Legal issues and news

A panel of FINRA arbitrators unanimously ordered the award against the megabank based on Erin Ann Daly’s claims of gender-based discrimination.

Karl K. Klessig provided a fraudulent loan document and forged a signature in an application last year to acquire control of Golden Pacific Bancorp, according to the Federal Reserve.

With global tensions rising over Ukraine, the cutthroat competitiveness of the U.S. financial sector is yielding to partnership over the conviction that a cyberattack against even a group of minor banks — or a third-party service provider — could imperil everyone in a highly connected system.

The U.S. Department of Education agreed to erase nearly $6 billion in student loans for borrowers who filed a class action lawsuit against the government after attending for-profit colleges that were found to have misled students.

Court-appointed custodian Alfred Putnam is seeking an extension of nearly three weeks to give more groups time to nominate candidates for a vacant board seat at the Philadelphia bank and solicit proxies from investors before a special meeting.

The data breach, which occurred over a two-day period last December, is the largest disclosure by a mortgage lender this year.

It took less than a day for Citigroup’s now-infamous payment error to Revlon lenders to come up in the cosmetics giant’s bankruptcy.

Federal prosecutors in Manhattan are investigating the bank over allegations that it conducted so-called fake interviews with nonwhite and female job applicants, The New York Times reported Thursday.

The prepaid card issuer has now paid a total of $18 million to Republic Bank & Trust, which sued after Green Dot's purchase of its tax-refund business unraveled.

An Oct. 7 trial date looms in a case involving allegations of document destruction. The high-stakes lawsuit could complicate BMO's pending acquisition of Bank of the West.

Though costly, Wednesday’s settlement brings the $11.2 billion-asset company a step closer to resolving legal and regulatory issues that have hampered it since 2019.

Edward Shin, the onetime CEO of Noah Bank in Pennsylvania, was found guilty of charges related to loans the bank made to businesses in which he held a stake.

Davidson County Chancery Court Judge Patricia Moskal ruled that Orion Federal Credit Union’s acquisition of Financial Federal Bank is legal under Tennessee law. The decision provides a road map for courts in other states to follow for similar M&A deals.

District attorneys in the Golden State are tangling with Credit One Bank over its debt-collection practices. The bank says the prosecutors have overstepped, but Democratic Attorney General Rob Bonta argues that the legal action should continue.

The National Credit Union Administration barred three former credit union employees from participating in the affairs of any federally insured depository institution.

A recent California Supreme Court decision means that lenders can be on the hook for consumers’ attorney fees in situations where car dealers defraud them. The case involved TD Auto Finance and a dealer that allegedly sold a vehicle without certain advertised features.

The agency recently updated a policy document to include technological innovation as a top priority and said it was considering creating a safe harbor for those who develop new products to fight financial crimes.

The firms respectively settled the regulator’s allegations about suspicious activity reports and the duty of best execution — two major areas of emphasis.