Daily Archives: June 12, 2013

NSA Leaker’s Job Terminated: Booz Allen Statement on Reports of Leaked Information

(Updated Information Underlined)
Booz Allen can confirm that Edward Snowden, 29, was an employee of our firm for less than 3 months, assigned to a team in Hawaii. Snowden, who had a salary at the rate of $122,000, was terminated June 10, 2013 for violations of the firm’s code of ethics and firm policy. News reports that this individual has claimed to have leaked classified information are shocking, and if accurate, this action represents a grave violation of the code of conduct and core values of our firm. We will work closely with our clients and authorities in their investigation of this matter.

Read on.

Bank Of America Revives Deceptive Loan Advertising Practices

About six months after the government warned lenders against deceptive mortgage advertising, Bank of America is using a misleading pitch and copious fine print to sell borrowers on refinancing plans. The American Banker reported Monday that a mailer from the bank in New Jersey “sounds eerily like a sales pitch from the bubble days of 2005.”

While the mailer touts annual savings of more than $4,000, National Consumer Law Center attorney Andrew Pizor says the refinancing offer would add more than $37,000 to the cost of a borrower’s loan. “I think the pitch is kind of deceptive because it boldly mentions ‘save’ and ‘savings,’ repeatedly, and of course it refers only to the higher interest rate and overall loan amount in the footnotes,” Pizor told the American Banker.

There’s a full page of footnotes in the mailer, in “small type with several disclaimers,” and the American Banker found multiple bank lawyers willing to defend the deceptive pitch because “it discloses everything.” The story includes an image of the mailer:

Read on.


AIG Financial Products Probed By Ben Lawsky For Alleged Risk Failures

AIG Financial Products Probed By Ben Lawsky For Alleged Risk Failures

Last week, U.S. regulators preliminarily designated AIG as “systemic”, one of a handful of non-banks whose potential failure could threaten the nation’s financial system.

But the probe by the New York DFS, led by Benjamin Lawsky, could delay the company’s plans to fully put its toxic past behind it. Lawsky last year threatened to revoke the state banking license — the equivalent of a corporate death sentence — of Standard Chartered, a large U.K. bank, over alleged money-laundering violations.

Lawsky, who some bank attorneys privately said is the New York regulator they most fear, has set his sights on AIG, an insurer whose giant derivatives portfolio could once again damage the company and its stakeholders if not properly managed. As a result, AIG may be subject to heightened supervision, a prospect that may curb investing and limit earnings if DFS decides to rein in certain business lines or activities.

NSA Spying Complaint

PRISM class action lawsuit


Jamie Dimon is Back… Unleashed

Jamie Dimon is Back… Unleashed

But now that Dimon has prevailed over the shareholder initiative to demote him last month, he appears to have a new renewed appetite for the spotlight. In his first major public appearance since that vote, Dimon on Tuesday fielded investor questions with 55 minutes of rapid-fire patter and occasional profanity about the industry, his bank and that lingering Whale affair.

“Embarrassing! Terrible! Sorry!” he said at one point, in the briefest possible summary of all theexplanations and apologies he has made since a London trader lost some $6.2 billion in JPMorgan’s chief investment office last year.

A few minutes later Dimon became even more vehement in his defense of the bank: “There was no lying, there was no bull—-ing, period,” he told investors at a Morgan Stanley (MS) conference.

During his remarks, Dimon held forth on the housing market (“Housing has turned the corner in every way, shape or form”); the future of interest rates (“We would all applaud a normalization of rates”); and his plans for M&A, or lack thereof (regulatory limits mean JPMorgan won’t be able to buy another big bank in the United States, “and overseas I’d rather grow organically”)