Daily Archives: June 1, 2013

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California public employee union calls for investigation of JP Morgan Chase, other banks for LIBOR scandal

California public employee union calls for investigation of JP Morgan Chase, other banks for LIBOR scandal

Fallout from the financial scandal that hit the interest-rate setting measure, known as LIBOR, continues to affect borrowers and investors. Some of them filed lawsuits after the banks’ wrongdoing came to light in 2012, including suits by the city of Baltimore and a group of homeowners. Now, California’s largest public employee union wants the state to investigate JP Morgan Chase and other major banks linked to LIBOR and consider suing to recover billions in lost investment dollars. From Sacramento, FSRN’s Max Pringle reports.

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RBS gives up fight, will hand over Libor documents to Canada

RBS gives up fight, will hand over Libor documents to Canada

(Reuters) – The Royal Bank of Scotland Group has agreed to hand over documents demanded by Canada in its probe into whether the bank was involved in a global interest rate-rigging scandal, Canada’s Competition Bureau said on Friday.

The move marked a reversal for RBS, which had launched a legal challenge against the bureau’s demand for internal documents. The Competition Bureau is trying to determine whether RBS and several other banks sought to manipulate the London Interbank Offered Rate (Libor).

The bank’s decision to hand over the documents “comes approximately 18 months after the launch of the (RBS) challenge and will allow the bureau to move forward with its investigation of alleged collusive conduct into the setting of Yen Libor rates,” the bureau stated.

RBS now has until June 28 to produce the documents.

Thank you for your Service – Navy reservist evicted from home while on active duty

CBS 12:

PALM BEACH GARDENS, Fla. — Memorial Day is a day when Americans pause to remember and honor those who have served their country.

However, a Navy reservist from Palm Beach Gardens says he doesn’t feel like he’s being honored because he’s being evicted.

Petty Officer Second Class Joseph Worrell, 49, spent Memorial Day with his wife carrying boxes, loading a U-Haul truck and moving out of their home near Palm Beach Gardens.

Worrell, a Navy reservist, feels he has no choice.

Upon returning home from Navy reservist training this month, he says he found an eviction notice stuck to his front door and says the bank is taking the home in foreclosure.

He feels this is no way to treat someone who has served their country.

“It’s sad, it’s very sad. I was hoping that this day would never begin. I feel like my rights are being stepped on,” Worrell explained.

Worrell says there are certain laws in place that are supposed to protect military members from foreclosure while they are on active duty.

He sent Florida Senator Bill Nelson a letter last week asking for help, hoping Nelson can resolve this with his bank, Emigrant Bank.

We called Emigrant Bank in New York City Friday afternoon for comment, but they closed at 1pm that day for the Memorial Day weekend and we were told no one was available.

More from the Burning Platform website:

Emigrant Bank Violates SCRA and unlawfully seizes active military home while he is deployed on missions in Afghanistan.

Petty Officer Worrell is a Reservist Navy SeaBee and combat veteran living in West Palm Beach who has served honorably for about 12 years. In 2009 he was deployed in the Persian Gulf when the home he built in Palm Beach Gardens was sold by the bank even though federal law (the SCRA) provides military members special protection from foreclosure. Unaware initially Emigrant Bank had in fact sold his house to themselves,  he returned home and continued to live in the home, and with help from a local attorney and military legal aid he started fighting to get the illegal sale overturned.

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FORGER ARRESTED AND CHARGED WITH 8 FELONY COUNTS FOR FILING FRAUDULENT REAL ESTATE DOCUMENT IN A FORECLOSURE ACTION

FORGER ARRESTED AND CHARGED WITH 8 FELONY COUNTS FOR FILING FRAUDULENT REAL ESTATE DOCUMENT IN A FORECLOSURE ACTION

SAN BERNARDINO, Calif. – A Moreno Valley man suspected of committing real estate fraud was arraigned last week on multiple counts of Forgery and Procuring and Offering False or Forged Instrument.

Stefan Mahaley, 52, is suspected of forging and filing several fraudulent real estate documents at the San Bernardino County Recorder’s Office, which is a felony offense in the State of California.

“During the course of our investigation, it was discovered that Mr. Mahaley had purchased a home in the City of Fontana, which eventually went into foreclosure and was sold to a new buyer through a public auction,” said Senior Investigator Jaime Samaniego, who is assigned to the case.

According to Samaniego, after the sale was complete, the defendant allegedly filed fraudulent documents granting the property back to him in an attempt to reclaim the home.

Following the investigation, the District Attorney’s Office filed eight felony counts against Mahaley and he was arrested without incident May 14 by investigators from the San Bernardino County District Attorney’s Office at his place of employment in Los Angeles.

Mahaley was transported to San Bernardino County and booked at the West Valley Detention Center.

If convicted as charged, Mahaley faces 7 years and 8 months in state prison. Deputy District Attorney Vance Welch will prosecute this case. 

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BofA suffers backlash from lending cross-sales

BofA suffers backlash from lending cross-sales

Bank of America suffered negative repercussions from its attempt to cross-sell its customers, an article in The Wall Street Journal reported.

The article explains that Merrill Lynch branch mangers saw a new variable in the formula that determines their yearly bonus: how much money brokerage clients have in checking and savings accounts at parent company Bank of America [bank BAC] [/stock].

As a result, some brokers complained that the new move puts the banks interest ahead of the customers, the article claims. 

Efforts to get brokerage customers to refinance a mortgage often backfired with loan rejections or dismal customer service, Joshua Young, a Merrill broker for five years before he quit in December to join Oak & Reed Capital Management, said. “We’re going to hand [the client] over to this mortgage process, and then three months later they hate you,” Young added.