Banking Misconduct Blog


Anatomy of a Lawsuit Against Rialto Capital Partners

Anatomy of a Lawsuit Against Rialto Capital Partners

[This post is taken from court documents and a story published by Law360. Although we represent the Plaintiffs in the lawsuits, we do not comment on pending litigation.]
Many commercial projects are financed with CMBS loans. Short for “Commercial Mortgage Backed Securities,” CMBS...


LNR Partners... Coronavirus Scrooge Award

LNR Partners... Coronavirus Scrooge Award

Yesterday Goldman Sachs predicted America’s GDP for the 2nd quarter would plunge a breathtaking 24%. Previously, the largest drop in U.S. history occurred in 1958. That was just 10%. Despite all the doom and gloom, both the government and private sector are working together to keep businesses...

LNR Partners – Storm Clouds Brewing for Special Servicers (CMBS Post)

LNR Partners – Storm Clouds Brewing for Special Servicers (CMBS Post)

[Editor’s Note: This post originally appeared in September 2014 on our sister site Mahany Law. The post has been rewritten and moved to this site. Important information appears at the end relative to the coronavirus pandemic and its impact on the hospitality industry.]\
Imagine that you...

Common CMBS Problems (How to Fight Your Lender and Win)

Borrowers’ Nightmares from CMBS Funded Loans Much of our lender liability practice revolves around borrowers in CMBS loans. Although down in number from their heyday in 2008, they are still in use and many borrowers seek them out. While they may look attractive at first, they often catch...

Pre-Negotiation Agreements – Beware the Lurking Danger

Pre-Negotiation Agreements – Beware the Lurking Danger

Watch any reality cop show and you will likely hear the words, “Anything you say can and will be used against you.” Pre-Negotiation Agreements (often called PNAs) are much the same. Many unscrupulous lenders will stuff these agreements with one-sided waivers and clauses favoring the...

Springing Guaranties and Bad Boy Provisions

Springing Guaranties and Bad Boy Provisions

Banks want as much security as they can when they loan money. Conversely, borrowers want to avoid as much personal liability as possible. It is been that way since the beginning of banking.

One tool that has found favor in recent years is a “springing guaranty” or...

Wells Fargo Ordered to Face Claims Over Loan Fees

Wells Fargo Ordered to Face Claims Over Loan Fees

Wells Fargo is at it again, this time facing allegations that it improperly charged homeowners with erroneous fees. The bank sought to dismiss the case but a federal judge in Camden, New Jersey said the homeowners could proceed with their bad faith claims. Since the case was brought as a class...

Borrower Defaults, Sues Banks... and Wins!

We love when the underdog wins. Why? We are one of the very few lender liability law firms that only sue banks. Most lawyers that practice banking law represent the banks and not borrowers. Needless to say, borrowers are almost always the underdogs.

This is the story of a small metal...

Economic Duress (Another Tale of LNR Partners Wrongdoing)

Economic Duress (Another Tale of LNR Partners Wrongdoing)

We are not a fan of special servicers, especially LNR Partners and CWCapital. Somewhere along the way, both companies forgot their mission and began to be motivated by their own financial gain and not the well-being of their clients, the public or property owners.

Few property owners...