New York Attorney General Eric Schneiderman’s lawsuit accusing Barclays Plc (BARC) of bilking customers to expand its dark pool was scrutinized by a judge for not naming specific victims of the alleged fraud.
New York State Supreme Court Justice Shirley Werner Kornreich asked a Schneiderman deputy at a hearing Thursday in Manhattan about a parallel lawsuit by investors in federal court over similar allegations. The judge said she found the state’s suit hard to follow, adding that the complaint cited trade journals and newspapers as evidence of the bank’s misleading statements and not alleged victims.
“It’s hard for me to believe that a very sophisticated investor would base his choice of investment platform on a newspaper article,” Kornreich said.
Law360, Los Angeles (December 18, 2014, 9:44 PM ET) — Ally Financial Inc. on Thursday disclosed that the U.S. Department of Justice has requested internal documents as part of its ongoing probe into subprime auto lending, months after the lender received a subpoena connected to securities regulators’ investigation into the same practices.
In a disclosure form filed with the U.S. Securities and Exchange Commission on Thursday, Ally stated it recently received a subpoena from the DOJ requesting information in connection with its investigation into subprime automotive finance and related securitization activities.
WASHINGTON — Benjamin Lawsky, New York’s top financial regulator, sharply criticized banks for their failure to speed up the payment system, warning that the government may step in if they continue to lag behind.
“If banks do not make significant progress soon, regulators should consider actively pushing for, or even perhaps mandating, improvements,” Lawksy, the superintendent of the New York Department of Financial Services, said Thursday at a Bipartisan Policy Center event in Washington.
Lawsky also used his speech to outline changes to his state’s proposed regulation of digital currencies like Bitcoin, highlighting ways to ease several requirements.
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