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Foreclosure Class Actions Pile Up Against Banks

NEW YORK - (AP) Foreclosure-fraud class action lawsuits are starting to pile up against major banks across the U.S., threatening a besieged industry with billions more in potential losses. Bank executives are swarming Capitol Hill this week to defend themselves against multiple foreclosure-related investigations...

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...

Bank Of America To Pay $410M In Overdraft Fee Case

(AP) Bank of America has agreed to pay $410 million to settle a federal lawsuit alleging the bank charged excessive overdraft fees. The suit is one of several filed against several banks from plaintiffs in 14 states, which were consolidated in a federal court in Florida. Other banks named. . . . Full...

Podcast: The Servicemembers Civil Relief Act (SCRA) - Mortgages, Creditors, Foreclosures, Interest Rate Caps, Repossessions, Compliance

On this edition, Kirk Jensen and Jeff Naimon of BuckleySandler LLP in Washington, D.C. discuss the Servicemembers Civil Relief Act (SCRA). They discuss how military servicemembers are protected by the act, the types of financial obligations affected by the act, including mortgages, which have been in...

Court Approves Bank Of America's $410 Million Overdraft Settlement

A Florida court has given preliminary approval to Bank of America Corp.'s $410 million settlement of a federal lawsuit accusing the bank of charging excessive overdraft fees. The Charlotte, N.C. bank will place $410 million in an escrow account that will be divided among 1 million customers who were...

FDIC: 'Close' To Settlement In Lawsuit Against WaMu Execs

WASHINGTON, D.C. - (AP) Federal bank regulators say they are close to settling their civil lawsuit against three former top executives of Washington Mutual accused of negligence in allowing risky mortgage lending at the biggest U.S. bank ever to fail. The Federal Deposit Insurance Corp. says it has exchanged...

Bank Of America's $8.5 Billion Settlement Won't Be Its Last

NEW YORK - (AP) Bank of America's $8.5 billion settlement with investors is the largest any bank has ever paid. It might help assuage worries about how deep the bank's mortgage problems might be and how long it might take to settle them. But for the nation's largest bank and its CEO Brian...

Washington Mutual Settles Class Action Lawsuit For $208.5 Million

LOS ANGELES - (AP) Washington Mutual Inc. and its fellow defendants have agreed to pay $208.5 million to settle a class-action lawsuit stemming from the lender's collapse in 2008, the biggest U.S. bank failure in history. The defendants and lead plaintiff Ontario Teachers' Pension Plan Board...

Borrowers Sue Over Apparent Loan Modification Mishaps

LOS ANGELES - (AP) It seemed Maria Campusano's financial problems were behind her when the mortgage on her Victorian home in a Massachusetts mill town was chopped by hundreds of dollars a month. She soon learned that her troubles had just begun. Weeks after making her first payment under the new...

Judge Certifies Union Bank Overdraft Class Action Lawsuit

NEW YORK - (AP) A federal judge in Florida says customers from Union Bank can team up as a class to sue the San-Francisco-based lender over its overdraft fee policy. The case is one of about 35 from around the country consolidated in Florida. Major national banks like JPMorgan Chase. . . . Full version...

Renewed Dismissal Motions In Bank of America/Merrill Lynch Litigation Denied In Part, Granted In Part

The facts and circumstances surrounding Bank of America's credit crisis-induced acquisition of Merrill Lynch remain among the highest profile and most controversial events during the global financial crisis. In a July 29, 2011 opinion ( here ), Southern District of New York Judge Kevin Castel granted...

AIG Sues Bank Of America For $10 Billion Over Mortgages

NEW YORK - (AP) More trouble piled up for Bank of America Corp. on Monday, as American International Group Inc. sued it for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued. The suit comes on top of similar suits, which together...

Federal Government, State AGs Reach $25 Billion Agreement With Banks Over Foreclosures

WASHINGTON, D.C. - (Mealey's) The U.S. Department of Justice (DOJ) announced Feb. 9 that the federal government, attorneys general from 49 states and five national banks have reached a $25 billion settlement to resolve issues stemming from the lenders' allegedly fraudulent foreclosure practices...

$25B Settlement Agreement Reached With 5 National Banks Over Foreclosure Practices

WASHINGTON, D.C. - (Mealey's) The U.S. Department of Justice (DOJ) announced Feb. 9 that the federal government, attorneys general from 49 states and five national banks have reached a $25 billion settlement to resolve issues stemming from the lenders' allegedly fraudulent foreclosure practices...

Sutherland Legal Alert: FinCEN Extends Due Date for Certain FBAR Filers

By Robb Chase and Amanda Pugh On February 14, 2012, the Department of Treasury's Financial Crimes Enforcement Network (FinCEN) issued Notice 2012-1, which extended the filing deadline for both the 2010 and 2011 Report of Foreign Bank and Financial Accounts (FBARs) to June 30, 2013, for certain...

Standard Chartered To Pay $340 Million To Settle Iranian Bank Funding Cover-Up Claims

NEW YORK - (Mealey's) Standard Chartered Bank will pay $340 million to settle claims that it conspired with Iranian government-backed banks and covered up nearly 60,000 "secret transactions" totaling over $250 billion with the banks, which were subject to U.S. government sanctions, according...

Gibraltar Pays $65 Million To Settle Rothstein Ponzi Claims

FORT LAUDERDALE, Fla. - (Mealey's) The trustee for a bankrupt feeder fund and the trustee of convicted Ponzi schemer Scott W. Rothstein's law firm have agreed to an amended $65 million settlement with Gibraltar Private Bank and Trust Co., a bank Rothstein is alleged to have used in his scam,...

$7.25 Billion Antitrust Credit-Card-Fee Settlement Receives Approval

NEW YORK - (Mealey's) A federal judge in New York on Nov. 9 granted preliminary approval to the $7.25 billion class action settlement between merchants and Visa, MasterCard and a large number of banks that the proposed class alleges fixed the prices of interchange fees paid by merchants when customers...

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...

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...

U.S. Bank Agrees To Pay $55 Million To Settle Overdraft Fees Litigation

MIAMI — (Mealey’s) U.S. Bank NA on July 24 agreed to pay $55 million 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 fees ( In Re: Checking Account Overdraft Litigation...

DC Court Rejects Bankers Attack on FATCA Regs

In Fla. Bankers Ass'n v. United States Dep't of Treasury, 2014 U.S. Dist. LEXIS 3521 (D.D.C. 2014), here , the court sustained the IRS regulations "the regulations requir[ing] U.S. banks to report the amount of interest earned by accountholders residing in foreign countries." The...

Ballard Spahr LLP: Windows XP Phaseout Raises Data Security Concerns For Financial Institutions

By Mercedes Kelley Tunstall, John D. Socknat and Lauren McDermott Microsoft has announced that beginning April 8, 2014, its Windows XP operating system will no longer be updated with security patches. This announcement has critical data security implications for financial institutions whose electronic...

Banks Get Involved in Environmental Strategies

Why have some of the largest banks in the world invested large sums of money to environmental and sustainability causes? Why did both Citigroup and Bank of America pledge to invest $50 billion each in alternative energy and conservation projects and – more important – work hard to meet these...

“Zombie Homes” Legislation Introduced in New York

The Abandoned Property Neighborhood Relief Act of 2015 has been introduced in the New York State Senate and Assembly, prompting a Newsday article quoting Lexis author Bruce J. Bergman, author of Bergman on New York Mortgage Foreclosures (LexisNexis Matthew Bender). The legislation would require banks...