Daily Archives: June 27, 2015

EXCLUSIVE: Baron Rothschild indicted in France over fraud case

FRENCH police have been ordered to track down one of Europe’s wealthiest aristocrats over a fraud involving hundreds of British pensioners.

Baron David de Rothschild has been indicted over the allegations after the victims, mostly expats living in Spain, bought into his loan scheme.

The banking magnate will now be questioned in his native France, five years after a Marbella-based law firm began legal action against him.

French police have been told by a judge in Paris to track down the wealthy scion who has various homes in the country.

The case involves his company, the Rothschild Financial Services Group, which stands accused of falsely advertising an equity release loan scheme, bought into by more than 130 pensioners between 2005 and 2008.

Read on.

Homeowner wins DUAL TRACKING issue against OCWEN

Valbuena v. Ocwen Loan Servicing

Court: California Court of Appeal Docket: B256378 Opinion Date: June 19, 2015
Areas of Law: Banking, Real Estate & Property Law
Plaintiffs filed suit against Ocwen after their lender’s purchase of their residence at a nonjudicial foreclosure sale, alleging that Ocwen violated Civil Code section 2923.6, the prohibition on “dual tracking” contained in the Homeowners Bill of Rights, when it conducted a foreclosure sale of plaintiffs’ property while their loan modification application was pending. The trial court sustained Ocwen’s demurrer. However, the court concluded that by alleging the submission of the loan modification application three days after receipt of the Offer Letter, and the transmittal of the additional documents requested by Ocwen on the date of request, plaintiffs have sufficiently alleged that a complete loan modification application was pending at the time Ocwen foreclosed on their home in violation of section 2923.6. Accordingly, the court reversed the judgment of the trial court.

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Libor rigging scandal: German regulator alleges negligence by Deutsche executives

Germany’s Deutsche Bank is facing fresh troubles over the manipulation of London Interbank Offered Rate (Libor), as the country’s financial regulator alleged that the bank’s executives acted “negligently” over the issue.

The Financial Times, citing a report into Libor-manipulation by German financial regulator BaFin, reported that the bank’s outgoing co-CEO Anshu Jain may have “knowingly made inaccurate statements” to Germany’s Bundesbank during a 2012 interview about the benchmark-setting process.

Jain, who stepped down as joint chief executive earlier in June, allegedly told the central bank he had no knowledge of rumours of possible rigging in 2008. Nevertheless, the report says that contemporaneous emails about a meeting on the subject were forwarded to him at the time.

BaFin’s report may lead to further action by authorities on Deutsche Bank, FT added. The report asks for special “banking supervisory measures” for Deutsche.

“I consider the failures with which Mr Jain is charged to be serious,” wrote Frauke Menke, head of banking supervision at the German watchdog, in the report, adding that the co-CEO created an environment “which favoured behaviour involving the exploitation of conflicts of interest.”

Read on.

Citigroup Executive Pressured Brokers Over Libor, Court Hears

A senior manager at Citigroup (C.N) tried to persuade British brokers to “talk down” benchmark Libor interest rates in 2007, a London criminal court heard on Tuesday.

Andrew Thursfield, head of Citigroup’s European risk treasury business, told the jury in the trial of former trader Tom Hayes that the U.S.-based bank had been able to borrow at rates below those posted on trading screens by brokerages.

Thursfield, appearing as a witness for the prosecution, said broker screens were showing Libor rates that the U.S. bank felt did not reflect the full range and width of the market.

In an email exchange with U.S. colleague Scott Bere on Sept. 7 2007 that was shown to the court, Thursfield said: “We will continue to pressure the brokers to talk it (Libor) down and generally press lower than all others…”.

Thursfield is a Citigroup veteran who has spent more than 20 years in the bank’s treasury department.
Read on.

J.P. Morgan, SEC in Settlement Talks Over How It Steers Clients’ Investment

J.P. Morgan Chase & Co. is in talks with the Securities and Exchange Commission to settle a probe into whether the bank inappropriately steered private-banking clients to its own investment products, people familiar with the matter said.

The regulator has been examining whether J.P. Morgan guided clients to its own so-called proprietary products and away from those offered by other firms. A settlement including a fine could happen as early as this summer, the people said, though the size couldn’t be determined.

Read on.

If Cal-Western Reconveyance LLC is closed up, then who’s doing Wells Fargo’s foreclosures?

Robert Reich (How to Punish Bank Felons)

Alina's Blog

What exactly does it mean for a big Wall Street bank to plead guilty to a serious crime? Right now, practically nothing.

But it will if California’s Santa Cruz County has any say.

First, some background.

Five giant banks – including Wall Street behemoths JPMorgan Chase and Citicorp – recently pleaded guilty to criminal felony charges that they rigged the world’s foreign-currency market for their own profit.

This wasn’t a small heist. We’re talking hundreds of billions of dollars worth of transactions every day.

via Robert Reich (How to Punish Bank Felons).

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