Daily Archives: November 30, 2012

More states join Libor scandal investigations

Several U.S. states have joined the investigations swirling around the illegal manipulation of the bank-to-bank interest rate known as “Libor” — an international scandal that may have cost governments and consumers billions of dollars.

Read more: More states join Libor scandal investigations – The Denver Post http://www.denverpost.com/business/ci_22094393/more-states-join-libor-scandal-investigations#ixzz2DjdiwvAW

Wells Fargo Foreclosure Practices Lawsuit Not Barred by Earlier Deal, U.S. Says

Wells Fargo & Co. (WFC) can be sued in a federal lawsuit in New York over mortgage foreclosure practices without violating the terms of a settlement reached with the bank in another case, the Justice Department said.

The department, in a filing yesterday in federal court in Washington, said the bank’s allegation that the U.S. breached the terms of the $5 billion deal by suing in federal court in New York for hundreds of millions of dollars based on conduct that Wells Fargo is no longer liable for is “flatly inconsistent” with the terms of the settlement.

The New York case is premised on Wells Fargo, the biggest U.S. home lender, knowing that the origination of loans insured by the Federal Housing Administration didn’t meet agency requirements, resulting in “substantial losses” to the FHA insurance fund, according to the filing.

The settlement “only bars the government from asserting a very specific type of claim, i.e., where its ’sole basis’ is Wells Fargo’s submission of a false annual certification in connection with maintaining its status as an FHA-approved Direct Endorsement Lender,” John Warshawsky, a Justice Department lawyer, said in the filing.

Rest here…

Bloomberg: Goldman Sachs positive on subprime

Goldman Sachs (GS) Group Inc., which survived the U.S. real estate collapse five years ago with the help of derivative bets against subprime mortgages, is promoting the opposite trade to clients as housing recovers.

The firm, which teamed with four other dealers to create the ABX indexes, benchmark contracts that offered investors a way to protect against the risks of a crash, said in a Nov. 28 report on its top 10 market themes for 2013 that clients should buy some of the derivatives.

Read on.

JPMorgan Doesn’t Have to Provide Lawyer E-Mails in Energy-Market Manipulation Probe

JPMorgan Chase & Co. (JPM) doesn’t have to turn over portions of e-mails sought by U.S. regulators in a probe of potential energy-market manipulation because a judge said they are protected by attorney-client privilege.

U.S. Magistrate Judge Deborah Robinson in Washington today denied a request by the Federal Energy Regulatory Commission to force JPMorgan to provide unredacted copies of 25 e-mails. Robinson said she reviewed the documents and agreed that the redacted portions are confidential communications with JPMorgan’s lawyers.

Read on.