Daily Archives: May 16, 2013

Sen. Elizabeth Warren Sends Letter To Eric Holder, Ben Bernanke And Mary Jo White On Too-Big-To-Jail

“If large financial institutions can break the law and accumulate millions in profits and, if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law.”–Sen. Warren

 

 

Link

Shareholders Still Pay for Deutsche Bank’s Scandals

Shareholders Still Pay for Deutsche Bank’s Scandals

Scandals related to Deutsche Bank‘s (NYSE: DB  ) alleged misconduct have cost investors, and it cost them huge. I fear there’s more to come.

Early this year, Deutsche Bank reported a net loss of nearly $3 billion for its fourth quarter. In a press conference held on the same day, the bank attributed a large part of the loss to “significant litigation charges” relating to “developments in regulatory investigations and adverse court rulings.”

And just this week, the bank had to issue  new stock to help it raise about $3.7 billion to “strengthen its capital structure,” diluting shareholders in the process.

Without more transparency about why the bank’s misconduct occurred and how the company is addressing it, I believe shareholders will face continuing risks to their investment.

Link

Wells Fargo ordered to pay $203 million in overdraft case

Wells Fargo ordered to pay $203 million in overdraft case

(Reuters) – A federal judge has again ordered Wells Fargo & Co (WFC.N) to pay $203 million to settle class action litigation accusing it of imposing excessive overdraft fees on checking account customers, reviving an award that had been thrown out last year.

U.S. District Judge William Alsup reinstated on Tuesday a penalty he first imposed in August 2010, saying the fourth-largest U.S. bank violated a California law that protects consumers against fraudulent misrepresentations.

“Wells Fargo was profiting off its most vulnerable customers and this holds the bank accountable,” Richard McCune, a partner at McCuneWright in Redlands, California, representing about 1 million current and former Wells Fargo customers in that state, said in an interview. “We think it’s the right decision.”

Link

JPMorgan Shareholders Are Denied Access to Results

JPMorgan Shareholders Are Denied Access to Results

When it comes to shareholder votes, the running tallies are a closely guarded secret. Only a handful of parties get a peek into how these corporate battles are shaping up.

Now, in the midst of one of the most closely watched investor votes in years — over whether to separate the roles of chairman and chief executive at JPMorgan Chase — that protocol has changed. The firm that is providing tabulations of the JPMorgan vote stopped giving voting snapshots to the proposal’s sponsors last week. The change followed a request from Wall Street’s main lobby group, the firm says.

The pension fund shareholders that are promoting a split at the top of the bank are crying foul. Knowing the current tally is critical for both sides in shaping their campaigns, they say — cutting off access to them gives JPMorgan, which is getting frequent updates, an upper hand.

BIBOLOTTI vs AHMSI, et. al. | USDC Eastern District of Texas – Summary judgment against Ocwen on a bankruptcy discharge violation case!