News & Events
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intelligence
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July 20, 2018
Commercial Banking
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Jul 19 -
Wells Fargo and Bank of America both filed blockchain-related patents, according to application filings published by the US Patent and Trademark Office (USPTO). Wells Fargo’s data element tokenization management patent application was initially filed in August 2016. Tokenization, according to the USPTO document, uses encryption methods which help turn an initially unrestricted piece of data into a restricted token that can be unlocked by a specified system user. Bank of America applied for a patent that allows an external validation of data.
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Jul 18 -
A proposed class action alleging Merrill Lynch illegally withdrew money from its customer reserve account to execute trades that freed up funds for itself was dismissed. U.S. District Judge M. James Lorenz rejected the plaintiffs’ claim that the bank’s alleged failure to disclose the misconduct was not made in relation to the buying or selling of securities. He argued the Securities Litigation Uniform Standards Act preempts claims brought by buyers and sellers as well as holders of the securities, which the customers were.
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Jul 17 -
KeyBank and M&T Bank are among 41 large FDIC-insured financial institutions that submitted to regulators their preferred method of dissolution should they ever near failure. They, along with PNC Bank and Citizens, got an extension to file living wills, as required by Dodd Frank, last month. The new deadline is Dec. 31, 2019.
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Real Estate Finance
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Jul 16 -
Apollo, Lone Star, Cerberus and Blackstone are said to be among the foreign funds considering making bids for a portfolio for toxic real estate assets held by Banco Santander. The portfolio has a gross value of around $5.86 billion. Despite a rebound in Spain's property market following a 10-year crisis, lenders are still racing to sell loans that went sour in the slump and often offer discounts of around 60% from the face value of the portfolios. While there's no deadline for the Banco Santander portfolio, it's thought that the deal should ideally be closed before the end of July.
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Jul 16 -
CoreVest closed its sixth securitization of commercial mortgage loans secured primarily by single family rental properties. The CoreVest American Finance 2018-1 Trust offering was backed by 117 loans totaling $236.8 million. The loans are secured by 3,068 rental units in 29 states. The company has now securitized more than $1.2 billion of mortgage loans.
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Jul 17 -
Fortress is refinancing and upsizing its $350-million Hildene CLO IV, which was originally issued in 2015 and is among the four CLOs that the firm issued through its Hildene platform in the post-crisis era. The refinancing will extend the reinvestment period by five years and the non-call period by two years. Hildene CLO IV is issuing another $200 million of notes in the process. Nearly half of the additional collateral for the transaction will come from another CLO, Fortress VI, through a participation agreement. Once the refinancing is completed on July 23, the CLO will be renamed Fortress Credit BSL VI.
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Commercial Bankruptcy
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Jul 17 -
A $119-million, chapter 11 sale of advertising software company Videology was approved. A judge ordered the sale of Videology to marketing technology company Amobee, a subsidiary of Singapore Telecommunications, at a price driven up by $72 million by a competitive auction between two bidders.
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Jul 16 -
The Yucaipa Companies, led by investor Ron Burkle, is suing Lantern Asset Management for $6 million, claiming is was cut out of its dues from Lantern's $289-million purchase of The Weinstein Co.'s assets from bankruptcy. Yucaipa, once a prospective partner in the deal, said it did most of the work on the deal, and handed the buy over to Lantern with the caveat it would receive 2% on the transaction.
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Jul 16 -
Despite the approval of the $150-million asset sale of The Rockport Co., a liability for a $54-million claim from the debtor's former parent company, Adidas, could threaten its chapter 11 closing. Adidas claimed Rockport owed $54 million in unpaid transition services costs and that nondebtor foreign subsidiaries being purchased by Charlesbank were jointly liable for that claim. In response, Rockport filed a complaint seeking a declaratory judgment that only it was liable for the transition obligations.
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