Daily Archives: December 21, 2012

JPMorgan Chase & Co. : Regulator plans to sanction JPMorgan on “Whale” trade-report

(Reuters) – A U.S. bank regulator is planning to issue a formal action against JPMorgan Chase & Co, demanding that the bank fix lapses in risk controls that allowed some of its traders to build a risky bet that lost $6.2 billion, the Wall Street Journal reported on Thursday.

The Office of the Comptroller of the Currency, a division of the Treasury Department that oversees banks, is not expected to levy a fine, but it does plan to issue an enforcement action, the Journal reported, citing unnamed people familiar with the matter.

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British former UBS trader, charged in the US with LIBOR, accused of moving shares in a tech start-up into wife’s name

Tom Hayes, the British former UBS trader charged in the US with rate-rigging, made arrangements to transfer £50,000-worth of shares in a tech start-up into his wife’s name as the Libor allegations emerged, it can be revealed.

Mr Hayes had invested the sum in a Silicon Roundabout mobile and software developer when the company was set up in July. But as the allegations of Japanese Libor manipulation, wire fraud and “antitrust violation” emerged, Mr Hayes made arrangements to transfer his shares into the name of his wife, with whom he has a one-year-old son.

The transfer to his wife could be contested legally if the funds were proved to have been gained illegally, said a legal source. But the company claims that the purpose of the proposed transfer was to protect the business from adverse publicity.

Mr Hayes met his co-founder in the Shoreditch company while both were studying for an MBA at the London campus of Hult International Business School. The business was incorporated through Hillier Hopkins solicitors shortly before Mr Hayes and his business partner graduated from the business school in August.

Mr Hayes is still listed as a director of the company at Companies House, while job advertisements for a director of marketing and business development – posted as recently as November – describe him as the company’s “owner, investor and founder”.

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Obama Signs ATM, CFPB Bills

WASHINGTON — President Barack Obama signed two bills on Thursday that will protect information banks provide to the Consumer Financial Protection Bureau and eliminate a requirement on ATM fee notices.

The banking industry had pushed hard for both pieces of legislation.

Banks have been facing a spate of nuisance lawsuits over the ATM fee disclosure issue, and have warned that information passed along to the CFPB could be used against them in a future lawsuit if the provision wasn’t remedied.

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CFPB, DOJ to partner on fair lending efforts

The U.S. Department of Justice and the Consumer Financial Protection Bureau have signed an agreement to coordinate fair lending enforcement efforts, including the sharing of information, joint investigations, and referrals from the CFPB to the Justice Department of potential Equal Credit Opportunity Act (ECOA) violations in cases where the Bureau has reason to believe that a creditor has engaged in a pattern or practice of lending discrimination, several attorneys wrote on the JDSupra website.

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Cuba objects to US fines against HSBC, Japanese bank, over sanctioned countries’ transactions

HAVANA — Havana on Thursday protested recent U.S. government fines levied against two banks found to have enabled countries subject to U.S. sanctions, including Cuba, to make prohibited transactions through American financial institutions.

In a statement, the island’s Foreign Ministry called the penalties “unjust and illegal” and noted that they came on the heels of a U.N. vote in which world nations once again voted overwhelmingly to condemn the 50-year-old U.S. embargo against Cuba.

The bank fines “demonstrate that the U.S. policy of ferocious prosecution of financial and commercial transactions targeting Cuba and those who maintain a legitimate relationship with our country under the protection of international law not only has not changed, but has hardened,” the statement read.

On Dec. 11 it was announced that London-based HSBC had agreed to pay $1.9 billion in penalties to end a U.S. probe. The London-based bank was found to have processed transactions that let Mexican drug cartels launder money and allowed others under U.S. suspicion or sanction, including nations such as Cuba, Iran, Libya, Myanmar and Sudan, move money around the world between the mid-1990s and 2006.

Read more: http://www.washingtonpost.com/business/cuba-objects-to-us-fines-against-hsbc-japanese-bank-over-sanctioned-countries-transactions/2012/12/20/700fc3b0-4aba-11e2-8758-b64a2997a921_story.html

HSBC Judge Requests Reasons to Approve Money Laundering Settlement

HSBC Holdings Plc (HSBA) and U.S. prosecutors were asked by a judge to submit a brief giving reasons he should approve the bank’s $1.9 billion settlement of money-laundering charges over drug cartel-related transfers.

“My suggestion is you present to the court a document that demonstrates why I should accept the agreement,” U.S. District Judge John Gleeson said today at a court hearing in Brooklyn,New York. “There’s been some publicized criticism of this. I think you should feel free to address it.”

Read more: http://www.bloomberg.com/news/2012-12-20/hsbc-judge-requests-reasons-to-approve-drug-money-accord.html

New raid on Deutsche Bank headquarters

The offices of German banking giant Deutsche Bank have been raided for the second time in just over a week. The latest raids are connected to the collapse of the Munich-based Kirch media group.

Deutsche Bank’s Frankfurt headquarters were raided by investigators from prosecutor’s office, the lender confirmed to news agencies on Thursday. Prosecutors are trying to establish whether former executives at the bank made false statements during court proceedings in the Kirch case.

While it confirmed that the raids, which were carried out on Wednesday, had taken place, the bank also denied allegations that its former executives had made false statements.

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