Daily Archives: September 24, 2012

Libor Scandal Shows Need for EU Market-Abuse Law Including Jail Time By The End Of The Year: Barnier

European Union lawmakers should enact tougher punishments for market abusers, including jail time, by the end of the year in response to the Libor scandal, the bloc’s financial-services chief said.

A culture of banks rigging interest-rate benchmarks shows the importance of an agreement on tougher market-abuse rules, Michel Barnier told a panel of EU lawmakers in Brussels today. EU regulators are also investigating possible breaches in cartel rules from both banks and brokers in the setting of Libor, Joaquin Almunia, the EU’s competition commissioner, said in his testimony to the European Parliament.

“The only thing that’s not possible is self-regulation or the status quo,” Barnier said.

Read on.

The last patrol Camden, NJ: America’s deadliest city disbands police force and fires 270 cops over budget crisis

 

 

This city, long among the nation’s poorest and most crime-ridden, is on the verge of dismantling its police department and starting anew with a force run by the county government.

City officials are making the move to increase the number of officers while keeping the cost the same by averting rules negotiated with a union that city officials have seen as unwilling to compromise.

Unless the union – which is skeptical of the stated motivations for the change – reaches a deal with the county, no more than 49 per cent of the city’s current officers could join the new force and those that do will get pay cuts.

John Wilson, a 57-year-old unemployed baker who’s lived in the city his whole life, thinks it’s worth a try.

‘The police in Camden clearly haven’t been doing their job,’ he said last week as he walked to his home in the Parkside neighborhood, which has seen six homicides since the start of 2011.

‘Any change has to be better. It can’t get worse now.’
Read more: http://www.dailymail.co.uk/news/article-2207690/Americas-deadliest-city-Camden-New-Jersey-disbands-police-force-fires-270-cops-budget-crisis.html#ixzz27PnHMwMd

Ohio borrowers offered foreclosure remedy payouts

The Ohio Attorney General is mailing letters to nearly 65,000 mortgage borrowers in his state, offering direct payouts from the national foreclosure settlement struck in March.

Eligible borrowers must have received a foreclosure between 2008 and 2011 from servicers involved in the $25 billion settlement: Bank of America ($9.140.03%)JPMorgan Chase ($41.27 0.39%)Wells Fargo ($35.15 0.18%),Citigroup ($33.42 -0.25%) or GMAC Mortgage.

Borrowers do not have to prove financial harm or give up their rights to pursue their own lawsuit against their servicer for past abuses.

Read on.

Also,

Foreclosure settlement claim forms out in Rhode Island http://www.boston.com/news/local/rhode-island/2012/09/24/foreclosure-settlement-claim-forms-out/Fq8j9DkGuWBZkc6KWF4j6K/story.html

 

Fresh penalty imposed on Citigroup: Settle charges for breaching position limits on wheat futures trading, bank will pay $525,000

Citigroup Inc. (C – Analyst Report) has hit the headlines for all the wrong reasons. In order to settle charges for breaching position limits on wheat futures trading, Citigroup will pay $525,000, according to media sources.

The allegations are associated with the long positions held by Citigroup in 2009, which surpassed the caps imposed on such trades. These trades took place on the Chicago Board of Trade, a unit of CME Group Inc. (CME – Analyst Report).

This penalty, imposed by The Commodity Futures Trading Commission (CFTC), comes just a couple of weeks before the implementation of the new limits on the trading of natural gas, wheat and certain other items under the Dodd-Frank Act.

Read on.

State AGs Probe Card Debt Sales (Video)

A group of state attorneys general is looking at the possibility that banks have sold credit card accounts to debt collection firms that were supported by inaccurate and robo-signed documents.

On a side note: reporters said that state AGs spoke with Chase’s employees in  San Antonio Texas and Frederick, Virginia. Here is the video: http://t.co/i0F20Rz0

Megabanks Extend and Pretend They Won’t Pay for Foreclosure Fouls

It was pitched as good news for foreclosed-upon borrowers: Last month regulators announced an extension for those seeking reviews of servicers’ actions under the April 2011 federal consent orders. Consumers now had until yearend to submit claims.

I think the big mortgage servicers, and their consultants, are in no hurry to start the reviews. They’d love it if these megabanks never have to pay borrowers a dime.

“Reviews are still underway. We hope the compensation will begin soon with a limited number of borrowers receiving compensation in the fourth quarter of 2012” says Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency. Regulators have been promising lump-sum payments “from $500 to, in the most egregious cases, $125,000 plus equity,” for a while. But, as yet, there have been no payments to borrowers. The independent consultants, engaged by the large banks and paid directly by them, haven’t yet made any payment recommendations, according to Hubbard.

Who’s getting paid in the meantime? The independent consultants.

Read on.

Discover to Pay $200M to Settle Probe into Credit Card Protection Products

Discover Financial Services (DFS) has agreed to refund hundreds of millions of dollars to settle a regulatory probe of its credit card marketing practices.

The issuer’s Discover Bank subsidiary will return $200 million to cardholders who purchased credit card protection products from the company via telephone unknowingly over a roughly three-and-a-half-year period beginning in December 2007, as part of an agreement with the Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau, the company said late Friday,

Discover also agreed to pay a combined $14 million in penalties to the agencies and to improve its sales practices.

“We have worked hard to earn the loyalty of our cardmembers, and we are committed to marketing our products responsibly,” Discover CEO David Nelms said in a news release.

Read on.