Bernanke Admits His Childhood Home Is In Foreclosure And A Relative Is Unemployed
Fed chief Ben Bernanke admitted he has an unemployed relative and that the house in which he grew up has been foreclosed on during the post-FOMC press conference on Wednesday. The Chairman stuck to his playbook, reaffirming that QE and record-low interest rates are here to stay, adding that while some of his colleagues are concerned about the possible risks of his unconventional policy, he isn’t.
Asked by a reporter when was the last time he had spoken to someone who was unemployed, Bernanke responded “pretty recently, I have a relative [who lost his job].” The Chairman went further, reminding those in the conference room he had grown up in a small town in South Carolina, and that the house where he was raised was just foreclosed on.
JPMorgan Chase Secretly Downgraded by Bank Regulators
The Senate report on JPMorgan Chase’s London Whale fiasco revealed that federal regulators secretly downgraded the bank’s management rating last summer—a fact kept from investors and the public until last week.
The downgrade of JPMorgan’s management resulted from the Office of the Comptroller of the Currency finding that the bank suffered from “lax governance and oversight in the chief investment office,” as well as other “oversight deficiencies,” according to the Senate report.
Courthouse News Service.
SAN FRANCISCO (CN) – Wells Fargo is required to offer permanent loan modifications to homeowners who meet conditions under a trial period plan, lawyers for a class of distressed homeowners told the 9th Circuit.
A federal judge had dismissed two class actions accusing the bank of offering temporary loan modifications without the intention of making them permanent — one of the conditions of accepting federal bailout money in 2008.
Bailed-out banks like Wells Fargo, which received $25 million in Troubled Asset Relief Program funds, are required to participate in the Home Affordable Mortgage Program, a government program that gives banks “incentive payments” for issuing permanent loan modifications.
Under HAMP, loan servicers must provide a trial period plan followed by an agreement outlining the terms of the final modification.
In his dismissal, U.S. District Judge Jeffrey White said the homeowners failed to state a claim for breach of contract and unfair debt collection practices.
Plaintiffs Phillip Corvello and Karen and Jeffrey Lucia appealed.
Corvello’s attorney, Leslie Hurst, argued before the three-judge panel that her client qualified for a permanent loan modification and had fulfilled his obligations under the trial period plan.
CALIFORNIA PRO PER WINS APPEAL AGAINST JPMORGAN CHASE
German watchdog Bafin expects Libor probe findings by end-March
(Reuters) – German markets regulator Bafin said preliminary findings from its probe into Deutsche Bank over suspected manipulation of interbank lending rates would be passed on to Berlin by the end of March.
“We stick with the first quarter,” Elke Koenig, head of Bafin, said in response to a question about when it would pass on initial findings to Berlin’s Finance Ministry.
Freddie Mac sues more than a dozen banks over Libor
(Reuters) – U.S. mortgage finance company Freddie Mac is suing more than a dozen banks for losses from the alleged manipulation of the benchmark interest rate known as Libor.
Bank of America Corp, JPMorgan Chase & Co, UBS AG and Credit Suisse Group AG are among the banks named as defendants in the lawsuit.
Freddie Mac, which invested in mortgage bonds and swaps tied to U.S. dollar Libor, claims the banks colluded to rig the benchmark from 2007 to 2010, according to the complaint, which was filed March 14 in U.S. District Court for the Eastern District of Virginia.