Monthly Archives: September 2013

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EEOC sues Bank of America over treatment for former employee

EEOC sues Bank of America over treatment for former employee

The Equal Employment Opportunity Commission filed suit on Wednesday against Bank of America for the way it allegedly treated a former deaf employee.

The complaint in U.S. District Court said the bank’s Las Vegas region had employed Melchora Lee from 1998 until 2010, first as a cashier and then as a cash services representative. Through 2003, she had a supervisor trained in sign language.

Afterward, the complaint said, her requests for a sign language interpreter were not fulfilled. She alleges she was terminated in 20102 due to her disability.

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JPMorgan audit director admits bank mistakes

JPMorgan audit director admits bank mistakes

The head of JPMorgan Chase’s audit committee acknowledged on Thursday that the bank had made mistakes and said it has tried to learn from them.

“We’ve got these things that we actually are guilty of and we’ve got to fix them,” said Laban Jackson, the head of the audit committee of JPMorgan’s board of directors.

“It’s embarrassing for the board,” he added. Jackson spoke at a conference at a downtown Chicago hotel on Thursday.

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Mistaken Identity Leads To Mistaken Foreclosure By JP Morgan Chase Of Mansfield Man’s Home

Mistaken Identity Leads To Mistaken Foreclosure By JP Morgan Chase Of Mansfield Man’s Home

MANSFIELD, Ohio – A Mansfield man is battling one of the biggest banks in the world over a big mistake that he says cost him his home.

John Watson is suing Chase Bank.

He says they mistakenly foreclosed upon his home, thinking that he was someone else. 

In Watson’s case, it was all about his name. 

“My name’s John Robert Watson,” he said. “His name is John Raymond Watson.”

Watson is talking about his son.

Everything was fine until September 2008, when he sent his daughter-in-law to Chase Bank with a mortgage check.

“She comes back and says that they wouldn’t take the check, because my house was in bankruptcy,” Watson said. 

He wasn’t. But his son was; the other John R. Watson who lived at the same Wayne Street address.

John says that the local bank executive thought he could fix what appeared to be a simple case of mistaken identity.

“He made a bunch of phone calls, and after about 20 minutes says, ‘I can’t get anywhere with them,’” Watson said. “He said, ‘I suggest you hire an attorney,’ And I told him I already had one, and when we got up to leave, he said, ‘It’s too bad you named your son after you.’”

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Fannie Mae Breaks Its Word

Fannie Mae Breaks Its Word

Antonina Juarez paid the rent on her Fair Haven apartment every month, even after her landlord was foreclosed on by Fannie Mae. Now Fannie Mae wants her and her kids to leave their home, violating the quasi-governmental lender’s own policy of not evicting tenants during foreclosure.

Juarez (pictured), who’s 33, is fighting the eviction with the help of attorney Amy Marx, of New Haven Legal Assistance. 

Marx has fought this battle before, and thought that she’d won.

In 2008, Marx helped win a landmark victory when Fannie Mae agreed to a new national policy ofhalting evictions of tenants in buildings it has foreclosed on. Fannie Mae created the policy after Marx and fellow legal aid attorney Amy Eppler-Epstein threatened a lawsuit.

“Years later, it feels like we’re back to square one,” Marx said.

Dimon meets with US Attorney General

Whether the settlement hits $11 billion or not, talks are in the works to bring something into fruition to resolve the government’s lingering mortgage securities issues withJPMorgan Chase (JPM). The bank’s CEO Jamie Dimonarrived at the Justice Department Thursday as talks of a settlement intensified. Per The Wall Street Journal:

Mr. Dimon arrived at the Justice Department building around 9:20 a.m. to meet with Attorney General Eric Holder, according to a person familiar with the meeting. Mr. Dimon and Mr. Holder are meeting face-to-face to discuss terms of a potential deal, according this person. Like all visitors to the building, Mr. Dimon showed identification to the guards—in his case a New York State driver’s license—and proceeded inside.

Source: WSJ

Credit Suisse Group sued over $359 million in RMBS

Royal Park Investments SA/NV sued Credit Suisse Group AG (CS) in New York over $359 million worth of residential mortgage-back securities. Bloomberg describes the basics of the case:

“The offering documents further failed to disclose that, at the same time defendants were offering the certificates for sale to plaintiff, they were privately betting that similar certificates would soon default at significant rates,” Royal Park said in the suit. “Defendants used these offering documents to defraud plaintiff and its assignors into purchasing supposedly ‘investment grade’ certificates at falsely inflated prices.”

Source: Bloomberg

BofA MBS trial adjourned until Nov. 14

Bank of America’s (BAC) $8.5 billion mortgage-backed securities settlement case is on hold once again. The hearing was officially delayed until Nov. 14. Per Seeking Alpa:

Attorneys for AIG and the other “objectors” have one more witness for the stand, and the settlement supporters may, or may not call rebuttal witnesses.

The “objectors” also have made a motion for additional discovery based on new evidence coming to light during the trial, but the judge hasn’t yet ruled on this.

Source: Seeking Alpha
 
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$87 million in fines, criminal charges in Libor probe

$87 million in fines, criminal charges in Libor probe

ICAP Europe Limited, a major middleman for buyers and sellers in financial markets,was fined $87 million by U.S. and Great Britain financial regulators Wednesday for manipulating a global financial benchmark used to set rates on trillions of dollars in loans.

Three former brokers for the London-based company were also hit with federal conspiracy and wire fraud charges in the latest major development of a global investigation into the rate-rigging, Department of Justice officials announced in Washington. The three, residents of England or New Zealand, are not in custody.

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Bank of America Hit With Expanded Foreclosure-Upkeep Complaint

Bank of America Hit With Expanded Foreclosure-Upkeep Complaint

Bank of America Corp. BAC +0.35% is facing an expanded complaint that it failed to maintain and market foreclosed homes in minority neighborhoods while putting more effort into upkeep of homes in primarily white areas.

The complaint, filed one year ago by the National Fair Housing Alliance and several member organizations, includes five new cities–Memphis, Tenn.; Denver; Las Vegas; Tucson, Ariz.; and Philadelphia–and offers additional evidence about others.

“Every day Bank of America continues to neglect homes it owns in communities of color and prices decline, allowing investors to snatch up these foreclosures, turning communities into neighborhoods of absentee landlords,” NFHA Chief Executive Shanna L. Smith said. She said Bank of America “has been on notice of these problems since 2009” but is “all talk and no show

Stunning Libor Fraud Admissions: “As For Kick Backs We Can Discuss That At Lunch” And Much More

Remember when everyone decried wholesale Libor manipulation as a crazy conspiracy theory (Zero Hedge:January 2009: “This Makes No Sense: LIBOR By Bank” – after all, it was impossible for so many people to keep their mouth shut or whatever the generic justification is for disproving such “conspiracy theories”? Why, none other than ICAP chief Michael Spencer says they all though Libor was “unmanipulable.” As it turns out, not only is Libor “manipulable”, and a vast rate-rigging “conspiracy theory” is quite possible when everyone’s interests are aligned, but it also is quite profitable, as ICAP just found out to its public humiliation. $87 million worth of humiliation.

Two quotes stand out from the just released, and quite humiliating, public filing:

  • Derivatives Broker 1: Make 6m go lower! They r going up. [Senior yen trader] will buy you a ferrari next yr if you move 3m up and no change 6m (February 29, 2008, via text message to personal mobile phone)
  • Yen Desk Head: Lord Baliff, I would suggest a lunch over golden week. Monday or Tuesday if you are around. *** As for kick backs etc we can discuss that at lunch and I will speak to [Senior Yen Trader] about it next time he comes up for a chat.

And… introducing “Lord Libor” – ICAP’s own Colin Goodman, who seems to have only one connection onLinkedIn – perhaps to King Eurodollar:

  • READ and WILKINSON, along with [COLIN] GOODMAN himself, often referred to [COLIN] GOODMAN as “lord libor.”
  • On or about September 11, 2 007, GOODMAN sent an email message to READ that stated, “Hi Darrell Will be Looking to move these libors up tomorrow. 3m9 8 and 6m 1.07.. [signed] Mlord libor.”
  • On or about November 29, 2007, in an email exchange with the subject line “libors,” READ told GOODMAN, “Welcome back M’Lord’ Tom has been like a little lost sheep without you!!”

Some more choice quotes via FT:

Examples of ICAP Yen brokers’ Belief of their Influence on the Yen Market and the Yen LIBOR

“i hope that 6m libor has got me back in your good books!! used all my powers of persuasion on that one;-) … think [Bank A and Bank B] must have looked at [Cash Broker A’s] first suggestion . . . . they both moved up 11bps to 1.10”

“[Cash Broker 1] sending out higher than he thinks so hopefuly the sheep will just copy

Examples of Skewed LIBOR Suggestions Made for UBS Senior Yen Trader:

Derivatives Broker 1: Morning Lad [Cash Broker 1], On the scrounge again, if possible keep 3m the same and get 6mos as high as you can. My guy has an enormous fix on Wednesday in 6mos and will want it as high as possible. Waiting for my credit card to get returned to me from a drunken night out bowling, but will be supplying you with copious amounts of curry on it’s imminent return. Cheers (October 23, 2006)

Derivatives Broker 1: Hi [Cash Broker 1], Thanks again for all your efforts, … Can you do your best to drive these libors higher,especially 3 mos if you can and it is still well bid….UBS had to stagger their move up but will definitely be in the count today. … p.s Bubbly on its way with [Senior Yen Trader].(December 7, 2007)

Derivatives Broker 1: Make 6m go lower! They r going up. [Senior yen trader] will buy you a ferrari next yr if you move 3m up and no change 6m (February 29, 2008, via text message to personal mobile phone)

Examples of Compensation Demands for ICAP Yen Broker’s “LIBOR Services”

Cash Broker 1: …..Life is tough enough over here without having to double guess the libors every morning and get zipper-de-do-da. How about some form of performance bonus per quarter from your b bonus pool to me for the libor service ***

Yen Desk Head: Lord Baliff, I would suggest a lunch over golden week. Monday or Tuesday if you are around. ***As for kick backs etc we can discuss that at lunch and I will speak to [Senior Yen Trader] about it next time he comes up for a chat. (April 18, 2007)

Derivatives Broker 1: [Yen desk head] THIS IS GETTING SERIOUS [Senior yen trader] IS NOT HAPPY WITH THE WAY THINGS ARE PROGRESSING HE IS GOING TO HAVE A WORD WITH [Competing broker] TO RECTIFY THE SITUATION. CAN YOU PLEASE GET HOLD OF [Cash broker 1] AND GET HIM TO SEND OUT 6 MOS LIBOR AT 0.865 AND TO GET HIS BANKS SETTING IT HIGH. THIS IS VERY IMPORTANT BECAUSE HE IS QUESTIONING MY (AND OUR) WORTH … GET 6MOS HIGH PLEASE. (April 19, 2007)

WILKINSON responded to GOODMAN: “I have been thinking of ways of sorting you out.If the needs be I will look into it on a bigger scale eg your salary package.”Examples of Involvement by Multiple Brokers in Manipulative Conduct:

Cash Broker 1: U will love these libors !! … mlord

Derivatives Broker 1: Fantastic work

Cash Broker 1: Who knows where they might end ……. … Best mark them high …..too start with

Derivatives Broker 1: yeh they copied your man [Cash Broker 2] yesterday so lets hope they do the same today. … Thanks mate (August 16, 2007)

Examples of Yen Brokers’ Direct Manipulative Contact with Panel Banks:

Derivatives Broker 1: brooliant!! they are making fortunes with these high fixings!!! 🙂 thats UBS,RBS and [Bank E] + M’Lord should be ok!! (August 23, 2007)

Below is the full complaint against ICAP

Source: Zerohedge