The banks continuing this practice for at least one transaction type include Bank of America (BAC), Capital One Financial (COF), Fifth Third Bancorp (FITB), HSBC Holdings (HSBC), JPMorgan Chase (JPM), PNC Financial Services (PNC), RBS Citizens, Regions Financial (RF), SunTrust Banks (STI), U.S. Bancorp (USB) and Wells Fargo (WFC), the Consumer Federation of America said Thursday.
Dozens of banks have been sued over allegedly reordering debit card transactions to maximize overdraft fees. So far more than a dozen banks have reached settlements in these cases.
In May, the Consumer Federation, an association of almost 300 nonprofit consumer groups, surveyed the websites of the 14 largest banks and collected information on their overdraft fees and practices.
Matt Weidner Law blog:
The First Amendment Foundation has moved to intervene in the case of HSBC Bank USA v. Abby Lopez for the limited purpose of opposing closure of judicial records and proceedings. Scripps Media, Inc. and the Sun-Sentinel Publishing Company have joined FAF in the motion which was filed yesterday in the Fifteenth Judicial Circuit Court in Palm Beach County. The FAF is opposing a motion by HSBC to purge email correspondence filed with the court eight months ago that shows confusion over who actually owns the mortgage that is the subject of the Lopez foreclosure proceeding. HSBC filed a Motion to Purge the emails claiming attorney/client privilege and at a scheduled hearing last week, an attorney for the plaintiff asked the judge to close the courtroom so the motion could be argued in private. The judge refused, and HSBC subsequently filed a Motion for In Camera Inspection and Hearing on the Motion to Purge.
Read internal leaked emails. Click here.
Six banks account for more than two-thirds of the derivatives assets and liabilities among 100 large U.S. companies reviewed by Fitch Ratings, according to a new study released Thursday.
The firms–Bank of America Corp. (BAC), Citigroup Inc. (C), Goldman Sachs Group Inc. (GS), J.P. Morgan Chase & Co. (JPM), Morgan Stanley (MS) and Wells Fargo & Co (WFC)–are on one side of the majority of derivatives trades conducted by the companies Fitch studied.
Such concentration has been evident in the derivatives industry for many years, particularly since derivatives–primarily privately negotiated ones called “swaps”–have been highly profitable for banks.
Read more: http://fxn.ws/KlMPQY
Walt Disney Co. (DIS) had little trouble raising money for its $4.4 billion Shanghai theme park after winning approval in 2009, as a dozen Chinese banks offered $2 billion of loans and promised more.
Foreign lenders, limited in how much funding they can provide, watched from the sidelines. The deal size was beyond their reach.
Five years after China said it fully met World Trade Organization obligations to open its economy to global financial firms, Citigroup Inc. (C) and HSBC Holdings Plc (HSBA) are among companies still largely shut out of the world’s third-biggest banking market as they face government restrictions on adding branches and offering products. Foreign banks hold less than 2 percent of assets in China, the lowest share among major emerging markets, according to the International Monetary Fund.
On May 25, 2012, Residential Capital LLC (“ResCap”) filed a complaint in United States Bankruptcy Court for the Southern District of New York seeking declaratory and injunctive relief to extend the automatic stay over 27 MBS lawsuits against it, its affiliates, and its executives while it undergoes bankruptcy restructuring. ResCap alleges that all of the lawsuits against its non-debtor affiliates are inextricably connected to the debtor affiliates, and that such lawsuits will drain the debtors’ estates by forcing those entities to undergo extensive discovery and face significant indemnification claims by their directors and officers. ResCap also alleges that by allowing the lawsuits to proceed, ResCap will face significant risk of collateral estoppels and evidentiary prejudice. Complaint.
On May 25, 2012, the securitization trust of two RMBS sold in 2006 by EMC Mortgage LLC filed a summons with notice in New York State Supreme Court. The action seeks specific performance, compensatory damages in the amount of at least $293 million, and declaratory judgment against EMC and its successor in interest JP Morgan Chase & Co. The summons and notice alleges that EMC failed to cure breaches of representations and warranties it made relating to the quality of the pool of residential mortgage loans. The trust alleges breaches with respect to at least 1,917 of the loans and requests repurchase of those loans. Summons with Notice.