Daily Archives: April 24, 2014

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BofA in DOJ settlement talks for $10B+: Sources

BofA in DOJ settlement talks for $10B+: Sources

Just months after JPMorgan Chase paid $13 billion to settle charges that it misled investors about the quality of certain securities tied to home loans, rival Bank of America is discussing a similar deal with the Department of Justice that could cost it $10 billion or more, according to two people familiar with the matter.

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NY Fed Dumps Ex-Examiner’s Suit Over Goldman Sachs Report Firing

NY Fed Dumps Ex-Examiner’s Suit Over Goldman Sachs Report Firing

Law360, Los Angeles (April 24, 2014, 4:29 PM ET) — A New York federal judge dismissed an ex-Federal Reserve Bank of New York employee’s suit alleging she was fired for not changing a report that Goldman Sachs Group Inc. hadn’t established compliance with a 2008 Fed letter, finding Wednesday that the suit didn’t state a claim.

U.S. District Judge Ronnie Abrams ruled that SR0808 — a U.S. Federal Reserve document that outlines risk management compliance — is an advisory document and not a law, and that former senior bank examiner Carmen M. Segarra therefore didn’t qualify…

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Barclays to pay $280 million to settle mortgage bond claims

Barclays to pay $280 million to settle mortgage bond claims

ae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp) to settle claims that it sold them faulty mortgage-backed securities during the housing bubble, a U.S. regulator said on Thursday.

Barclays Bank PLC (>> Barclays PLC) will pay $280 million (166.6 million pounds) to Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp) to settle claims that it sold them faulty mortgage-backed securities during the housing bubble, a U.S. regulator said on Thursday.

The settlement announced on Thursday resolves claims in two lawsuits filed in New York by the Federal Housing Finance Agency (FHFA), the conservator since 2008 for the government-controlled mortgage companies.

The deal marked the 11th settlement the FHFA has reached in litigation that commenced in 2011 when the agency filed 18 lawsuits over about $200 billion in mortgage-backed securities, an investment product at the centre of the recent global financial crisis.

Porn Stars Are Getting The Shaft From Chase Bank! Accounts Closed For 100s In The Biz

Here is Chase bank letter to an adult performer. Hat tip to Perez Hilton:

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LOS ANGELES — Chase Bank has reportedly sent out letters to hundreds of porn stars notifying them that their accounts would be closed on May 11. Teagan Presley confirmed to XBIZ that her personal account was one of the ones shut down.

“I got a letter and it was like please cancel all transactions, please fix your automatic pay account and make sure everything’s taken care of by May 11,” Presley told XBIZ. “I called them and they told me that because I am, I guess, public and am recognizable in the adult business, they’re closing my account. Even though I don’t use my account, it’s my personal account that I’ve had since I was 18, when it was Washington Mutual before Chase bought them out.”

One of the letters, posted here by Perez Hilton, succinctly informs the recipient of the impending closure without citing specific reasons.

“We recently reviwed your account and determined that we will be closing it on May 11, 2014,” the letter reads. “Please accept our apologies for the inconvenience.”

Then, continuing in a more “compassionate” vein, “We want you to have enough time to complete pending transactions and open an account at another bank.”

And yet, when Presley went to Bank of America to open up a new account, she was summarily turned away.

Read more from xbiz.com. Click here.

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U.S. Said to Seek More Than $13 Billion From BofA in RMBS Probe

U.S. Said to Seek More Than $13 Billion From BofA in RMBS Probe

U.S. prosecutors are seeking more than $13 billion from Bank of America Corp. to resolve federal and state probes into the lender’s sale of bonds backed by home loans in the run-up to the 2008 financial crisis, according to people familiar with the matter.

The settlement would come on top of the $9.5 billion the bank agreed last month to pay to resolve Federal Housing Finance Agency claims, said two people who asked not to be named because the negotiations are private. An agreement could come within the next two months, the people said.

If the Justice Department gets its way, the case against Bank of America will eclipse JPMorgan Chase & Co.’s record $13 billion global settlement over similar issues in November. That settlement, which included a $4 billion agreement with the FHFA, encompassed loans JPMorgan took over with its purchases of Washington Mutual Inc. and Bear Stearns Cos.

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Barclays Board Face Angry Shareholders At AGM

Barclays Board Face Angry Shareholders At AGM

Senior management of Barclays bank have faced angry shareholders at the bank’s annual general meeting, with its chairman forced to defend its bonus payments.

Sir David Walker told shareholders there would have been an exodus of top executives if it did not raise bonus levels.

The meeting, held at London’s Royal Festival Hall and attended by 840 people, was the scene of successive hostile questions and jeering from the audience.

Laughter erupted after one angry investor told the board of directors: “We’re paying for Manchester United but we are getting Colchester United.”

Outside the venue, protesters took potshots at the board over bonuses and alleged tax haven support.

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Meet Wall Street’s secret weapon: The Congress member who work for Wall Street

Meet Wall Street’s secret weapon: The Congress member who work for Wall Street

The lawmakers were at an impasse.

More than two hours into a meeting of the House Financial Services Committee last month, the members were bickering over two versions of a bill designed to ease a new regulation that affected banks, part of the sweeping 2010 overhaul of financial laws known as the Dodd-Frank Act.

The dispute? Whether to give the banks everything they asked for, or whether to give them even more.

Rep. Scott Garrett, a Republican from New Jersey, asked to postpone a final vote so he could contact “stakeholders,” code for the bankers who wanted the change. Then Texas Republican Rep. Jeb Hensarling, the committee’s ambitious chairman, attempted to retake the discussion with what passes for a joke in the wood-paneled hearing room in the Rayburn House Office Building on Capitol Hill.

“Occasionally we have been accused of trying to undermine aspects of Dodd-Frank,” Hensarling said with a chuckle. “I hope we’re guilty of it.”