Daily Archives: August 28, 2014

Silicon Valley favorite Ron Paul secretly paid a state senator $73k to buy his support

BofA unit in Japan ordered to pay $140M over bad bonds

The Tokyo High Court has ordered the Japanese brokerage unit of Bank of America Corp. (NYSE:BAC) to pay 14.5 billion yen, or about $140 million, to compensate for losses stemming from a 2007 bond transaction, according to Bloomberg.


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Deutsche Bank : UK watchdog fines Deutsche Bank $8 million for reporting errors

Britain’s financial regulator has fined Deutsche Bank AG 4.7 million pounds ($8 million) for wrongly reporting certain market transactions for nearly six years.

The Financial Conduct Authority said in a statement on Thursday the bank failed to accurately report all the contract-for-difference (CFD) equity swaps, totalling 29 million, it executed between November 2007 and April 2013.

CFDs allow a buyer to trade on movements in a market price without actually owning the underlying asset. Such trades must be reported to a regulator under European Union law.

“We have repeatedly highlighted the importance of accurate transaction reporting and taken enforcement action against a number of firms,” Tracey McDermott, director of enforcement at the FCA, said.


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HSBC, Nomura lose bid to avoid U.S. agency’s mortgage lawsuits

A U.S. regulator can proceed with lawsuits accusing HSBC Holdings Plc (>> HSBC Holdings plc) and Nomura Holdings Inc (>> Nomura Holdings, Inc.)of misleading Fannie Mae and Freddie Mac into buying mortgage-backed securities that later turned toxic, a federal judge ruled on Thursday.

The decision from U.S. District Judge Denise Cote in Manhattan clears the way for HSBC to face trial Sept. 29 in a case by the Federal Housing Finance Agency that the bank has estimated could expose it to $1.6 billion (964.7 million pounds) in liability.

FHFA launched 18 lawsuits in 2011 over about $200 billion in mortgage-backed securities. HSBC, Nomura and Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc) are the remaining banks being sued by the regulator.


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Roughly 20,000 Florida homeowners go unserved

Florida borrowers have a little over two weeks to claim their share of the giant Ocwen Financial Services (OCN) settlement.

Despite there being $2 billion on the line, just a third of eligible Florida homeowners have filed claims, with just 10,244 filed claims out of 31,036 possible, an article in the SunSentinel said.  

“We want to be sure people know about the settlement and file a claim,” spokeswoman Jamie Mongiovi said. “It may be that some notices went to old addresses and people don’t know they are eligible.”

In December, Ocwen agreed to a $2.1 billion settlementthat stemmed from a Consumer Financial Protection Bureau investigation into its servicing practices.

The consumer relief money was set to help homeowners who lost their homes due to mortgage servicing misconduct and foreclosure abuse. 

Nationally, there were an estimated 183,984 loans foreclosed on by Ocwen during that time.

Florida’s share was the second highest in the county with more than 26,000 borrowers affected. Floridians are eligible to receive $17.8 million of the $125 million set aside for homeowners.

Source: SunSentinel

Attorney seeking witnesses for upcoming civil case against Mozilo

Attention Justice League followers:

I received an email from lawyer John Long who will have an upcoming civil action against Countrywide former CEO Angelo Mozilo. Mr Long is looking to identify witnesses for trial who have been victims of their fraudulent loans. Here is his email message that he sent to me today:

One of the very few lawsuits which has been filed against predatory lender Countrywide Home Loans, Bear Sterns, Bank of America and its top executives Angelo Mozilo, Kenneth Lewis and others, has just been given a trial date in February 2015 which will take place in San Jose California.

Merritt v. Mozilo, et al is the title of the case and the Plaintiffs are looking for witnesses who have either received loans and or modifications from Countrywide and believe that fraud took place within its origination or worked for Countrywide or Bear Sterns and know of its fraudulent loan practices.
Whether you are in California or elsewhere, if you qualify to be a witness and are willing to tell your experience to a jury, arrangements can be made to fly you to California for such. Just email John Paul at litigationlawgroup@gmail.com or call 408.498.8045. Email would be preferable, however, if you are unable to then call.

Tax Inversions: Banks Are Making Millions

The tax inversion bandwagon continues to roll along despite rumblings in Washington to discourage it. In this article, we’ll look at the banks that are profiting most, the companies engaging in this technique, and what we could expect in the not-too-distant future.

A Brief Background

As I mentioned in my most recent Forbes article, these tax avoidance strategies have become quite popular in recent years. Could this be a sign of things to come? Perhaps a warning of potentially higher tax rates down the road? It does make me curious. In short, why has there been such an increase in tax inversions?

Tax inversions are uniquely complex strategies which require a special set of skills often found in larger U.S. financial institutions. They can also require a large capital outlay. Let’s look at some of the U.S. financial institutions that are profiting from these deals.

Tax Inversion Dealmakers

Although tax inversions may not be beneficial for the U.S. economy, severalWall Street firms have made millions assisting companies with them. The rationale is that if we don’t do it, our competitor will. I agree. Moreover, since it’s neither illegal nor immoral, inversions are proving to be a good source of revenue for these firms. The following table lists the top five banks in terms of revenue received from tax inversions since 2011.

Tax Inversion Deal Makers

Goldman Sachs leads this distinguished group, followed by JP Morgan and other well-known brands. They have also incited a great deal of verbal sparring. For example, Jamie Dimon, CEO of JP Morgan says we have a “flawed tax code that is driving U.S. companies overseas.” Senator Ron Wyden (D) of Oregon called inversions a “plague.” Moreover, it’s no secret that the President is strongly opposed to them. In any event, love ‘em or hate ‘em, inversions are part of the business landscape and will likely remain so until Congress modifies the tax code.


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