Daily Archives: July 30, 2012

JPMorgan Chase under investigation for rigging electricity markets in 2010-11

It’s been a decade since companies like Enron Corp. manipulated California’s electricity market to generate billions in excess profits.

Enron went out of business long ago, and California’s energy market has been a place of relative calm. Now, however, another big power trader is being investigated for allegedly gaming the state’s electricity system.

State officials believe a subsidiary of JPMorgan Chase & Co., the New York investment bank, pulled down an extra $73 million by exploiting a small wrinkle in California’s electricity market over several months in 2010 and 2011.

Officials said they’ve recovered $20 million from the company so far.
Read more here: http://www.sacbee.com/2012/07/30/4672960/electricity-trading-probed.html#storylink=cpy



Folsom agency recovers $20 million from JP Morgan Chase subsidiary on rigging electricity markets. Read more: http://on.news10.net/Mufm7L

Libor Manipulation Covered By U.K. Law, Fraud Prosecutors Say

U.K. fraud prosecutors will investigate the manipulation of Libor and other interest rates after deciding that existing British criminal law covers the conduct involved.

Existing U.K. law provides the basis to bring charges, David Green, the director of the Serious Fraud Office, said today in a statement. The U.K. joins the U.S. in criminally investigating how derivatives traders and rate submitters colluded to rig the London Interbank Offered Rate, or Libor.

The SFO probe began after Barclays Plc (BARC) was fined a record 290 million pounds ($455 million) by U.K. and U.S. authorities, and British politicians called for a criminal investigation. The U.K. Financial Services Authority, which levied the fine along with the U.S. Commodity Futures Trading Commission and the Justice Department, didn’t have the power to file criminal interest rate manipulation charges.

Read on.

Countrywide transfers loans to special servicers

Countrywide is transferring mortgages to special servicers on certain deals in line with the servicing part of a proposed $8.5 billion residential mortgage-backed securities settlement proposed by The Bank of New York Mellon ($16.82 0.0885%) and Bank of America($7.34 0.03%) last year.

As of June 26, Countrywide transferred 38,000 loans to Specialized Loan ServicingSelect Portfolio Servicing and Green Tree, according to Barclays. Of these, 73% were transferred to SLS, 21% to SPS and 6% to Green Tree.

The loans transferred so far span 91 different deals in the proposed settlement. Bank of America  will pay servicers incentive fees for loss-mitigation activities such as short sales and modifications. High-risk loans from a single deal will be transferred to one servicer, while loans that make payments for 12 consecutive months can be transferred back to Countrywide. As a result, Barclays expects more aggressive servicer loss-mitigation behavior on these deals.

Read on.

California homeowners sue MERS, banks, servicers, trusts, robo-signers in monster lawsuit

Markets regulator Bafin widens scrutiny of eight German banks amid Libor: sources

(Reuters) – Markets regulator Bafin has extended its scrutiny of German banks by investigating more lenders following a global interest rate rigging scandal, sources have told Reuters.

Eight German banks, which participate or have participated in the rate for the euro zone, known as Euribor, were ordered to submit details of how they calculate the interest rate and monitor its mechanisms, according to the regulatory sources, who are familiar with the details of the investigation.

Bafin set a deadline of last Thursday for the submissions to be made but the results of the investigation are not yet known, the sources said.

It was not clear when the results of the probe would be available.

German banks participating in Euribor include Deutsche Bank (DBKGn.DE), Commerzbank (CBKG.DE), DZ Bank (DGBGg.F), LBBW (LBWGga.F), BayernLB BAYLB.UL, Helaba HLHTG.UL, NordLB NDLG.UL and Landesbank Berlin BEBGL.UL.

Read on.

Two-Thirds of Americans Have No Idea Who Jamie Dimon Is | The Magazine | Vanity Fair

Two-Thirds of Americans Have No Idea Who Jamie Dimon Is | The Magazine | Vanity Fair.

Call it healthy self-regard, or call it something worse, but Americans are feeling pretty confident about themselves this month. Nearly 6 out of 10 parents feel that, as parents, they measure up to their own parents; more than a third think they’re even better than that. And 70 percent of us say we’re comfortable trusting our own moral compass, as opposed to the law or religion or anything/anyone else, to keep us from behaving badly.

Mortgage lenders are misinterpreting new FEMA maps to require homeowners to buy costly, unneeded coverage

LINDSTROM, MINN. – Thousands of homeowners in Minnesota and across the country are being pressured to buy flood insurance by their mortgage lenders, despite evidence showing that many of these homes are well outside danger zones.

Though the federal government’s new flood maps are more accurate than ever, state and local officials say lenders and their agents are making obvious mistakes in their interpretation of flood risk.

Chisago County officials said they have intervened this year on behalf of 20 property owners who were wrongly classified as living in high-risk zones where flood insurance would be mandatory. Officials in Stearns and Washington counties also have taken steps to correct the record for dozens of homeowners who face minimal, if any, risk of flooding.

“We’re seeing too many problems,” said Ceil Strauss, Minnesota’s floodplain coordinator.

In many cases, lenders are giving homeowners just 45 days to buy flood insurance or threatening to obtain it for them, often at exorbitant prices. Some homeowners have been told their premiums could run as high as $6,400 a year.

Authorities expect the problem to get worse. Over the next two years, the Federal Emergency Management Agency will introduce new flood maps in more than two dozen counties in Minnesota, including Hennepin, the state’s most populous. The maps will trigger more flood-risk reviews by mortgage lenders.

Read on.