Daily Archives: May 20, 2014

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AIG Using ‘Shopworn’ Ploys To Escape Probe: NY Regulator

AIG Using ‘Shopworn’ Ploys To Escape Probe: NY Regulator

Law360, New York (May 19, 2014, 6:59 PM ET) — New York’s insurance regulator on Friday attacked American International Group Inc.’s lawsuit challenging the watchdog’s investigation into unlicensed activities by former AIG units, claiming that it was a “textbook example” of a suit where a federal court should not step in.

New York Department of Financial Services Superintendent Ben Lawsky told the federal court that the DFS’ investigation of AIG was still ongoing and that the department is unsure of what charges, if any, it will level against the insurer. The potential charges against AIG could…

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Ryan & Maniskas, LLP Announces Investigation of Ocwen Financial Corp.

Ryan & Maniskas, LLP Announces Investigation of Ocwen Financial Corp.

WAYNE, Pa., May 19, 2014 /PRNewswire/ — Ryan & Maniskas, LLP has commenced an investigation into potential securities law violations by certain officers of Ocwen Financial Corp. (“Ocwen” or the “Company”) (NYSE: OCN).

Ocwen shareholders should contact Richard A. Maniskas, Esquire at 877-316-3218 or at rmaniskas@rmclasslaw.com to learn more about this investigation or visit: http://www.rmclasslaw.com/cases/ocn.

Ocwen, through its subsidiaries, is engaged in the servicing and origination of mortgage loans in the United States and internationally. The Company’s Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate.

Our investigation concerns Ocwen’s mortgage servicing process practices. In December 2013, the Consumer Financial Protection Bureau (“CFPB”) and authorities in 49 states sued Ocwen, accusing it of years of “significant and systemic misconduct that occurred at every stage of the mortgage servicing process.” Ocwen agreed to settle these charges and is required to provide $2 billion in loan modification relief to homeowners and $125 million to consumers who were improperly foreclosed upon. The CFPB action makes clear that, more than three years after agreeing to adhere to mortgage servicing industry standards, the Company has made no significant improvements to its practices. Ocwen’s shares have fallen nearly 30% this year.

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Supreme Court refused Deutsche Bank permission to appeal in Libor battle

Supreme Court refused Deutsche Bank permission to appeal in Libor battle

Indian property company Unitech will pursue Libor-based claims against Deutsche Bank after the Supreme Court refused the bank permission to appeal (PTA) a claim amendment accepted by the Court of Appeal.

Last November the CoA said Unitech, which has instructed Stephenson Harwood partner Richard Gwynne, could ammend its counterclaim against the bank to include Libor manipulation arguments (8 November 2013). The bank had sought to quash the ruling at the Supreme Court, instructing Allen & Overy partner Andrew Denny, to take the challenge forward.

Lords Neuberger, Clarke and Sumption have rejected the PTA bid, stating: “It is not normally appropriate for the Supreme Court to entertain appeals on an issue which the Court of Appeal has simply held to be arguable and this is not an exception”

The attempt marks the latest in a complex series of battles waged between the bank and Unitech. The battle will now be set for a High Court outing following the rejection from the final court.

The bank has been pursuing Unitech, India’s second largest real estate company, over a $150m loan it made to the company. In a separate action the bank is attempting to recover $11m as part of an interest rate swap contract. In 2012 Unitech issued a counterclaim alleging that the bank sold it an unsuitable product based on Libor rates. It claims the loan swap and contracts were invalid because of the link to manipulated Libor rates (8 November 2013).

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Credit Suisse : New York banking chief says Credit Suisse won’t lose New York license

Credit Suisse : New York banking chief says Credit Suisse won’t lose New York license

New York Superintendent of Financial Services Benjamin Lawsky said on Monday he had decided not to initiate proceedings to revoke Credit Suisse’s New York license over its role in helping Americans evade taxes.

Lawsky said in a statement after Credit Suisse agreed to plead guilty to U.S. criminal charges that the Swiss bank would pay a $715 million penalty as part of an agreement with his agency and be required to install an independent monitor as part of the settlement.

He said an independent monitor would further review the involvement of Credit Suisse employees in the misconduct. Lawsky said Credit Suisse must fire certain individuals who were previously indicted but were still being paid by the bank.