Daily Archives: April 7, 2014





HOUSTON, April 7, 2014 – Today, 18 institutional investors represented by Gibbs & Bruns LLP (“Institutional Investors”) announced they have reached an agreement with Citigroup (“Citi”) under which Citi will make a binding offer (“Offer”) to the Trustees of 68 RMBS Trusts issued by Citi to settle mortgage repurchase claims.  The Institutional Investors support the agreement and have asked the Trustees to accept it.  The Trusts included in the Offer are listed on Exhibit “A.”   


The Trustees will have until June 30, 2014 to accept the Offer, which may be extended pursuant to the terms of the Offer for an additional forty-five days.  The Offer includes the following key terms:


1.      Payment by Citi of $1.125 billion in cash to the Trusts to settle mortgage repurchase claims;

2.      Reimbursement to the Trustees of expenses associated with their evaluation of the Offer; and

3.      A release of all repurchase claims that have been or could have been asserted by the Trusts.

 The Institutional Investors who are parties to the agreement are: 


·         Bayerische Landesbank

·         BlackRock Financial Management Inc.

·         Cascade Investment, L.L.C.

·         Federal Home Loan Bank of Atlanta

·         Federal Home Loan Mortgage Corporation

·         Goldman Sachs Asset Management, L.P.

·         ING Investment Management LLC

·         Invesco Advisers, Inc.

·         Kore Advisors, L.P.

·         Landesbank Baden-Wuerttemberg

·         Metropolitan Life Insurance Company

·         Pacific Investment Management Company LLC

·         Sealink Funding Limited

·         Teachers Insurance and Annuity Association of America

·         The Prudential Insurance Company of America

·         The TCW Group, Inc.

·         Thrivent Financial for Lutherans

·         Western Asset Management Company



Wells Fargo’s $15M OT Settlement Approved Despite Pushback

Wells Fargo’s $15M OT Settlement Approved Despite Pushback

Law360, New York (April 07, 2014, 1:29 PM ET) — A Texas federal judge on Friday signed off on a $15 million agreement to settle the claims of nearly 4,500 home mortgage consultants in a collective action alleging that Wells Fargo & Co. Inc. failed to pay overtime, despite objections from other plaintiffs that the settlement was too broad.


Fed gives banks two more years to shed CLOs under Volcker

Fed gives banks two more years to shed CLOs under Volcker

The U.S. Federal Reserve will give banks two more years to divest collateralized loan obligations (CLOs) that fall under the Volcker rule, which bans banks from making a range of risky investments.


Homeowners take protest to Wells Fargo offices

Homeowners take protest to Wells Fargo offices

A Brooklyn-based community group protested outside Wells Fargo’s Midtown Manhattan offices late last week, alleging the poor treatment of minority borrowers.

Roughly 30 members of Foreclosure Resisters, also known as Attorneys for Common Law, staged a vigil on the steps of Hiro Real Estate and Goldman Sachs’ landmarked tower at 150 East 42nd Street. The group offers training to homeowners who seek to represent themselves in foreclosure court. While foreclosures have grown less prevalent in Manhattan, traditionally minority-heavy neighborhoods in the outer boroughs such as Bedford-Stuyvesant in Brooklyn and Cambria Heights in Queens have seen the largest proportion of foreclosure auctions in the city, as of 2012, according to New Economy Project data.


Police allege Dutch banker killed wife, daughter before suicide

Police allege Dutch banker killed wife, daughter before suicide

A Dutch banker killed his wife and younger daughter before committing suicide, police said on Monday.

Jan Peter Schmittmann, 57, who ran domestic operations at ABN AMROwhen it was one of the largest banks in the world, was found dead at his home in the wealthy Amsterdam commuter town of Laren early on Saturday.

Police said forensic work carried out over the weekend had given them a clear picture of the deaths of Schmittmann, his 57-year-old wife and 22-year-old younger daughter.

“The mother and daughter were killed by the father, after this the father killed himself,” police said in a statement.

Police said Schmittmann had left a suicide note but they declined to give more details about what was in the note or the way the three had died.




This post is part of an ongoing series by Scott Raab, an Esquire writer at large and New Jersey resident who has covered the Port Authority for years. Read the entire serieshere.

Bad news for Chris Christie — and very good news for the citizens of New Jersey: Esquire has learned from sources close to the investigation that David Wildstein, the former Port Authority operative who helped plan and execute the Great Fort Lee Clusterfk, is now cooperating with Paul Fishman, the federal prosecutor investigating the soon-to-be-ex-governor and his minions for criminal conduct. Fishman has also increased the number of investigators at work on the case, and has begun presenting evidence and witnesses to a grand jury in Newark.

CEO Of Liechtenstein Bank Frick Murdered In Broad Daylight

Bloomberg has more:

A 48-year-old man was shot dead in the underground garage of a financial institution in Balzers at 7:30 a.m. local time, the principality’s police said on its website. The suspect, Juergen Hermann, fled the scene in a Smart car with Liechtenstein number plates, according to police. Neither the victim nor the institution were identified in the statement.


The deceased was Juergen Frick, CEO of Bank Frick & Co. AG, Switzerland’s Radio 1 said in an e-mailed statement, citing employees of the bank. Calls to Bank Frick were answered by a voice-mail message saying the company is closed because of “a death.” It gave no further details.


Hermann is a fund manager who has been embroiled in a dispute with the Liechtenstein government and Bank Frick for many years, Switzerland’s Radio 1 said.


The Liechtenstein government and the country’s Financial Market Authority “illegally destroyed my investment company Hermann Finance and its funds, depriving me of my livelihood,” according to a website registered under the name Juergen Hermann of Hermann Finance AG.


He has filed lawsuits seeking recovery of 200 million Swiss francs ($225 million) from the government and 33 million francs from Bank Frick, according to the website. The lender “illegally enriched itself,” among other alleged crimes, it said.


A representative of Hermann’s lawyer declined to comment when reached by telephone. A call to Hermann Finance’s office was answered by an employee of a law firm who said his company isn’t related to Hermann Finance.

An update form the local police station:

On Monday morning, it came in Balzers a homicide, the suspect is currently volatile.


Against 07.30 clock in an underground garage of a financial institution is a homicide in which a 48-year-old man was shot occurred. When volatile suspects are Jürgen Hermann from the Moors. He is armed and dangerous, according to police reports, the investigation of the National Police is in full swing.


Notes on a possible whereabouts of the suspects are requested immediately to the police landing +423 / 236 71 11. Upon encountering the suspect, it is important to exercise extreme caution.

Here is the profile of the murdered CEO, still on the bank’s website:

As CEO Jürgen Frick is closely involved in all business activities of the bank with a special focus lying on client advisory, financing and financial product development. As well he supervises all real estate development projects of the Bank.

Jürgen is also Chairman of the Board at Crystal Fund Management AG, a subsidiary of Bank Frick & Co.

As for the bank itself:

Bank Frick is active in modern wealth management and provides a range of advisory services. As well it specializes in fund development and fund administration.


Our Bank entertains close ties to an efficient network of fiduciaries, insurers, tax experts, investment funds and law firms around the world.


We are completely independent. Our advice and our services cater exclusively to the individual needs and requirements of our clients.


Combinvest Establishment serves as holding for all bank shares. Family Frick is the majority stake holder.


After a successful career in international banking and fiduciary services, Kuno Frick senior founded in December 1998 Bank Frick & Co. AG. Due to his wide experience and excellent connections, Bank Frick proved an immediate success.


Since then, the bank’s assets under management have risen steadily. New business segments are continuously being added to the bank’s service portfolio, while existing ones are constantly being refined.

In autumn 2011, Bank Frick’s international presence was significantly enhanced with the opening of Bank Frick UK Branch in Mayfair, London.


Thirteen banks to fight EU derivatives charges at May hearing: sources

Thirteen banks to fight EU derivatives charges at May hearing: sources

Thirteen investment banks, including Citigroup, Goldman Sachs and Deutsche Bank, will fight EU charges of blocking exchanges’ access to the credit derivatives market at a hearing next month, three people familiar with the matter said on Monday.

The closed-door hearing comes nine months after the European Commission accused the banks of preventing Deutsche Boerse and the Chicago Mercantile Exchange from entering the lucrative credit default swaps (CDS) business between 2006 and 2009.

The hearing before Commission competition and legal officials and their counterparts from national regulators could determine whether the banks face hefty fines which could be as much as 10 percent of their global turnover.

“The hearing will run from May 12 to 19,” said one source, adding that it was a provisional date set by the EU competition authority which may change depending on circumstances.

Commission spokesman for competition policy, Antoine Colombani, declined to comment. European Competition Commissioner Joaquin Almunia has said he will let his successor rule on the case next year because of its complexity.

The other banks charged by the Commission include Bank of America Merrill Lynch, Barclays, Bear Stearns, BNP Paribas, Credit Suisse, HSBC, JPMorgan, Morgan Stanley, RBS and UBS.

The EU watchdog also cited financial data company Markit and the International Swaps and Derivatives Association (ISDA) in its so-called statement of objections or charge sheet sent to the group last year.


UBS unit must pay $5.4 million to ex-broker who sold Lehman notes: panel

UBS unit must pay $5.4 million to ex-broker who sold Lehman notes: panel

(Reuters) – A unit of UBS AG must pay $5.4 million to a former broker who alleged the firm misled its advisers about the financial health of Lehman Brothers Holdings Inc while recommending they sell its structured notes to clients, a securities arbitration panel ruled.

The $5.4 million includes a rare award of $1 million in punitive damages to the broker, according to a ruling late on Friday by a Financial Industry Regulatory Authority arbitration panel. The panel also recommended erasing the details about 39 arbitration complaints from the broker’s public disclosure record filed against UBS Financial Services Inc. by clients who bought the notes, known as principal protected notes, from the broker.


Federal Home Loan Mortgage : New group wants investors protected in Fannie, Freddie wind-down

Federal Home Loan Mortgage : New group wants investors protected in Fannie, Freddie wind-down

A new organization called the Coalition for Mortgage Security launched a campaign on Monday calling for winding down Fannie Mae and Freddie Mac in a way that does not harm the shareholders of the bailed-out mortgage companies.

The material used in the campaign mirrors the arguments of hedge funds battling the U.S. government over the value of their shares in Fannie Mae and Freddie Mac preferred stock. The group, which describes itself as a bipartisan, grassroots organization, declined to comment on its funding sources. It named Ken Blackwell, a senior U.S. housing official under President H.W. Bush, as its director.

The organization is likely attempting to sway lawmakers on the Senate Banking Committee, who will soon begin considering a major proposal to overhaul the housing finance market.

It said it was “committed to reforming our housing finance system in a way that benefits and fairly treats current and future homeowners, taxpayers, and investors across the country.”