Daily Archives: January 14, 2014

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Three Former Rabobank Traders Charged in Libor Case

Three Former Rabobank Traders Charged in Libor Case

The Justice Department filed criminal charges on Monday against three former traders from the Dutch lender Rabobank, the latest step in the wide-ranging investigation into the banking industry’s manipulation of interest rates.

In a criminal compliant filed with the Federal District Court in Manhattan, the Justice Department accused Paul Robson, Paul Thompson and Tetsuya Motomura with wire fraud and conspiracy to commit wire fraud and bank fraud for their supposed role in the rate-rigging scandal. The traders are cited for submitting false estimates of interest rates to benefit their own trading positions — a scheme that became commonplace on Wall Street during the 2008 financial crisis.

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Marietta veteran living in van after foreclosure

Marietta veteran living in van after foreclosure

MARIETTA, Ga. –

A Marietta veteran has lived in his van for the last year after losing his home.

John Chambers said the foreclosure was the worst thing that ever happened to him. 

“I came home from work and saw them throwing all my belongings out on the street,” Chambers said. “It was horrible. It was really horrible because I didn’t really have any warning.”

Since then, the Vietnam veteran and his dog, Scout, have lived in a van in a Walmart parking lot in Marietta.

The 65-year-old veteran lost his job at Walmart and spends his social security check and pension paying lawyer in hopes of getting his house back. 

“I wanted to maintain my dignity if you can think of it as that, and I chose to live in my car and try make my own way,” Chambers said. “I never did the food stamp thing or anything else. I wanted to be as self-sufficient as I could possibly be.”

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Former Rabobank Traders Targeted Over Libor Scheme

Former Rabobank Traders Targeted Over Libor Scheme

Law360, New York (January 13, 2014, 8:18 PM ET) — Three former traders of Rabobank were hit with charges Monday stemming from their alleged roles in manipulating the London Interbank Offered Rate, a scandal that previously drew a billion-dollar settlement from the Dutch bank.

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Fed to Seek Input on Bank Regulation

Fed to Seek Input on Bank Regulation

The Federal Reserve is preparing to solicit input from the industry and the public on how it should regulate banks in commodity markets as early as Tuesday, one day before a Senate hearing on the subject at which a Fed regulator is scheduled to testify, according to people familiar with the matter.

The Fed has been revisiting its policy on bank participation in commodity markets and said in July that it was reviewing its decision to allow banks to own physical commodity assets such as power plants to metals warehouses. The review came amid growing controversy over claims that banks were using their foothold in the market to influence supply flows and prices.

The Fed is preparing to issue a comment letter in which it would pose questions and request ideas on how bank oversight in the markets should take shape, the people said. It wasn’t clear if the move would also include a proposed version of its regulatory plans. A spokeswoman for the Fed declined to comment.

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Exclusive: FBI suspects front running of Fannie, Freddie in swaps market

Exclusive: FBI suspects front running of Fannie, Freddie in swaps market

(Reuters) – Wall Street traders may be manipulating a key derivatives market and front running Fannie Mae and Freddie Mac, hurting the US-owned mortgage giants in the process, according to an FBI intelligence bulletin reviewed by Reuters.

Using what Federal Bureau of Investigation agents described as “unsophisticated tradecraft,” such as hand signals and special telephone ring tones, some traders are conspiring to rig rates on large orders submitted by Fannie Mae FMNA.OB and Freddie Mac(FMCC.OB), or front running them in the interest rate swaps market, the document says.

The FBI said in the bulletin that the information came from a former high-level employee at a U.S. bank and an employee at a Canadian Bank, plus interviews with other bank workers conducted in 2012 and 2013. The former high-level employee at the U.S. bank estimated the front running had resulted in profits of $50 million to $100 million for the bank, the FBI said.

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Former WaMu Exec Pleads Guilty to Receiving Kickback

Former WaMu Exec Pleads Guilty to Receiving Kickback

A former Washington Mutual executive pleaded guilty in federal court in Bridgeport, Conn., Monday to accepting an illegal kickback.

Michael Gesimondo of Washington Mutual Bank received kickbacks from Oxford Collection Agency as a reward for providing Oxford with WaMu’s debt-collection business between May 2008 and May 2009,according to a Justice Department release.

The kickbacks occurred while Gesimondo was employed as collection manager of business banking at WaMu, the release said. Gesimondo, 57, of Farmingdale, N.Y., was in charge of outsourcing collection accounts to collection agencies. The release also stated that Gesimondo often received a percentage of the collected-debt amount.