Daily Archives: July 9, 2014

Prosecutors may be building case for Madoff’s son

U.S. prosecutors may still be building a case against imprisoned swindlerBernard Madoff’s only surviving son, who according to sources was one of the “co-conspirators” mentioned in a plea deal by a Madoff associate last month.

Two sources familiar with the Madoff case confirmed to Reuters that people identified only as “co-conspirators” in statements and court documents at accountant Paul Konigsberg’s June 24 plea hearing are Madoff’s sons, Mark and Andrew, who were employees of the Madoff investment firm.

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Elizabeth Warren’s Question Of Trust Stumps Wall Street Exec

WASHINGTON — It seems like a simple question. With only 15 percent of Americans trusting the stock market and a declining percentage who invest in it, what can market bosses do to restore the people’s faith?

That’s what Sen. Elizabeth Warren (D-Mass.) wanted to know in a Senate Banking Committee hearing on Tuesday. Her query was sparked in part by revelations in Michael Lewis’ recent book, Flash Boys, about how high-frequency stock trading rigs the markets.

Two witnesses answered Warren’s question fairly easily, saying that increased transparency and a complete, open review of modern trading practices by the Securities and Exchange Commission would go a long way.

But for Thomas Wittman, executive vice president and global head of equities at the company that runs the NASDAQ and several international exchanges, it wasn’t so simple. He wouldn’t even agree that the data Warren cited on declining public trust and decreased investments were related.

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Wells Fargo Hit With $1B Whistleblower Suit Over HAMP

Case Title

ABC v. DEF

Case Number

1:13-cv-01460

Court

New York Southern

Nature of Suit

Other Statutory Actions

Judge

Laura Taylor Swain

Law360, Los Angeles (July 08, 2014, 10:54 PM ET) — Wells Fargo Bank NA has been slapped with a False Claims Act whistleblower suit seeking more than $1 billion in damages over allegations that the bank falsely certified that it was in full compliance with relevant laws in a Home Affordable Modification Program servicer agreement, according to court documents made public Tuesday.

In a complaint unsealed June 17, relator Michael J. Fisher — who assisted attorneys in processing home loan modifications via Wells Fargo and other servicers from 2008-12 — claimed the bank falsely certified on…

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Citigroup may pay $7 billion to resolve U.S. mortgage probes

Citigroup Inc is close to paying about $7 billion to resolve a U.S. probe into whether it defrauded investors on billions of dollars worth of mortgage securities in the run-up to the financial crisis, a source familiar with the matter said on Tuesday.

A majority of the settlement is expected to be in cash, but the figure also includes several billion dollars in help to struggling borrowers, the source said.

An announcement of the settlement between the bank and the U.S. Department of Justice could come as early as next week, the source said.

A Citigroup representative declined comment. A Justice Department spokeswoman did not respond to requests for comment.

A settlement of around $7 billion for Citigroup would be higher than analysts had expected based on the bank’s mortgage securities business.

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