ohn Carney at the Wall Street Journal is reporting that a federal claims judge has ruled against the federal government, saying that a lawsuit brought by investors over the treatment of Fannie Mae and Freddie Mac can proceed.
Here’s the latest:
A judge in the U.S. Court of Federal Claims denied the government’s motion to stay proceedings in that court, according to two people familiar with the decision. Lawyers for the government had asked the Court of Claims to put the lawsuits on hold pending the appeal of a decision by a judge in the U.S. District Court for the District of Columbia that dismissed a similar group of cases last September.
Shares of Fannie jumped by more than 8% Wednesday morning. Shares of Freddie rose by more than 4%.
Wednesday’s decision means the plaintiffs, who include Fairholme Funds, will be able to continue to collect information from the government in hopes of bolstering their argument that the Court of Claims has jurisdiction over the cases.
(Bloomberg) — JPMorgan Chase & Co.’s foreign-exchange traders reaped a gain of as much as $300 million after the Swiss central bank roiled markets by abolishing its cap on the franc, according to two people with knowledge of the matter.
The bank netted $250 million to $300 million on the day of the Swiss National Bank’s surprise decision to scrap the franc ceiling of 1.20 against the euro, said the people, who asked not to be identified because they weren’t authorized to speak publicly. A JPMorgan spokesman declined to comment.
The SNB’s surprise decision on Jan. 15 to remove the three-year-old cap sent the franc soaring as much as 41 percent against the euro that day. JPMorgan is one of the few to emerge from the turmoil with a profit. Citigroup Inc., Deutsche Bank AG and Barclays Plc suffered about $400 million in cumulative trading losses, people with knowledge of the matter have said.
Monday, we told you the story of a Kendall family desperately working to save their house from foreclosure.
Tuesday, we learned that after our story aired, the Illinois State Attorney General’s Office contacted the family to say they’re investigating what happened to them. Two years ago, the family hired a Chicago law firm to get them out of foreclosure.
But now the firm has taken about $9,000 of their money and didn’t get a deal done. The law firm has since shut down their website and disconnected their phones.
(Bloomberg) — The U.S. is investigating whether the Netherlands’ Rabobank Groep ignored signs of money laundering by clients at branches of its California banking unit near the Mexican border, according to people with knowledge of the matter.
The criminal investigation is being conducted by Justice Department prosecutors in Washington and the U.S. Attorney’s Office in San Diego, said two people who asked not to be identified because the inquiry is confidential. The probe could trigger additional enforcement action against Rabobank, which is still being monitored by the Justice Department after admitting wrongdoing in a 2013 settlement over interest-rate manipulation.
Law360, New York (January 28, 2015, 12:39 PM ET) — Standard & Poor’s Ratings Services will pay $1.375 billion to settle lawsuits brought by the U.S. Department of Justice and 20 attorneys general around the country over the firm’s ratings work leading up to the financial crisis, according to a person familiar with the matter.
The settlement is expected to be announced as early as next week, the person said. Details of the landmark accord, such as how the haul will be divvied up between authorities, could not immediately be confirmed.
An S&P spokeswoman declined to…
Posted in Uncategorized
Tagged DOJ, S&P
Thank you blogger Neidermeyer for sharing this info:
HOUSTON, January 23, 2015 – Today, the Holders of 25% Voting Rights in 119 Residential Mortgage Backed Securities Trusts (RMBS) with an original balance of more than $82 billion issued a Notice of Non-Performance (Notice) to BNY Mellon, Citibank, Deutsche Bank, HSBC, US Bank, and Wells Fargo, as Trustees, Securities Administrators, and/or Master Servicers, regarding the material failures of Ocwen Financial Corporation (Ocwen) as Servicer and/or Master Servicer, to comply with its covenants and agreements under governing Pooling and Servicing Agreements (PSAs).
Based on a lengthy investigation and analysis by independent, highly qualified experts, the Holders’ Notice alleges Ocwen has failed to perform, in material respects, its contractual obligations as Servicer and/or Master Servicer under the applicable PSAs in the following ways:
- Use of Trust funds to “pay” Ocwen’s required “borrower relief” obligations under a regulatory settlement, through implementation of modifications on Trust- owned mortgages that have shifted the costs of the settlement to the Trusts and enriched Ocwen unjustly;
- Employing conflicted servicing practices that enriched Ocwen’s corporate affiliates, including Altisource and Home Loan Servicing Solutions, to the detriment of the Trusts, investors, and borrowers;
- Engaging in imprudent and wholly improper loan modification, advancing, and advance recovery practices;
- Failure to maintain adequate records, communicate effectively with borrowers, or comply with applicable laws, including consumer protection and foreclosure laws; and,
- Failure to account for and remit accurately to the Trusts cash flows from, and amounts realized on, Trust-owned mortgages.
As a result of the imprudent and improper servicing practices alleged in the Notice, the Holders further allege that their experts’ analyses demonstrate that Trusts serviced by Ocwen have performed materially worse than Trusts serviced by other servicers. The Holders further allege that these claimed defaults and deficiencies in Ocwen’s performance have materially affected the rights of the Holders and constitute an ongoing Event of Default under the applicable PSAs. The Holders intend to take further action to recover these losses and protect the Trusts’ assets and mortgages.
The Notice was issued on behalf of Holders in the following Ocwen-serviced RMBS:
Source: Gibbs & Bruns LLP