Citigroup Said to Face Fine in EU’s Yen Libor Probe by Year-End
Citigroup Inc. (C) may be fined by the European Union as soon as next month following a probe into the rigging of yen Libor submissions, according to two people with knowledge of the case.
Citigroup will settle the European Commission antitrust probe and receive a 10 percent discount on its fine, said one of the people, who asked not be named because the talks are confidential Joaquin Almunia, the EU’s antitrust chief, has said he hopes to settle the yen Libor and a parallel Euribor probe by the end of the year.
UPDATE 1-U.S. seeks new defendant in Wells Fargo mortgage fraud case
Nov 7 (Reuters) – The U.S. government on Thursday asked for permission to add a Wells Fargo & Co mortgage executive as a defendant in its year-old lawsuit accusing the country’s largest mortgage lender of fraud.
In a letter to U.S. District Judge Jesse Furman in Manhattan, who oversees the case, the Department of Justice said the Wells Fargo Home Mortgage vice president it wants to add as a defendant played a “pivotal role” in allegedly causing the bank to not report defective home loans to the government.
Goldman Sachs Being Investigated In Global Forex Probe
Law360, Los Angeles (November 07, 2013, 7:48 PM ET) — Goldman Sachs Group Inc. on Thursday became the latest international bank to announce it is cooperating with investigations into allegations of manipulation of the foreign exchange market.
In a quarterly filing with the U.S. Securities and Exchange Commission, Goldman added “currencies” to a listing of regulatory investigations and reviews it is currently facing. The firm indicated it has been subject to inquiries regarding its “trading activities and communications in connection with the establishment of benchmark rates and compliance with the U.S. Foreign Corrupt Practices Act.”
JPMorgan Banker Backed $200 Million Madoff Loan in 2008
A former JPMorgan Chase & Co. (JPM) banker who managed Bernard Madoff’s account said the con man was on track to receive a $200 million loan less than a month before his arrest if the request hadn’t been dropped.
Daniel Bonventre, one of five ex-Madoff employees on trial for allegedly aiding the fraud, asked JPMorgan in November 2008 to borrow twice Madoff’s credit limit of $100 million, with U.S. Treasuries as collateral, Mark Doctoroff, who left the bank last year, testified yesterday in federal court in Manhattan.
“They are doing well financially,” Doctoroff said of Madoff’s securities firm in an e-mail to JPMorgan’s credit department on Nov. 17, 2008. “They are looking at the current market as an opportunity to make investments, true to their value investing style.”
The five former employees are accused of helping Madoff hide his fraud from customers, banks and regulators for years, and getting rich in the process. It’s the first criminal trial stemming from the scheme, which prosecutors say started in the early 1970s and imploded at the peak of the financial crisis.
NY Commissioner Ray Kelly in the running for JPMorgan job
NYPD Commissioner Ray Kelly, unwanted by Mayor-elect Bill de Blasio, is in the running for a top security job at JPMorgan Chase, sources at the financial giant told The Post.
The position would include overseeing the firm’s cyber-security, according to people familiar with the negotiations.
When asked for comment about Kelly’s potential career move, his personal attorney said in a statement, “The Police Commissioner has not accepted any post governmental offers. … Because of city [Conflict of Interest Board] rules, he has not even had discussions with, much less accepted any offer from anyone who does business with the city and will not do so until he leaves office.”
Kelly was widely expected to vacate the post he held for 10 years with the election of Bill de Blasio, a sharp critic of his stop-and-frisk policy.