Daily Archives: October 19, 2013

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Germany wants to quiz ex-Deutsche trader in Libor probe -source

Germany wants to quiz ex-Deutsche trader in Libor probe -source

Oct 18 (Reuters) – The German financial marketsregulator, BaFin, wants to speak to a former Deutsche Bank trader as part of its probe into possible manipulation of the Libor benchmark interest rate, a source familiar with the matter said on Friday.

The move by BaFin, which found no wrongdoing at Deutsche’s management after a year investigating its role in the Libor affair, follows a successful lawsuit by four Euribor and Libor traders last month against the bank.

BaFin, Deutsche Bank and the trader, Christian Bittar, who has left Deutsche and was contacted in Singapore, all declined to comment.

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JP Morgan Chase to limit cash withdrawals, prohibit all outgoing international bank wires, bank officials say

JP Morgan Chase to limit cash withdrawals, prohibit all outgoing international bank wires, bank officials say

In an apparent effort to front-run official government capital controls, JP Morgan Chase has issued letters to all its business account holders notifying them that as of November, 17 the bank will limit all cash transactions (including deposits, withdrawals, and ATM usage) to $50,000 per month, and will prohibit all outgoing international bank wires. JP Morgan Chase later disclaimed, however, that the news that the bank is exerting new capital controls on certain bank accounts are an overreaction to a “streamlining” and “derisking” process.

Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers causing speculation that the bank is preparing for a looming financial crisis in the United States by imposing capital controls.Bank officials confirmed Wednesday that the new capital limits apply to all business account holders, the bank will stop processing any outgoing international bank wire, and that any monthly cash transactions in excess of the new $50,000 limit will be subject to penalties and fees.
Read more: http://voiceofrussia.com/news/2013_10_17/JP-Morgan-Chase-to-limit-cash-withdrawals-bank-officials-say-0524/

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Wells Fargo ordered to pay $2.7 million punitive damages for wrongful foreclosure action

Wells Fargo ordered to pay $2.7 million punitive damages for wrongful foreclosure action

A recent case,Dollens v. Wells Fargo Bank, N.A., No. CV 2011-05295 (N.M. 2d Jud. Dist. Aug. 27, 2013)  highlights just how bad it can be for the homeowner who has to defend against one.

Dollens, the borrower, died in a workplace accident but had purchased a mortgage accidental death insurance policy through Wells Fargo, the lender (although the policy was actually underwritten by Minnesota Life Insurance Company). Notwithstanding the existence of the policy, Wells Fargo kept trying to foreclose, even five months after the insurance proceeds paid off the mortgage.  Some lowlights:

  • “Apparently, ignoring its ability to to make a death benefit claim is typical of how Wells Fargo deals with such situations. . . . This is a systemic failure on the part of Wells Fargo.” (4)
  • “There is no doubt that Wells Fargo’s conduct was intended to take advantage of a lack  of knowledge, ability, experience or capacity of decedent’s family members, and tended to or did deceive.” (5)
  • “Wells Fargo charged the Estate for lawn care of the property” even though the “property did not have a lawn.” (6)

The court found that the”evidence of Wells Fargo’s misconduct is staggering.” (6) The court also found that “Wells Fargo used its computer-driven systems as an excuse for its ‘mistakes.’ However, the evidence established that this misconduct was systematic and not the result of an isolated error.. . . The evidence in this case established that the type of conduct exhibited by Wells Fargo in this case has happened repeatedly across the country.” (7) As a result of these findings, the Court awarded over $2.7 million in punitive damages.

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NV AG Masto: Banks are not holding their end of the deal, giving those banks new deadlines to shape up or pay fines

NV AG Masto: Banks are not holding their end of the deal, giving those banks new deadlines to shape up or pay fines

LAS VEGAS — Major lending banks are still failing to play by new foreclosure rules in Nevada, according to the Attorney General’s Office.

Nevada’s Attorney General says she is giving those banks new deadlines to shape up or pay fines.

It is a story repeated too much through the 8 News NOW’s Desert Underwater series: Nevada homeowners reach out to their banks to refinance, only to get their runaround and have their paperwork lost.

Attorney General Catherine Cortez Masto has had enough and says she is planning to fine banks unless that stops.

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Geithner, Paulson Deposed in AIG Case

Geithner, Paulson Deposed in AIG Case

A federal appeals court has recently allowed pre-trial depositions of two major figures in the 2008 government bailout of American International Group (AIG), FOX Business Network has learned.

The depositions of Tim Geithner and Hank Paulson in their respective capacities as New York Federal Reserve Bank president and Treasury Secretary took place over the past four weeks, according to people with direct knowledge of the matter. The depositions are part of a lawsuit filed by Starr International alleging that the massive bailout was unconstitutional.

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JPMorgan Chase donates $250 million free, discounted homes

JPMorgan Chase donates $250 million free, discounted homes

JPMorgan Chase (JPM) has donated or sold at a discount more than $250 million in corporate-owned homes to community associations, municipalities, veteran groups and nonprofit housing providers across the country.

The initiative, which is titled the Chase Community Revitalization Program, began in 2009 as part of a corporate-wide effort to help customers and communities cope with the effects of the housing crisis.

Since the program started, the company has donated or sold more than 5,300 properties in 43 different states. 

“Chase has a long history and commitment to helping build vibrant communities through a variety of corporate-wide programs,” said Ryan Crowley, head of Chase Government and Community Partnerships.  “By responsibly donating about three homes a day through this initiative, Chase’s efforts have rehabilitated communities, spurred job growth and provided homes for thousands of low-to-moderate income families.”

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N.Y.’s financial regulator Lawsky Offers Tougher Rules for Debt-Collection Suits

N.Y.’s financial regulator Lawsky Offers Tougher Rules for Debt-Collection Suits

New York financial regulator Benjamin Lawsky is urging the state to make it harder for debt collectors to win court judgments using shoddy documentation.

Lawsky, superintendent of New York’s Department of Financial Services, sent a letter Friday to the chief administrator of the state’s court system in which he proposes rules intended to stop litigation abuses by debt collectors.

The rules would require collectors to include more supporting information in the court documents they file to recoup debts, thereby preventing the mass-filing of complaints with faulty affidavits and without details or documentation, a practice known as robo-signing.