Daily Archives: October 16, 2014

NYSE:OCN Investor Alert: Lawsuit alleges Misleading Statements by Ocwen Financial Corp

The Shareholders Foundation announces that an investor, who purchased shares of Ocwen Financial Corp (NYSE:OCN), filed a lawsuit in the U.S. District Court for the Southern District of Florida over alleged violations of Federal Securities Laws by Ocwen Financial Corp in connection with certain allegedly false and misleading statements made between May 2, 2013 and August 11, 2014.

Investors who purchased shares Ocwen Financial Corp (NYSE:OCN) have certain options and for certain investors are short and strict deadlines running. Deadline: October 14, 2014. NYSE:OCN investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.

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Center of Public Integrity report spurs investigation by government auditors of Bank of America, JPMorgan prison deals

Government auditors are investigating exclusive contracts held by Bank of America Corp. and JPMorgan Chase & Co. to provide financial services inside federal prisons.

Treasury’s inspector general, Eric Thorson, will audit Treasury’s “awarding and administration” of the contracts with Bank of America and JPMorgan “in response to recent media reportsconcerning the selection of and high fees charged by these two financial agents,” the watchdog’s general counsel, Rich Delmar, told The Center for Public Integrity.

The Center first reported this month that the banks have exclusive access to the more than 214,000 federal inmates under contracts awarded by the U.S. Treasury Department about 15 years ago. The deals, called financial agency agreements, lack the competitive bidding or transparency requirements for most federal contracts.

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Troubled private student loan borrowers get little help, CFPB says

Borrowers stuck with oppressive private student loan debts continue to get little mercy from lenders, which is bad for both consumers and the financial institutions, according to a report issued Thursday by the Consumer Financial Protection Bureau.

While distressed mortgage holders have several opportunities to appeal for lower monthly payments, and federal student loan borrowers can extend the terms of the loans by 10 years or more, most private borrowers are stuck in an all-or-nothing quagmire — make the entire payment, or default.

The CFPB report criticized private student loan servicers, but did not mandate specific changes, instead issuing a series of recommendations. Reports issued last year by the CFPB, and a separate report issued in July 2013 by the FDIC and other banking regulators, made similar recommendations.

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Citigroup Unit Fined $2M Over Mexican Oil Co.’s Loan Fraud

Law360, Los Angeles (October 15, 2014, 9:53 PM ET) — Mexico’s banking and securities regulator said Wednesday that it has fined Citigroup Inc.’s Banamex unit a little more than $2 million for failing to prevent a $400 million loan fraud allegedly perpetrated against it by a Mexican oil services company.

The Comision Nacional Bancaria y de Valores announced the 29.96 million peso ($2.2 million) fine against Banamex, roughly eight months after Citigroup disclosed that Banamex had suffered the losses on loans to Oceanografia SA de CV. CNBV said in a statement that it found that Banamex…

Source: Law360

Ex-UBS Exec Opens Up About Swiss Tax Shelters In Weil Case

Law360, Miami (October 15, 2014, 10:39 PM ET) — A former UBS AG executive provided a detailed look inside the highly secretive and lucrative world of Swiss banking Wednesday, as federal prosecutors began laying out their case against ex-wealth management head Raoul Weil for conspiring to conceal $20 billion in Americans’ assets from the Internal Revenue Service.

Hansruedi Schumacher, who headed the Swiss banking giant’s cross-border division, spent most of the day on the stand before jurors and U.S. District Judge James I. Cohn in Fort Lauderdale, Florida, describing a culture of code words and…

Source: Law360