Daily Archives: May 11, 2014

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JPMorgan Chase : J.P. Morgan Is Reviewing U.S. Correspondent-Bank Relationships

JPMorgan Chase : J.P. Morgan Is Reviewing U.S. Correspondent-Bank Relationships

J.P. Morgan Chase & Co. is reviewing its relationships with several hundred U.S. clients that use the bank for back-office functions such as processing trades, said people close to the situation.

The bank has been examining its relationships with so-called domestic correspondent banks, for which it clears payments and processes other transactions, the people said. The industrywide review started in January and comes as J.P. Morgan tries to shore up controls in a period of heightened regulatory scrutiny and record fines.

As part of the review, J.P. Morgan stopped soliciting new business from its few hundred domestic-correspondent-banking clients. The bank, the largest in the U.S. by assets, also stopped accepting new clients while the review of internal controls and clients continues, the people added.

Ultimately, the bank may decide to cull a small number of clients as a result of the review, one of the people said.

One of the companies J.P. Morgan is reviewing: a Citigroup Inc. unit, Banamex USA, that is facing a Justice Department inquiry, according to one of the people familiar with the situation. Banamex isn’t being singled out and is among many firms being reviewed, one of these people said.

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In the shadows: Some South Florida homeless living in storage units

In the shadows: Some South Florida homeless living in storage units

Lift the rollaway gates on some South Florida storage facilities, and a secret life emerges.

The men and women huddled inside are not just storing old photo albums and family heirlooms. They’re living among them.

With nowhere else to go, these homeless have found temporary shelter in the one place that feels like home: the rented unit holding the last of their possessions.

For the Young family and their pet dog, “home” was a 10-by-15-foot unit at Uncle Bob’s Self Storage in Hollywood. A county away, Marty Tortorella and his drifter friends hid out on cold nights in a Public Storage facility in Lake Worth.

Illegal and risky, the unorthodox living arrangement is both comforting and frightening — with time spent dodging night managers, sleeping among reminders of a lost life and praying the secret hideout stays secret. It rarely does.

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Fired from Walmart, Mrs Wang is now gunning for China’s state labor union

Fired from Walmart, Mrs Wang is now gunning for China’s state labor union

When Wang Yafang was fired from her job at a Walmart in southern China in July 2011 for dishonesty, she refused to sign the termination papers and even showed up at work the next day – only to be sent away.

Wang, 38, then sued Walmart Shen Guo Tou Stores Inc, a Wal-Mart Stores Inc (>> Wal-Mart Stores, Inc.) subsidiary, for wrongful termination, and beat the world’s largest retailer in arbitration and twice in court, winning 48,636 yuan ($7,800) in damages.

Now, she’s aiming at an even bigger target: the state-backed All-China Federation of Trade Unions (ACFTU).

In the three decades since China began reforming its economy, its giant state labor union – with upwards of 280 million members – has sat on the sidelines, rarely intervening on behalf of workers in disputes.

In a bid to help change that, Wang, backed by lawyers who have handled some of China’s highest-profile labor cases, decided to sue the union branch at the Walmart in Shenzhen where she worked for nine years. Unlike the few previous attempts by workers to sue grassroots union branches, courts have heard Wang’s case.

Wang and her team argue that the union endorsed the assessment of her as “dishonest” when she was fired and in doing so damaged her reputation. She wants an apology. The union branch has denied the charges.

Report: Older Americans Facing Significant Increases In Mortgage Debt Load

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Credit Suisse : Restrictions under Swiss laws delaying settlement with US says Credit Suisse

Credit Suisse : Restrictions under Swiss laws delaying settlement with US says Credit Suisse

ZURICH – Credit Suisse Friday assured shareholders that it is doing everything permissible as per Swiss laws to reach a settlement with U.S. authorities for having helped wealthy Americans to evade paying taxes, while reporting pre-tax income of 7.1 billion Swiss francs in its strategic businesses in 2013.

The US authorities have been investigating the cross-border business activities of Swiss banks, including Credit Suisse, for over three years to nail wealthy Americans who have used the strict banking secrecy laws ofSwitzerland to park funds and dodge paying taxes back home.

“Swiss law imposes certain restrictions, which limit the delivery of data to US authorities, and that has been an issue in this matter,” Credit SuisseChairman Urs Rohner told shareholders.

“We are doing everything we can to resolve this matter within the given framework of US and Swiss law, in the best possible way and in a timely manner.”

The resolution of the tax dispute is one of the most pressing issues currently facing Credit Suisse and holding up its restructuring plans.

Credit Suisse had already begun exiting the US cross-border business in 2008, the bank chairman stated adding, “We do not dispute that some foreign clients including US clients used Swiss banking confidentiality in order to deposit undeclared assets in Switzerland.

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Bank of America : Former CFO of Massive Tarp Recipient Bank of America Barred for 18 Months from Serving as Officer or Director of Any Public Company

Bank of America : Former CFO of Massive Tarp Recipient Bank of America Barred for 18 Months from Serving as Officer or Director of Any Public Company

WASHINGTON, May 2 — The U.S. Department of the Treasury’s Office of the Special Inspector General for the Troubled Asset Relief Program issued the following news release:

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) today announced that a $7.5 million settlement has been reached with Bank of America Corporation’s former Chief Financial Officer, Joe L. Price, regarding the bank’s actions as it sought to merge with Merrill Lynch & Co. in 2008. The settlement was first announced by the New York State Office of the Attorney General on Friday, April 25. As part of the settlement, Price is barred from serving as an officer or director of a public company for 18 months.

On March 26, it was announced that a $25 million settlement had been reached with Bank of America Corporation and its former Chairman and Chief Executive Officer, Kenneth D. Lewis, for actions during the bank’s merger with Merrill Lynch. As part of that settlement, Lewis was barred from serving as an officer or director of a public company for a period of three years.

Despite Bank of America top executives’ specific knowledge of mounting losses at Merrill Lynch that were forecast at more than $9 billion, the TARP recipient bank failed to disclose that information to shareholders prior to their vote on the proposed merger. It was also alleged that Lewis and Price misrepresented to shareholders the impact that the merger with Merrill would have on Bank of America’s future earnings.

“One of the legacies of the TARP bailout is the dangerous concept of moral hazard: The belief that someone can play by their own set of rules without worry about facing the consequences of their actions because taxpayers will bail them out,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “SIGTARP’s investigation with the New York Attorney General’s office revealed that Joe Price and Ken Lewisthought they could play by their own rules and mislead shareholders without any consequence and then mislead the Government into another TARP bailout. This settlement makes clear that those who break the law and try to turn to taxpayers will face serious consequences. SIGTARP and our law enforcement partners will aggressively enforce the law and bring individual and corporate accountability that contributes to ending moral hazard.”

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Recent Illinois foreclosure decisions favor lenders

Recent Illinois foreclosure decisions favor lenders

HIGHLIGHTS:

  • Since 2008, lenders in Illinois have faced heightened scrutiny and a sharp rise in lender liability claims. Nevertheless, Illinois appellate courts have recently favored lenders by upholding existing statutory protections and enforcing the written terms found in loan documents.
  • Among other things, Illinois courts are enforcing the strict terms of guaranties and imposing sanctions for borrower delay tactics, and have confirmed that settlement agreements must comply with the state’s Credit Agreements Act.