New Allegations from Fired Examiner Describe Chaotic Workplace at New York Fed
An amended lawsuit by fired bank examiner Carmen Segarra describes a chaotic work environment at her old employer, the Federal Reserve Bank of New York, alleging that lines of authority were unclear and bad behavior by a supervised bank went unexamined.
A spokeswoman for the New York Fed said the bank was reviewing the new allegationsfrom Segarra, who was dismissed seven months after being hired in late 2011 as part of a push to beef up supervision of so-called Too-Big-to-Fail financial institutions.
Bob Diamond and former top Barclays executives called to give evidence in Libor ‘test case’
Several senior former Barclays managers, including the banks former chief executive Bob Diamond, are to be called to give evidence in the first legal case involving a claim connected to Libor-rigging.
Mr Diamond, as well as the Barclays’s former chief financial officer, Chris Lucas, and Rich Ricci and Jerry del Missier, the former co-heads of the lender’s investment banking arm, will appear as witnesses at a trial over claims the bank mis-sold a care home operator a series of interest rate hedging products.
Volcker Rule to Force Banks to Comply With Five Regimes
U.S. banks that must comply with the proprietary-trading ban known as the Volcker rule are facing inconsistent future demands from the five agencies responsible for enforcing it.
Even before the final version is released next week, current and former regulators and bank lawyers predict an uneven approach on enforcement because of differences in style and jurisdiction between the three U.S. regulators that police banks and the two agencies that monitor markets. For many banks, how enforcement is handled could wind up being more important than the language in the 1,000-page text.
“How supervision and enforcement of the Volcker provisions are handled among the five agencies is one of the most important and potentially complicated practical aspects of implementation,” said Julie Williams, who was general counsel for the Office of the Comptroller of the Currency before joining consulting firm Promontory Financial Group LLC. The rule could leave multiple regulators targeting the same activity in a single firm in different ways, she said.
JPMorgan Asks Judge to Keep Draft U.S. Fraud Suit Secret
JPMorgan Chase & Co. (JPM) had a hearing behind closed doors with a Pennsylvania judge in its bid to keep secret a draft of a government lawsuit related to its $13 billion settlement with the U.S. as well as the identity of an employee who cooperated in a federal probe.
The company is fighting an Oct. 17 order by Judge Stanton Wettick in Pittsburgh that it release the document and the employee’s name to lawyers for the Federal Home Loan Bank of Pittsburgh, who say the material may provide a more detailed account of the U.S. Justice Department probe of JPMorgan that could be used in their lawsuit against the New York-based bank.
BofA’s record $500 million accord over Countrywide wins approval
(Reuters) – A federal judge has granted final approval to Bank of America Corp’s (BAC.N) record $500 million (305.77 million pounds) settlement with investors who claimed they were misled by the bank’s Countrywide unit into buying risky mortgage debt.
In a decision made public on Friday, U.S. District Judge Mariana Pfaelzer in Los Angeles called the accord fair, reasonable and adequate. She also awarded the investors’ lawyers $85 million of fees plus $2.98 million for expenses.
HUD: New FHA loan limit takes effect Jan. 1
Beginning next year, homeowners with Federal Housing Administration loans will no longer be able to qualify for the $729,750 high-cost area loan limit.
Instead, the Department of Housing and Urban Development is implementing a rule passed a few years back that moves the agency’s standard loan limit for high-cost areas down to $625,500 for all FHA loans.
The standard loan limit for areas where housing costs are low is expected to remain at $271,050, while the ceiling for FHA-insured reverse mortgages will stay at $625,500, HUD added.