LexisNexis® Legal Newsroom
Supreme Court Says Fair Debt Collection Practices Act Does Not Prohibit Award Of Costs Under FRCP 54(d)(1)

WASHINGTON, D.C. - (Mealey's) Section 1692k(a)(3) of the Fair Debt Collection Practices Act (FDCPA) "is not contrary to, and, thus, does not displace a district court's discretion to award costs under" Federal Rule of Civil Procedure 54(d)(1), a divided U.S. Supreme Court ruled Feb...

Florida Federal Judge Approves TD Bank's $62 Million Settlement In MDL Overdraft Fees Litigation

MIAMI - (Mealey's) A federal judge in Florida on March 18 approved TD Bank NA's $62 million settlement that will allow the bank to exit a multidistrict litigation in which class members allege that several banks manipulated the order of debit card transactions to maximize checking account overdraft...

MF Global SIPA Trustee, JPMorgan Reach Settlement That Will Return $300 Million To Commodities Customers

NEW YORK - (Mealey's) The Securities Investor Protection Act (SIPA) trustee in the MF Global Inc. (MFGI) bankruptcy on March 19 announced that he had reached a settlement agreement with JP Morgan Chase Bank N.A. that will return $300 million to commodities customers who had money invested with MFGI...

Countrywide Financial Corp. Reaches $500 Million Settlement In 3 Mortgage-Backed Securities Class Actions

LOS ANGELES - (Mealey's) Countrywide Financial Corp. will pay $500 million to shareholders in three related securities class action lawsuits to settle claims that it misrepresented the investment quality of mortgage-backed securities (MBS) in what is being called the largest-ever MBS class action...

Fifth Third Agrees To Pay $16M To Settle Federal Securities Law Claims

CINCINNATI - (Mealey's) Fifth Third Bancorp and a number of other defendants agreed to pay $16 million to settle claims that Fifth Third misrepresented its involvement in the subprime securities market in violation of federal securities laws, according to documents filed April 16 in Ohio federal...

Bank of America To Pay $1.7 Billion To Settle Mortgage-Backed Securities Claims

NEW YORK - (Mealey's) Bank of America Corp. (BoA) will pay nearly $1.7 billion to MBIA Inc. and certain of its subsidiaries to settle claims in New York State court that BoA misrepresented the investment quality of and risk associated with certain mortgage-backed securities (MBS) it sold to MBIA...

Plaintiffs Seek Approval Of $153M Securities Settlement With Fannie Mae, KPMG

WASHINGTON, D.C. - (Mealey's) Lead plaintiffs in a securities class action lawsuit against Fannie Mae and accounting firm KPMG LLP on May 7 asked a federal judge to approve a $153 million settlement that would end the lawsuit, which was brought in 2004 ( In re: Fannie Mae Securities Litigation ,...

2nd Circuit: Madoff Trustee Cannot Sue Banks On Behalf Of Customers

NEW YORK - (Mealey's) The Second Circuit U.S. Court of Appeals on June 20 affirmed a district court's ruling that Bernard L. Madoff Investment Securities LLC (BMLIS) trustee Irving H. Picard cannot sue JPMorgan Chase & Co., HSBC Holdings PLC, UBS AG and UniCredit SpA for the banks' alleged...

Federal Regulators: Corzine Misused Funds, ‘Responsible’ For MF Global’s Collapse

NEW YORK — (Mealey’s) The U.S. Commodities Futures Trading Commission (CFTC) on June 27 filed a civil complaint in the U.S. District Court for the Southern District of New York, alleging that Jon S. Corzine, as CEO of bankrupt MF Global Holdings Ltd. (MFGH), is legally responsible for MFGH’s...

Debit Card Fees Rule ‘Clearly Disregarded’ Congress’ Intent, Judge Finds

WASHINGTON, D.C. — (Mealey’s) A federal judge in the District of Columbia on July 31 ordered that a rule governing debit card transaction fees be rewritten, saying that the Board of Governors of the Federal Reserve System has “clearly disregarded Congress’ statutory intent by...

Judge Approves $730 Million Securities Settlement With Citigroup, Shareholders

NEW YORK — (Mealey’s) A federal judge in New York on August 20 granted final approval of a securities class action settlement between investors and Citigroup Inc. and others, ruling that the terms of the settlement meet the statutory guidelines ( In re Citigroup Inc. Bond Litigation , No...

Morgan Stanley To Settle Mortgage-Backed Securities Claims For $1.25B

NEW YORK — (Mealey’s) Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan...

Measuring ROI: Using the Payback Approach (Part 1/3)

Dont miss Part 2 of the Measuring ROI series: Using the Net-Present-Value Approach , by Jon Allen The goal of financial management in a company is to maximize the value of the company’s stock. Managers need ways to determine whether a project being considered will add value to their companies...

Measuring ROI: Using the Net-Present-Value Approach (Part 2/3)

Dont miss Part 1 of the Measuring ROI series: Using the Payback Approach , by Jon Allen The goal of financial management in a company is to maximize the value of the company’s stock. Managers need ways to determine whether a project being considered will add value to their companies. This is...

U.S. Supreme Court: FSIA Does Not Limit Scope Of Post-Judgment Discovery

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on June 16 held 7-1 that the Foreign Sovereign Immunities Act (FSIA) does not shield the Republic of Argentina from post-judgment discovery requests issued by a debt collection company seeking information about the country’s extraterritorial...

Measuring ROI: Using the Internal-Rate-of-Return Approach (Part 3/3)

Dont miss Part 1 of the Measuring ROI series: " Using the Payback Approach ", and Part 2: Using the Net-Present-Value Approach , all by Jon Allen The goal of financial management in any company is to maximize the value for its owners. Managers need ways to determine whether projects will...

Dodd-Frank Hits 5th Birthday

The Dodd–Frank Wall Street Reform and Consumer Protection Act was signed by the President on July 21, 2010. Quite a different world then. Some, like its namesakes, think it has made our banking and economic system safer and has been successfully implemented by the regulators. Others say that some...

CFPB Reflects on Five Years of Dodd-Frank Enforcement in Written Senate Testimony

by Mark J. Magyar On July 15, 2015, the Consumer Financial Protection Bureau (“CFPB”) published on its website the written testimony of CFPB Director Richard Cordray before the Senate Committee on Banking, Housing, and Urban Affairs. In his testimony, Mr. Cordray noted that “[n]ext...

Fresh Tracks: Vermont Supreme Court's First Unitary Ruling Separates Insurer from Ski Resort

By Liz Cha and Timothy Gustafson In its first decision on combined unitary reporting since Vermont adopted combined reporting in 2006, the Vermont Supreme Court held that the AIG insurance group was not unitary with its wholly owned ski resort subsidiary, Stowe Mountain Resort. Applying the U.S. Supreme...

Cell Phone Insurance Not Subject to South Carolina Sales Tax

By Samantha Trencs and Andrew Appleby A South Carolina administrative law judge (ALJ) determined that cell phone insurance is not subject to South Carolina sales tax even though the wireless provider sells it with taxable communication services. Alltel provided its wireless customers with an option to...

Sales Tax Considerations in Financing Transactions--Does Substance over Form Govern?

When a company undertakes a financing transaction, federal and state income tax considerations most frequently take priority in the tax department. In certain financing transactions, however, one would be remiss to ignore potential sales tax issues that can be traps for the unwary. Reprinted from the...

Utah Taxes Online Banking Service Provider

By Liz Cha and Amy Nogid The Utah State Tax Commission ruled that sales to financial institutions in Utah of the right to use online banking software, finance and budget tool software, online bill payment software, mobile banking software, and a mobile banking application are sales of tangible personal...

Sourcing the Ticker Tape: California Ruling Addresses Sourcing of Financial Information Provider's Services

By Hanish Patel and Marc Simonetti In a Chief Counsel Ruling, the California Franchise Tax Board (FTB) ruled that, for purposes of determining its sale factor, a financial information provider should source the sales of its information services based on where the taxpayer’s customer receives...

New Jersey Tax Court Rules on Inclusion of Mortgage-Related Receipts in Receipts Factor Numerator

By Charles Capouet and Todd Lard The New Jersey Tax Court ruled on the sourcing of mortgage-related receipts received by a bank and also held that the Division of Taxation could not throw out receipts from the bank’s denominator. The taxpayer originated loans for its New Jersey borrowers through...

NYC Tax Appeals Tribunal Holds Subsidiary Not Required to Be Included in Banking Corporation Tax Return

By Charles Capouet and Madison Barnett The New York City Tax Appeals Tribunal held that a bank filing a combined New York City bank tax return properly excluded from its combined group a Connecticut investment subsidiary that primarily held mortgage loans secured by non-New York property. Where there...