Daily Archives: October 23, 2012

Singapore’s Libor role in the spotlight

Read more from Financial Times:  http://on.ft.com/QEbW5u

Kirby McInerney LLP Announces Proposed Settlement of Citigroup Inc. Securities Litigation

NEW YORK, Oct. 23, 2012 — /PRNewswire/ — The following statement is being issued by Kirby McInerney LLP regarding the Citigroup Inc. Securities Litigation.




TO:  All persons and entities who purchased or otherwise acquired Citigroup Inc. (“Citigroup”) common stock between February 26, 2007 and April 18, 2008, inclusive, or their successors in interest, and who were damaged thereby.


YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Southern District of New York, (i) that the above-captioned litigation (the “Action”) has been preliminarily certified as a class action on behalf of a class of all persons and entities who purchased or otherwise acquired Citigroup common stock between February 26, 2007 and April 18, 2008, inclusive, or their successors in interest, and who were damaged thereby (the “Settlement Class”), except for certain persons and entities who are excluded from the Settlement Class, as defined in the Stipulation and Agreement of Settlement in the Action, as amended (the “Stipulation”), and in the Court’s order dated August 29, 2012, as modified by the Court’s order dated September 28, 2012; and (ii) that Plaintiffs in the Action have reached an agreement to settle the Action for an aggregated settlement payment of $590 million in cash to the Settlement Class (the “Settlement”).

A hearing will be held on January 15, 2013 at 10:00 a.m. before the Honorable Sidney H. Stein at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 23A, New York, NY 10007, to determine (i) whether the proposed Settlement should be approved as fair, reasonable and adequate; (ii) whether the Action should be dismissed on the merits and with prejudice against all the Citigroup Defendants, and whether the releases specified and described in the Stipulation should be granted; (iii) whether the proposed Plan of Allocation should be approved as fair and reasonable; and (iv) whether Lead Class Counsel’s application for an award of attorneys’ fees and reimbursement of expenses should be approved.

If you are a member of the Settlement Class, your rights will be affected by the Action and the Settlement, and you may be entitled to share in the Settlement Fund.  If you have not yet received the full printed Notice of (I) Pendency of Class Action; (II) Proposed Settlement and Plan of Allocation; (III) Settlement Fairness Hearing; and (IV) Motion for an Award of Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”), and the Proof of Claim and Release Form (“Claim Form”), you may obtain copies of these documents by contacting the Claims Administrator:  In re Citigroup Inc. Securities Litigation, c/o GCG, P.O. Box 9899, Dublin, Ohio 43017-5799, (877) 600-6533.  Copies of the Notice and Claim Form can also be downloaded from the website maintained by the Claims Administrator,www.citigroupsecuritiessettlement.com.

If you are a member of the Settlement Class, in order to be eligible to receive a payment under the proposed Settlement, you must submit a Claim Form postmarked no later than February 7, 2013.  If you are a member of the Settlement Class and do not submit a proper Claim Form, you will not share in the distribution of the net proceeds of the Settlement but you will nevertheless be bound by any judgments or orders entered by the Court in the Action.

If you are a member of the Settlement Class and wish to exclude yourself from the Settlement Class, you must submit a request for exclusion such that it is received no later than December 6, 2012, in accordance with the instructions set forth in the Notice.  If you properly and timely exclude yourself from the Settlement Class, you will not be bound by any judgments or orders entered by the Court in the Action and you will not be eligible to share in the proceeds of the Settlement.

Any objections to any aspect of the proposed Settlement, the proposed Plan of Allocation or Lead Class Counsel’s application for an award of attorneys’ fees and reimbursement of expenses, must be filed with the Court and delivered to designated representative Lead Class Counsel and counsel for the Citigroup Defendants such that they are received no later than December 21, 2012, in accordance with the instructions set forth in the Notice.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK’S OFFICE REGARDING THIS NOTICE.  Inquiries, other than requests for the Notice and Claim Form, may be made to Lead Class Counsel:

Andrew McNeela, Esq. Peter S. Linden, Esq. KIRBY McINERNEY LLP 825 Third Avenue New York, NY 10022 (212) 371-6600

Dated:  October 23, 2012 By Order of the United States District Court for the Southern District of New York

SOURCE Kirby McInerney LLP


Bank of America accused of favoring white neighborhoods in Chicago

Here we go again…

A national fair housing group has added Chicago and two other cities to its complaint charging that Bank of America Corp. takes better care of foreclosed properties in white communities than those in predominantly minority neighborhoods.

The inclusion of Chicago, along with Milwaukee and Indianapolis, brings to 13 the number of cities included in the National Fair Housing Alliance’s complaint originally filed with the U.S. Department of Housing and Urban Development in September involving eight cities. Two other cities were added earlier this month.

The Washington, D.C.-based alliance, a consortium of private, nonprofit fair housing groups, alleges that the lender “has a systemic and particularized practice” of handling foreclosed properties differently depending on race and color, and the practice has occurred at least since 2011.

A spokesman for Bank of America was not immediately available for comment but the bank denied the allegations when the complaint was first filed in September.


California Sells $550 Million Tax-Exempt Debt to JPMorgan Chase


California sold $549.8 million of bonds today in its largest tax-exempt competitive issue since 2007.

JPMorgan Chase & Co. was the winning bidder on the deal, data compiled by Bloomberg show. The most-populous state sold a 10-year maturity to yield 2.14 percent, according to three people familiar with the deal.

That interest rate is 0.44 percentage point more than a benchmark index of munis, data compiled by Bloomberg show. The yield spread shrank from 0.68 percentage point when the state issued 10-year bonds on Sept. 24 in a negotiated deal, and is the slimmest for the state’s bonds in four years, Bloomberg data show.

Read on.

Romney calls Syria at last night’s debate “Iran’s route to the sea.” How oh how will Iran find a way to the sea without Syria?

Mitt Romney: “Syria is Iran’s only ally in the Arab world. It’s their route to the sea. It’s the route for them to arm Hezbollah in Lebanon, which threatens, of course, our ally, Israel. And so seeing Syria remove Assad is a very high priority for us.”

Earth to Mitt:  Read the map please.

Foreclosed-Home Caretakers Sue BofA Affiliate

LOS ANGELES (CN) – A Bank of America subsidiary cheats workers of overtime and regular wages after hiring them to maintain foreclosed homes, a class action claims in Superior Court.
Lead plaintiff Chris Weseman sued BAC Field Services Corp., alleging Labor Code violations and unfair competition.
“BAC operates as a subsidiary of Bank of America, providing maintenance an preservation services for Bank of America’s foreclosed properties,” the complaint states.
Bank of America, however, is not a party to the complaint.
“BAC subcontracts the hiring process and job placement functions to other hiring agents as part of the scheme to attempt to circumvent responsibility for protections afforded to employees under federal and California law,” the complaint states.
Weseman claims that BAC misclassifies its employees as independent contractors to duck the Labor Code. BAC laborers mow lawns, board up windows, change locks, clean, and take pictures of foreclosed properties, and work 40 hours a week or more for a flat rate, according to the complaint.
BAC also ducks Social Security payments, taxes, unemployment insurance and workers compensation insurance by misclassifying its workers, Weseman says.

Read on.

Beijing asks US Presidential candidates to moderate their passions

Translated in English:

“The American politicians, whatever their party, should consider the development of China objectively and rationally and act more in favor of a Sino-US mutual trust “ , said Hong Lei, spokesman of the Ministry Chinese Foreign Affairs , Tuesday, Oct. 23.“Like it or not, whether Democrat or Republican, the next president of the United States will be forced to soften its rhetoric going into the war on China, adopted throughout the country “ , said Tuesday in a comment the official New China. The winner of the U.S. presidential election will “‘s attack to the inability of the country to sclerosing accept the inevitable rise of China “ , the agency said.

DeMarco Shrinks Fannie-Freddie Without Help From Congress

The man with power over more than half of U.S. mortgages lives in a 1961 brick split-level house. There’s a basketball hoop in the driveway and a green Subaru Outback in the carport. The homes on Edward J. DeMarco’s block are so close that neighbors see into each other’s windows.

This surprised several dozen demonstrators, one in a vampire costume, who arrived at DeMarco’s residence in a middle- class Washington suburb last month to demand he quit his job as acting director of the Federal Housing Finance Agency.

“My home is better-looking than this,” said Catrese Tucker, a Massachusetts toll collector whose property is in foreclosure. “I don’t believe this is his home.”

Read on.


“It has to be a Halloween joke. They have got to be kidding. $1.61?” Smith said. “I mean they wasted more on postage and FedEx than what I am getting as a reduction.”

Yes, only $1.61.

GMAC Bankruptcy Borrowers’s Committee…..MOTION DENIED!

The Court has approved two stalking horse purchase agreements: one with Nationstar
Mortgage LLC as the stalking horse bidder for the sale of the Debtors’ “mortgage loan
origination and servicing businesses” (the “Platform Sale”); the other with Berkshire Hathaway
Inc. as the stalking horse bidder for the sale of Debtors’ “legacy” portfolio “consisting mainly of
mortgage loans and other residual financial assets” (the “Legacy Sale” and together with the
Platform Sale, the “Asset Sales”). Id. ¶ 7. Both the Platform Sale and the Legacy Sale are
subject to higher and better offers. An auction is currently scheduled for October 23 and 24,
2012. Assuming successful auction sales, it will likely be many months before the Platform Sale
closes. In order to maximize value for the estate, the Debtors have emphasized the importance of
conducting “business as usual” as the sales process moves forward.
Recognizing the challenges in operating in chapter 11 and conducting a large loan
servicing business subject to the additional constraints imposed by the Debtors’ FRB and DOJ
settlements, the Debtors filed a motion for approval of the Supplemental Servicing Order. The
Order addresses important issues, such as how the automatic stay would apply in any state or
federal court actions in which the Debtors seek to foreclose on mortgages they own or service.
While the Court approved the Supplemental Servicing Order, approval was granted after
numerous objections were resolved or overruled. Counsel for homeowners raised important
issues about that motion, bringing to bear the important perspectives of consumers that were not
otherwise raised by any other parties in interest.


Source: Matt Weidner