Daily Archives: February 26, 2014

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Bank of America Says New Probes Launched Into Forex, Mortgage Practices

Bank of America Says New Probes Launched Into Forex, Mortgage Practices

Bank of America Corp. BAC -1.15% said new international and federal investigations have been launched into its foreign exchange and mortgage practices, respectively.

The bank, which has already paid billions of dollars to settle cases related to the housing and financial crisis, said in a filing with the Securities and Exchange Commission Tuesday afternoon that “government authorities” in North America, Europe and Asia are “conducting investigations” and launching inquiries into the firm’s “conduct and practices in certain FX markets over multiple years.”

BofA said it is cooperating with the probes, according to the filing. Foreign exchange practices at several banks have recently have drawn interest among regulators

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Credit Suisse helped Americans hide $10bn from taxman, government claims

Credit Suisse helped Americans hide $10bn from taxman, government claims

Credit Suisse falsified visa applications and conducted business in secret, remote-controlled lifts as part of a “cloak and dagger” effort to hide $10bn in funds for its American clients, the US government has claimed.

Bankers reportedly made 150 trips to the US between 2002 and 2008, to orchestrate an alleged large-scale tax evasion scheme more than twice the size originally thought, according to a report by the US Senate Permanent Subcommittee on Investigations.

The operation was shrouded in James Bond-like secrecy to prevent thousands of American clients being detected by US authorities. In one instance, a Credit Suisse banker travelled to New York’s Mandarin Oriental Hotel and allegedly handed a customer bank statements hidden in a copy of Sports illustrated magazine.

Another customer, who visited one of Credit Suisse’s bankers in Switzerland, was taken to an anonymous meeting room in a lift that “had no buttons and was controlled remotely”, rather than being led to the banker’s office, it was claimed.

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Morgan Stanley In Tentative $275M Pact With SEC Over MBS

Morgan Stanley In Tentative $275M Pact With SEC Over MBS

Law360, New York (February 25, 2014, 6:23 PM ET) — Morgan Stanley has reached a tentative $275 million settlement to resolve a U.S. Securities and Exchange Commission investigation into its mortgage-backed securities deals during the financial crisis, the bank said on Tuesday.

The bank said in an SEC filing that it had reached an “agreement in principle” on Jan. 30 with the SEC enforcement division. The probe relates to subprime residential mortgage-backed securities, or RMBS, that Morgan Stanley sponsored and underwrote in 2007, the company said. Under the proposed settlement, the SEC would accuse Morgan Stanley…

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SunTrust says could face “substantial penalties” in mortgage probe

SunTrust says could face “substantial penalties” in mortgage probe

Feb 25 (Reuters) – SunTrust Banks Inc said it may attract “substantial penalties” from on an ongoing mortgage-related probe and also disclosed a new investigation by the Department of Justice, according to a regulatory filing late Monday.

U.S. Attorney’s Office for the Western District of Virginia and Office of the Special Inspector General for the Troubled Asset Relief Program have been investigating SunTrust concerning its participation in a federal mortgage-assistance program.

The agencies have indicated the plan to pursue some form of action and may impose substantial penalties on SunTrust, the company said in the filing with the U.S. Securities and Exchange Commission. ()

The investigations focused on whether the bank harmed borrowers and violated civil or criminal laws by failing to properly process applications for loan modifications under the Home Affordable Modification Program, or HAMP.

“STM continues to cooperate with the investigation and believes that it has substantial defenses to the asserted allegations,” the bank said in its annual report filed with the regulators.