Financial

July 13, 2020

Developments in environmental regulation for the aviation industry have gathered momentum over the last year, notwithstanding the challenges arising from the pandemic and the related groundings. Last month saw the publication of plans for the UK Emissions Trading System, which is proposed to take the place of the European Union Emissions Trading System when the UK leaves the EU at the end of 2020. The baseline emissions reference period for the International Civil Aviation Organisation’s…

New York Venture Hub

“Whoever has the Gold, (Once Again) Makes the Rules”: VC Deal Terms Likely to be More Investor Favorable

By Alon Y. Kapen

July 13, 2020

It’s no shocker that the Coronavirus pandemic has slowed down venture capital investment dramatically, with 2020 now on pace to be well below the high levels of the past couple of years. According to Pitchbook, VC deal flow through June 28 fell to just 4,675 funding rounds as compared with 6,357 in the first half of last year. But a drop in dealmaking volume may not be the pandemic’s only impact on the VC…

Consumer Finance Monitor

SCOTUS to decide whether FTC can seek restitution

By Alan S. Kaplinsky

July 13, 2020

Last Thursday, in addition to agreeing to decide an issue of major significance under the Telephone Consumer Protection Act, the U.S. Supreme Court agreed to decide whether Section 13(b) of the Federal Trade Commission Act, which expressly gives the FTC authority to seek injunctive relief, also authorizes the FTC to seek monetary relief, such as restitution. The issue is currently the subject of a circuit split and the Supreme Court granted petitions for certiorari…

Financial Services Perspectives

OCC, FDIC Issue Long-Awaited Valid-When-Made “Madden Fix”

By Michael Gordon, Preston H. Neel, Josh Dhyani, Christopher K. Friedman & Michael M. Aphibal

July 13, 2020

Recently, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued final rules designed to resolve the uncertainty created by the Second Circuit Court of Appeals’ decision in Madden v. Midland Funding, 786 F.3d 246 (2d Cir. 2015). In Madden, the court called into doubt the valid-when-made doctrine, a legal concept that — for over a century — has facilitated the nationwide banking system by allowing banks…

Southeast Financial Litigation Monitor

You’re on Notice: Alabama Court of Civil Appeals Bears Down on Foreclosure “Strict Compliance” in Barnes v. U.S. National Bank, No. 2180699.

By Michael Taunton & Gabe Quistorff

July 12, 2020

Recently the Alabama Court of Civil Appeals held that a mortgagee’s notice of acceleration failed to strictly comply with the mortgage’s notice provisions when it informed the borrower only that she “may” have right to assert defenses against foreclosure, rather than apprising her that she had an affirmative right to bring an action against the mortgagee. This case serves as a cautionary tale for lenders and mortgage servicers who are considering foreclosure.…

The D&O Diary

Guest Post: When a Wealthy Individual, Not D&O Insurance, Indemnifies Directors

By Kevin LaCroix

July 12, 2020

Many readers undoubtedly have heard that, in lieu of D&O insurance, Tesla Motors CEO Elon Musk has personally agreed to protect the company’s board with an indemnification undertaking. In the following guest post, Priya Cherian Huskins discusses another situation in which a company official has agreed to indemnify the company’s directors in lieu of insurance, and discusses the issues and implications of this type of arrangement. Priya is a Senior Vice President and Partner at…

Asset Search Blog

Hiding Assets By Laundering Them

By Fred Abrams

July 12, 2020

Determined criminals hiding assets typically wash assets by using money laundering methods. Laundering methods include: commingling funds; opening secret offshore bank accounts; hoarding & smuggling cash; titling assets in the name of nominees; etc. The Asia/Pacific Group On Money Laundering lists these and other key money laundering methods at its typologies webpage. The U.S. Government’s tax evasion prosecution of Israel’s Bank Hapoalim discussed some common methods for hiding assets. Federal prosecutors alleged Bank…

Retained Interest

Ginnie Mae Restricts Long-Time Legitimate Business Activity of Mortgage Servicers

By Laurence E. Platt

July 11, 2020

Ginnie Mae’s newly imposed restriction on repooling of reperforming forborne loans yet again penalizes servicers acting as essential service providers in the continuing efforts to protect mortgagors facing financial hardship due to COVID-19. In issuing APM-20-07 on June 29, 2020, Ginnie Mae decided to further protect investors from the potential enhanced prepayment risk resulting from early pool buyouts of forborne loans. This protection, however, comes at the expense of servicers. By restricting servicers from relying on long-standing,…

Financial Institutions Legal Snapshot

Business interruption, infectious disease extensions and causation

By Donald Dinnie

July 10, 2020

Readers will have seen the recent Guardrisk judgment. The applicant, a Cape Town restaurant, sought urgent declaratory relief that the insurer was obliged to indemnify it in terms of the business interruption section of the policy for loss suffered as a result of the closure of the restaurant from 26 March 2020. The infectious disease extension to the business interruption section of the policy provided cover for loss resulting from interruption or interference with…

The Securities Edge

More serious food for thought

By Robert B. Lamm

July 10, 2020

In my last post, I expressed some thoughts about the need to address our history and continuing practice of racial discrimination and inequality. I’m still thinking about specific actions that I can take to put my actions where my mouth is. However, in the meantime, I want to share a communication I received today from Paul Washington. Paul is currently the Executive Director of the ESG Center (formerly the Corporate Governance Center) of The…

Financial

Airline bailouts: a golden opportunity to take balance sheets from red, to black, to green

“Whoever has the Gold, (Once Again) Makes the Rules”: VC Deal Terms Likely to be More Investor Favorable

SCOTUS to decide whether FTC can seek restitution

OCC, FDIC Issue Long-Awaited Valid-When-Made “Madden Fix”

You’re on Notice: Alabama Court of Civil Appeals Bears Down on Foreclosure “Strict Compliance” in Barnes v. U.S. National Bank, No. 2180699.

Guest Post: When a Wealthy Individual, Not D&O Insurance, Indemnifies Directors

Hiding Assets By Laundering Them

Ginnie Mae Restricts Long-Time Legitimate Business Activity of Mortgage Servicers

Business interruption, infectious disease extensions and causation

More serious food for thought

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