Daily Archives: August 18, 2013

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Regulator probes Deutsche Bank over money laundering controls: report

Regulator probes Deutsche Bank over money laundering controls: report

(Reuters) – German regulator BaFin is looking into whether Deutsche Bank (DBKGn.DE) should improve the controls it has in place against money laundering, a German paper reported.

In BaFin’s view, Germany’s largest bank took too long to report some suspicious transactions to the police, possibly because the bank’s internal alarm systems were not set up correctly, Welt am Sonntag reported, without citing its sources.

BaFin is now looking at whether the problem is wider, the paper said.

The maximum fine would be 100,000 euros ($133,300), the paper said in an advance excerpt of an article due to be published on Sunday.

Notice the pattern? Feds probing JPMorgan for bribery

It’s a never ending story with the banksters and their crimes.

Federal authorities have opened a bribery investigation into whether JPMorgan Chase hired the children of powerful Chinese officials to help the bank win lucrative business in the booming nation, according to a confidential United States government document.

In one instance, the bank hired the son of a former Chinese banking regulator who is now the chairman of the China Everbright Group, a state-controlled financial conglomerate, according to the document, which was reviewed by The New York Times, as well as public records. After the chairman’s son came on board, JPMorgan secured multiple coveted assignments from the Chinese conglomerate, including advising a subsidiary of the company on a stock offering, records show.

The Hong Kong office of JPMorgan also hired the daughter of a Chinese railway official. That official was later detained on accusations of doling out government contracts in exchange for cash bribes, the government document and public records show.

The former official’s daughter came to JPMorgan at an opportune time for the New York-based bank: The China Railway Group, a state-controlled construction company that builds railways for the Chinese government, was in the process of selecting JPMorgan to advise on its plans to become a public company, a common move in China for businesses affiliated with the government. With JPMorgan’s help, China Railway raised more than $5 billion when it went public in 2007.

Read on.

Q&A: Lawsky on Financial Crime, Punishment and His Payday Loan Crackdown

I found this part of Q & A interesting from American Banker to New York banking regulator Benjamin Lawsky:

Do you think anyone can or will go to jail for the financial crisis?
We don’t have criminal jurisdiction — I don’t have grand jury power at DFS, so we don’t work on the criminal side. We can investigate, but then we hand it off to prosecutors. Will people go to jail? Obviously we’re running into time-bar issues. I don’t know anything about the [JPMorgan Chase (JPM)] London Whale case other than what I read in the papers, but that’s post-financial crisis by far.

I think the real question is why haven’t there been more criminal prosecutions? I think that’s a very, very difficult question. … There’s probably six or seven smart theories, all of which are partially correct, for why you haven’t seen any large-scale criminal prosecutions of senior individuals at the firms that were involved in the financial crisis. I wasn’t at the Department of Justice when they were making decisions on things like AIG, Lehman, etc., and those are very difficult cases to make. Having been a former prosecutor, it’s a very high bar to reach, to decide that you’ve got probable cause, that an intentional crime was committed. And you’re talking about incredibly complex products that were being produced at the time in enormously diffuse organizations, and to be able to point the finger at the tops of those organizations and be able to prove a criminal case for the leaders of those organizations, based on incredibly complex financial dealings that were going on deep in the bowels of those organizations, is very, very difficult.

It doesn’t mean it couldn’t have been done. And that comes back to a different question, which is a question of, as a policy matter, how many resources does one devote to building these cases? I know there’s a whole debate over, “Well, they devoted this amount to Enron, they devoted this amount to the financial crisis.” And that’s a fair debate to have … I think there are many, many reasons why building those criminal cases was really incredibly difficult. It doesn’t mean it shouldn’t have been done, but it is what it is.

Citimortgage class action filed in Louisville

LOUISVILLE – CitiMortgage foreclosed on homes across the country while the homebuyers “were protected from such actions by bankruptcy stays ordered by federal bankruptcy judges,” a woman claims in a federal class action.

And here is the complaint. H/T to Deadly Clear: