Daily Archives: May 27, 2014

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Calif. Senate To Weigh Bill Tying Tax Rate To CEO Pay

Calif. Senate To Weigh Bill Tying Tax Rate To CEO Pay

Law360, New York (May 27, 2014, 2:51 PM ET) — A California bill that aims to impose higher corporate taxes on public companies with exorbitant CEO salaries will be considered by the state Senate after passing its final committee hurdle on Friday.

SB 1372, which would increase taxes on companies that pay its top executives more than 100 times what it pays its average worker and imposes a penalty on corporations that shift hiring to contract employees, passed in the California Senate Appropriations Committee by a 5-2 vote.

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BofA’s investment bank aims to be more diversified, global

BofA’s investment bank aims to be more diversified, global

Bank of America Corp (>> Bank of America Corp) is looking to diversify its investment banking business by doing more equity underwriting and merger advisory work and by winning more clients outside the United States, a senior executive said on Tuesday.

Bank of America Corp (>> Bank of America Corp) is looking to diversify its investment banking business by doing more equity underwriting and merger advisory work and by winning more clients outside the United States, a senior executive said on Tuesday.

Underwriting debt “has been one of [Bank of America’s] great strengths, but clearly the business is changing” as industry-wide volumes look set to fall in 2014, said Christian Meissner, head of global corporate and investment banking at Bank of America Merrill Lynch, at an investor conference in New York organized by Deutsche Bank.

Bank of America has been more reliant than its competitors on generating fees from underwriting debt. In 2013, debt issuance accounted for nearly 60 percent of total investment banking fees, compared to nearly 56 percent at JPMorgan Chase & Co (>> JPMorgan Chase & Co.) and around 39 percent for Goldman Sachs Group Inc (>> Goldman Sachs Group Inc).

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JPMorgan shareholders OK 74% pay hike for Jamie Dimon

JPMorgan shareholders OK 74% pay hike for Jamie Dimon

The 74 percent pay increase slated for JPMorgan Chase chief executive Jamie Dimon’s work in 2013 raised eyebrows when it was announced this year. But on Tuesday, shareholders at the company’s annual meeting in Tampa backed it — by 78 percent, according to preliminary vote tallies.The 74 percent pay increase slated for JPMorgan Chase chief executive Jamie Dimon’s work in 2013 raised eyebrows when it was announced this year. But on Tuesday, shareholders at the company’s annual meeting in Tampa backed it — by 78 percent, according to preliminary vote tallies.

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Royal Bank of Scotland : RBS to Cut Hundreds of U.S. Jobs — Update

Royal Bank of Scotland : RBS to Cut Hundreds of U.S. Jobs — Update

LONDON– Royal Bank of Scotland Group PLC is planning to cut hundreds of jobs in its U.S. trading businesses over the next few months as it seeks to slim down its operations to prepare for tough new U.S. regulations, according to people familiar with the matter.

The cuts, which are set to take place over the next 18 months, could result in the loss of up to 400 jobs across the U.S. business, these people said. The bank, 80%-owned by the British government, is scaling back its trading operations at its Stamford, Conn., headquarters as part a wider push to cut costs and refocus on its home U.K. market.

RBS is partly exiting its mortgage-trading business and its distressed-loan-trading business, these people said. As part of that, it plans to cut about two- thirds of the jobs in its asset-backed products business by 2015, these people said. The bank will continue to focus on its rates, currency and global-transaction operations, these people said. RBS’s U.S. business employs a total of about 2,400 people.

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Mortgage Company Scams out of Homes and into Foreclosure

Mortgage Company Scams out of Homes and into Foreclosure

It is a costly lesson to learn. When choosing a mortgage company, be careful which one your choose. One unscrupulous company and its owner scammed victims out of their home and into foreclosure.

This rural home is at the heart of a mortgage fraud scandal that left a family homeless and landed one man behind bars.

Dan Taylor, US Postal Inspector, explained, “Jay Dunlap ran a mortgage company that specialized in dealing with people that had poor credit.”

In fact, many of his clients had been denied real estate loans in the past. Postal inspectors say he used this to his advantage.

“He was generally contacting people that were desperate for whatever they could get to try and save their homes,” said Taylor.

His offer to clients: he would buy their house from them for a year. They would essentially pay him rent.

“After a year they would be able to buy the house back and then have better credit and qualify for a regular loan,” Taylor said.

But once Dunlap took posession of the house, he took out several equity loans.

“Dunlap took these loans against the property in the belief that the victims would never come up with the cash to try to repurchase the home,” Taylor explained.

But in this case – victims tried to buy their homes back and quickly realized…

“He took their money, deposited it, spent it but never actually transferred the title back to the victims,” Taylor continued.

Dunlap stopped paying on the equity loans. Banks foreclosed on the property.

“Ultimately the victims were foreclosed on and had to move out of the house,” said Taylor.

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Bank of America Said Hired by Sterlings to Sell NBA Clippers

Bank of America Said Hired by Sterlings to Sell NBA Clippers

Bank of America Corp. has been retained to sell the Los Angeles Clippers, whose owners face a June 3 deadline to reach a sale agreement or risk it being taken by the National Basketball Association, two people with direct knowledge of the situation said.

The people requested anonymity because the sale process isn’t public.

Jim Nash, a managing director at Bank of America, declined to comment. Pierce O’Donnell, the attorney for Shelly Sterling, wife of team owner Donald Sterling, didn’t respond to a message left at his Los Angeles office.

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Ex-UBS Banker Lack Avoids Prison for 17-Year Tax Scheme

Ex-UBS Banker Lack Avoids Prison for 17-Year Tax Scheme

Martin Lack, the fourth ex-UBS AG (UBSN) banker to plead guilty to aiding wealthy Americans in evading taxes, avoided prison for a 17-year scheme in which he helped U.S. clients maintain secret overseas accounts.

Lack, a Swiss resident and citizen and an independent investment adviser, was sentenced to five years of probation and fined $7,500 today in federal court in Fort Lauderdale, Florida, where he was indicted in 2011. He surrendered to U.S. authorities on Oct. 14 and pleaded guilty on Feb. 26, when the judge said he was cooperating with prosecutors.

Lack was charged in an indictment with conspiring from 1993 to 2010 to help clients hide assets from the U.S. Internal Revenue Service through accounts at Zurich-based UBS, the largest Swiss bank, and a Swiss cantonal bank. That bank, not named in the indictment, is Basler Kantonalbank, according to a person familiar with the matter.

Lack worked at UBS until he founded his own management firm, Lack & Partner Asset Management AG, in Zurich in 2002, according to prosecutors. He “would and did solicit U.S. customers to open undeclared accounts at UBS and cantonal bank because Swiss bank secrecy would assist U.S. customers to conceal their ownership of the accounts,” according to the indictment.