Daily Archives: July 28, 2014

Goldman Sachs Denies Ex-Employee Claims of Sex Bias

Goldman Sachs Group Inc. (GS) denied allegations that it discriminated against women on pay and tolerated a “boys’ club” atmosphere featuring excessive drinking and trips to strip clubs with clients.

Goldman Sachs filed papers rejecting claims by two former female employees, Cristina Chen-Oster and Shanna Orlich, in Manhattan federal court. The New York-based company is opposing a request by the two women to expand their suit to represent a class of more than 2,300 current and former female associates and vice presidents who worked at the bank over the past decade.

“To be clear: Goldman Sachs does not tolerate discrimination of any kind,” the firm said in court papers filed July 25.

Chen-Oster and Orlich sued in 2010, claiming to have expert statistical analyses that show a pattern of discrimination against women in earnings and promotions. They also claim Goldman Sachs harbors a work environment where women are treated as “second-class employees.”

Read on.

Bamboozled: Man writes check then cancels it, but Wells Fargo honors it anyway. What gives?

Anthony Nardiello has been fighting for more than a year to get his money back.

Nardiello was having a dispute with an attorney about some legal bills. He wrote a check for $6,666.66 — a bit of dark humor on Nardiello’s side, which in retrospect might have been a bad omen — to the law firm.

“It was to send them as a message,” he said.

The check was dated Feb. 25, 2013, and hand-delivered to the law firm on that day, Nardiello said.

“When I was driving home, I started to feel again like I was getting ripped off,” he said.

So he decided to cancel the check, which was written from his checking account with the Kenilworth Wells Fargo, where he had been a customer for more than three years.

“I made the call to stop payment,” he said. “I was told it was done and received a paper confirmation also stating this. To my dismay, I later learned this was not the case.”

Before he knew there was trouble, everything seemed on the up-and-up.

Nardiello said the Wells Fargo rep who took his stop-payment order on Feb. 26 never mentioned anything about not being able to process his request. The rep told him it was a done deal, he said, and several days later he received written confirmation.

“On 2/26/2013 we processed your request to stop payment on the check or pre-authorized electronic transfer listed below,” the letter said, detailing the transaction.

Nardiello’s account was charged a $31 fee for the request.

But soon enough, Nardiello learned the money was no longer in his account. Despite the stop payment order and the written confirmation from Wells Fargo, Wells honored the check.

“I felt violated,” he said. “I felt I got ripped off by the bank.”

Read on.

Lloyds To Pay $370M In US, UK Libor-Rigging Deal

Law360, New York (July 28, 2014, 10:21 AM ET) — Lloyds Banking Group PLC on Monday agreed to pay approximately $370 million to settle claims from U.S. and U.K. authorities that its traders manipulated the London Interbank Offered Rate in several different denominations both during and after the global financial crisis.

The settlement makes Lloyds the latest big bank to enter into a major settlement alleging that its traders manipulated Libor, the key financial benchmark that is used to set everything from derivative contracts to adjustable rate mortgages, joining Barclays PLC, UBS AG, The Royal Bank…

Source: Law360


This case is an appeal from the final order signed by the trial court on February 18, 2013. After submitting the case on the appellate record and the arguments properly raised by the parties, the Court holds that there was reversible error in the portion of the trial court’s order granting summary judgment for the appellee, Deutsche Bank National Trust Company, N.A., as to the quiet-title claim of the appellant, Winona Flippon Vazquez. Accordingly, the Court reverses this portion of the trial court’s order and remands the quiet-title claim. The Court orders that the appellee, Deutsche Bank National Trust Company, N.A., pay all appellate costs. The Court orders that this decision be certified below for observance.

Here is the court document. Click here.

JPMorgan Chase : Sankaty to buy JPMorgan debt portfolio for $1 billion – FT

(Reuters) – Bain Capital’s credit arm, Sankaty Advisors, is buying the debt portfolio of JPMorgan’s principal investment group for more than $1 billion (589 million pounds), the Financial Times reported.

Sankaty won an auction for JPMorgan Chase & Co’s Global Special Opportunities Group portfolio, which contains junior loans in North America and Europe as well as securities in Asia and Australia, the newspaper said. (http://on.ft.com/1AnRNHZ)

The deal is set to be announced on Monday, FT said.

Read on.

JPMorgan Chase : JP Morgan questioned on private bank impropriety: WSJ

(Reuters) – JPMorgan Chase & Co executives have faced regulators’ questions on whether private bank advisors guide clients to buy the firm’s own financial products, according to a report in the Wall Street Journal.

As a result of the questioning regarding potential conflicts of interest, the New York-based bank has sharpened its disclosures to clients, the newspaper said, citing sources.

The Office of the Comptroller of the Currency, one of JP Morgan’s regulators, has been in discussions with the bank regarding the potential conflicts of interest in recent months, according to the report. The matter may still be open, the report said.

“Being transparent is part of our normal course of business and it’s what drives our client communications,” Darin Oduyoye, a spokesman for JP Morgan’s asset-management unit, told Reuters on Sunday.

Read on.

30,000 account holders hidden abroad have emerged in taxes

The government is almost certain to reach its goal of pulling about 1.8 billion euros in 2014 regularization of hidden bank accounts abroad. The Minister of FinanceMichel Sapin, said in an interview with Journal du Dimanche published on July 27:

“The arrival rate of applications remains very strong. The amounts collected in taxes and penalties amounted to € 1.336 billion today, against € 1 billion in mid-June. So we are pretty sure to reach the goal of $ 1.8 billion in late 2014 and have

yet to revenue in 2015. “

Read on.