Daily Archives: May 7, 2014


11th Circ. Revives Wells Fargo $30M Ponzi Scheme Row

11th Circ. Revives Wells Fargo $30M Ponzi Scheme Row

Law360, Los Angeles (May 06, 2014, 10:57 PM ET) — The Eleventh Circuit on Tuesday gave the receiver of the accounts used to perpetrate a $30 million Ponzi scheme a second chance to present claims implicating Wells Fargo & Co., reversing a Florida district court’s finding that his complaint could not be amended.

The receiver, Jonathan E. Perlman, should be allowed to submit a second amended complaint to the court detailing his accusations that Wells Fargo knew or should have known that its client George L. Theodule was running a Ponzi scheme as he passed some…


U S Bancorp : Under Investigation Over FHA Insurance

U S Bancorp : Under Investigation Over FHA Insurance

U.S. Bancorp said Wednesday that federal authorities are investigating the bank’s compliance with insurance-program requirements for loans insured by the Federal Housing Administration.

The Minneapolis-based bank said in a regulatory filing that the U.S. Department of Justice and U.S. Department of Housing and Urban Development’s Office of the Inspector General are investigating the bank.

The bank has previously disclosed in regulatory filings that it faced investigations and examinations by government agencies and bank regulators regarding mortgage practices, including the origination and servicing of loans insured by the FHA.

SEC investigating Ocwen Financial

It’s about time. Nationstar should be next on the list…

The New York Regional Office of the Securities and Exchange Commission has launched an investigation of Atlanta-based mortgage giant Ocwen Financial Corp.

Ocwen (NYSE: OCN), one of the largest mortgage companies in the United States, reported May 2 that the SEC is investigating the recent surrender of certain options to purchase common stock by the company’s executive chairman, William C. Erbey.

Read on.


Results: Bank of America shareholders approve compensation plan

Results: Bank of America shareholders approve compensation plan

NEW YORK (MarketWatch) — Bank of America Corp. BAC +0.51% shareholders approved the bank’s executive compensation plan with 93% of votes in favor, at the annual shareholder meeting on Wednesday. All 15 board of directors were also approved and the firm’s accounting firm PricewaterhouseCoopers was ratified at the meeting held in Charlotte, N.C. None of the stockholder proposals received enough votes. The meeting was disrupted temporarily when a screaming match broke out between two outspoken shareholders. One investor asked the other to “stop threatening” her. 


Few protesters on streets as Bank of America faces shareholders (PHOTOS)

Few protesters on streets as Bank of America faces shareholders (PHOTOS)

Charlotte-based Bank of America Corp. was expected to be greeted by environmental activists and annoyed shareholders for its annual meeting in uptown Charlotte today.

The meeting, which began at 10 a.m. at the Marriott Charlotte Center City, for years has been a contentious affair as bank officials have tried to convince shareholders the company had weathered the recession and would recover. The atmosphere was tame with no protesters on site as the meeting began.

This year, renewed concerns about the bank are focused on last month’sembarrassing disclosure that BofA had overstated its regulatory capital ratios by about $4 billion due to an accounting error dating back to 2009. The bank halted a $4 billion share buyback and a long-awaited plan to hike its quarterly dividend to 5 cents per share from just a penny. Before the recession, BofA had paid 64 cents per share each quarter.


Barclays To Axe 20,000 Jobs By End Of 2016

Barclays To Axe 20,000 Jobs By End Of 2016

Barclays will detail plans on Thursday to cut approximately 20,000 jobs by the end of 2016 as the bank’s chief executive steps up his efforts to tackle its bloated cost base.

Sky News can reveal that Barclays intends to axe just under 15,000 jobs this year, up from a 10,000-12,000 range indicated at its full-year results in February.

It is then expected to cut more than 6,000 additional roles at its investment bank during the following two years, meaning that well over a quarter of the division’s 24,000 workforce will have been culled by the time the restructuring is completed.

Other cuts are also expected to be outlined.

Antony Jenkins, Barclays’ chief executive, will set out the cost-cutting plan in an announcement that will be closely scrutinised by the City for evidence that he can successfully eradicate costs and improve returns to shareholders.

Insiders said that Mr Jenkins’ blueprint for the future of Barclays, which will include the creation of a new non-core unit, would firmly distance his strategy from that of his predecessor, Bob Diamond, whose oft-stated ambition was to lead a global universal bank.


More on Former San Fran Fed Employee Threatening To Murder Ex-FHFA Head Ed DeMarco

More on Former San Fran Fed Employee Threatening To Murder Ex-FHFA Head Ed DeMarco

Bloomberg reported that the chief operating officer of the Federal Housing Finance Agency and 26-year San Fran Fed veteran, Richard Hornsby, is facing a felony charge for threatening to kill the agency’s former top official, Ed DeMarco, and then kill himself.


So how did the FHFA COO nearly end up commiting a murder-suicide? Perhaps this had something to do with it: “Before joining FHFA, Hornsby worked for 26 years at the Federal Reserve Bank of San Francisco.”

WSJ, which broke the story, has more:


Mr. Hornsby didn’t respond to requests for comment, including messages left on a cellphone and a visit to his apartment. A woman who answered the phone at a California number associated with his name hung up when informed the caller was from The Wall Street Journal.


Mr. Hornsby allegedly threatened to shoot Mr. DeMarco after making “increasing threatening comments” about him over the course of several weeks, according to court records and Metropolitan Police Department report.


FHFA officials notified the agency’s inspector general about the threats on April 28, after an incident in which Mr. DeMarco was “escorted to a secure location following a report of a threat,” according to the court complaint used to secure the warrant for Hornsby. An FHFA employee, who wasn’t named in the report filed in court, said Mr. Hornsby had threatened to harm Mr. DeMarco and to kill himself.


The incident occurred two days before Mr. DeMarco’s previously announced retirement from the agency. The unnamed FHFA employee told the inspector general that the threats against Mr. DeMarco stemmed from disputes over Mr. Hornsby’s job performance ratings, according to court documents. A spokeswoman for the inspector general declined to comment.

So where is this SF Fed veteran now? Why free to roam among the US population, where he belongs.


At a hearing in D.C. Superior Court last Wednesday, Judge Karen Howze issued the restraining order directing Mr. Hornsby to stay away from his workplace and from Mr. DeMarco, according to court documents. Mr. Hornsby, 58, was released without being required to post bond. Another hearing in the case is set for May 14.