Goldman sued by Libyan fund over $350m profits
Goldman Sachs is being sued by the Libyan Investment Authority over $350m (£212m) of profit made in a series of derivative trades which turned sour in the financial crisis.
The investment bank stands accused of “deliberately exploiting” its relationship with the sovereign wealth fund in order to make “substantial profits.”
Goldman is being sued in the High Court in London over a $1bn series of nine trades into companies including Citigroup, EdF, Santander and ENI.
Goldman Said to Boost CEO’s Bonus 11% to $21 Million
Goldman Sachs Group Inc. (GS) Chief Executive Officer Lloyd C. Blankfein, the highest-paid head of a U.S. bank for 2012, saw his bonus increase 11 percent to $21 million for his work last year.
Blankfein, who also serves as chairman, received 88,422 restricted shares on Jan. 28 valued at $14.7 million, according to a regulatory filing. He also got a cash award amounting to the typical 30 percent of his total bonus, according to a person with knowledge of the payout. On that basis, the cash portion of his bonus would be about $6.3 million.
SAN FRANCISCO – A class alleging that Citibank charged unfair overdraft fees on debit card transactions is working on a settlement, a federal judge said.
Big Win For Homeowners – California Supreme Court Depublishes Aspiras v. Wells Fargo
On August 21, 2013, the California Court of Appeal issued a negative ruling against homeowners in an area homeowners thought they were winning.
The story begins in February 2013, when the California Court of Appeals (the First District), issued a groundbreaking decision in Jolley v. Chase, which found that mortgage servicers could be held liable for negligence if they mishandled the loan modification process and caused foreseeable harm to affected homeowners. This ruling was a significant win for homeowners who had long sought to hold mortgage servicing companies accountable for fraudulent, unfair, and deceptive conduct when reviewing people for and negotiating loan modifications. The ruling was also a watershed moment for homeowners since most of the case law prior to this ruling found that banks could never be held liable for negligence in the loan modification context—no matter how egregious their conduct.
U.S. seeks $2.1 billion from Bank of America in fraud case
Reuters) – The U.S. government has raised the amount it is seeking in penalties from Bank of America Corp (BAC.N) to $2.1 billion after a jury found the bank was liable for fraud over defective mortgages sold by its Countrywide unit.
The request in a court filing late on Wednesday was based on gross revenue generated by the fraud, the government said. The Justice Department had previously asked for $863.6 million.
The initial request was based on gross losses it said government-sponsored mortgagefinance companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) incurred on loans purchased from Countrywide Financial Corp in 2007 and 2008.