Daily Archives: August 1, 2013

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JPMorgan Chase Under Investigation Over Employee Who Allegedly Obstructed Italian Regulators

JPMorgan Chase Under Investigation Over Employee Who Allegedly Obstructed Italian Regulators

* U.S. bank probed over alleged crime by employee-document

* JP Morgan says acted correctly, will defend itself

* Allegation relates to Monte Paschi’s Antonveneta purchase

* Prosecutors allege JP Morgan employee obstructed regulator

By Silvia Ognibene and Silvia Aloisi

SIENA/MILAN, July 31 (Reuters) – Italian prosecutors probing Monte dei Paschi’s 2007 acquisition of a smaller rival are investigating U.S. investment bank JP Morgan over an alleged crime committed by one of its employees, according to a prosecutors’ document.

The document, seen by Reuters, said the alleged crime was the obstruction of Italian regulators by an unknown JP Morgan employee relating to a 1 billion euro ($1.3 billion) hybrid financial instrument used to partly fund Monte dei Paschi’s purchase of Antonveneta.

JP Morgan denied any wrongdoing and said it would defend itself vigorously. “We believe that JP Morgan and its employees acted correctly at all times,” it said in an emailed statement.

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Senators Ask Why JPMorgan Execs Won’t Be Punished For Involvement In FERC Investigation

Senators Ask Why JPMorgan Execs Won’t Be Punished For Involvement In FERC Investigation

WASHINGTON (Reuters) – Two Democratic Senators on Wednesday asked U.S. energy regulators for more details on how terms of a settlement were reached on alleged power market manipulation in California and the Midwest by a unit of JPMorgan Chase & Co.

In a letter to the head of the Federal Energy Regulatory Commission (FERC), Elizabeth Warren and Edward Markey, both of Massachusetts, questioned whether the settlement announced on Tuesday included “adequate refunds to defrauded ratepayers.”

They also asked FERC why certain JPMorgan executives “who sought to impede the commission’s investigation” will not be punished.

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Citigroup Avoided Paying $11.5 Billion In Taxes Thanks To Tax Shelters

Citigroup Avoided Paying $11.5 Billion In Taxes Thanks To Tax Shelters

In 2008, Citigroup was an ailing financial giant on the verge of collapse, an event only averted, most economists agree, by a huge emergency infusion of taxpayer money.

Yet when it came time to share the spoils of its return to good fortune with the U.S. government, the bank was not so generous. Over the next four years, Citigroup aggressively moved to make use of shelters in order to shield its earnings from U.S. taxation, doubling the amount of money it held offshore, according to a new report by the U.S. Public Interest Research Group, a nonprofit that advocates for corporate tax reform.

Citigroup is hardly alone in shifting profits to places like the Cayman Islands as a way to lower a tax bill. According to the report, 82 of the top 100 largest publicly traded companies as measured by revenue have set up such shelters — 2,687 of them, to be exact. All told, they are holding nearly $1.2 trillion offshore.

But even among those that make frequent use of tax shelters, Citigroup is in a special class. The bank is one of 15 U.S. companies that are collectively responsible for two-thirds of this total, according to the report, which is called “Offshore Shell Games.”

Citigroup has the ninth-most money parked offshore, the report found. (The top three companies, in terms of tax avoidance, are General Electric, Apple and Pfizer, which collectively held $263 billion offshore as of 2012.)

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Former Bear Stearns Executives Seemingly Unscathed By Financial Crisis They Helped Trigger

Former Bear Stearns Executives Seemingly Unscathed By Financial Crisis They Helped Trigger

Before Lehman crashed, there was “The Bear.”

Bear Stearns, once the nation’s fifth-largest investment bank, had been a fixture on Wall Street since 1923 and had survived the crash of 1929 without laying off any employees.

But in 2008, its customers and creditors didn’t much care about its storied history. They were worried that the billions of dollars of mortgage-backed securities on its books weren’t worth what the company claimed. En masse, they stopped doing business with Bear.

Within a few days, on Monday, March 17, Bear was gone — subsumed into JPMorgan Chase & Co. with the help of the Federal Reserve for a price that was approximately the value of its shiny new Madison Avenue office tower alone.

Bear Stearns failed largely because it had spent the previous five years gorging on subprime mortgages in what appeared to be an ever-rising housing market. When home prices started falling and those loans started to go bad, Bear’s creditors got scared and pulled their money out of the investment bank.

The demise of the 85-year-old firm was just a harbinger of what was to come. Six months later, Lehman Brothers collapsed under the weight of its own mortgage securities, sending first the financial system, and then the entire global economy, into a tailspin from which it hasn’t yet fully recovered.

Five years later, the executives that were in charge of Bear’s headlong dive into the cesspool of subprime mortgage lending hold similar jobs at the most powerful banks on Wall Street: JPMorgan, Goldman Sachs, Bank of America and Deutsche Bank.

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Lender Processing Service opens facility in India

Lender Processing Service opens facility in India

HYDERABAD, INDIA: Lender Processing Services Inc., a leading provider of innovative technology, services, data and analytics to the mortgage and real estate industries today announced the opening of its mortgage technology services facility in India. The company handles about 50 percent of all US mortgages by dollar value.

LPS acquired an office in Hyderabad as part of its acquisition of LendingSpace in 2012. LendingSpace provides residential mortgage origination technology, including a unique correspondent lending platform that enhances collaboration between retail originators and their correspondent lending partners in the United States.

And don’t forget this article:

Mortgage Jobs Sent to India By U.S. Banks http://shar.es/kNWGK