Daily Archives: May 13, 2015

“The magnitude of falsity is enormous”: Federal judge rips into banks implicated in 2008 collapse

On Monday, a federal judge ruled, in no uncertain terms, that two banks deliberately misled Fannie Mae and Freddie Mac when it sold them subprime mortages during the housing boom, the New York Times’ Peter Eavis reports.

Judge Denise Cote of the Federal District Court in Manhattan wrote that Nomura Holdings and the Royal Bank of Scotland (RBS) directly contributed to the bond market collapse, then lied about their involvement, writing that “[t]he magnitude of falsity, conservatively measured, is enormous.” Unlike Goldman Sachs and Bank of America, which settled with the government for $18 billion in order to prevent the public from learning about the true extent of their behavior, Nomura and RBS challenged the government — which was not the best idea, according to Judge Cote.

Nomura and RBS “relied, as they are entitled to do, on a multifaceted attack on the plaintiff’s evidence. That attack failed.”

Read on.

JP Morgan Chase To Pony Up $10M To Settle Robocall Class Action

Law360, Los Angeles (May 12, 2015, 10:30 PM ET) — JPMorgan Chase Bank NA has agreed to pay $10.2 million to end a class suit accusing its automotive loan department of violating the Telephone Consumer Protection Act by placing robocalls to over 2 million customers’ cellphones without consent, according to documents filed Tuesday in Illinois federal court.

The deal stipulates that Chase will pay $10.2 million into a non-reversionary settlement fund, of which the roughly 2.2 million class members can expect to receive approximately $45 to $55 each, according to the plaintiffs’ unopposed motion for preliminary…

Source: Law360