Monthly Archives: March 2015

Senior VP suing HSBC for retaliation is terminated

Michael Picarella, an HSBC senior vice president who’s suing the bank for retaliation after pointing out sexual harassment against top brass, has left the bank, The Post has learned.

Picarella’s departure last week came after continuing disintegration of his relationship with the bank over a lawsuit filed in June.

“HSBC has further retaliated against Plaintiff by terminating his employment,” according to a letter filed Monday afternoon in Manhattan federal court.

Last week, the 47-year-old Picarella filed to amend his lawsuit against the bank after being denied a bonus.

Since December, he had been kept from entering the bank’s Midtown office where he worked and, later, was unable to access bank computer systems, The Post had earlier reported.

Read on.

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Chase Student Lending closing Tampa operations, leads to layoffs

JPMorgan Chase is shutting down its student lending line of business in Tampa.

Sixty-five workers will lose their jobs whenChase Student Lending exits the Tampa market, according to a Worker Adjustment and Retraining Notification filed March 26 with the Florida Department of Economic Opportunity.

The layoffs are expected to begin on May 25 for workers located at three Chase sites in Tampa: at 4900 Memorial Highway, 4919 Memorial Highway and 4915 Independence Parkway.

JPMorgan Chase (NYSE: JPM) decided in 2013 to get out of the student loan business. Competition from federal government programs and increased scrutiny from regulators limited Chase’s ability to expand the business, Reuters reported.

Read on.

Foreclosure victims to demand money from settlements

People who lost homes to foreclosure will rally Tuesday to demand they get a share of Delaware’s settlement money stemming from the 2008 financial meltdown.

Victims Stand Against Foreclosure Everywhere is hosting the event to gather support from public officials and to identify and connect victims of foreclosure.

“We still haven’t heard any definitive response to our pleas to legislators to fund programs [for foreclosure victims],” said Penny Dryden, a VSAFE organizer and executive director of the nonprofit Community Housing and Empowerment Connections. “We thought this might make a stronger pitch.”

Read on.

Nomura, RBS ‘crap’ emails come into play in $1 billion mortgage bond trial

NEW YORK (Reuters) – In 2007, a Royal Bank of Scotland Group Plcemployee emailed his boss with his view of a sample of mortgages underlying a bond that the bank was underwriting: “This one is crap.”

Asked about it this week in Manhattan federal court, Brian Farrell, the employee, said he did not recall the deal. But a U.S. regulator cited the email as evidence that Nomura Holdings Inc <8604.T> and RBS made false statements about mortgage securities they sold to Fannie Mae and Freddie Mac.

The email and others like it are part of a $1.1 billion lawsuit by the Federal Housing Finance Agency against Nomura and RBS that went to trial this month. The messages add to a litany of arguably embarrassing electronic musings by bank employees that have resurfaced in litigation over the 2008 financial crisis.

Private plaintiffs and U.S. regulators alike have seized upon internal emails from the likes of JPMorgan Chase & Co and Deutsche Bank AG calling the mortgage products they sold investors “lemons,” “junk,” and “pigs.”

Read on.

Sen. Warren To Big Banks: ‘Bring It On’

Go Elizabeth!

Law360, New York (March 30, 2015, 9:36 PM ET) — Speaking to a packed house in a New York City bookstore Monday night, Sen. Elizabeth Warren, D-Mass., responded to reports that America’s unhappily-regulated financial industry was threatening to pull campaign funding from Democrats in Congress by telling the banks to “bring it on.”

In an hourlong appearance to promote the paperback release of her autobiography, “A Fighting Chance,” Warren answered audience questions about the rumor as well as reiterating her stance on the ongoing talks to create a trade agreement between the U.S. and the Asia-Pacific…

Source: Law360

Ex-Wells Fargo Analyst To Settle SEC In-House Trading Case

Law360, New York (March 27, 2015, 5:50 PM ET) — Just days before his scheduled administrative court hearing, a former Wells Fargo analyst has agreed in principle to settle the U.S. Securities and Exchange Commission’s administrative charges he engaged in insider trading by giving one of the firm’s traders early access to his research, according to documents filed Friday.

In a short order, SEC Administrative Law Judge Jason S. Patil agreed to stay the case against Gregory T. Bolan Jr., saying he had received a motion from both parties that they had “reached an agreement in…

Source: Law360

President Obama Vows To Veto Any Republican Bill That Unravels Wall Street Reform

The President said while speaking in Birmingham, AL:

This is just one more way that Wall Street reform, what we passed five years ago, is protecting working families and taxpayers, and that strengthens the economy, and that’s one more why it makes no sense that the Republican budget would make it harder for the CFPB to do its job. And would allow Wall Street to go back to the kind of recklessness that led to the crisis in the first place, and would allow these kinds of lenders who are not doing the right thing to keep at it.

I have to be clear. If Republicans in Congress send me a bill that unravels the reforms we put in place, if they send me a bill that unravels Wall Street reform, I will veto it.

This is not about politics. It’s is about basic values of honesty and fair play. It’s about the basic bargain that says here in America hard work should pay off and responsibility should be rewarded.