New York court dismisses foreclosure lawsuit against HSBC

(Reuters) – A court in Buffalo, New York, dismissed a petition on Monday filed by New York state, alleging that HSBC Holdings Plc ignored a law designed to protect homeowners from being thrown into foreclosure without getting a chance to renegotiate their mortgages.

The lawsuit filed by Attorney General Eric Schneiderman in 2013 accused HSBC of letting foreclosure cases languish by ignoring a state law intended to give as many as 25,000 homeowners a chance to negotiate loan modifications. (

JPMorgan’s Dimon to Sen. Warren: Hit me with a fine. We can afford it

What an arrogant SOB CEO! The man belongs in jail!

t’s probably safe to say that of all the elected officials that walk the halls on Capitol Hill, Sen. Elizabeth Warren, D-Mass., isn’t Wall Street’s favorite, but a newly released excerpt from Warren’s book “A Fighting Chance,” shows just how tense her interactions with Wall Street’s bigwigs can be.

Warren first irked Wall Street when she helped to establishthe Consumer Financial Protection Bureau, and since being elected to the Senate, Warren has continued in her push for increased regulation of Wall Street.

“Big financial institutions should not be allowed to break the law and just walk away,” Warren said in May. “The key is for the regulators to do their jobs and call out these banks. The bank regulators need to remember they are not there to serve the banks, they’re there to serve the American people.”

According to a newly published excerpt from Warren’s book, Warren came face-to-face with the leader of one of those big banks in 2013 and the results were electric.

In the excerpt, taken from the new afterword for the paperback release of “A Fighting Chance” and published by the Huffington Post, Warren tells the story of being visited in her Capitol Hill office by Jamie Dimon, the CEO of JPMorgan Chase (JPM) and a conversation about financial regulations.

Warren writes that Dimon complained about the “burdensome” rules the bank was required to follow, and that she countered by saying that she didn’t think banks were overregulated.

From there, the exchange became increasingly passionate and ended with what could be described as a smug haymaker from Dimon.

From the Huffington Post-published excerpt:

I said I thought the banks were still taking on too much risk and that they seemed to believe the taxpayers would bail them out — again — if something went wrong.

Our exchange heated up quickly. By the time we got to the Consumer Financial Protection Bureau, we weren’t quite shouting, but we were definitely raising our voices. At this point — early in 2013 -— Rich Cordray was still serving as director of the consumer agency under a recess appointment; he hadn’t yet been confirmed by the Senate, which meant that the agency was vulnerable to legal challenges over its work. Dimon told me what he thought it would take to get Congress to confirm a director, terms that included gutting the agency’s power to regulate banks like his. By this point I was furious. Dodd-Frank had created default provisions that would automatically go into effect if there was no confirmed director, and his bank was almost certainly not in compliance with the those rules. I told him that if that happened, “I think you guys are breaking the law.”

Suddenly Dimon got quiet. He leaned back and slowly smiled. “So hit me with a fine. We can afford it.”

Read on.

Senior VP suing HSBC for retaliation is terminated

Michael Picarella, an HSBC senior vice president who’s suing the bank for retaliation after pointing out sexual harassment against top brass, has left the bank, The Post has learned.

Picarella’s departure last week came after continuing disintegration of his relationship with the bank over a lawsuit filed in June.

“HSBC has further retaliated against Plaintiff by terminating his employment,” according to a letter filed Monday afternoon in Manhattan federal court.

Last week, the 47-year-old Picarella filed to amend his lawsuit against the bank after being denied a bonus.

Since December, he had been kept from entering the bank’s Midtown office where he worked and, later, was unable to access bank computer systems, The Post had earlier reported.

Read on.

Chase Student Lending closing Tampa operations, leads to layoffs

JPMorgan Chase is shutting down its student lending line of business in Tampa.

Sixty-five workers will lose their jobs whenChase Student Lending exits the Tampa market, according to a Worker Adjustment and Retraining Notification filed March 26 with the Florida Department of Economic Opportunity.

The layoffs are expected to begin on May 25 for workers located at three Chase sites in Tampa: at 4900 Memorial Highway, 4919 Memorial Highway and 4915 Independence Parkway.

JPMorgan Chase (NYSE: JPM) decided in 2013 to get out of the student loan business. Competition from federal government programs and increased scrutiny from regulators limited Chase’s ability to expand the business, Reuters reported.

Read on.

Foreclosure victims to demand money from settlements

People who lost homes to foreclosure will rally Tuesday to demand they get a share of Delaware’s settlement money stemming from the 2008 financial meltdown.

Victims Stand Against Foreclosure Everywhere is hosting the event to gather support from public officials and to identify and connect victims of foreclosure.

“We still haven’t heard any definitive response to our pleas to legislators to fund programs [for foreclosure victims],” said Penny Dryden, a VSAFE organizer and executive director of the nonprofit Community Housing and Empowerment Connections. “We thought this might make a stronger pitch.”

Read on.

Nomura, RBS ‘crap’ emails come into play in $1 billion mortgage bond trial

NEW YORK (Reuters) – In 2007, a Royal Bank of Scotland Group Plcemployee emailed his boss with his view of a sample of mortgages underlying a bond that the bank was underwriting: “This one is crap.”

Asked about it this week in Manhattan federal court, Brian Farrell, the employee, said he did not recall the deal. But a U.S. regulator cited the email as evidence that Nomura Holdings Inc <8604.T> and RBS made false statements about mortgage securities they sold to Fannie Mae and Freddie Mac.

The email and others like it are part of a $1.1 billion lawsuit by the Federal Housing Finance Agency against Nomura and RBS that went to trial this month. The messages add to a litany of arguably embarrassing electronic musings by bank employees that have resurfaced in litigation over the 2008 financial crisis.

Private plaintiffs and U.S. regulators alike have seized upon internal emails from the likes of JPMorgan Chase & Co and Deutsche Bank AG calling the mortgage products they sold investors “lemons,” “junk,” and “pigs.”

Read on.

Sen. Warren To Big Banks: ‘Bring It On’

Go Elizabeth!

Law360, New York (March 30, 2015, 9:36 PM ET) — Speaking to a packed house in a New York City bookstore Monday night, Sen. Elizabeth Warren, D-Mass., responded to reports that America’s unhappily-regulated financial industry was threatening to pull campaign funding from Democrats in Congress by telling the banks to “bring it on.”

In an hourlong appearance to promote the paperback release of her autobiography, “A Fighting Chance,” Warren answered audience questions about the rumor as well as reiterating her stance on the ongoing talks to create a trade agreement between the U.S. and the Asia-Pacific…

Source: Law360