Daily Archives: March 19, 2014

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CFPB still flooded with mortgage complaints

CFPB still flooded with mortgage complaints

Receives 4,300 mortgage complaints per month.

Appropriately responding to complaints is one of the primary functions of the Consumer Financial Protection Bureau and it’s easy to see why.

According to remarks from Steve Antonakes, Deputy Director of the CFPB, in February the bureau received more than 31,700 calls and handled more than 21,000 complaints. And mortgages make up a large portion of those.

The CFPB began taking consumer complaints when it opened nearly three years ago in the summer of 2011.

“Mortgage complaint volume, however, remains high and averages around 4,300 complaints per month,” Antonakes said speaking at the U.S. Chamber of Commerce. “Complaints are not only opportunities for us to assist specific people; they also make a difference by informing our work and helping us identify areas of concern, which then feed into our supervision and enforcement prioritization process.”

The updated numbers provided by Antonakes show little improvement in the volume of mortgage-related complaints the CFPB has handled over the last few years.

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NY regulator says financial firms could face bans over money laundering

NY regulator says financial firms could face bans over money laundering

New York state’s top financial regulator on Wednesday said his office, as part of efforts to crack down further on Wall Street misdeeds, is considering banning certain banks from specific businesses.

The New York Department of Financial Services has taken an increasingly hard line on financial institutions that have violated U.S. sanctions laws through their U.S. dollar clearing operations, imposing steep fines on them.

But the head of that office, Benjamin Lawsky, said in a speech in Washington he could envision moving beyond fines to penalties that could hurt the institutions in more severe ways.

“You could say no dollar clearing for a month or for a year or for six months,” Lawsky said, adding that he is still thinking through the potential repercussions of such steps.

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Morgan Stanley : US: Inside info exchanged on napkins, then eaten

Morgan Stanley : US: Inside info exchanged on napkins, then eaten

FBI agents arrested Metro, 40, of Katonah, N.Y., and Eydelman, 42, ofColts Neck, N.J., on Wednesday. William Silverman, a lawyer for Eydelman, and Metro’s attorney, James Froccaro Jr., did not immediately return messages seeking comment.

The scheme began in 1999, prosecutors said.

They said Metro repeatedly obtained inside information regarding anticipated corporate mergers and acquisitions on which his firm was working. They said he would arrange to meet the cooperating witness to pass on the inside information, which included the stock exchange ticker symbol of the company in which to invest.

The cooperating witness would write the information on a small piece of paper or napkin, prosecutors said. The witness would then meet with Eydelman near the clock at Grand Central Terminal to give him the stolen information, prosecutors said.

The cooperating witness would show Eydelman the napkin or piece of paper with the ticker symbol, they said. Eydelman would memorize the ticker symbol and the cooperating witness would put the paper into his mouth and chew it, they said.

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Morgan Stanley : Broker, Law Clerk Charged With Insider Trading — Update

Morgan Stanley : Broker, Law Clerk Charged With Insider Trading — Update

A Wall Street stockbroker and a managing clerk at a law firm face federal charges the two engaged in an insider-trading scheme that netted $5.6 million in illegal profits.

Both the Securities and Exchange Commission and federal prosecutors in New Jersey charged Morgan Stanley’s Vladimir Eydelman and Simpson Thacher Bartlett’s Steven Metro with participating in a scheme that ran from February 2009 through February 2013 and involved trades on more than a dozen mergers and other corporate transactions.

The two men were arrested Wednesday. Mr. Eydelman is charged with eight counts of securities fraud, while Mr. Metro is charged with nine counts. Both are charged with four counts of tender-offer fraud.

Morgan Stanley said Mr. Eydelman, who joined the firm from Oppenheimer & Co. in September 2012, had been placed on leave pending further review.

“We were just informed of the arrest this morning and will cooperate fully with the authorities as they pursue this matter,” Morgan Stanley spokesman James Wiggins said. “Obviously we don’t tolerate insider trading and will take appropriate action based on the facts.”

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Royal Bank of Scotland must face lawsuit over mortgage debt – judge

Royal Bank of Scotland must face lawsuit over mortgage debt – judge

Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc) must face a U.S. lawsuit seeking to force it to cover losses suffered by a bond insurer on a $1.15 billion (695.66 million pounds) securities offering backed by allegedly defective and fraudulent home loans.

Wells Fargo accused of fabricating foreclosure documents

Mar. 18, 2014 – 4:26 – Bankruptcy lawyer Linda Tirelli on the lawsuit against Wells Fargo.

Here is the video:

http://video.foxbusiness.com/v/3358462048001/wells-fargo-accused-of-fabricating-foreclosure-documents/

 

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Lawsky Calls for Aggressive Penalties Against Individuals, Banks

Lawsky Calls for Aggressive Penalties Against Individuals, Banks

Benjamin Lawsky, New York’s top banking cop, called on regulators Wednesday to hold individuals responsible for the scandals that have continued to sweep the financial industry after the crisis.

The head of New York’s Department of Financial Services also warned that his agency is considering taking more aggressive actions against companies that violate regulations, and may ban some banks from certain businesses.

“I don’t think we have done nearly enough as regulators — DFS included — to hold individuals on Wall Street accountable for misconduct,” Lawsky said, according to prepared remarks, adding that “lax enforcement by regulators has contributed to the vicious cycle of scandal after scandal after scandal that we’re continuing to see in the financial sector.”

No senior bank executives have gone to jail for the financial crisis — or for many of the big scandals since, a fact for which regulators and government officials have been widely criticized. Instead, banks have paid billions of dollars in fines to settle government claims, often without admitting wrongdoing and almost always without significant consequences for their top executives.