Daily Archives: April 4, 2014

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$6 billion missing from State Department

$6 billion missing from State Department

The State Department has no idea what happened to $6 billion used to pay its contractors.

In a special “management alert” made public Thursday, the State Department’s Inspector General Steve Linick warned “significant financial risk and a lack of internal control at the department has led to billions of unaccounted dollars over the last six years.

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JPMorgan Chase : J.P. Morgan Reshuffles London Whale Office

JPMorgan Chase : J.P. Morgan Reshuffles London Whale Office

J.P. Morgan Chase & Co. has reshuffled the office responsible for a trading fiasco that cost the bank more than $6 billion.

Craig Delany, who took over as head of the Chief Investment Office following the 2012 episode, now has the additional title of treasurer as the bank combines the CIO and its treasury unit into one organization, according to a memo reviewed by The Wall Street Journal. The former treasurer, Sandie O’Connor, was promoted to the job of chief regulatory officer for the firm, a prominent post that involves interactions with J.P. Morgan’s federal overseers.

The job of the CIO was to invest the bank’s excess cash, but a series of bets made by a trader nicknamed the “London whale” backfired and led to the resignation of CIO head Ina Drew in early 2012. The job of the treasurer was to manage the firm’s balance sheet, capital, funding and liquidity.

The changes were announced in a March 31 memo from the firm’s chief operating officer, Matt Zames. Mr. Delany and Ms. O’Connor will report to Mr. Zames.

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Bank of America to pay out $800M in CFPB settlement

Bank of America to pay out $800M in CFPB settlement

Bank of America is in talks to pay more than $800 million to settle allegations by the Consumer Financial Protection Bureau that it forced customers to sign up for extra credit-card products, the Wall Street Journal reported, citing sources.

The settlement, which could be announced in the coming days, would be the CFPB’s largest ever with a financial institution.

It would mark the agency’s fifth settlement with a credit-card provider over so-called add-on products, such as identity-theft protection and debt cancellation products in the event of a job loss.
A significant chunk of the money is expected to go back to customers, according to the Journal.