Daily Archives: December 19, 2014

GOP to Warren: That Dodd-Frank Rollback Was Just the Appetizer

Memo to GOP and Yoder: You just declared war on Main Street and not just on Senator Warren!

The Republican sponsor of a measure easing a bank regulation is planning to pick new fights in 2015.

Representative Kevin Yoder, who spearheaded this week’s changes to the Dodd-Frank financial law’s regulation of swaps transactions, has a message for Senator Elizabeth Warren: expect more pro-business changes in next year’s spending bills.

“We have a created a model,” the Kansas Republican said in a telephone interview with Bloomberg Government’s Congress Tracker. “This bipartisan success shows a pathway to solving other issues in the financial services area.” The Yoder provision, inserted into the 2015 omnibus spending bill, will allow some companies to forgo spinning off their swaps activities to non-bank affiliates, and maintain access to federal assistance.

The hardball tactic of attaching Dodd-Frank language into an urgent spending bill could be replicated when the fiscal year ends and lawmakers again will be trying to get government funding in place by Oct. 1 to avoid a shutdown. Among other changes, Yoder wants to block funding for a U.S. Securities and Exchange Commission planned regulation to protect pension funds from getting investment guidance from financial advisers with conflicts of interest.

Read on.

Another mortgage lender launches 3% down loan

Troy, Michigan-based United Wholesale Mortgagelaunched its latest product which offers conventional financing on up to 97% loan to value, making it one of the first wholesale lenders to offer the low down payments

This move aligns the lender with the Federal Housing Finance Agency’s initiative to expand the credit box to first-time homeowners.

Fannie Mae announced it would soon begin offering a 97% LTV mortgages during the Mortgage Bankers Association’s annual convention & Expo in October, withFreddie Mac assumed to likely follow suit. And it did.

On Dec. 8, both government-sponsored enterprisesofficially announced their individual 97% loan-to-value products. The government-sponsored enterprise will package these loans into pools and securitize the mortgages on the secondary market.

Read on.

PALM SPRINGS CANCER VICTIM CHARGED WITH TRYING TO BLOW UP HOUSE

A 55-year-old Palm Springs man with cancer was arrested Friday and charged with trying to blow up his home, which was in foreclosure.

Tony Garcia Sr. hobbled into court on Saturday morning using a walker and said little in response to questions by County Judge Barry Cohen.

According to a four-page, single-spaced police report:

Firefighters and police saw a large plume of smoke and flames coming from a window in the 300 block of Osbourne Drive, west of Congress Avenue, when they arrived just before 10:30 a.m. June 28. The kitchen and several other rooms were burning but no one was in the house, according to the report.

Firefighters found a 20-pound liquid propane tanking leaking gas in the living room. Also inside the house investigators found several small gas camping cylinders on the kitchen counter-tops, floor, stove and toaster oven. Similar canisters were found throughout the house.

Laminate from the kitchen counter-tops had been removed, exposing the wood. A melted bottle of lighter fluid and a candle with melted wax were found on the stripped counter-tops.

Garcia was found later that day at a nearby bar. When asked about the fire and the propane tank, Garcia said he “used to own a gas grill and forgot the about the gas cylinder in the living room.” He denied there were any problems with the valve on the tank and that it was not open when he left earlier in the morning.

When investigators asked why there were gas cylinders in the kitchen, the toaster oven and throughout the house, Garcia told the investigator that “he leaves things lying around and since he lives alone, he doesn’t care where these items are left.”

The arrest affidavit also included comments from a Palm Springs police officer, who said Garcia had made prior threats to harm police and firefighters and that Garcia’s address was flagged in their computer system as a “dangerous location.”

More from The Palm Beach Post here…

Barclays Asks Judge to Throw Out New York Dark Pool Suit

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.

Read on.

Ally Financial Gets DOJ Subpoena In Subprime Auto Loan Probe

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.

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NY Regulator Lawsky to Banks: Speed Up Payments Innovation — Or Else

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.

Read on.