UBS to RBS Said to Be in EU Talks Over Franc Libor Fines
UBS AG (UBSN) and JPMorgan Chase & Co. (JPM) are among at least four banks in talks to settle a third European Union probe into derivatives linked to benchmark rates such as Libor, according to three people familiar with the case.
Credit Suisse Group AG (CSGN) and Royal Bank of Scotland Group Plc are also negotiating an accord with EU antitrust officials related to the Swiss franc Libor rate, said the people, who asked not to be named because the discussions are private. EU cartel settlements typically involve an admission of liability and fines.
Most JPMorgan employees get no raise as legal bills mount -source
(Reuters) – JPMorgan Chase & Co (JPM.N) is telling employees this week about their 2013 bonuses, and most workers are not getting pay increases for the year thanks to the bank’s massive legal bills, a person familiar with the matter said.
Overall compensation per employee was roughly flat with 2012, just as managers had warned employees in November, said the person who was not authorized to speak publicly. While some individuals are getting more money, their payouts have come at the expense of others.
Pay increases have been muted across much of the banking sector in the aftermath of the financial crisis, but 2013 was especially tough at JPMorgan as profits declined because of the cost to settle government and private claims against the bank.
Prosecutors Balk, Bankers Walk
One of the most disturbing realities of the 2008 financial crisis is that no Wall Street executives have been held accountable. After searching more than five years for the reason some people have gotten away with the financial equivalent of murder, I think I have finally figured it out: It’s the revolving door, stupid.
The chance for senior government officials to make millions of dollars after their public service ends convinces them -– subliminally or not -– to pull their punches. No doubt that’s why Jimmy Cayne, the former chief executive officer of Bear Stearns & Co., continues to enjoy playing bridge and golf, his $400 million-plus fortune, his sprawling mansion in Elberon, New Jersey, and his duplex at the Plaza Hotel.
Wells Fargo sells $39 billion MSR portfolio to Ocwen
Wells Fargo & Co. (WFC) subsidiary, Wells Fargo Bank, has signed an agreement to sell Ocwen Loan Servicing (OCN) a $39 billion portfolio of residential mortgage servicing rights, with approximately 184,000 loans linked to the transaction.
The portfolio represents approximately 2% of the banks total residential servicing portfolio.
The transaction will not be material to the bank’s financial results, and the sale will be finalized as the servicing is transferred, which will likely occur in 2014.
In addition, the loans are serviced under America’s Servicing Company, and are primarily owned by private investors and were not originated or owned by Wells Fargo.