Banking Law

Shapiro & Fishman Squares Off with Fla. AG, Calls Law Firm Foreclosure Probe an Abuse of Gov’t Power

One of three so-called “foreclosure mill” law firms under investigation by the Florida attorney general has returned fire, calling his probe an abuse of government power. Attorney Gerald Richman of Richman Greer, who is defending the law firm that is the subject of the probe, Shapiro & Fishman, says in…

Sep 30, 2010 6:46 PM CDT

‘Foreclosure Mill’ Law Firms Under Pressure from Lawmakers

As JPMorgan Chase and Ally Financial’s GMAC Mortgage have acknowledged possible document irregularities concerning thousands of mortgage foreclosure cases and imposed temporary freezes on the litigation, some federal lawmakers have been trying to put the brakes on law firms that reportedly are responsible for filing many cases that may be…

Sep 30, 2010 12:00 AM CDT

JPMorgan Chase Freezes Foreclosures in 56,000 Cases; Will More Banks Follow Suit?

Updated: After an article from Bloomberg over the weekend detailing document issues that could put thousands of mortgage foreclosure cases in doubt, JPMorgan Chase & Co. has slammed on the brakes. The lender announced today that it has asked courts not to issue final judgments in 56,000 cases while it…

Sep 29, 2010 9:35 PM CDT

Lawyer Asks Public to Come Forward with Info About Her Missing Husband, a Bank CEO

On Monday, attorney Anne Widlak expected her husband of six years to give her a 4 a.m. wake-up call, as she was out of town on a business trip. But it never came and later that day she heard from someone at the Macomb County sheriff’s office, wanting to know…

Sep 23, 2010 11:16 PM CDT

How 2 Pro Bono Lawyers Uncovered ‘Robo-Signer,’ Halting Foreclosures in 23 States

A Maine pro bono lawyer’s suspicions helped uncover a “robo-signer” mortgage employee and halt mortgage foreclosures in 23 states. Pro bono lawyer Thomas Cox, who is retired from law practice, was representing a homeowner in a foreclosure case when he came across several documents signed by one GMAC employee: Jeffrey…

Sep 23, 2010 1:20 PM CDT

Foreclosure System Is ‘Riddled with Faked Documents’

Revelations that an Ally Financial “robo-signer” employee routinely failed to review the lender’s foreclosures for accuracy may be just the tip of the iceberg. The admissions by the employee, charged with reviewing 10,000 cases a month, could have an impact beyond the 23 states where Ally has halted foreclosures, the…

Sep 23, 2010 12:43 PM CDT

Oops. Bank Apparently Forgot to Dismiss Foreclosure Case After Approving Short Sale

In the latest example of how the legal system is apparently too overwhelmed to properly handle a deluge of mortgage foreclosures, the South Florida Sun-Sentinel is reporting that the Bank of America mistakenly foreclosed on a home that had been sold—to a cash buyer—in a short sale more than six…

Sep 23, 2010 12:07 AM CDT

Freeze Cases Filed By 3 Law Firm ‘Foreclosure Mills,’ Fed’l Lawmaker Urges Top Fla. Court

Adding to the uncertainty created by a major mortgage servicer’s decision to call a temporary halt to foreclosures and related activity in 23 states, a federal lawmaker is urging the Florida Supreme Court to suspend all mortgage-related cases being handled by three state law firms he describes as “foreclosure mills,”…

Sep 22, 2010 11:20 PM CDT

Ally Employee’s Admission Could Pave Way to Nationwide Foreclosure Challenges

A mortgage employee charged with reviewing 10,000 foreclosure cases a month to make sure they were legally justified now admits he never read the paperwork, opening the door to foreclosure challenges across the country. Ally Financial employee Jeffrey Stephan made the admission in a deposition, spurring his employer to halt…

Sep 22, 2010 3:55 PM CDT

Judge Dismisses Baltimore Blight Suit Against Wells Fargo, Will Allow Refiling

A federal judge has dismissed an unusual “reverse redlining” lawsuit in which Baltimore contends Wells Fargo Bank’s subprime mortgage loans cost the city tax revenue by targeting minority homeowners for high-interest debt that encouraged them to default. As a result, the city contended, not only these properties but surrounding areas…

Sep 15, 2010 1:27 AM CDT

Represented by Skadden, Name Partner Wins Contempt Ruling re $30K Personal Loan

It isn’t only concerning major corporate matters that Skadden Arps Slate Meagher & Flom is a powerhouse litigator. The firm won a contempt ruling this week on behalf of name partner Joseph Flom. He sought attorney’s fees after Andrew Stein, who formerly served as president of the New York City…

Sep 9, 2010 6:38 PM CDT

Gen’l Counsel Did His Job, Didn’t Fail to Supervise Rogue Broker, Judge Rules

A general counsel for an investment bank had some supervisory responsibilities concerning a rogue broker who admittedly participated in a market manipulation scheme at Ferris Baker Watts Inc. But Theodore Urban performed those responsibilities in a “cautious, objective, thorough, and reasonable manner,” a Securities and Exchange Commission administrative law judge…

Sep 8, 2010 9:19 PM CDT

Group Plans to Certify Scholars as Shariah Law Experts for Financial Matters

Addressing concerns that unqualified individuals could be serving as decision-makers on boards that determine whether financial products comply with Shariah religious law, a group of leading Islamic scholars is working to establish a certification process. The International Shariah Research Academy for Islamic Finance in Kuala Lumpur plans to name a…

Aug 31, 2010 7:18 PM CDT

Despite ‘Sweetheart Deal’ Complaint, Judge Approves Barclays Settlement

A federal judge who criticized a $298 million U.S. settlement with the British bank Barclays as a “sweetheart deal” on Tuesday approved the pact on Wednesday after a hearing where he pressed for more details. U.S. District Judge Emmet Sullivan wanted to know why no individual was charged in the…

Aug 19, 2010 2:32 PM CDT

Judge Hits Barclays ‘Sweetheart Deal,’ Asks Why DOJ Isn’t ‘Rough with Banks’

The average citizen who robs a bank doesn’t get a deferred prosecution agreement, according to U.S. District Judge Emmet Sullivan. So why should British bank Barclays get deferred charges in a federal trade sanctions case? The Washington, D.C., judge criticized federal prosecutors Tuesday for a proposed $298 million settlement resolving…

Aug 18, 2010 1:24 PM CDT