May 20, 2013

Bingham McCutchen. Christopher Wells, Tomoko Fuminaga were among 7 attorneys to leave White & Case for Bingham's investment funds unit in Tokyo;  the other 5 were associates.

Manatt, Phelps & Phillips. Steven Arnold joined as partner in the financial services and banking practice in Orange County, CA;  previously managing counsel at Toyota Financial Services.

White & Case. Roger Kiem joined the global M&A practice in Frankfurt;  previously partner at Roger Kiem.

Quinn Emanuel Urquhart & Sullivan. John Rhie and Carey Ramos joined the new Asian international arbitration practice in Hong Kong, as chair and senior partner, respectively, pending regulatory approval.  Mr. Rhie, who will also serve as office managing partner, arrives from Kim & Chang in Seoul.

Edwards Wildman Palmer. The firm announced plans for a new office in Istanbul, Turkey, upon approval by the Istanbul Bar Association.  The new office is set to operate in an exclusive association with Ismen law firm, an M&A boutique based in Istanbul.

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May 13, 2013

[ by Melanie Gretchen ]

Three bankruptcy lawyers from Cadwalader Wickersham's New York and Washington offices switched firms, going to L.A.-based O'Melveny & Meyers.  John Rapisardi and George Davis, who had served as co-chairs of Cadwalder's bankruptcy practice, made the move, along with Washington-based partner Peter Friedman. 

• Mr. Rapisardi and Mr. Davis will become global heads of O’Melveny’s bankruptcy and restructuring practice. 
• Mr. Friedman will continue practicing in Washington, D.C. 

Cadwalader wasted no time in replacing the departing partners, whom they wished well in their moves.  Named as the new Cadwalader co-chairs for the bankruptcy practice are:  Gregory Petrick and Mark Ellenberg. 

All 3 lawyers departing partners joined Cadwalader Wickersham 6 years ago from Weil, Gotshal & Manges - a bankruptcy powerhouse.  While at Cadwalader, they were involved on high-profile projects, including the Treasury Department and President Obama’s task force handing of the Chrysler and General Motors bankruptcies. 

O'Melveny & Myers Lawyers Up with Senior Hires from Cadwalader Wickersham & Taft. 

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May 10, 2013

[ by C-I Staff ]

Steptoe & Johnson.  Jason Weinstein, former deputy assistant AG of the Justice Department's Criminal Division, joined as partner in these Washington office practice groups:  (i) white collar criminal defense;  and, (ii) privacy and data security.

Bracewell & Giuliani.   Anne Northup, former KY Congresswoman, joined the firm's Washington Policy Resolution Group;  for the past 3 years, she has served as commissioner on the U.S. Consumer Product Safety Commission.

Mintz, Levin, Cohn, Ferris, ... .   Andrew Nagel joined as a member in the firm's corporate and securities section;  previously, at WilmerHale.

Hunton & Williams.  Alison Dreizen joined as partner in the NY global corporate practice;  previously at White & Case.

Nelson Levine.  Marc Abrams joined as partner in the NY reinsurance practice;  previously at Wollmuth Maher & Deutsch.

Stroock & Stroock & Lavan.  Andrea Satty joined as partner NY energy and project finance group;  previously at Chadbourne & Parke.

Kaufman Dolowich Voluck.  Robert Berns joined as partner the Hackensack, NJ, firm, where he will continue defending professional negligence and malpractice claims;  previously at Wilson Elser Moskowitz Edelman & Dicker.

Jackson Lewis. Tracey Merwise joined as partner in the SF office;  previously co-chair of Severson & Werson's labor and employment practice.

Sidley Austin.  Gregory Salathe joined as partner in the Singapore M&A practice, after a transition period in Tokyo;  previously with Morgan Lewis.

Taken from:   Lawyer Moves - Reuters.

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May 8, 2013

[ by Melanie Gretchen ]

The head of JPMorgan's agency mortgage-backed securities pass-through desk - Erik Bisso - was named by the bank as its new Chief Investment Officer for North America.  He replaces Irene Tse who left the bank last year to start a hedge fund. 

Matt Cherwin, head of securitized products, and Craig Delany, head of the global chief investment office, had this to say about Mr. Bisso's selectionn:  Mr. Bisso’s move "demonstrates our ongoing commitment to developing senior talent and encouraging mobility across the firm."

Bill Anast to succeed Mr. Bisso on the MBS desk.  He was hired from Barclays Plc, where he ran the agency collateralized-mortgage obligation business.   JPMorgan Chase Taps Veteran for CIO Post.

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May 7, 2013

[ by Melanie Gretchen ]

ING Group lives to die another day after the the New York-based unit of the largest Dutch financial-services company priced its IPO at $19.50 a share - below its expected range of $21 to $24.  By 4 p.m. on Wednesday, ING U.S. Inc. (VOYA), had risen almost 7% in its trading debut after raising $1.27 billion in its initial public offering.

The IPO, led by Morgan Stanley, Goldman Sachs and Citigroup, follows ING's efforts to shrink itself in accordance with the terms of a 2008 bailout by the Dutch government.  To this end, the lender last year sold its United States online banking arm, ING Direct USA, to Capital One Financial for $9 billion.

Apparently, the new direction is paying off (literally) for the company, which sells primarily retirement plans and investment products.  To date, its IPO the 2nd-biggest market debut in the country this year, after the $2.2 billion I.P.O. of Zoetis, the former animal health division of Pfizer.  This week, the business (to be rebranded Voya Financial) began trading on the New York Stock Exchange on Thursday under the ticker symbol “VOYA.”

For further details, go to [Dealbook, 5/1/13] and [Bloomberg, 3/2/13].

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May 2, 2013

[ by Melanie Gretchen ]

FINRA hired its first chief economist and he comes out of the U.S. Treasury Department - currently serving as Acting Deputy Director of Research and Analysis in Treasury's office of financial research.

Jonathan Sokobin, is assume his new role on 5/20/13, and report directly to FINRA Chairman & CEO Rick Ketchum.  He'll work with the FINRA General Counsel's Office and other departments to:

• develop new rules and analyze their potential costs and benefits. 
• get involved in reviews of existing rules - particularly with an eye to scrutinizing potential costs and benefits of rules and amendments FINRA plans to propose. 

Mr. Sokobin received an MBA and PhD in finance from U. of Chicago.  He joined the SEC in 2000 and, by 2004, rose to the position of Deputy Chief Economist.  He later served as Acting Director of the SEC's Division of Risk, Strategy and Financial Innovation, before joining the Treasury Department in 2011 as Chief of Analytical Strategy.

For further details, go to [Reuters, 4/30/13].

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May 1, 2013

[ by Melanie Gretchen ]

Berkshire Hathaway to Finish Off IMC Acquisition. Warren Buffett's holding company agreed to buy the remaining 20% of the IMC International Metalworking Companies (it currently owns 80%) for $2.05 billion.  Mr. Buffett first began acquiring the Israeli tool maker from its founding Wertheimer family 7 years ago.  The completion marks the second big acquisition by Berkshire Hathaway, after the $23 billion takeover of H.J. Heinz by Berkshire and 3G Capital.

SEC Lawyer Hired by Network Firm. Michael King joined Gerson Lehrman Group, the country's largest expert network firm, as chief compliance counsel.  Mr. King, currently an SEC enforcement in attorney in Fort Worth, TX, arrives after a former Gerson Lehrman consultant was linked to an insider trading case involving former SAC Capital portfolio manager Mathew Martoma.  Mr. King, however, was brought on board, not in response to any of the government's insider-trading cases to accommodate the firm's growth.  He made his name by helping the SEC bring a case against Texas financier Allen Stanford, currently serving a 110-year prison sentence.

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April 30, 2013

[ by C-I Staff ]

Lawyer Moves.

Sidley Austin. William Blumenthal and Kenneth Glazer, antitrust attorney, joined as partners in Washington; previously with the Federal Trade Commission, as general counsel and deputy director of the Bureau of Compeition respectively.

WilmerHale. Lilliam Brown and Jennifer Zepralka joined as partners in the new Washington office;  previously at the SEC as senior special counsel to the director of the Division of Corporation Finance.

McGuire Woods. Dale Mullen joined as partner in the regulatory and compliance department in Richmond, VA;  previously county attorney and county administration for Louisa County, VA.

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April 29, 2013

[ by Howard Haykin ]

Game Book of Numbers Does Him In.

Tim Tebow is no longer a New York Jet, pushed out like a "pig at a trough."  After drafting quarterback Geno Smith, the Jets had 6 QBs on its roster - at least one had to go.   In his one year with the "Yets," Tim Tebow never had a chance to spin his magic on the "City That Doesn't Sleep At Night."  Jets coach Rex Ryan said in a statement: “Unfortunately, things did not work out the way we all had hoped.”  He may have added that the Art of Tebowing - through a kneel-and-pray pose after victories - never became the fad among teammates or New Yorkers that many had expected.

But no worry - Tim is 25, handsome, built like a brick outhouse, and outspoken in professing his Christian beliefs.  He'll do just fine.

The full story from Bloomberg continues:

Jets Release Tim Tebow After Drafting Quarterback Geno Smith
By Mason Levinson - Apr 29, 2013

The New York Jets released Tim Tebow, ending a failed one-season experiment with the fan- favorite quarterback who was never given a shot to lead the team.  The Jets announced the release of Tebow after selecting quarterback Geno Smith in the National Football League draft.  “We have a great deal of respect for Tim Tebow,” Jets coach Rex Ryan said in a statement. “Unfortunately, things did not work out the way we all had hoped.”

Tebow, 25, played in 12 games last season after being acquired by the Jets in a trade with the Denver Broncos in March 2012. The previous season, he led the Broncos to the playoffs, then was voted America’s favorite active pro athlete in an ESPN fan-based poll. He spawned a fad known as “Tebowing” through his kneel-and-pray pose after victories and has been outspoken in professing his Christian beliefs.

Ryan never showed much faith in Tebow’s ability at quarterback last season, when the team went 6-10 to miss the playoffs for the second straight year.  Tebow was the No. 2 quarterback to Mark Sanchez, though he was passed over for third-stringer Greg McElroy when Sanchez was benched. After McElroy was injured, Ryan re-inserted Sanchez in the starting lineup for the team’s final game rather than give Tebow a chance.

Wildcat Plan.  
After he rushed for 660 yards in 2011 for Denver, the Jets’ initial plan was to use Tebow in their wildcat offense, a package featuring runs and passes by the quarterback to try to confuse defenses. Tebow completed six of eight pass attempts and rushed for 102 yards.   He departs New York having thrown for 39 yards.

Mike Westhoff, the Jets’ special-teams coach who retired at the end of last season, said in a January interview with WQAM Radio in Florida that Tebow’s campaign in New York was an “absolute mess” and that he was “still waiting for the unveiling” of the Jets’ offensive package that was to be run by Tebow.

Tebow joined New York with a seventh-round draft pick in exchange for fourth- and sixth-round selections. The moves ended up costing the Jets $4 million, including $1.5 million in salary and $2.5 million they paid Denver to complete the trade, according to ESPN.  The move is the latest by the Jets’ new general manager, John Idzik, who was hired in January following the firing of Mike Tannenbaum.

To access the source story, go to:  [ Bloomberg, 4/29/13 ].

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April 18, 2013

[ by C-I Staff ]

Lawyer Moves.
 

Steptoe & Johnson. Patrick Rappo joined as partner;  previously joint head of bribery and corruption in the U.K.'s Serious Fraud Office.

Haynes & Boone. Frank Vivero joined as partner in the corporate practices group in New York;  previously from Milbank, Tweed, Hadley and McCloy.

Orrick, Herrington & Sutcliffe. Eric Shumsky joined the Supreme Court and appellate group in Washington;  previously with Sidley Austin.

Quarles & Brady. James Kaplan joined as partner in the corporate services practice group in Chicago;  previously with DLA Piper.

Nelson Levine de Luca & Hamilton. Thomas Dietrich joined the insurance law firm as counsel in the Columbus, OH, office;  previously with Nationwide as deputy general counsel.

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April 18, 2013

[ by Melanie Gretchen ]

A Weil Gotshal & Manges partner may rising higher up the career ladder, following his nomination by the White House to serve on the federal bench in the Southern District of New York.  Vernon Broderick, 50, was recommended by Senator Charles Schumer (D-NY) and would become the first Dominican-American federal judge in New York state, replacing U.S. District Judge Deborah Batts, who took senior status last year.

In his current role at the New York-based law firm, Mr. Broderick focuses on white-collar defense, regulatory investigations and complex business litigation, according to the firm website.  During his career, he has represented the estate of Lehman Brothers Holdings Inc in connection with investigations related to the firm's bankruptcy.

Mr. Broderick graduated from Harvard Law school, after which he served as an associate at Weil Gotshal in 1988.  From 1994 to 2002, he left to join the the U.S. Attorney's office in the Southern District, where he worked on cases involving organized crime, drug trafficking and violent crime, before rejoining as counsel.  In 2005, he made partner.

"Vernon Broderick has a long and distinguished record of service, and I am confident he will serve on the federal bench with distinction." -- President Barack Obama, in a statement Monday.

[Reuters, 4/17/13]

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April 16, 2013

[ by Melanie Gretchen ]

William Vereker is UBS's latest import from Nomura.  The former joint head of global investment banking joined the Swiss bank as head of corporate client solutions in Europe, as part of an effort by Andrea Orcel, chief of UBS’s investment bank, to shift its operations toward its wealth management unit.

Some background information on Mr. Vereker:

• made his name by advising natural resource companies like Xstrata, that's currently under acquisition by the commodities trader Glencore International for $30 billion. 
• worked at Morgan Stanley and Lehman Brothers prior to joining Nomura.
• appointed vice chairman of Nomura’s investment banking division in September. 
• follows in footsteps of Piero Novelli who came to UBS from Nomura in January.  At Nomura, Novelli was global co-head of M&A business;  At UBS, will serve as global chairman of M&A.

[Dealbook, 4/16/13]

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April 16, 2013

Lawyer Moves.

Freshfields Bruckhaus Deringer. Matthew Friedrich joined as partner in the litigation practice in Washington;  previously acting head of the Criminal Division of the DOJ and with Boies, Schiller & Flexner.

Greenberg Traurig. Gabriel Monzon-Cotrarelli joined the corporate and securities practice as shareholder and head of the firm's Italian desk in its New York office;  previously counsel at Withers Bergman.

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April 4, 2013

[ by Melanie Gretchen ]

Nationwide and Reich & Tang Hope to Score Well with HighMark. The Columbus, OH-based company, Nationwide Financial, and NY-based investment management firm Reich & Tang, will buy the mutual fund business of UnionBanCal Corp, a subsidiary of Mitsubishi UFJ Financial Group Inc. Terms of the deal were not announced.  All told, 19 of 24 HighMark Funds will be acquired by Nationwide Financial, which will increase assets under management by $4 billion.  Reich & Tang will add the remaining 5 funds, with $4.2 billion.   [reuters]

BofA, Citi Bet on New Trading Leadership. Bank of America Corp. and Citigroup Inc., the 2nd and 3rd biggest U.S. lenders, are bringing in new leadership to help run the firms’ rates-trading desks.  BofA hired the current co-heads of Treasury trading at Barclays - Charles Parkhurst and Adam Brown.  At BofA, Parkhurst, 52, will run U.S. Treasuries trading, while Brown, 37, will oversee N. America Rates Electronic Trading.  Both will report to current BofA co-heads of North America Rates Trading - Denis Manelski and David Moore. 

Citigroup  will promote Roland Wikstrom as U.S. head of G-10 Rates Trading, replacing Nicholas Brophy - who is leaving and will become more active with a not-for-profit (Worldwide Orphans Foundation) where he currently is a director.  Wikstrom had been the unit's head of risk treasury.   [bloomberg]

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April 4, 2013

[ by C-I Staff ]

Troutman Sanders LLP.   Sharie Brown joined the white collar and government investigations practice in the Washington office;  previously, with DLA Piper LLP, she served as co-chair of the anti-corruption and corporate compliance practice group.   Before that, Ms. Brown chaired the white collar defense and corporate compliance group at Foley & Lardner LLP, and was an ethics and compliance officer in Mobil Oil Corp.’s Office of General Counsel.  [ C-I Note:  Impressive and substantial experience, Ms. Brown. ]

DLA Piper.   Cedric Chao joined as partner in the litigation practice in San Francisco;  previously, with Morrison & Foester LLP as co-chairman of the international litigation and arbitration practice.  Prior to that, Mr. Chao served as lead counsel in matters before U.S. trial judges and juries, international arbitration tribunals and appellate courts.

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April 2, 2013

[ by C-I Staff ]

Nasdaq OMX, parent company of the Nasdaq stock exchange, is on a roll, with its acquisition of eSpeed from BGC Partners, a spinoff of Cantor Fitzgerald.  The Nasdaq OMX Group, which spent $750 million on the deal, is seeks to diversify and expand its market reach in order to compensate for the industry-wide decline in stock trading.  Similar strategies are being employed by other exchange operators. 

With the acquisition of eSpeed - the deal is expected to close later this year - Nasdaq is hoping to take advantage of the growing appetite for electronic trading in many types of bonds.   [ Dealbook, 4/1/13 ]

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March 28, 2013

[ by C-I Staff ]

Goldman Brings Southeast Asia Banking Exec Back to New York Home Office.   Steven Barg debuted the newly-created position of head of M&A capital markets in New York.  Mr. Barg, currently co-head of investment banking in Southeast Asia, will move from Singapore to New York next month.  At Goldman, he will advise M&A clients on issues related to equity capital markets, alongside global co-heads of M&A Gregg Lemkau and Gene Sykes, and Michael Carr, head of M&A in the Americas.  Mr. Barg, who first joined Goldman as partner in 2010, previously worked at UBS for 6 years, where he was co-head of equity capital markets in Asia, and at Credit Suisse.

Schroders Plc Expands Empire.   Europe's largest publicly traded money manager agreed to buy Cazenove Capital Holdings Ltd. to fortify the bank's dwindling private bank.  The £424 million ($646 million) purchase, at 135 pence a share in cash, will merge 2 of the City of London's oldest firms dating back to the 19th century and will hopefully boost net revenue, which fell 17% to £94.4 million in 2012 as the private bank lost assets in Switzerland and lowered management fees amid the European sovereign debt crisis.  In addition, the purchase will allow Schroders to cut costs as the costs of technology, infrastructure, and regulation go up, according to head of private banking Philip Mallinckrodt.

Qatalyst Poaches Morgan Stanley Head.   Qatalyst Group, the West Coast boutique advisory firm helmed by Frank Quattrone - the "born-again investment banker" - hired Marcie Vu and brought her in as a partner.  Ms. Vu, most recently head of consumer Internet investment banking at Morgan Stanley, made her name helping take Facebook and LinkedIn public and advising Cnet on its sale to CBS for $1.8 billion in 2008, before joining Morgan Stanley in 2002.  In 2010, she told Investment Dealers' Digest how her family left Vietnam during the fall of Saigon in 1975.  At Qatalyst, she will be based in the company's SF headquarters.

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March 28, 2013

[ by C-I Staff ]

Simpson Thacher Veteran Rises to the Top. William Dougherty, a 27-year veteran of the NY-based law firm, was elected as chairman on 3/7/13.  Mr. Dougherty, who's 51, ran the firm's day-to-day operations for 3 years prior to his appointment.  Since joining the firm in 1986, Mr. Dougherty has focused on M&A and CorpFin transactions;  he earned his place as a partner in 1995.  The firm is the 9th-highest-grossing law firm in American Lawyers' 2011 rankings.  Among its current roster of high profile clients are, the following:  Blackstone, KKR, JPMorgan, Apple, and Cisco Systems.  [reuters]

 

SEC Hires Out of Private Sector.  Danforth Townley joined as attorney fellow in the SEC's Division of Investment Management.  Mr. Townley, who was partner in the corporate department of Davis Polk & Wardwell, will provide counsel on rule-making issues and other policy initiatives.

 

Lawyer Moves.

WilmerHale. Bruce Manheim joined as partner in the regulatory and government affairs department;  previously with Ropes & Gray.  [crain's]

Proviti. Scott Moritz, 51, joined the consulting firm as managing director in the internal audit and financial advisory group;  previously managing director, global investigations, and compliance, at Navigant Consulting.  [crain's]

Oppenheimer & Co. Peter Albano, 52, joined the wealth management and investment-banking services firm as managing director and head of taxable fixed-income sales;  previously managing director and head of institutional relationship management, Americas, at BNP Paribas.  [crain's]

Heidrick & Struggles International Inc. Scott Estill, 38, joined the executive search and leadership consulting firm as partner in the financial services practice;  previously a director at Coady Diemar Partners, which he co-founded.  [crain's]

Weil Gotshal & Manges. Allison R. Liff, 37, joined as partner in its banking and finance practice group;  previously, she was managing director and associate general counsel at Goldman Sachs.  [crain's]

Crowell & Moring. Christopher Cole joined as partner of the advertising and product risk management group in Washington;  previously, was chair of Manatt, Phelps & Phillips' advertising litigation practice.  [reuters]

Foley & Larder. Robert Lee joined as partner in the transactional and securities practice in Miami and Orland;  previuosly, was with Diaz, Reus & Targ.  [reuters]

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March 26, 2013

[ by Melanie Gretchen ]

Senate Republicans stymied President Obama's choice for the U.S. Court of Appeals in the District of Columbia for a second time.  New York lawyer Caitlin Halligan was nominated twice and twice her confirmation was blocked - in December 2011 and on March 6, 2013.  Her name has been withdrawn and the President won't press his luck by testing the proverb that "the 3rd time is the charm." 

Profile of Caitlin Halligan.    Ms. Halligan currently serves as general counsel for the Manhattan district attorney's office.  After her second defeat, she sent a 1-paragraph letter to the President, expressing the "tremendous honor" of being nominated, but "the time has come for me to respectfully ask that you withdraw my pending nomination."  The President had this to say about the rejection :

"I am deeply disappointed that even after nearly 2-1/2 years, a minority of senators continued to block a simple up-or-down vote on her nomination."

The U.S. Appeals Court for which Ms. Halligan had been nominated, is considered the 2nd most influential U.S. court after the Supreme Court.  It hears many regulatory cases important to U.S. businesses and has been a springboard for elevation to the high court.  In the filibuster earlier this month, a majority of the Senate voted to end debate and put her nomination to a vote.  She nevertheless, fell short of the 60 votes needed to defeat the Republican filibuster in the Senate.

For further details, go to [Reuters, 3/25/13].

To contact Melanie Gretchen: melanie@compliance-insights.com.

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March 19, 2013

[ by Melanie Gretchen ]

Lawyer Moves.

Covington & Burling.   Howard Berman joined as senior advisor in the global public policy and governmental affairs practice in Washington;  previously a congressman (D-California) from 1983 to 2003.

K&L Gates.   Frank Schweitzer joined as partner in Washington to serve in the international arbitration and international trade practices;  previously associate general counsel at the Office of the U.S. Trade Representative.

Milbank, Tweed, Hadley & McCloy.   Douglas Landy joined as partner in the leveraged finance and financial regulations groups in New York;  previously with Allen & Overy.

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March 19, 2013

[ by Melanie Gretchen ]

RBC Poaches 3 Barclays Heads in Technology Banking. Royal Bank of Canada hired 3 technology leaders including Michal Katz and Michael Carter who joined as co-heads of its United States technology investment banking group.  In addition, Erik-Jaap Molenaar arrived to serve as a managing director in technology mergers and acquisitions. All 3 previously worked at Barclays, and Lehman Brothers before that.  [dealbook]
 

Lawyers on the Move.

WilmerHale. Bruce Manheim joined as partner in the regulatory and government affairs department;  previously with Ropes & Gray.  [reuters]

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March 15, 2013

Tremendous Victory for Government, Opening the Way to Greater Disclosure.

[ by Howard Haykin ]

Federal Judge William Paley in Manhattan ordered 5 unidentified taxpayers to turn over information about their foreign bank accounts to a federal grand jury.  The ruling rejected arguments that the individuals are shielded by the U.S. Bank Secrecy Act or a constitutional right against self-incrimination.

In 2009, the IRS has conducted an amnesty program, offering U.S. citizens an opportunity to: 

(i)  disclose offshore bank accounts; 
(ii)  identify the names of banks and bankers who helped them set up these accounts - essentially to hide financial assets.
(iii)  pay back taxes and penalties.
(iv)  in exchange for avoiding prosecution.

Since the program was launched in 2009, over 38,000 Americans have accepted the IRS offer.  Others have not entered the program, and at least 83 people have been charged with evading taxes by the U.S., including two dozen offshore bankers, lawyers and advisers.

In this particular case, a federal grand jury ...  in 2010 began investigating "whether each of the five subjects had a financial interest in foreign bank accounts that they failed to disclose to the Internal Revenue Service.”  A preliminary investigation revealed that, yes, each of the 5 did have a financial interest in, or signature over, a foreign bank account.  However, at the time, each refused to turn over the information about their foreign bank accounts to the federal grand jury.

Judge Paley said taht the subpoenas seek "any and all records" of bank or foreign accounts "in any foreign country" which exceeded $10,000 - including the name in which each account is maintained, number of others tied to the account, the address of the bank, and the maximum value of each such account.

In his ruling, the Judge also stated the following 2 positions: 

"The subjects contend that these records are not customarily kept by foreign bank account holders who wish their accounts to remain secret.  But they cite no authority for this proposition."

"It is equally unacceptable for an American taxpayer to profit from American markets, refuse to report that profit as taxable income, and then claim that he cannot be held accountable because he engineered his offshore account to be secret.  This court declines to credit such sophistry."

The judge directed that all responses filed by the government and defense lawyers in the case, which began in November, be filed under seal.

Tremendous Victory for Government.   In a victory for the government, Judge Pauley said individuals can’t assert a constitutional right against self-incrimination and refuse to disclose bank records to a U.S grand jury.

U.S. courts in 3 other jurisdictions have ruled that an FBAR (Report of Foreign Bank and Financial Accounts) is governed by the U.S. “Required Records Doctrine” and a taxpayer can’t assert a Fifth Amendment right against self- incrimination.

The Bank Secrecy Act, passed by Congress in 1970 to combat money-laundering in the U.S., requires businesses to keep records and file reports that are deemed to have a "high degree of usefulness in criminal, tax and regulatory matters."

For further details, go to:    [Bloomberg, 2/20/13].

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March 14, 2013

McDermott Will, Mayer Brown, K&L Gates, Latham, Squire Sanders, Jackson Lewis.

[ by Melanie Gretchen ]  

Lawyer Moves.

Paul Hastings.  Nathaniel Edmonds stepped down as assistant chief of the Fraud Section, FCPA Unit in the Criminal Division of the Justice Department, to become a partner with Paul Hastings in the global compliance and disputes practice in Los Angeles.

McDermott Will & Emery.  Brian Hoffman rejoined as corporate partner in the New York office;  previously, was co-chair of the M&A practice at Clifford Chance.

Mayer Brown.  Joel Moss joined the NY bankruptcy practice as partner;  previously, was director at Barclays, handling bankruptcy and restructuring in the U.S.

K&L Gates.  John Scordo, Deborah Bean, Kevin Ross-Andino joined as partners.  Mr. Scordo, previously at Day Pitney, joins the Newark insurance coverage practice;  Ms. Bean, from Gadens Lawyers, joins Brisbane, Australia, finance practice; Mr. Ross-Andino, previously with Foley & Lardner, joins the commercial disputes practices.

Latham & Watkins.   Yi-Chin Ho and Ing Loong Yang, both litigators, joined as partners in Los Angeles; previously, at Manatt, Phelps & Phillips, and at Sidley Austin, respectively.

Squire Sanders.   Barbara Alonso joined as partner in the Miami financial services practice group;  previously, with Greenberg Traurig.

Jackson Lewis.   Charles Seemann III, a benefits litigator, joined as partner in New Orleans;  previously, served in Proskauer Rose's Employee Retirement Income Security Act litigation practice group.

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March 14, 2013

Citadel is ETFC's largest shareholder with 9.6% Stake.

[ by Howard Haykin ]

E*Trade Financial Corp. (ETFC) dropped the most in 5 months after Citadel LLC, its largest shareholder, announced plans to sell the rest of its equity stake in the 4th-largest online brokerage (as measured by client assets).  E*Trade shares closed on Thursday at $10.85, off 97¢, or 9.6% from the prior day.  Shares traded as low as $10.75.

Before today, the New York-based company had gained 32% in 2013, compared with the 9% advance in the S&P 500 Index.  Based on Wednesday's closing price of $11.82, Citadel's stake in the company has a market value of $324 million.

Citadel, the Chicago-based hedge fund run by Ken Griffin, plans to sell its remaining equity stake, about 27.4 million shares, by March 19.  Citadel invested $2.55 billion in E*Trade in November 2007 to help the company survive mortgage losses.

As ETFC's largest shareholder, Citadel asked E*Trade in 2011 to hire a bank to review strategic alternatives and take immediate action to maximize shareholder value after “catastrophic losses” that had driven the shares down 97% since 2007.

While E*Trade refused to put the company up for sale last year, it ousted CEO Steven Freiberg in August and named Citadel’s Griffin to the search committee.  Freiberg was replaced by former Barclays Plc executive Paul Idzik in January as the company’s 5th top executive in 5 years.  [C-I Note:  Not unlike the NY Yankees who averaged one new skipper a year during the lowly 1980s.]

[C-I Thinking Out Loud:   Is Citadel's sale a positive event for E*Trade?  After all, Griffin was quite critical of E*Trade and prompted the firm to act in ways it may not have wanted.  On the other hand, Griffin was E*Trade's savior when it needed a financial fix - following the large mortgage portfolio losses incurred by the firm's banking unit.  This is something we'd like to explore further.]

For further details, go to:   [Bloomberg, 3/14/13].

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March 12, 2013

... DLA Piper Reinforces Intellectual Property.       [ by Melanie Gretchen ]

Ex-Mass. Senator Loses a Seat and Gains an Office at Nixon Peabody. Elizabeth Warren beat out incumbent Scott Brown for the honor of representing the Commonwealth of Massachusetts as Senator.  Mr. Brown fortunately has found a new home - Nixon Peabody.  He will work in the firm’s Boston headquarters, focusing on the financial services industry and commercial real estate matters.  The firm with about 700 lawyers, will welcome Mr. Brown, who brings his value experience as both a state legislator and U.S. Senator.  Prior to serving in politics, Mr. Brown had a solo practice handling real estate transactions.

DLA Piper Picks Up Orrick Partner. Paul Gupta (no relation to former Goldman Sachs director Rajat Gupta) joined DLA Piper's New York office as partner in the intellectual property and technology and litigation practices.  Mr. Gupta, previously a partner in the New York and Silicon Valley offices of Orrick, Herrington & Sutcliffe, will split his time between New York and Silicon Valley at his new firm.  He will continue to focus on Internet and e-commerce clients, including AOL Inc and Avaya Inc, as well as clean technology clients.

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March 7, 2013

[ by Melanie Gretchen ]

Washington, Under Budget-Cut Fire, Now Under Snow.   Washington shut its doors – not because of the sequestration, but for what has been affectionately nicknamed the "snowquestration."  After enveloping the Midwest, cutting power to some 50,000 homes and businesses, and canceled hundreds of flights, it bore down on the east coast in the Virginia, Washington, D.C. area.  

The impact of closing down  government offices was somewhat muted because Friday's sequestration forced federal agencies to place 375,000 workers on furlough.   About 6 to 12 inches are expected to fall on the nation's capital - its biggest snowfall in past 2 years.  [reuters]

 

Lawyers on the Move.

Reed Smith.  Jeffrey Page joined as partner in the financial industry group;  previously partner at Riemer & Braunstein.

Edwards Wildman Palmer.  Martin Nilsen  rejoined as counsel in the insurance and reinsurance department in New York;   previously, general counsel at Arch Insurance Group.

DLA Piper. Claire Hall joined as an attorney in the L.A. finance and derivative practice;  previously, counsel with White & Case.

SNR Denton.   A 5-attorney class action and insurance litigation team joined the SF office, including Fletcher Alford, Laura Geist, and Doug Scullion as partner, along with  2 associates - previously at Gordon & Rees.

Squire Sanders.   Richard Horton  joined as corporate and technology partner, and will work out of the firm's Sydney, Australia, and Silicon Valley, CA, offices;  previously, at DLA Piper.

Loeb & Loeb.   Ross Emmerman joined as partner in the corporate department;  previously, at Neal, Gerber & Eisenberg.

Barnes & Thornburg.   Roy Ginsburg  joined as partner in the Minneapolis office's labor and employment law practice;  previously, partner at Dorsey & Whitney.

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March 7, 2013

Chief of Staff to FCC Commissioner joins Mayer Brown.

[ by Melanie Gretchen ]

Lawyers on the Move.

Sidley Austin.   Mark Thomas  joined as partner in the M&A and private equity practices in New York and London;  previously, at King & Spalding's London office.

Manatt, Phelps & Philips.   Kristi Rogers, former president and CEO of Aegis Defense Services,  joined as managing director in the federal government affairs and public policy team.  Former K&L attorneys  Michael Gordon, Eli Mattioli, and Andrew Morrison  joined as partners the New York litigation practice.

Mayer Brown.   Angela Giancarlo  joined as partner in the government and global trade practice in Washington;  previously, served as chief of staff and senior legal adviser to FCC Commissioner Robert McDowell.

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March 6, 2013

[ by Melanie Gretchen ]

Buffett Feeds Investors Who Left Him "In the Dust". Warren Buffett, 82, has tapped 2 stock pickers to pick up where he and and Vice Chairman Charles Munger, 89, leave off when the Berkshire Hathaway leaders are no longer leading the company.  Todd Combs and Ted Weschler, who beat the Standard & Poor’s 500 Index and left Mr. Warren Buffett "in the dust," have proved they are capable of running more than $80 billion of stocks, Mr. Buffett said.  Although both Mr. Combs, 51, and Mr. Weschler, 42, have only been at the firm for 3 years, they each oversee almost $5 billion – $1 billion more than Mr. Buffett outlined in July.  Going forward, they will make bets from "a couple hundred million" dollars to $1 billion, while Mr. Buffett will continue to oversee the largest investments in Berkshire’s portfolio.

HSBC Shrinks U.S. Loan Portfolio. HSBC continues to shrink its assets in the United States.  This year, it agreed to sell a portfolio of personal unsecured loans and mortgages to Springleaf Finance and the Newcastle Investment Corporation for $3.2 billion in cash.  The book was first acquired through the 2003 takeover of the former Household International subprime lender.  Since then, the British bank, which incurred huge loan losses, has since admitted was a mistake.  The sale of the portfolio, which includes about 400,000, is expected to be completed before the end of the year and would decrease the old Household portfolio to some $39 billion of assets.

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March 1, 2013

[ by Howard Haykin ]

Goldman Sachs equity analysts cut their rating on Deutsche Bank to a "SELL" from "HOLD," over concerns the German bank may have to transfer $13 billion to its U.S. unit because of new capital rules.  The price of Deutsche Bank shares plunged immediately.

Goldman's analysts expressed concern that stricter U.S. requirements for foreign companies operating in the U.S. may hurt the profit at Europe’s biggest (measured by assets) and require it to ask shareholders for more money.  Here's a snippet from the emailed report that was prepared by Goldman Sachs analysts in London, including Jernej Omahen: 

"Such an intragroup transfer would cause a sharp reduction in Deutsche Bank’s non-U.S. capitalization, which could increase pressure for an external recapitalization. The proposal is also stringent on funding, as it calls for a liquidity stress test. The impact on Deutsche Bank’s profit could be substantial.”

Precipitating the concern, was a Federal Reserve proposal .... in November that would order 23 foreign banks to adhere to stricter capital requirements to reduce risks to the financial system. Deutsche Bank co-CEO Anshu Jain said in January he wants his firm to be “very focused on the U.S.” because of its economic prospects and the presence the bank has built there.

Elke Koenig, chief of German regulator Bafin, criticized the U.S. plan on Thursday, calling it a "unilateral decision” and a “step backward” for international coordination on regulation.  Ms. Koenig, at the time, was attending a banking conference in Frankfurt.

Deutsche Bank is vulnerable because it is the least capitalized of Europe’s 4 biggest investment banks.  Though it has successfully narrowed the gap with peers by building reserves without diluting holdings of its owners with a share sale, Jain has told reporters that he cannot rule out such a sale should regulation tighten.

For further details, go to:   [Bloomberg, 3/1/13].

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March 1, 2013

[ by Melanie Gretchen ]

JPMorgan on Lehman Bankruptcy:  Not Our Fault.