Daily Archives: August 8, 2013

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JPMorgan Chase Artificially Inflated Aluminium Prices, Lawsuit Claims

JPMorgan Chase Artificially Inflated Aluminium Prices, Lawsuit Claims

SINGAPORE, Aug 7 (Reuters) – Glencore Xstrata and JPMorgan Chase & Co face a U.S. lawsuit alleging they artificially inflated aluminium prices, the second legal challenge related to metal warehousing in a week.

The suit, filed in a district court in Florida, also names Goldman Sachs, the London Metal Exchange (LME) and subsidiaries of both JPMorgan and Goldman and accuses the companies of anti-trust practices and racketeering.

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Freddie’s Top Lawyer Threatens to Sue Over Eminent Domain

Freddie’s Top Lawyer Threatens to Sue Over Eminent Domain

Freddie Mac’s top lawyer threatened to file suit against municipalities that attempt to use eminent domain to refinance underwater mortgages.

“We would consider taking legal action,” William McDavid, Freddie’s general counsel, said Wednesday on a second- quarter earnings call. “Our sense is that those so-called voluntary loan sales would not be very voluntary. They’d be loan sales under pressure, under a threat of seizure by eminent domain.”

The comments were in response to actions taken last week by the city of Richmond, Calif., near San Francisco. The city sent intent letters to 32 trustees and servicers asking to buy roughly 600 underwater loans at reduced prices or face possible seizure through eminent domain.

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MetLife faces DOJ scrutiny over foreclosures

MetLife faces DOJ scrutiny over foreclosures

Per BusinessWeek, MetLife Inc (MET) is facing heat from the DOJ over foreclosure practices:

The bank received a request in May from the U.S. Department of Justice for information on payments the lender made to law firms tied to foreclosures, the New York-based insurer said in a filing today. Expenses were submitted to Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development for reimbursement, according to the filing.

A copy of the SEC filing disclosing the investigation is located here.

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JPMorgan faces DOJ criminal probe over MBS issuance

JPMorgan faces DOJ criminal probe over MBS issuance

According to a story at Bloomberg, JPMorgan Chase (JPM) is under a Department of Justice-led criminal probe over its RMBS practices after the DOJ’s preliminary finding in May that it broke civil laws:

Authorities have sought information on the company’s “treatment of early payment defaults, potential breaches of securitization representations and warranties, reserves and due diligence in connection with securitizations,” according to the filing. “The firm continues to respond to other MBS-related regulatory inquiries.”

Source: Bloomberg
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Wells Fargo to lay off 763 home mortgage employees

Wells Fargo to lay off 763 home mortgage employees

Mega bank Wells Fargo (WFC) plans to lay off 763 employees in the firm’s home mortgage division, the Charlotte Observer reports.  

Wells Fargo continues to trim its mortgage operation, announcing Wednesday the layoffs of 763 employees.

None of the affected workers are in the Charlotte area, spokesman Josh Dunn said in an email.

20 Cities That May Face Bankruptcy After Detroit

Deadly Clear

City Of Compton, California Considers BankruptcyGenerated from a Newsmax post:

Think Motown is the only major U.S. city in a boatload of financial trouble? Think again. By Stephen Moore

Detroit’s bankruptcy filing sent shivers down the spine of municipal bondholders, government employees, and big-city urban residents all over the country. That’s because many of the 61 largest U.S. cities are plagued with the same kinds of retirement legacy costs that sent Detroit into Chapter 9 bankruptcy this summer. 

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