Financial Institution Litigation

Vedder Price provides nation-wide representation to financial institutions and routinely defends them against claims arising from contract, property rights and statutes. This includes representation in commercial lending litigation and defense of consumer-based claims including claims brought under state common law or UDAP statutes and claims brought pursuant to TILA, ECOA, RESPA, FDCPA, FCRA, the Civil Rights Act, RICO and other federal statutes. Vedder Price also represents financial institutions in recovering monies for breach of obligations owed to the institution by third parties in accordance with indemnity and other contractual agreements. Our Financial Institution Litigators also represent financial institutions in claims brought by or against these institutions arising out of bankruptcy and insolvency litigation.

Knowledge Base. Our attorneys regularly defend financial institutions in consumer class actions. We know the latest
theories of liability and the latest trends in class action litigation. Whatever the action, there is an excellent chance that we have experience in litigating the issue. We also know banking. We understand all that is involved in litigation risk to a financial institution and understand how banks function and operate. This understanding results in efficient and effective representation.

Case Management. We understand the importance of caseload management and budgeting. Because we represent
some of the nations largest financial institutions, we have effective case management information systems that allow our clients access to timely, accurate and detailed information about each pending litigation case. We routinely provide our clients with monthly reports on all pending cases. More frequent reports are always available.

Advisory and Regulatory Team. In addition to our litigation practice, we also have a national financial institutions
advisory and regulatory practice that works shoulder-to-shoulder with our trial attorneys on statutory claim litigation. This provides us with a perspective that many other law firms lack. Because we are both litigators on behalf of financial institutions as well as business and regulatory advisors to them, we provide an added dimension in understanding the issues at stake in any given case. The result is a better product, delivered more efficiently. Mortgage Banking Litigation Examples of recent and pending actions in which Vedder Price represents financial institutions in state and federal courts on mortgage origination and servicing claims, including alleged appraisal and transaction fraud are listed below. Examples of both class actions and single plaintiff cases are presented.

Meyers v. ABN AMRO Mortgage Group Inc. Case No. 05-000242. (Eastern District, Michigan) Vedder Price litigators
obtained dismissal of class claims alleging violations of RESPA and TILA based on mortgage origination issues involving claimed volume based incentives offered to brokers. The plaintiffs appealed the dismissal. The matter settled for a nominal amount while on appeal to the 6th Circuit.

Glover v. Standard Federal Bank, ABN AMRO Mortgage Group, Inc., et al., Case No. 97-2068 (Dist. Court,
Minnesota) Vedder Price litigators defended claims brought by a certified class seeking $2.7 billion in damages for alleged violations of RESPA in connection with wholesale mortgage lending practices. The Eighth Circuit Court of Appeals reversed class certification shortly before trial and Vedder Price litigators were able to successfully negotiate a favorable settlement.

Morrison v. Brookstone Mortgage and ABN AMRO Mortgage Group Inc. Case No. C2-01-729(United States
District Court Ohio) Vedder Price litigators obtained summary judgment on class claims alleging violations of RESPA and TILA based on mortgage origination issues, including improper document preparation fees. The case settled for a nominal amount while on appeal to the 6th Circuit.

Wint v. ABN AMRO Mortgage Group Inc. (New York State Court) Vedder Price litigators defeated class certification
in a case alleging improper yield spread premiums and fraud in origination of mortgage loans. The dismissal was affirmed on appeal.

Ausborne v. ABN AMRO Mortgage Group Inc., et al. (McDowell Co., West Virginia). Vedder Price litigators are
currently defending a state-wide class action alleging appraisal fraud in loans brokered by Community Home Mortgage.

Schwartz v. ABN AMRO Mortgage Group Inc. Case No. 07-C-6963 (United States District Court for the N.D. of
Illinois) Vedder Price litigators are defending against fraud claims for the alleged nondisclosure of broker payments during mortgage origination.

Kearney, et al. v. ABN AMRO Mortgage Group, Inc., Case No. 3:05CV7219 (N.D. Ohio). Vedder Price litigators
successfully defended claims against ABN AMRO Mortgage Group, Inc. for alleged unfair trade practices, fraud, breach of fiduciary duty, and violations of the TILA and RESPA arising out of plaintiffs refinancing of their mortgage loan. Judgment was entered in favor of ABN AMRO Mortgage Group, Inc. and against plaintiff on all claims.

Orr, et al. v. National City Mortgage Co., Case No. 06 CV 5842 (N.D. Ill.). Vedder Price litigators filed a motion to
dismiss plaintiffs claims against National City Mortgage Company for alleged violation of the Truth in Lending Act, common law fraud, and consumer fraud (class claim) with regard to plaintiffs adjustable rate mortgage loan. As a result of the motion to dismiss, Vedder Price litigators were able to amicably resolve the claims.

Cohen v. Invsco, et al., Case No. 08 L 3725 (Cook Co. Ill.). Vedder Price litigators are currently defending National
City Mortgage and National City Bank against claims for alleged appraisal fraud and conspiracy with regard to a real estate speculators purchase of seventeen condominiums in Chicago. Vedder Price litigators moved to dismiss the complaint for failure to state a claim. In response, plaintiff withdrew his complaint and filed an amended complaint, which Vedder Price moved to dismiss with prejudice. The matter is set for hearing. Other Pending Mortgage Based Claims Vedder Price litigators are currently defending numerous cases pending in state and federal courts based on TILA, RESPA and HOEPA and state law claims based on transaction and appraisal fraud, unauthorized practice of law, breach of fiduciary duty, predatory lending, and challenges to mortgage origination, servicing and foreclosure practices in West Virginia, Ohio, North Carolina, Michigan, Missouri, New York, Tennessee, Pennsylvania, South Carolina, Illinois, Indiana, Virginia, Oklahoma and Alabama. Commercial and Director & Officer Liability Vedder Price attorneys represent officers and directors of financial institutions in derivative action, class claims and single plaintiff cases based on alleged negligence, breach of fiduciary duty, fraud and other actions. Some representative cases are listed below.

Clift v. Brannon, et al., Case No. 08-1709-1 (Benton Co. Ark.). Vedder Price litigators are currently defending the
former directors and officers of ANB Financial National Association against a depositors class action claims for negligence. The claims were brought after the Office of the Comptroller of the Currency closed the bank and appointed the Federal Deposit Insurance Corporation receiver. Vedder Price litigators moved to dismiss the complaint for failure to state a claim. The case is currently in the pleading stage.

Phillippy v. Brown, et al., Case No. 0824154 (Washington Co. Ark.) Vedder Price litigators are currently defending
certain of the former directors of ANB Financial National Association and ANB Bancshares, Inc. against a shareholders derivative action for negligence and breach of fiduciary duty after the Office of the Comptroller of the Currency closed the bank and appointed the Federal Deposit Insurance Corporation receiver. Vedder Price litigators moved to dismiss the complaint for failure to state a claim. The case is currently in the pleading stage.

Tap Holdings, Inc. v. PNC Bank N.A., Case No. CV08-06310 PA (C.D. Cal.) Vedder Price litigators are currently
defending PNC Bank and certain of its officers in claims brought by the buyer of substantially all of the assets of an operating divisions of one of PNCs borrowers. The case involves federal RICO claims, as well as claims for misrepresentation and breach of fiduciary duty.

Consumer Transactions Vedder Price attorneys continue to successfully represent financial institutions involving every aspect of commercial transactions in both class actions and single plaintiff cases. Some cases are described below.

Arbelo, et al. v. Mid Am. Bank n/k/a National City Bank, Case No. 07 CV 5940 (N.D. Ill.).
Vedder Price litigators successfully defended Mid America Bank n/k/a National City Bank against statewide class action claims for alleged violation of the Electronic Funds Transfer and the Expedited Funds Availability Acts with regard to notices posted on automated teller machines. Vedder Price litigators moved to dismiss complaint for failure to state a claim. The case was resolved on amicable terms immediately thereafter.

Dorothy Rhue Allen v. LaSalle Bank, N.A. et al., 08-CV-02240 (D.N.J.) Vedder Price litigators are currently
defending a New Jersey class action by borrowers alleging violation of the Fair Debt Collection Practices Act and state law claims arising from the alleged improper invoicing of fees. A motion to dismiss is currently pending.

Setera, et al. v. National City Bank, Case No. 07 C 2978 (N.D. Ill.). Vedder Price litigators successfully defended
plaintiffs claims for negligence, conversion, unjust enrichment, implied contract and accounting arising out of acceptance of checks bearing a forged endorsement. Vedder Price moved to dismiss the complaint and the amended complaint. The district court granted both motions to dismiss and, after the second motion, declined plaintiffs the opportunity to file a second amended complaint. Judgment was entered in favor of National City Bank on all counts.

Azumah v. Zielinski, et al., Case No. 08 L 3519 (Cook Co. Ill.). Vedder Price litigators are currently defending
National City Bank against the claims of plaintiff for alleged negligence in accepting forged checks for deposit. Vedder Price litigators moved to dismiss the complaint. As a result, plaintiff withdrew his original complaint and filed an amended complaint. The matter is still in the pleading stage. Discriminatory Lending Vedder Price attorneys have successfully defeated class claims alleging discriminatory lending based on HMDA and other lending data and brought under federal statutes such as FHA, ECOA and the Civil Rights Act. Examples of recent and pending class actions are listed below.

Reger Development, LLC v. National City Bank, Case No. 08-CV-6200 (N.D. Ill.), affirmed, No. 09-2821 (7th Cir.) Vedder Price trial attorneys defeated a class action claim seeking to block the bank's ability to call promissory
notes. The Opinion of the Seventh Circuit Court of Appeals confirmed that the "covenant of good faith and fair dealing" clause found in this type of loan documentation has no application to demand instruments and that such a covenant cannot be used by the borrower to alter the terms of the note in any way. The U.S. District Court for the Northern District of Illinois dismissed the complaint with prejudice, and entered judgment in favor of the bank. The borrower appealed the judgment to the United States Court of Appeals for the Seventh Circuit in Chicago. Vedder Price continued to defend the bank before the Seventh Circuit. Vedder Price filed a brief with the Seventh Circuit asking the three judge panel to affirm the judgment. On January 20, 2010, the Seventh Circuit issued a 14-page decision in which the Seventh Circuit agreed with the arguments made by Vedder Price on behalf of the bank.

JAT, Inc., et al. v. National City Corp., et al., Case No. 06-cv-11937 (E.D. Mich.). Vedder Price litigators successfully
defended National City Corporation and National City Bank against highly publicized class action claims for alleged violation of the Fair Housing, Equal Credit Opportunity and Civil Rights Acts with regard to small business loans to minorities. Vedder Price litigators obtained partial dismissal of the complaint, and successfully defeated intervention by other purported plaintiffs. We also defeated plaintiffs motion for class certification. After the district court denied class certification, Vedder Price litigators moved for summary judgment, which was granted. The district court entered judgment in favor of National City Corporation and National City Bank of the Midwest on all counts.

Rodriguez, et al. v. National City Corp., et al., Case No. 08-CV-02059 (E.D. Pa.). Vedder Price litigators are
currently defending National City Corporation and National City Bank against nationwide class action claims for alleged

violation of the Fair Housing, Equal Credit Opportunity and Civil Rights Acts with regard to mortgage loans to minorities. Vedder Price litigators moved to dismiss the complaint for failure to state a claim. Plaintiff then voluntarily dismissed the plaintiffs Civil Rights Act claim and certain allegations concerning the tolling of the statute of limitations. Financial Institutions as Plaintiffs Vedder Price attorneys consistently take the offensive on behalf of financial institutions and assists them in recovering damages from wrongdoers. We bring actions by way of cross claim, counter claim, and as stand alone actions. Some examples of litigation initiated by Vedder Price on behalf of its clients are as follows.

RBS Citizens, N.A. v. Lancelot Investors Fund, L.P. et al., Case No. 08 CH 37272 (Circuit Court of Cook County,
Illinois, Chancery Division). Vedder Price litigators have filed a complaint on behalf of RBS Citizens, N.A. arising out of defaults and breaches by the institutional borrowers and guarantors under a series of loan agreements. The complaint seeks the repayment of principal and interest from the borrowers, repayment of the loans from the guarantors, recovery of certain improper payments which were subordinated to the borrowers obligations under the loan agreements, recovery of the collateral securing the subject loans, and an accounting of the subordinated payments and the collateral. Additionally, Vedder Price litigators have filed a motion for replevin to gain possession of the collateral securing the subject loans.

GMAC CF v. Bank of New York Vedder Price represented GMAC CF in obtaining $110 million from the Bank of New
York concerning the Bank of New Yorks sale of its factoring and asset-based finance business. The claims asserted by GMAC included allegations that Bank of New York misrepresented the value of the business and improperly valued the various facilities sold to GMAC CF and breached its representations and warranties. The settlement was featured in the Wall Street Journal and CBS Marketwatch.

GMAC CF v. Continental Casualty Company, et al., Case No. 5:06 CV 10447 (E.D. Mich.). Vedder Price represented
GMAC CF against three of its business fraud carriers on claims arising out of three international fraud schemes that were perpetuated against GMAC CF. The underlying cases involved criminal fraud conspiracies and securities law violations in the hundreds of millions of dollars. Vedder Price obtained confidential settlements with all three carriers on behalf of the client.

The Boeing Co, and McDonnell Douglas Corp. Vedder Price successfully represented Boeing and McDonnell
Douglas in breach of contract claims involving delinquent aircraft lease payments. Our clients were granted summary judgment which was affirmed by the New York Supreme Court. As a result of the efforts of Vedder Price, Boeing and McDonnell recovered $36 million and return of four aircraft. This case was featured in the Commercial Lending Litigation News.

Principal and Liaison Counsel Vedder Price served as principal counsel in some cases and as the principal liaison
between trial counsel, defense attorneys, and the client, in one dozen cases brought by a major lender against independent wholesale mortgage brokers, real estate developers, closing agents, title insurers, appraisers, and other participants in multi-million dollar mortgage fraud schemes, each involving between 40 and 600 loans. Vedder Price also acted as liaison between the client and law enforcement agencies investigating mortgage fraud throughout the country, and also successfully prosecuted recovery under an insurance bond for mortgage fraud related losses. Vedder Prices efforts resulted in the recovery of over $40 million for its client.

ABN AMRO Mortgage Group, Inc. v. CBSK Financial Group, et al., Case No. 04-cv-543 (N.D. Texas) Vedder Price
litigators filed an action against loan officers, appraisers, title companies, and sellers in Texas and Florida alleging a complex mortgage fraud scheme involving appraisal and transaction fraud. Vedder Price attorneys successfully negotiated a favorable settlement of all claims.

ABN AMRO Mortgage Group, Inc. v. New Partners Mortgage Co., et al., Case No. 05-cv-1167 (N.D. Ohio)
Vedder Price attorneys brought action against a wholesale mortgage broker, real estate developer, several closing agencies, title companies, and appraisers, alleging a widespread mortgage fraud scheme in Ohio involving transaction fraud for several hundred loans. Vedder Price was able to negotiate substantial recoveries on behalf of ABN AMRO

Mortgage Group.

Park Federal Savings Bank v. Bell Title Insurance Corporation, et al., Case No. 05 CH 18964 (Cook Co., Ill.).
Vedder Price litigators are currently representing a lender in an action against a real estate developer, several title insurance and escrow companies, appraisers, and the purported buyers and sellers of various parcels of commercial real estate alleging a complex scheme involving appraiser and transaction fraud and breach of fiduciary duty claims. Bankruptcy and Insolvency Litigation Vedder Price attorneys routinely represent financial institutions in litigation brought in the context of a bankruptcy case or insolvency proceeding. Examples of recent or pending cases are listed below.

In re Aloha Airlines, Inc., Case No. 08-00337 (Bank. Ct. D. HI). Vedder Price trial attorneys worked closely with the
firms bankruptcy and insolvency attorneys to successfully defend against an attempt by the Airline Pilots Association to enjoin the sale of the Cargo Division of Aloha Airlines to a third party.

In re Sturgis Iron: Metals Co., Inc., Case No. 08-02966 (Bank. Ct. W.D. Mich.). Vedder Price litigators are currently
defending a claim against National City Bank, in its individual capacity and as agent for their lenders in claims brought by the Official Committee of Unsecured Creditors of Sturgis Metals. Vedder Price litigators, working hand-in-hand with members of the firms bankruptcy group, have moved to dismiss the complaint. The case is in the pleading stage. Internal Investigations Vedder Price has had extensive experience representing corporations, boards of directors and audit committees in conducting internal investigations. Clients have included publicly traded and closely-held corporations, not-for-profit corporations, corporations in the food and entertainment industry, banks and other financial institutions. The firm has the ability to respond promptly and thoroughly and to utilize forensic accounting firms, investigative agencies, and other experts to assist the firm in the conduct of internal investigations. Principally responsible in representing clients in the conduct of internal investigations are experienced shareholders who are former federal prosecutors. They are well versed not only in the conduct of internal investigations but in the interaction with the SEC, banking regulators and other law enforcement agencies which frequently occurs in connection with internal investigations.