Daily Archives: March 17, 2015

Resignation of Rep. Schock amid money misuse accusations won’t disqualify him from getting taxpayer-funded pension

Rep. Aaron Schock, who announced his resignation today under suspicion of misusing public money, will be eligible for more of it in retirement.

Schock, a Republican from Illinois, could eventually collect hundreds of thousands of dollars in taxpayer-funded retirement benefits, depending on how long he lives.

Starting at age 62, he will be eligible for just under $18,500 annually, according to estimates by the National Taxpayers Union, a conservative nonprofit organization.

Read on.

Banks said to risk old Libor charges in currency rigging probes

  • Barclays, RBS, UBS all signed prosecution deals over LIBOR.
  • The Justice Department has never revoked bank prosecution deals.
More legal issues for banks and also may expose individuals to criminal charges if it is deemed that the banks committed any crime after the Libor accords were negotiated.
For further information, the full story can be found HERE

British Regulators Bar Former Rabobank Trader in Libor Inquiry

LONDON — British regulators said on Tuesday that they had barred a former trader at the Dutch lender Rabobank from the securities industry after he pleaded guilty to criminal charges in the United States last year related to a conspiracy to manipulate a global benchmark interest rate.

The Financial Conduct Authority of Britain said Paul Robson, 45, had been barred from working in the British financial services industry for “lacking honesty and integrity.” The ban was put in place on Feb. 27, the regulator said.

In August, Mr. Robson pleaded guilty to conspiracy to commit wire and bank fraud in the United States District Court for the Southern District in Manhattan and admitted to misconduct related to the bank’s submissions of the London interbank offered rate, or Libor, as it was tied to the Japanese yen. He is set to be sentenced in 2017.

Read on.

Citibank To Exit Argentina Custody Business Under Pressure

Law360, New York (March 17, 2015, 12:15 PM ET) — Citibank N.A. on Tuesday said its Argentina branch will exit the custody business following threats from the Argentine government after a federal judge in New York barred the bank from paying out on bonds subject to a bitter $2.3 billion dispute with a U.S. hedge fund.

In a letter to U.S. District Judge Thomas Griesa of the federal district court in Manhattan, Citibank said that it had been subject to repeated threats that the government of Argentina would pull its operating license and bring civil and…

Source: Law360

J.P. Morgan Buyer of $45 Billion Ocwen Servicing Rights -Bloomberg

J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.) is buying the servicing rights to $45 billion in home loans from Ocwen Financial Corp.(>> Ocwen Financial Corp), Bloomberg News reported Tuesday on its website, citing a person familiar with the transaction.

Earlier this month Ocwen announced it had signed a letter of intent to sell a loan servicing portfolio of that size, but did not identify the buyer. The buyer is J.P. Morgan, the person told Bloomberg.

Read on.

Banks Say “Thanks for the Bailout,” Now We’ll Park our Profits in Overseas Tax Havens

Giant financial institutions that benefitted from federal bailouts during the depths of the recession have repaid the American people’s largesse by hiding profits overseas to avoid paying their fair share of taxes.

According to a report (pdf) commissioned by Senator Bernie Sanders (I-Vermont), four big banks—Citigroup, Goldman Sachs, Bank of America and JPMorgan Chase—which received massive amounts of money and loan guarantees to keep them afloat in the wake of the financial crisis, park large amounts of money in tax haven nations.

Citigroup got the most help of the four in the bailout, $2.5 trillion. That company has at least 427 offshore divisions where it squirrels away profits out of reach of the American people. Those funds, as of early 2014, totaled $43.8 billion, which would mean $11.7 billion in tax revenue for the United States if they were brought to this country. Citigroup CEO Michael Corbat was rewarded with $1.5 million in salary, $4.5 million in bonuses and $8 million in stock for his work in 2014.

Bank of America received a $1.3 trillion bailout from the American people. In 2014, it had $17 billion in profits stashed offshore, which would bring $4.3 billion in funding for education, infrastructure and other badly needed projects in the United States. Bank of America CEO Brian Moynihan made $1.5 million in salary, $13 million in bonuses and $11.5 million in stock in 2014.

JPMorgan Chase got a $416 billion bailout from American taxpayers. That bank has hidden $28.5 billion overseas which would bring in $6.4 billion to the U.S. Treasury. Chase CEO Jamie Dimon was paid $1.5 million in salary, $7.4 million in bonuses and $11.1 million in company stock in 2014.

Read on.

Borrower alleges that Ocwen conducted ‘fraudulent’ modification program, violated RESPA

Case Law
Monday, March 16, 2015

A New York borrower who attempted and failed to modify his mortgage loan payments with Ocwen alleged that in his attempt to modify his mortgage loan, he discovered that Ocwen had more sinister intentions and none of them involved helping him to pay his mortgage. Here’s what the court said.

Source: RESPA News (sub. req.)

Consumer Advocates Concerned Over Non-Borrowing Spouses Facing Foreclosure

A group of consumer advocates has expressed concern over non-borrowing spouses facing foreclosure and eviction following the death of a borrowing spouse, according to comments the group recently submitted totaling 65 pages to the U.S. Department of Housing and Urban Development (HUD).

HUD and FHA amended the Home Equity Conversion Mortgage (HECM) program in January to prevent reverse mortgage lenders from calling the note from a surviving non-borrowing spouse. The amendment allowed for deferral of “due and payment status” for eligible non-borrowing spouses, hence deferring the foreclosure process, for FHA case numbers assigned on or after August 4, 2014 and for certain eligible HECMs and surviving non-borrowing spouses for case numbers issued before August 4, 2014.

Read on.

BRIEF-Judge Griesa rejects Citigroup request to stay order blocking processing of some Argentina bond payments


(Reuters) – Citigroup Inc : * U.S. judge says rejects Citigroup Inc request to put on hold his March

12 decision blocking processing of some Argentina bond payments * U.S. district judge thomas griesa rejects Citigroup effort to put his order

on hold while the bank appeals * Griesa, in a brief order, does not explain reasoning for rejecting Citigroup

request for a stay

Former CFPB executive highlights hot spots in TILA/RESPA

On August 1 the industry will be forced to comply with theConsumer Financial Protection Bureau’s Truth In Lending Act and the Real Estate Settlement Procedures Act.

In order to help lenders better sort through the new world of TILA/RESPA, HousingWire hosted a webinar sponsored by Optimal Blue featuring guest speakers Benjamin Olson, partner at BuckleySandler and former Consumer Financial Protection Bureau deputy assistant director, office of regulations.

Other participants included Jerra Ryan, vice president of compliance with Cherry Creek Mortgage Company and Diane Evans, president of American Land Title Association.

Read on.