Banking Law

New Top Lawyer for Bank of England

As the credit crunch hammers the UK’s financial system, the Bank of England has named Graham Nicholson, a mergers and acquisitions partner at London’s Freshfields Bruckhaus Deringer, as its in-house chief legal adviser. He is part of a team at the firm advising the bank on the nationalization of mortgage…

Oct 3, 2008 10:43 AM CDT

SEC Extends Temporary Short-Selling Ban Until Oct. 17

The Securities and Exchange Commission has extended until Oct. 17 a temporary ban on short-selling the stock of some 800 financial companies. However, the ban could terminate sooner if Congress enacts planned bailout legislation at an estimated cost to taxpayers of $700 billion or more in the meantime. If so,…

Oct 2, 2008 5:23 PM CDT

Lehman Brothers and a UBS Executive Investigated in Auction-Rate Probes

Investigators probing criminal wrongdoing in the auction-rate securities market are looking at Lehman Brothers and a former executive at UBS AG, the Wall Street Journal reports. Federal prosecutors in Brooklyn are investigating whether Lehman dumped auction rate securities into customer accounts despite knowledge that the market could fail, the story…

Oct 2, 2008 11:27 AM CDT

Bailout Bill Approved by Senate Raises AMT Threshold

The Senate has approved a $700 billion bailout bill for Wall Street that increases the threshold for the alternative minimum tax to protect an estimated 24 million families from an average tax increase of at least $2,000 each. The provision is one of many tax breaks in the legislation, the…

Oct 2, 2008 11:02 AM CDT

Judge Lifts FDIC’s Oct. 14 Deadline for IndyMac Borrowers to File Claims

A California federal judge has temporarily lifted a federal deadline for borrowers to file federal claims against IndyMac Bank in a lawsuit that claims the plaintiffs were lured into deceptive loans. The Daily Journal (sub. req.) reports on the reasons for the temporary restraining order by U.S. District Judge Alicemarie…

Oct 1, 2008 11:29 AM CDT

Tax Breaks Added to Bailout Plan Scheduled for Vote Today

A vote is set for today in the Senate on a revised $700 billion Wall Street bailout plan that carries tax breaks and higher government insurance for bank deposits. The changes are aimed at attracting more support for the proposal that failed in the House on Monday, the New York…

Oct 1, 2008 11:00 AM CDT

In Brave New Post-Boom World, Corporate Clients Now Want Value

Updated: The party obviously is over for a number of law firms recently flush with profits from formerly booming financial institutions, but a brave new world may await attorneys able and willing to adjust to the new regime. In a word, it’s now all about value, writes Paul Lippe, the…

Sep 30, 2008 7:29 PM CDT

Silver Lining to US Financial Storm: New Law Practice Arena

Continuing economic turmoil in the U.S. and internationally is prompting a number of major law firms to form special multidisciplinary practice groups to help clients deal with financial crises. In the process, some are creating new Internet resources that also may be of interest to other practitioners. In addition to…

Sep 30, 2008 4:16 PM CDT

Some Law Firms Profit, Others Lose, in Wachovia Buyout

Legal Week and the Am Law Daily have identified the winning and losing law firms in the buyout of Wachovia by Citigroup. Here are the winners reported by Legal Week: • Sullivan & Cromwell, advising Wachovia. • Davis Polk & Wardwell, advising Citigroup. Skadden, Arps, Slate, Meagher & Flom also…

Sep 30, 2008 11:47 AM CDT

Existing Laws Give Fed and Treasury Some Options

With Congress’ refusal yesterday to approve a $700 billion Wall Street bailout, the Federal Reserve and the Treasury Department are using existing options to shore up confidence in the financial markets. Yesterday the Fed announced it would add an extra $150 billion to an emergency lending program for banks, and…

Sep 30, 2008 10:53 AM CDT

House Nixes $700B Bailout; What’s Next for Regulators?

Developing: In a U-turn from initial predictions last week that emergency financial bailout legislation proposed by Bush administration officials would soon be enacted, the House today defeated the package by a 228-205 vote, creating, at least for the moment, a brave new world for federal regulatory agencies. U.S. Treasury Secretary…

Sep 29, 2008 8:20 PM CDT

Paulson Defends ‘Flexibility’ of $700B Bailout Plan Set for House Vote Today

The Treasury Department will get sweeping authority under a bailout plan for the financial industry set for a House vote today. Under the plan, Treasury Secretary Henry Paulson “would stand largely unfettered by traditional rules, largely unrestricted in his ability to spend $700 billion of federal money,” the Washington Post…

Sep 29, 2008 2:05 PM CDT

Citigroup to Buy Wachovia’s Banking Operations

Yet another bank is being bought out in the aftermath of the subprime mortgage crisis. The Federal Deposit Insurance Corporation announced this morning that Citigroup will acquire the banking operations of Wachovia, the New York Times reports. The move further concentrates bank deposits in the hands of just three banks:…

Sep 29, 2008 1:38 PM CDT

Philadelphia Courts Adopt ‘Massively Effective’ Foreclosure Rescue Program

A program to curb foreclosures by the city and courts of Philadelphia has staved off the sale of nearly 80 percent of the properties referred to it in the first three months of operation. The plan requires courts to review all scheduled residential foreclosures with borrowers and lenders before the…

Sep 29, 2008 12:43 PM CDT

Likely Bailout Beneficiaries: Lawyers

Although proposed emergency legislation intended to rescue the struggling U.S. economy at a cost of some $700 billion hasn’t yet been enacted, attorneys are already jockeying for position to help corporations wend their way through an expected labyrinth of related rules and regulations. Among those seeking a share of the…

Sep 26, 2008 10:33 PM CDT