Daily Archives: December 18, 2013


U.S. preparing civil charges against Citigroup, Merrill Lynch -sources

U.S. preparing civil charges against Citigroup, Merrill Lynch -sources

Dec 17 (Reuters) – The U.S. Justice Department is preparing to file civil fraud charges against Citigroup Inc and Bank of America’s Merrill Lynch unit over their sale of flawed mortgage securities ahead of the financial crisis, according to people familiar with the probes.

Civil investigators have compiled evidence that allegedly shows that investors lost tens of billions of dollars after purchasing securities Citigroup had marketed as safe even though the bank had reason to believe otherwise, one person said.


Colorado and feds sue online loan servicers

Colorado and feds sue online loan servicers

The federal government and several states, including Colorado, on Monday began a crackdown on unscrupulous online loan servicers that allegedly have violated state licensing requirements or state interest-rate caps in their operations nationwide.

Colorado Attorney General John Suthers and Richard Cordray, director of the federal Consumer Financial Protection Bureau, said during a news conference that consumers who fell victim to the alleged scheme were being charged annual interest rates on loans ranging from 90 percent to 350 percent.

Suthers said Colorado allows a maximum of a 21 percent annual percentage rate on such loans.


JPM Sues FDIC Over WaMu Claims

JPM Sues FDIC Over WaMu Claims

JPMorgan Chase (JPM) has sued the Federal Deposit Insurance Corp. over Washington Mutual’s legal liabilities, the Wall Street Journalreported Tuesday

The complaint, filed in U.S. District Court for the District of Columbia, is not yet available through the court’s website. However, it alleges that the FDIC has failed to uphold an obligation to absorb legal claims against Washington Mutual, which was seized and transferred to JPMorgan in 2008, according to theJournal


Mississippi AG Sues JPMorgan Chase Over Debt Collections

Mississippi AG Sues JPMorgan Chase Over Debt Collections

JPMorgan Chase (JPM) pressured customers to repay debts they did not owe, sold collections agencies rights to credit card accounts that had been extinguished in bankruptcy and tolerated frequent errors by its third-party collections attorneys, according to a lawsuit filed by Mississippi Attorney General Jim Hood on Tuesday.

The state’s complaint is, despite significant redactions, the most detailed and potentially damning attack so far on JPMorgan Chase’s credit card debt collections operation, which the bank has shut down.