Daily Archives: May 3, 2013

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Regulators Blame Libor Fixing On The Sex, Drugs, And Lavish Perks Of London Banking

Regulators Blame Libor Fixing On The Sex, Drugs, And Lavish Perks Of London Banking

A number of major banks, mostly in London, were caught last summer in a whirlwind scandal for manipulating an obscure interest rate, the Libor.

 

There were customary embarrassing instant messages and e-mails released in the complaint, and banks paid out billion dollar fines, but it was still hard to get people to pay attention to such an obscure number. The scandal just wasn’t quite salacious enough.

But now it seems that element has arrived. Regulators suspect that London’s high-flying banking culture led to an attitude that welcomed deceitful, conspiratorial behavior between traders and brokers, the WSJ reports.

Read more: http://www.businessinsider.com/libor-blamed-on-wild-london-culture-2013-5#ixzz2SCaerCRY

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Foreclosure compensation checks arrive, but anger some homeowners

Foreclosure compensation checks arrive, but anger some homeowners

The 13 servicers are: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. 

According to the OCC’s online FAQ about the agreement, the servicers agreed “to provide more than $9.3 billion in cash payments and other assistance to help borrowers. The sum includes $3.6 billion in direct cash payments to eligible borrowers and $5.7 billion in other foreclosure prevention assistance, such as loan modifications and forgiveness of deficiency judgments.” 

By comparison, the five largest banks alone – Wells Fargo, Citigroup, Goldman Sachs, JPMorganChase, Bank of America – earned $60 billion in total profits last year. 

Payout guided by ‘the matrix’
What determines how much homeowners receive? 

The largest payouts – $125,000 – are going to 1,082 members of the military wrongly foreclosed upon, and to just 53 homeowners across the country foreclosed upon even though they never missed a mortgage payment.  But most of the recipients – almost 2 million homeowners – will get the smallest payments of $300 to $600.

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NYT: JPMorgan Exec Allegedly Lied Under Oath

Government investigators have found that JPMorgan Chase devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” and that one of its most senior executives gave “false and misleading statements” under oath.

The findings appear in a confidential government document, reviewed by The New York Times, that was sent to the bank in March, warning of a potential crackdown by the regulator of the nation’s energy markets.

The possible action comes amid showdowns with other agencies. One of the bank’s chief regulators, the Office of the Comptroller of the Currency, is weighing new enforcement actions against JPMorgan over the way the bank collected credit card debt and its possible failure to alert authorities to suspicions about Bernard L. Madoff, according to people who were not authorized to discuss the cases publicly.

Read on.

CBO Report: Modifying Mortgages Involving Fannie Mae and Freddie Mac: Options for Principal Forgiveness