Banking Misconduct Blog


Wells Fargo Sanctioned for Illegal Fees

Bankruptcy is designed to provide a fresh start for honest but unfortunate debtors and to ensure creditors are treated fairly. A federal bankruptcy court judge in Manhattan recently ruled that Wells Fargo failed miserably in its treatment of several of its business clients. By taking money to...

Special Servicers – Do They Answer to Anyone? CMBS Post

Anyone commercial property owner facing a special servicer soon learns the deck is stacked. Many commercial loans today are securitized and packages into loan pools. These pools are sold to a trust that is owned by institutional investors. Unlike a bank that has offices and employees, a CMBS trust...


JPMorgan Chase Sued Over Unauthorized Withdrawals

Is JPMorgan Chase Responsible for Unauthorized Withdrawals?  
Imagine you own a small business. For years, you struggle to build the business, keep customers happy and hopefully earn a small profit. As a restaurant owner, you focus on making sure you have the best ingredients, good...

Time Period to Sue a Bank for Breach of Fiduciary Duty

In a previous post, we discussed the difficulty in bringing claims for fiduciary duty against lenders. Despite popular opinion, the normal lender – borrower relationship does not create a fiduciary duty on the bank’s part in most states. There are many exceptions to the rule meaning...

Can a Lender Use Customer’s Confidential Info for Lender’s Benefit?

Lender’s frequently obtain confidential information from customers. Anyone who has ever completed a loan application or sought commercial financing knows how much data banks want… assets, profit projections, valuations, trade secrets, key personnel, even information about intimate...

Mineral Rights Claim Shows Novel Use of Racketeering Law

The Racketeer Influenced and Corrupt Organizations Act (RICO) was originally intended as a criminal statute. Congress wanted to arm prosecutors with a new law to address criminal conspiracies involving gangs and organized crime. A last minute amendment allowed private litigants to use the law in...

RICO Complaint Targets Title Co’s, Marriott’s Timeshare Program

A class action lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) last month claims Marriott’s “Vacation Club” timeshare program is actually an illegal racketeering scheme. A couple from Shelbyville, Indiana say they were duped into thinking they...

Appeals Court Enforces Modification Deal

We rarely write about residential foreclosure cases. Although we don’t typically handle cases for individual homeowners, we follow them closely. The same deceitful tricks banks use against helpless homeowners often find their way into commercial cases. Banks have deep pockets and know that...

Banks Put the Squeeze on Oil Companies

More bad news from the oil patch. Oil prices have been at historic lows since the summer of 2014. Although prices have rebounded a bit, prices are still well below the $65 per barrel benchmark that most companies need to be profitable. In recent months approximately 50 exploration and...