Daily Archives: August 7, 2012

Former employee sues Wells Fargo because he was fired over healthcare coverage

Courthouse News Service.

WEST PALM BEACH – A man claims Wells Fargo Bank fired him on a pretext, because it thought that covering the cancer treatments for his late daughter was too expensive, in Palm Beach County Court

Wrist Slap for Morgan Stanley Wins Court Approval and Public Dismay

Courthouse News Service.

MANHATTAN (CN) – Morgan Stanley can settle antitrust claims without admitting wrongdoing by paying less than a quarter of the $21.6 million it made in an alleged scheme that cheated New York energy consumers, a federal judge ruled Tuesday.
     The 6-year-old charges against Morgan Stanley stem from help it gave to KeySpan Corp. in acquiring Astoria Generating Company Acquisitions, its largest competitor, though a swap agreement.
     In an interview with Courthouse News, a councilman who represents the Queens district that hosts Keyspan’s facilities blasted Morgan Stanley’s court-approved settlement as a slap on the wrist.
     Councilman Peter Vallone, a Democrat and former state prosecutor with the street-crime bureau, said that the court should have ordered a full restitution, at minimum.
     “Here, they’re allowed to keep what they stole,” Vallone told Courthouse News. “That is ridiculous. This is the cost of doing business for Morgan Stanley. This is pocket change for them.”
     U.S. District Judge William Pauley III described the help Morgan Stanley gave to KeySpan in a 10-page order approving the settlement.

Borrowers Lost Out to Banks, Suits Say

Hundreds of Hawaii residents should have received higher prices for their properties sold through nonjudicial foreclosure auctions during the past four years, according to lawsuits recently filed on behalf of borrowers who allege unfair and deceptive practices by four major banks.

A fifth lawsuit alleges that a Washington law firm, Routh Crabtree Olsen (RCO), and others that assisted in the auctions committed multiple violations of the state nonjudicial foreclosure laws during those years and interfered with the residents getting the highest price for their properties.

The amount of losses for the residents in the five suits totals in the millions of dollars, their lawyers said.

The lawsuits are fallouts from the state nonjudicial foreclosure system aimed at allowing lenders a quicker, less costly alternative to foreclosures handled by state courts.

The suits against the banks, however, allege a widespread practice that they advertised and conducted nonjudicial foreclosure auctions for quitclaim deeds but provided the winning bidders more valuable limited warranty deeds. The banks allegedly advertised auctions for quitclaim deeds, which means the properties are sold “as is” and clear title is not guaranteed. The winning bidders, however, received limited warranty deeds, which are considered more valuable and help ensure fee-simple title, according to the suits.

Read on.

Here We Go Again: Bank Of America Violated Law Protecting Active Duty Military, Lawsuit Claims

One Alabama man who served in Afghanistan is claiming Bank of America violated a law that protects active duty service members from financial hardship.

Morgan Murphy alleges BofA began the trying to collect outstanding debts on his home and dinged his credit score during a period in which he was covered by the Servicemembers Civil Relief Act (SCRA). The law protects active duty service members and their families from foreclosure, eviction and other consequences that might result from not being able to meet financial obligations while serving their country.

Murphy’s lawyer, Romaine Scott III, told The Huffington Post that others have come forward with similar stories since he filed class-action lawsuit in July, though he has yet to determine exactly how big the class will be.

“Quite honestly I expect it to be a pretty large number of people,” Scott said.

Read on.

RSN: Will the Peasants Go Medieval on Bankers?

Deadly Clear

Readers Supported News: By Washington’s Blog

While everyone from Tony Blair to Nouriel Roubini is debating whether or not bankers should be hanged, the Wall Street Journal and Bloomberg provide some fascinating historical context.
Dark subjects: A Red Saunders creation. This picture is called Wat Tyler and the Peasant’s Revolt, 1381. 

View original post 2,040 more words

Biloxi Buzz for Tuesday

 

$109K TAX CUT FOR ROMNEYS

PHOTOS: Amazing Shots Of Mars Rover Landing

Another State On Path To Marriage Equality

How An ‘Overwhelmingly’ White Town Allegedly Tried To Keep Minorities Out

Congressman: FBI Needs To Count Hate Crimes Against Sikhs

 

JPM Refuses To Comply With Broad PFG Subpoena

Per Reuters:

JPMorgan said in a court filing that Trustee Ira Bodenstein’s request for authorization from a bankruptcy court to serve subpoenas on financial information may be overly burdensome by encompassing Peregrine’s affiliates and wholly owned subsidiaries, in addition to the brokerage itself.

 

JPMorgan reserved the right to “modify or quash” subpoenas that are too burdensome or broad.

 

Bodenstein last week asked the court for the authority to require 10 financial institutions, including JPMorgan, to produce information about open and closed accounts maintained by Peregrine, its affiliates and subsidiaries.

What is the “legal” basis that JPM demands to be let off the subpoena hook?

Bodenstein said in an interview on Monday that his request to serve subpoenas was “pretty standard,” and JPMorgan said in the filing that it did not object to the court granting him the general authority to issue subpoenas upon the bank.

 

However, JPMorgan said the “conditions upon which the trustee seeks to conduct the proposed examination are anything but ‘routine.'”

 

JPMorgan also objected to Bodenstein’s request that the bankruptcy court prohibit subpoenaed financial institutions from recouping any costs incurred with providing documents.

Per Reuters:

JPMorgan said in a court filing that Trustee Ira Bodenstein’s request for authorization from a bankruptcy court to serve subpoenas on financial information may be overly burdensome by encompassing Peregrine’s affiliates and wholly owned subsidiaries, in addition to the brokerage itself.

 

JPMorgan reserved the right to “modify or quash” subpoenas that are too burdensome or broad.

 

Bodenstein last week asked the court for the authority to require 10 financial institutions, including JPMorgan, to produce information about open and closed accounts maintained by Peregrine, its affiliates and subsidiaries.

What is the “legal” basis that JPM demands to be let off the subpoena hook?

Bodenstein said in an interview on Monday that his request to serve subpoenas was “pretty standard,” and JPMorgan said in the filing that it did not object to the court granting him the general authority to issue subpoenas upon the bank.

 

However, JPMorgan said the “conditions upon which the trustee seeks to conduct the proposed examination are anything but ‘routine.'”

 

JPMorgan also objected to Bodenstein’s request that the bankruptcy court prohibit subpoenaed financial institutions from recouping any costs incurred with providing documents.

Lieborgate’s Next Casualty: Barclays CEO Bob Diamond’s Daughter

From the Telegraph:

Just a month after her father Bob resigned as chief executive of Barclays, his daughter has followed his lead by stepping down from her job at Deutsche Bank.

 

The Princeton University graduate quit her job on the bank’s institutional rate sales desk in the last few days. She shot to prominence in the days after Barclays was fined £290m for attempting to fix the Libor inter-bank lending rate.

H/T Zerohedge

JP Morgan Chase offers no doc refis, principal reduction–only for loans that Chase owns

JPMorgan Chase ($36.30 0.21%) went from fast-tracking foreclosures to rubber stamping and pre-approving some borrowers for refinances and even principal reduction.

The five largest mortgage servicers signed a $25 billion deal with federal prosecutors and 49 state attorneys general in March to settle foreclosure abuses and documentation problems in the past. Chase agreed to provide roughly $4.2 billion in relief to homeowners under the agreement, including principal write-downs, modifications and refinances for underwater borrowers.

Servicers receive more credit for granting the relief within one year, according to the terms of the settlement.

But since the foreclosure crisis first struck five years ago, borrowers have grown weary of the documentation black holes at the major banks. Many have spent hours in front of FAX machines, only to be asked for resubmissions or another piece of paperwork.

To provide relief more quickly under the settlement, Chase executives are addressing the borrower fatigue with a letter sent to borrowers notifying them that their loan was refinanced into a new mortgage with a lower interest rate. No documentation was needed. Chase owned the loan.

Borrowers receiving these letters saved an average of $300 per month on their payments, according to a statement from the bank sent to HousingWire.

Read on.

Libor: investigation of the Dutch central bank

Translated in English:

After  Germany and Denmark , the affair known as Libor bounces to the Netherlands . The Dutch Central Bank (DNB) has in effect declared Monday, August 6 investigate the involvement of Dutch banks in the interbank market rates and UK Euribor and Libor, while the latter is at the heart of a scandal handling rates.

The London Interbank Offered Rate (Libor) is a key indicator in the world, including influencing the rate at which banks, companies and individuals borrow. Euribor is equivalent to the euro area.

“The Dutch Central Bank Survey , in cooperation with the authority of the financial markets , about a possible misuse of the process of fixing Libor and Euribor “ , told AFP a spokesman for the institution, Remko Vellenga . DNB seeks to ensure “the integrity of Dutch banks,” said Mr. Vellenga, adding that the investigation had been underway for “some time” .

The spokesman said the policeman Dutch bank had launched its investigation when the scandal broke Libor in Britain there is a little over a month. “There were reasons to do this survey, but I Can not you give details “ , he added.

Read on.