Religious shareholders push big banks to repent better of sins
Religious shareholder groups are asking J.P. Morgan Chase & Co. JPM , Bank of America Corp. BAC and Wells Fargo & Co. WFC for a clearer picture of how the banks are cleaning up after a flood of legal scandals and regulatory probes.
Missionary Oblates of Mary Immaculate, Sisters of Charity of Saint Elizabeth and other members of the Interfaith Center on Corporate Responsibility (ICCR) have submitted shareholder proposals at all three banks asking for a “report on business standards.”
“We believe shareholders deserve a full report on what the bank has done to end these unethical activities, to rebuild credibility and provide new strong, effective checks and balances within the bank,” the shareholders write in the Wells Fargo proposal, with similar language for the other two banks. “While press releases describe specific settlements or new reforms, the overall picture has not been reported adequately to shareholders.”
Detroit threatens to sue Bank of America, UBS without better settlement on swaps deal
The City of Detroit threatened to sue Bank of America and UBS if the banks don’t agree to a better settlement over a disastrous 2005 debt deal that helped plunge the city into Chapter 9 bankruptcy.
Jones Day lawyer Thomas Cullen told Judge Steven Rhodes on Friday that the city already has notified the banks that it may sue them by questioning the legality of the deal if they don’t agree to settlement terms that are more favorable to the city.
“We are doing whatever is necessary to protect the city, its residents and its interests,” Cullen said.
LPS in Robo-Signing Deal Talks Said to Exceed $200 Million
Lender Processing Services Inc. (LPS) is in talks with regulators that could lead to a settlement of more than $200 million over improper and fraudulent foreclosure paperwork after the 2008 credit crisis, according to people briefed on the discussions.
The deal would resolve claims that LPS falsified documents related to home seizures, including through “robo-signing.” The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency have discussed directing at least some of the money to homeowners, said two people who spoke on condition of anonymity because the matter is private.
Deutsche Bank to Pay $1.9 Billion to Settle Mortgage Suit
Deutsche Bank AG (DBK) will pay 1.4 billion euros ($1.9 billion) to settle claims it didn’t provide adequate disclosure about mortgage-backed securities sold to Fannie Mae (FNMA) and Freddie Mac (FMCC).
The agreement with the Federal Housing Finance Agency covering the period 2005 to 2007 resolves Deutsche Bank’s largest mortgage-related litigation case, the Frankfurt-based company said in a statement on its website today