Daily Archives: May 20, 2015

Keller Rohrback L.L.P. Files Class Action Lawsuit on Behalf of Wells Fargo Customers Nationwide

SEATTLE, May 13, 2015 (BUSINESS WIRE) — Attorney Advertising. Keller Rohrback L.L.P. has filed a class action lawsuit against Wells Fargo Bank (NYSE: WFC) alleging the bank victimized its customers by using illegal, fraudulent, and deceptive tactics to boost sales of its banking and financial products.

Wells Fargo has recently been in the news due to allegations of unfair, unlawful, and fraudulent conduct including forcing employees to misuse customers’ confidential information and refuse to close accounts even when customers complained.

The complaint, filed on behalf of a California consumer and other Wells Fargo customers nationwide, includes detailed allegations about Wells Fargo’s “gaming” of customers, including inside information from a current Wells Fargo employee who saw bank employees open unauthorized accounts on a “nearly daily basis.”

“We have heard from Wells Fargo customers in multiple states who have been charged fees or faced collection actions for accounts they did not sign up for,” saidMatthew Preusch, an attorney in Keller Rohrback’s Santa Barbara office.

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Ex-Bank of America executive gets 26 months in prison for muni bond scheme

May 18 A former Bank of America Corp executive was sentenced to 2 years and two months in prison on Monday after pleading guilty to participating in a scheme to defraud cities and towns by rigging bids to invest municipal bond proceeds.

Phillip Murphy, 57, the former managing director of Bank of America’s municipal derivatives products desk, was the last of 17 convicted defendants to be sentenced in a case spilling out of a broad bid-rigging investigation involving the $3.7 trillion municipal bond market.

The investigation resulted in five banks agreeing to pay $743 million to settle with federal and state authorities, including Bank of America, which reached a $137.3 million deal in 2010.

The U.S. Justice Department said Murphy conspired with brokerage CDR Financial Products and others to increase the quantity and profitability of investment and other municipal finance contacts awarded to Bank of America.

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JPMorgan Chase To Challenge Jamie Dimon’s $10 Million In Cash?

JPMorgan Chase CEO Jamie Dimon was paid $20 million last year. Half of his salary was paid in cash. Several shareholders are being encouraged by two major proxy advisory services, Institutional Shareholder Services (ISS) and Glass Lewis & Co, to voice disapproval on how much top executives were paid in 2014 at the company’s annual meeting in Detroit.

According to UBS, “recommendations by ISS are often followed by nearly one-third of votes cast.” The annual meeting will be held at The Westin Book Cadillac Detroit on May 19 at 10am.

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Five Banks Face Combined $5 Billion Bill Over Forex Manipulation — Reuters

Five big banks are expected to face a combined bill of more than $5 billion on Wednesday in a settlement with U.S. and U.K. authorities over currency-market manipulation, Reuters reported Tuesday.

J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.), Citigroup Inc. (C), Barclays PLC (BCS, BARC.LN) and Royal Bank of Scotland Group PLC (RBS, RBS.LN) are expected to plead guilty to U.S. criminal charges related to foreign-exchange manipulation, Reuters reported, citing people familiar with the matter.

UBS AG is expected to avoid a criminal charge after receiving immunity for alerting on the issue, according to Reuters, but it faces a criminal charge over rigging benchmark interest rates, people familiar with the matter said.

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NY regulator Lawsky: New York’s foreclosure system is broken

The state of New York is still facing a massive glut of foreclosures that are choking an over-stressed system and threatening the state’s homeowners, New York Department of Financial Services Superintendent Benjamin Lawsky told the crowd at the Mortgage Bankers Association’s National Secondary Market Conference on Tuesday morning.

“The state’s foreclosure process is broken and badly in need of change,” Lawsky said.

Due to New York’s judicial foreclosure process, a private-label RMBS loan in New York currently spends an averageof 1,498 days in foreclosure proceedings before exiting. That’s up from 1,339 days compared to 2013.

Lawsky told the crowd that the “chronic nature” of the state’s foreclosure problems are not due to new foreclosures, but rather due to the “long tail” of the financial crisis, which sees homes in the state spend more than 900 days in the foreclosure process, which is more than double the national average, Lawsky said.

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