FDIC Targets Failed Bank Execs With Legal Action

WASHINGTON, D.C. — (AP) Federal regulators have authorized legal action against more than 50 executives and directors of collapsed U.S. banks as they seek to recover about $1 billion in losses. A spokesman for the Federal Deposit Insurance Corp. says. . . . Full version available to lexis.com subscribers...

The Federal Stimulus Packages Impact on Executive Compensation

While TARPs requirements are technically limited to the most highly paid employees in the companies receiving TARP funds, they promise to have far-reaching implications for executive compensation best practices. This Emerging Issues Analysis discusses the current requirements for executive compensation...

Podcast: The Volcker Rule and the Dodd-Frank Wall Street Reform Act - The Impact on Banking and the Securities Market

On this edition, Derek Bush of Cleary Gottlieb and Mark Perlow of K&L Gates discuss the Dodd-Frank Act and the Volcker Rule and its impact on securities markets and the banking industry. They discuss what banks will and won't be able to do, including restrictions on banks in the private fund...

Howard Schweitzer, Former TARP COO, Reflects on the TARP Program and the Global Financial Crisis

Howard Schweitzer of Cozen O'Conner gave the keynote presentation at the HB Litigation Conferences seminar titled "Regulation of International Business: Important Considerations for Insurance & Reinsurance" on Sept. 23, 2010, in Washington, DC. Schweitzer provides strategic advisory...

Wells Fargo To Pay Citi $100M To Settle Wachovia Lawsuit

NEW YORK - (AP) Wells Fargo & Co. has agreed to pay $100 million to Citigroup Inc. to settle a dispute related to its acquisition of Wachovia Corp. in October 2008, at the height of the financial crisis. Wachovia was teetering on the brink of collapse from bad real estate loans. . . . Full version...

Economy, Unemployment Looking Better Yet Getting Worse at Same Time

In December 2010, the unemployment rate dropped to 9.4% from 9.8%. The initial reaction was muted enthusiasm at a positive sign. Perhaps the Great Recession really is over as economists have been saying for over a year. Perhaps records profits in financial companies are a sign of the recovery economy...

Clawbacks From "Madoff" Style Ponzi Schemes - Searching For Deep Pockets During Economic Uncertainty

by Sidney Goldstein Excerpt: With the first glimmer of a revival in the credit markets, many of us are quick to forget the tough lessons learned during the crisis period. One such lesson is the havoc that can be created by an aggrieved creditor's and in some instances a borrower's search...

What Caused the 2008 Crisis?: All the Devils are Here

Was it Fannie Mae? Was it the lack of regulatory oversight? Was it the rating agencies? Was it pure greed? Yes, yes, yes and yes. Plus, there were lots of other factors. Bethany McLean and Joe Nocera put together an insightful look at the many factors that created the housing bubble and amplified...

Auditors Under Pressure In The UK: Or Are They?

The UK accounting firms' response to the "pressure" on their industry post-crisis has been sharp, quick, and on message. But the "pressure" itself feels like a strategy orchestrated by the audit firms to force legislators to grant their wishes under the mistaken assumption...

Former Comptroller Of The Currency John Dugan Returns To Covington

WASHINGTON, D.C. - Covington & Burling LLP has announced that former Comptroller of the Currency John C. Dugan is rejoining the firm as a partner. Dugan will chair the firm's Financial Institutions Group , and will advise clients on a range of legal matters affected by significantly increased...

Anatomy Of The Housing Crisis

With Oprah signing off this afternoon, perhaps it is time that this blog replaces her immensely popular book club. I just finished reading " The Big Short ," written by Michael Lewis (author of many notable books including " Liar's Poker " about his time as a bond trader...

How Do You Say Scapegoat In French? "Fabulous Fab" Still The Only Target Of SEC Investigation Into Goldman Sach's Mortgage Trading Operations

Several years after the start of the financial crisis, and the mortgage meltdown that caused it, only one individual, Fabrice Toure - a/k/a "Fabulous Fab," his self-imposed moniker -- has been sued by the SEC for selling the mortgage backed securities that created, or at the very least...

End of (An) Empire (In) Nevada

You can now count Empire, Nevada as one of the unintended victims of the housing crisis. Yes, that's right, the whole town is gone. Unlike cities like Youngstown, Ohio (" Sweet Jenny I'm Sinking Down . . . Here Darlin' In Youngstown "), however, Empire is not shutting down because...

Recent Changes to Real Estate-Related Laws Reflect Continuing Housing Woes

By Andrea Lee Negroni, Esq. and Mary M. Pfaff The continuing downdraft in the housing economy has stimulated adoption of a wide variety of consumer protection provisions in real estate laws and statutory requirements for accountability by lenders, real estate brokers, loan servicers, appraisers and...

Are You Ready for Taxmageddon?

A combination of spending cuts and tax increases could bring the economy to its knees at the end of 2012. By our count, the economy must deal with nine significant fiscal events that will be automatically triggered by current law if Congress and the president take no action. Together these events create...

The Bailout of AIG: Mission Accomplished?

If we do not act, boldly and immediately, we will replay the depression of the 1930s, only this time it will be far, far worse. We don't do this now, we won't have an economy on Monday. Fed Chairman Ben Bernanke, "Too Big To Fail". On Friday September 14, the US government...

$2.43 Billion BofA/ Merrill Lynch Merger Results In Largest Credit-Crisis Class Action Settlement

In what is by far the largest settlement of a credit crisis-related securities class action lawsuit, Bank of America has agreed to pay $2.43 billion to settle the suit filed against the company and certain of its directors and officers in connection with the bank's financial crisis-driven acquisition...

SEC, USAO Charge Former Broker with Securities Fraud Tied to Market Crisis

The SEC and the U.S. Attorney for the District of Connecticut filed, respectively, civil and criminal fraud charges against a former account executive at Jefferies & Co. arising out of the financial crisis. The charges center on the sale of mortgage backed securities or MBS to funds, including...

Former Credit Suisse Managing Director Pleads Guilty in Market Crisis Case

In one of the most significant market crisis cases to date, the former Global Head of Structured Credit Trading at Credit Suisse pleaded guilty to a conspiracy charge based on falsifying asset values which ended with the financial institution to take a $2.65 write down. Kareem Serageldin was charged...

Duane Morris: Financial Stability Board Designates Nine Global Insurance Groups as "Global Systemically Important Insurers"

The Financial Stability Board (FSB), tasked by the G-20 to prevent a future financial crisis, on July 18, 2013, designated nine large insurance groups as Global Systemically Important Insurers (G-SIIs), three from the United States—American International Group, Inc.; MetLife, Inc.; and Prudential...

DLA Piper Real Estate Litigation Alert – City Attempting To Seize Underwater Mortgages Via Eminent Domain: Constitutional Objections, Potential Investor Losses

The City of Richmond, California has commenced the process for taking by eminent domain hundreds of notes secured by mortgages on underwater residential properties owned by investors through residential mortgage backed securities (RMBS). This is the first time a government entity has implemented a...

For the SEC, 2013 Was a Very Good Year for Targeting Financial Fraud

The Securities and Exchange Commission had a very good year targeting financial fraud. Those who commit fraud, not so much. In fiscal year 2013, the SEC’s enforcement actions resulted in a record $3.4 billion in monetary sanctions ordered against wrongdoers. The SEC filed 686 enforcement...

Credit Suisse Sued Over Sale of More than $10 Billion in Mortgage Backed Securities

The State of New Jersey has filed a lawsuit against Credit Suisse Securities (USA) LLC and two of its affiliates alleging that they offered more than $10 billion in residential mortgage backed securities trusts for sale while misrepresenting the risks involved in the investments and failing to disclose...

Yes, We Admit It! We Now Have #3 in Financial Fraud Law

For decades, when a company agreed to settle financial fraud-related charges with the Securities and Exchange Commission, the company typically would pay a fine. Sometimes a large one. The company also typically would insist on a provision in the settlement documentation in which it would neither admit...

Why Fannie and Freddie Were Culprits in the Great Recession

On October 4, 2008, Charles Duhigg in the Sunday edition of the New York Times wrote the following article. “ Shortly after he became chief executive, Mr. Mudd traveled to the California offices of Angelo R. Mozilo , the head of Countrywide Financial, then the nation’s largest mortgage...