Daily Archives: December 25, 2013

Image

Merry Xmas!

Merry Xmas!

Link

Handling changes: Morgan Stanley alerted in 2009

Handling changes: Morgan Stanley alerted in 2009

U.S. investment bank Morgan Stanley warned his counterparts in the banking sector of possible manipulations on the London foreign exchange market (Forex) in 2009, four years before the launch of an investigation internationally.

According to the BBC, which broke the story on the evening of Monday, December 23, the bank Morgan Stanley had reported, in a report, unexplained movements in the exchange rate dollar-euro during the session of 16 hours which defines ‘index WM / Reuters used by pension funds to assess their investment portfolio. The Morgan Stanley report then estimated at 5% annual loss of an institutional investor’s portfolio because of failures Forex.

As part of the international survey launched in April, a dozen traders banks active in the market for currencies were suspended by their employer because of suspicion of having acted in concert to pervert in their favor the WM Reuters fixing the daily currency rates.

Link

Record $98 Million for Bias in Auto Lending Against Ally Bank

Record $98 Million for Bias in Auto Lending Against Ally Bank

 DETROIT (CN) – Detroit-based Ally Bank will pay $98 million to settle a Justice Department complaint involving 235,000 car loans to minorities – the largest discriminatory lending settlement ever against an auto lender.
     The United States filed the settled complaint against Ally Financial and Ally Bank in Federal Court.
     Ally Financial is a bank holding company; Ally Bank does not have physical branches, only offers mobile and online banking.
     Ally has been named “Best Online Bank” by Money magazine three years in a row, and advertises itself as having “No hidden fees.”
     It is one of the largest automobile lenders in the United States, having funded nearly 3 million loans since April 2011, totaling more than $20 billion, according to the complaint.
     But it charges minorities higher rates than white people, the Justice Department claims in the lawsuit.
     “Between April 2011 and the present, this system caused approximately 100,000 African-American borrowers, 125,000 Hispanic borrowers, and 10,000 Asian/Pacific Islander borrowers to pay Ally higher interest rates for their automobile loans than non-Hispanic white borrowers because of their race or national origin and not based on their creditworthiness or other objective criteria related to borrower risk,” the complaint states. “The average African-American victim was obligated to pay over $300 more during the term of the loan because of discrimination, and the average Hispanic and Asian/Pacific Islander victim was obligated to pay over $200 more during the term of the loan because of discrimination.”

Link

FIDELITY SETTLES WITH FTC ON LPS ACQUISITION, REQUIRED TO SELL TITLE PLANT ASSETS IN SIX OREGON COUNTIES AND THE PORTLAND METROPOLITAN AREA

FIDELITY SETTLES WITH FTC ON LPS ACQUISITION, REQUIRED TO SELL TITLE PLANT ASSETS IN SIX OREGON COUNTIES AND THE PORTLAND METROPOLITAN AREA

To preserve competition, the proposed settlement requires Fidelity to sell a copy of LPS’s title plants in six Oregon counties and an ownership interest equivalent to LPS’s share of a jointly owned title plant in the Portland, Oregon, metropolitan area. These divestitures are designed to counteract the likely anticompetitive effects of the transaction, while preserving any efficiencies that might arise from the combination of Fidelity and LPS.