Daily Archives: August 31, 2012

UBS under investigation for money laundering (translated in English)

Translated in English:

The first bank Swiss UBS is within the scope of investigation for criminal suspicion of money laundering, said Friday, August 31 the Ministry of the Attorney General (MPC Attorney General), said a spokesman for the prosecutor Jeannette Balmer .

Open Wednesday particularly in the light of Article 305 bis of the Penal Code, which deals with money laundering, the investigation is “linked to the criminal complaint filed in mid-June by the Fund Bruno Manser “ , an association for peoples of the rainforest, she said, but declined to give details on the investigation.

The Bruno Manser Fund accuses the UBS laundering money from bribes bribes in the clearing of rainforests in the Malaysian state of Sabah, according to the website of the organization based in Basel, Switzerland . According to the complainant, the head of government of Sabah, Musa Aman , demanded bribes wine forestry groups in exchange for the granting of forest concessions and export of tropical timber

Lenders not engaging in Oregon foreclosure mediation program

Headline Story | equities.com.

SALEM — Private Oregon mortgage servicers have so far refused to participate in Oregon’s new foreclosure mediation program, declining even to respond to requests for mediation.

The state’s contractor charged with running the mediation program told an advisory committee in Salem on Wednesday that 132 eligible homeowners applied for the program on the grounds that they are at risk of foreclosure. The law allows at-risk borrowers to request a meeting with their lender even before they’ve missed a payment.

But none of the mortgage servicers responded to the requests within 15 days as required under the law that created the program.

“They just don’t want to play,” said Jonathan Conant, who is managing the state mediation program on behalf of the Florida-based Collins Center for Public Policy. He added that the five largest lenders operating in the state have indicated they won’t participate in the mediation process “under any circumstances.”

There is no penalty for banks that don’t participate in mediation with “at-risk” borrowers, a term that isn’t defined in the statute. Once the borrower is in foreclosure — provided it’s an out-of-court foreclosure — the lender could be barred from selling the home at auction if it doesn’t participate in mediation.

Meanwhile, lenders have also stopped filing out-of-court foreclosures. More are proceeding with court-supervised foreclosures, avoiding the mediation program altogether through the traditionally slower and costlier judicial foreclosure process.

Citibank Settles Borrowers’ Home Equity Credit Line Suit

Citigroup Inc. (C) will allow customers to challenge suspension of home-equity loans and provide $120 apiece to some ex-borrowers whose credit lines of credit were cut, in a settlement of a class-action suit over its practices.

The accord, disclosed today in documents filed in federal court in San Francisco, resolves a group lawsuit in which the bank was accused of improperly suspending or reducing home equity lines of credit for thousands of customers.

Read on.

Another day, another lawsuit. JPMorgan Sued By Louisiana Pension Fund Over Forex Trades

JPMorgan Chase & Co. (JPM) was accused in a lawsuit of manipulating clients’ foreign-exchange transactions for its own benefit.

The Louisiana Municipal Police Employees’ Retirement System filed a complaint yesterday in Manhattan federal court alleging that the bank took advantage of investors by causing them to pay what were often the worst currency rates available on a given trading day.

“JPMorgan’s scheme allowed it, in violation of its contractual and fiduciary obligations, to extract hundreds of millions of dollars in illicit risk free profits from its clients under the guise of FX trading,” according to the complaint.

Read on.

JPMorgan Won’t Detail 500,000 Loans, Trustee Says

A JPMorgan Chase & Co. unit refused to give mortgage trust investors more than 500,000 loan files that would show them how many of the loans are bad and must be repurchased, a trustee said in a court filing.

A unit of Deutsche Bank AG said it has a right to the files as trustee for the investors. The investors own 99 mortgage-backed-securities trusts that were built on loans made by Washington Mutual Bank before it was seized by regulators and sold to JPMorgan in 2008 for $1.9 billion.

“These access rights are unqualified and have been unequivocally breached by JPMC,” Deutsche Bank said in court papers filed in federal court in Washington on Jan. 14.

Mortgage-bond investors and bond insurers have accused loan sellers like WaMu and JPMorgan or bond underwriters of often misrepresenting the quality of the underlying debt. Those misrepresentations can trigger contractual or legal provisions requiring repurchases, investors claim. So-called mortgage putbacks may cost banks and lenders as much as $90 billion, JPMorgan bond analysts said in October.

Read on.