Daily Archives: February 21, 2014

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JP Morgan Chase Will Pay $1,450,000 to Resolve EEOC Class Sex Discrimination Lawsuit

JP Morgan Chase Will Pay $1,450,000 to Resolve EEOC Class Sex Discrimination Lawsuit

CLEVELAND – Financial giant JPMorgan Chase will pay $1,450,000 and revamp its call data retention procedures to settle a sex-based harassment lawsuit filed by the U.S Equal Employment Opportunity Commis¬sion (EEOC), the agency announced.

The EEOC charged in its lawsuit that JPMorgan Chase maintained a sexually hostile work environment towards its female mortgage bankers assigned to its Polaris Park facility, located outside Columbus, Ohio. This situation consisted of sexually charged behavior and comments from the supervisory staff and participating mortgage bankers, which resulted in a sexist and uncivil atmos-phere. The EEOC further alleged that the female mortgage bankers who did not embrace and participate in these circumstances became ostracized and suffered economic consequences by being deprived of lucrative sales calls, being deprived of training opportunities, and being denied other benefits of employment.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit in U.S. District Court for the Southern District of Ohio, Civil Action 2:09-cv-00864, after first attempt¬ing to reach a pre-litigation settlement through its conciliation process.

“This case demonstrates the EEOC’s ongoing commitment to ensuring that women enjoy the same terms and conditions of employment as their male counterparts and that their success on the job cannot be conditioned on participating in a sexually hostile work environment,” said EEOC General Counsel David Lopez.

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Deal with activists lets JPMorgan avoid battle over chairman

Deal with activists lets JPMorgan avoid battle over chairman

A deal with shareholder activists will allow JPMorgan Chase to avoid another battle at its spring shareholder meeting over whether the bank should have anindependent chairman, a person briefed on the matter said on Thursday.

In exchange for the withdrawal of a shareholder proposal the bank agreed to develop some type of public event on the criteria boards should use in setting up the roles of chairman and chief executive, this person said, speaking on condition of anonymity because the news has not been officially announced.

In addition, the bank will provide more details of its risk mitigation efforts, leading to the withdrawal of a related proposal, this person said.

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Citibank, Barclays Resolve $141M Suit Over Lehman Losses

Citibank, Barclays Resolve $141M Suit Over Lehman Losses

Law360, Los Angeles (February 20, 2014, 9:55 PM ET) — Citibank NA has settled its $141 million contract-breach suit alleging Barclays Bank PLC owes indemnity payments tied to losses on foreign-exchange settlement services provided to bankrupt Lehman Brothers Inc. at the height of the 2008 financial crisis, according to documents filed in New York federal court Thursday.

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Top CFPB Official Vows to Crack Down on Mortgage Servicers

Top CFPB Official Vows to Crack Down on Mortgage Servicers

WASHINGTON — No more Mr. Nice Guy.

That was the message that the Consumer Financial Protection Bureau’s No. 2 sent to mortgage servicers attending an industry conference on Wednesday. Steven Antonakes, the agency’s deputy director, said that servicers have had more than a year to prepare for a reform rule that took effect last month and suggested the CFPB would move quickly and harshly against violators.

Antonakes acknowledged that the agency has previously suggested it would be tolerant of mortgage servicing companies so long as they were making a “good-faith effort” to comply with the rule, but he warned that such allowances only extend so far.

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Madoff said JPMorgan executives knew of his fraud: lawsuit

Madoff said JPMorgan executives knew of his fraud: lawsuit

(Reuters) – Two senior officials at JPMorgan Chase & Co and predecessor companies repeatedly confronted Bernard Madoff over irregularities in his business, a new lawsuit said, suggesting that bank leaders had “direct knowledge” of his Ponzi scheme.

The lawsuit filed in federal court in Manhattan on Wednesday on behalf of shareholders against Chief Executive Jamie Dimon and 12 other current and former executives and directors was based in part by statements made by Madoff himself during a series of interviews.

“JPMorgan was uniquely positioned for 20 years to see Madoff’s crimes and put a stop to them,” the lawsuit said.

“But faced with the prospect of shutting down Madoff’s account and losing lucrative profits,” it added, “JPMorgan – at its highest level – chose to turn a blind eye.”

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HSBC Whistle-Blower Launches Congressional Run

HSBC Whistle-Blower Launches Congressional Run

A bank whistle-blower is seeking a more powerful position from which to hold too-big-to-fail companies accountable.

Everett Stern, a former HSBC employee who last summer called for fresh investigations into the company’s money-laundering controls, has launched a bid for Congress. Stern is campaigning to be the Republican nominee for the seat in Pennsylvania’s 13th district, which spans the northern suburbs of Philadelphia.

Incumbent Allyson Schwartz plans to give up the seat as she seeks to become the state’s governor. Stern is currently raising money and gathering signatures to have his name on the ballot for the Republican primary in May.

“These banks are going to have a real problem when I get into office,” Stern said. “It’s going to be funny when the whistle-blower is sitting there as a congressman.”

Stern, who worked in HSBC Bank USA’s anti-money-laundering division in 2010 and 2011, filed a lawsuit last year asking federal regulators to investigate whether the bank continued to violate money-laundering rules after the period covered by the bank’s record settlement.