Daily Archives: June 7, 2014


BNP Executive Firings Sought by Top New York Bank Regulator Amid Probe

BNP Executive Firings Sought by Top New York Bank Regulator Amid Probe

New York’s top banking regulatorBenjamin Lawsky is pressing BNP Paribas SA (BNP) to dismiss one of its top executives as part of settlement negotiations with the U.S. over alleged sanctions violations, according to a person familiar with the matter.

Lawsky wants the bank to remove Chief Operating Officer Georges Chodron de Courcel, said the person, who asked not to be identified because the discussions are private. Lawsky is also seeking the departure of another senior executive and about 12 other bank employees, the person added. Chodron de Courcel and the others haven’t been accused of wrongdoing.

“If the bank acknowledges a fault, someone should take responsibility and leave,” said Francois Chaulet, who helps manage 400 million euros ($546 million) at Montsegur Finance in Paris, including BNP shares.


Wall Street Fights for Our Right to Pay 5% Fund Fees

Wall Street Fights for Our Right to Pay 5% Fund Fees

One of Wall Street’s chief lobbyists wants you to know that the financial industry has changed, a lot, since the financial crisis. The industry “has already fundamentally reshaped itself into one that is safer, sounder and more resilient,” Ken Bentsen Jr., chief executive officer of the Securities Industry and Financial Markets Association (Sifma), said recently.

If you count up the rules regulators have imposed on banks and brokers since the passage of the Dodd-Frank law, Bentsen has a point. Unfortunately, few of those regulations do anything to improve investing options for individuals. Too many Americans are still steered into financial products that are far more profitable for salespeople than for clients, and pay high fees and commissions. With basically anyone able assume the “financial adviser” title, whether at a brokerage or an independent firm, many investors remain baffled about whom they can trust.

Yet many major financial players appear more intent on lobbying lawmakers to maintain the status quo than changing the way investors are treated. A strong fiduciary rule, requiring all advisers to put clients’ interests first, would help investors navigate an increasingly complex financial landscape. After years of opposition by Sifma and other industry groups, late last month the Department of Labor once again quietly delayed re-proposing that rule until January 2015. That came after previous fiduciary rules were stalled several times by the department and the Securities and Exchange Commission.


SEC Loses 2nd Insider Trading Trial In 7 Days

SEC Loses 2nd Insider Trading Trial In 7 Days

Case Title

Securities and Exchange Commission v. Manouchehr Moshayedi

Case Number



California Central

Nature of Suit



James V. Selna

Law360, Los Angeles (June 06, 2014, 4:50 PM ET) — A California federal jury on Friday handed the U.S. Securities and Exchange Commission its second insider trading trial loss in a week, siding with the founder of storage device maker STEC Inc. who was accused of deceiving shareholders to reap $267 million for himself and his brother.

The suit, filed in 2012, alleged Manouchehr Moshayedi exploited his knowledge that a major customer wanted far fewer of the company’s most profitable products — information that wasn’t known to the public — when he sold a significant portion…


Bank of America in talks with Justice Department over mortgages

Bank of America in talks with Justice Department over mortgages

CHARLOTTE—Bank of America is negotiating a deal with the justice department and a number of states over the bank’s mortgage banking practices.

At the center of the issue are claims that Bank of America defrauded buyers of mortgage-backed securities by misleading them about the quality of the loans involved.