Banking Misconduct Blog


Mall Says It Didn’t Default on Wells Fargo Loan (False Default)

Mall Says It Didn’t Default on Wells Fargo Loan (False Default)

We have represented many shopping centers, office parks and hotels. In recent times, many have missed payments because of the pandemic. While courts are usually sympathetic to borrowers who are struggling because of low occupancy or tenants that won’t pay, defending a monetary default case is...

JP Morgan Sued for Conflict of Interest (Lender Liability Post)

JP Morgan Sued for Conflict of Interest (Lender Liability Post)

JP Morgan Sued Over Its Involvement in the Sale of Good Technology Inc. Good Technology Inc is a mobile security provider that is today owned by BlackBerry Limited. How BlackBerry acquired the company and the price they paid is at the heart of the controversy.
Good Technology works behind...

CMBS Mortgages and B Piece Buyers

CMBS Mortgages and B Piece Buyers

In today’s commercial real estate market, commercial loans are often pooled together to create commercial mortgage backed securities (CMBS). These loan pools typically have several tranches. Each varies in credit quality and payment priority.
The first-to-be paid tranches of bondholders...

Hotel Values Plummet – Borrowers Seeking Help

Hotel Values Plummet – Borrowers Seeking Help

Anyone who owns an office building, shopping center or other commercial space has probably seen their property values decrease since the pandemic began. Particularly hard hit are hotels, especially those in tourist areas.

The Financial Times reported in September that values are down...


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...

Borrower Defaults, Sues Banks... But Who One?

Borrower Defaults, Sues Banks... But Who One?

[Post updated through December 2020] 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.
...

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...

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 which...