Daily Archives: September 10, 2013

Link

Icap to be fined for Libor rigging

Icap to be fined for Libor rigging

Money broker Icap is poised to become the fourth major financial services firm to be fined for rigging Libor and is facing fines of up to £70m from regulators on both sides of Atlantic.

Icap, run by the former Conservative party treasurer Michael Spencer, is in discussions with the Financial Conduct Authority and the US regulatory bodies about the scale of the penalty it will pay for manipulating the benchmark interest rate.

Confirmation of any fines is expected within a fortnight and could be followed in the coming months by regulatory action against three other firms still under investigation by the FCA, which has already fined Barclays, Royal Bank of Scotland and UBS.

The settlement being discussed with Icap is likely to be considerably lower than the fines paid by the three banks – £290m for Barclays, £390m for RBS and £940m for UBS.

A report by Sky News of the potential size of the fine sparked a 5% rise in Icap shares, which were the largest riser in the FTSE 250 index. The shares closed at 417.8p, up 4.5%.

Bank Of America Cuts Me A 1¢ Check I Don’t Want Or Need

bank of america penny check

Reader Dave closed his money market account that dated back to the Countrywide era, transferring all of the funds to a local bank. (Yay!) Well, he thought he had transferred all of the funds. Did the company zombify his account years later, charging him maintenance fees on a one-cent balance? No. something unexpected happened.

They cut him a check. He explains:

For the final transfer/account closure I waited until a day or two after my monthly interest had been posted. I did an electronic transfer of the remaining funds (~$8,400) less the $3.00 transfer fee to leave the account with a zero balance. Done!! Or, so I thought. Apparently enough interest accrued in that 2-3 days to generate a final “interest” check.

Attached is a scan of my final interest check. A “Cashiers Check” no less in the amount of 1 cent!!!!!! And B of A spent 38.4 cents (plus printing/handling) just to mail it. “I’ll take things that make your head explode for $1,000 Alex.”

CRAZY! Certainly they are probably doing what they are supposed to do/legally required to do. I just can’t imagine what I will do with such a check.

Perhaps after all the lawsuits this is how B of A shows it’s integrity and honesty. Sad thing is, I won’t cash or deposit the check… So, B of A will have to account for this for a year or so and then can report this penny (and many others) as income.

Now, I’m off to dream of the awesome things I can do with this windfall!

Source: Consumerist

Link

JPMorgan Increases Legal Reserves for ‘Crescendo’ of Claims

JPMorgan Increases Legal Reserves for ‘Crescendo’ of Claims

JPMorgan Chase increased its litigation reserve by more than $1.5 billion in the third quarter to help cover a “crescendo” of potential legal claims.

“This addition to reserves covers a number of different matters, some of which you’ve been reading about,” Chief Financial Officer Marianne Lake said today at the Barclays Global Financial Services Conference in New York. “There’s been a crescendo of activity in past weeks and we are reacting to that where it makes sense.”

Link

Barclays to pay $36.1 million in Massachusetts subprime settlement

Barclays to pay $36.1 million in Massachusetts subprime settlement

Barclays Plc agreed on Monday to pay $36.1 million to settle charges by Massachusetts that it hurt homeowners there by packaging subprime mortgages that the borrowers could not afford, and which violated state law, into securities.The British bank is the fourth big bank to settle probes by Massachusetts into securitization practices, according to state Attorney General Martha Coakley, who announced the settlement.Earlier settlements included $60 million by Goldman Sachs Group Inc in May 2009, $102 million by Morgan Stanley in June 2010 and $52 million by Royal Bank of Scotland Group Plc in November 2011, Coakley said.The securitization of home loans that quickly soured amid the U.S. housing downturn was a factor that contributed to the 2008 global financial crisis. While much of the subsequent regulatory scrutiny has occurred at the national level, many U.S. states have pursued their own probes as well.Massachusetts said that from late 2005 through 2007, Barclays financed and packaged adjustable-rate mortgages made by subprime lenders such as Fremont, New Century, Option One and WMC Mortgage that were “presumptively unfair” under state law.

Link

JPMorgan Reaches Insurance Accord With Mortgage Borrowers for $300 Million

JPMorgan Reaches Insurance Accord With Mortgage Borrowers for $300 Million

JPMorgan Chase & Co. (JPM) and insurers reached a $300 million settlement with property owners who accused the companies of overcharging for hazard insurance.

JPMorgan, Assurant Inc. (AIZ) and other insurers will pay refunds valued at 12.5 percent of annual premium costs to homeowners who had the policies placed on their properties by the bank starting in January 2008, according to documents filed Sept. 6 in federal court in Miami.

Homeowners covered by the case stand “to recover hundreds, if not thousands, of dollars as a result of the settlement,” lawyers for the plaintiffs said in a memorandum.

JPMorgan, based in New York, was accused of placing mortgage borrowers’ required hazard and wind coverage with Assurant and other insurers at inflated rates, covering costs of kickbacks to a JPMorgan unit.

“The settlement will have no expected impact on our financials,” Amy Bonitatibus, a JPMorgan spokeswoman, said in an e-mailed statement. The insurance agreement at issue was discontinued this year, she said.

Bank of America slashes 2,100 jobs

According to Bloomberg, the worst is not over for Bank of America (BAC) mortgage employees, with the mega bank announcing plans to eliminate 2,100 jobs and close 16 mortgage offices as rising interest rates weaken loan demand.

The changes “reflect our ongoing efforts to streamline our facilities and align our cost structure with market realities,” said Terry Francisco, a spokesman for the Charlotte, North Carolina-based bank.

The lender targeted three offices in California as well as locations in Virginia, Washington, Texas and Ohio, according to employee discussions held last month, said the people. Some will be offered work elsewhere in the firm, the people said. Bank of America’s staff totaled more than 257,000 at mid-year.

Source: Bloomberg
 
Link

JPMorgan Chase shakes up board with new directors

JPMorgan Chase shakes up board with new directors

The board of directors at JPMorgan Chase (JPM) plans to elect Linda Bammann and Michael Neal to serve as members, according to an announcement Monday.

Bammann will join the board on Sept.16, while Neal will be elected in January 2014, once he retires from his current position.

Bammann holds extensive experience in senior risk management roles. Before her retirement in 2005, Bammann served as chief risk management officer at Bank One Corporation from 2001 until its acquisition by JPMorgan Chase. She also served as a director of The Federal Home Loan Mortgage Corporation from late 2008 until July 2013 and was a board member of the Risk Management Association and Chair of the Loan Syndications and Trading Association.