Picard’s claims against the bank.