Ranking member Rep. Cummings flips out at Wednesday’s IRS hearing after Chairman Issa cuts his mic. A very childish and the inner channeling of Mean Girls at the hearing. Nothing but political theatre.
Two Dozen Banks Trade Blows With Pending Libor Class
Law360, New York (March 05, 2014, 10:37 PM ET) — At a marathon hearing in New York federal court Wednesday, attorneys of over 20 banks exchanged broadsides with the counsel of a putative class accusing them of fixing Libor rates.
Lead plaintiff Jeffrey Laydon alleged that in 2006, he lost “thousands” of dollars shorting derivatives of Euroyen Tibor rates, which are allegedly influenced by Libor. In a 300-page complaint replete with economic models, he accused the banks that sit on Libor and Tibor panels of conspiring to fix these rates by submitting agreed-upon estimates.
Barclays, Deutsche Bank Accused of Gold Fix Manipulation
Barclays Plc (BARC), Deutsche Bank AG (DBK) and three other banks were accused in a lawsuit of manipulating the London gold fix, a benchmark used throughout the $20 trillion market for the metal.
Kevin Maher, a New York resident who said he bought and sold gold and gold futures and options, sued yesterday in Manhattan federal court claiming the five banks overseeing the century-old benchmark colluded to manipulate it.
Maher cited press reports in his complaint, including a Bloomberg News story last week on a draft paper by two researchers showing what they said were unusual pricing patterns connected to the gold fix. The paper was the first study to raise the possibility that the banks, which also includeBank of Nova Scotia, HSBC Holdings Plc (HSBA) and Societe Generale SA (GLE), may have been actively working together to manipulate the benchmark.
Tullett Prebon Sued by Ex-Employee Said to Be Probed Over Libor
Tullett Prebon Plc (TLPR) was sued by a former employee investigated by U.K. prosecutors as a potential co-conspirator to alleged rigging of the London interbank offered rate.
Noel Cryan filed a lawsuit against the inter-dealer broker on Feb. 20., according to court records in London. The filing didn’t contain any further details about the claim.
Cryan is one of more than 20 people being investigated by the U.K. Serious Fraud Office in connection with yen-Libor rigging, according to a person familiar with the matter who asked not to be named because they weren’t authorized to talk about it.
“We decline to comment because our investigation is ongoing,” said SFO spokeswoman Nilima Fox.
RBS: 80-Plus Millionaires Despite £8.2bn Loss
More than 80 employees of the state-backed Royal Bank of Scotland (RBS) received pay deals worth more than £1m last year despite its £8.2bn loss, Sky News has learnt.
The figure, which is expected to be confirmed later this week, may further stoke the continuing row over bankers’ pay following RBS’s recent confirmation that it awarded more than £550m in bonuses last year.
The roughly 85 staff who were paid more than £1m represents a fall of more than 10% on the 2012 total of 95 employees.
It is also far lower than the 481 Barclays workers whose remuneration broke through the £1m threshold, a 10% increase despite a sharp decline in profits.
RBS is expected to confirm the number of millionaires in its ranks alongside a series of separate disclosures to the London Stock Exchange detailing deferred share payouts to some top executives.
New York Regulator Sends Letter To Nationstar
New York’s top financial regulator Benjamin Lawsky is probing the business practices of Nationstar Mortgage Holdings Inc., widening his investigation of nonbank mortgage servicers amid concerns about the companies’ rapid growth.
Mr. Lawsky sent a letter on Wednesday to Nationstar, the fifth-largest U.S. mortgage servicer based on the size of its servicing portfolio, seeking information about the company’s servicing portfolio, staffing levels, recent acquisitions, vendor relationships and other aspects.
“We have received hundreds of complaints from New York consumers” about Nationstar mortgage practices, including problems related to mortgage modifications, improper fees, lost paperwork, and numerous other issues, Mr. Lawsky wrote in the letter.
A spokesman for Nationstar couldn’t be reached for immediate comment.