Daily Archives: August 26, 2015

Deutsche Bank Libor Traders Said to Be Interviewed by SFO

U.K. prosecutors have interviewed current and former Deutsche Bank AG traders in recent weeks as a possible precursor to more charges in the Libor probe, according to two people with knowledge of the situation.

A number of traders have been questioned by investigators at the Serious Fraud Office about the manipulation of the London interbank offered rate and its euro counterpart, said the people, who didn’t want to be identified because the interviews were private. At least one banker was interviewed under caution, meaning any statements can be used against them in court, said one of the people.

Deutsche Bank paid a record $2.5 billion fine and fired seven employees to settle U.S. and U.K. investigations over its role in rigging Libor in April. Some traders are also facing individual fines from the U.K. Financial Conduct Authority, with a number of the sanctions on hold until later this year while the SFO decides if it wants to prosecute.

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Alabama Restaurant Owners Claim Wells Fargo Won’t Fix Issue That Cost Workers $30K In Tips


An Alabama restaurant has plastered signs around a Mobile neighborhood accusing Wells Fargo of being run by liars, after the bank reportedly cost employees of the establishment tens of thousands of dollars in tips and refused to remedy the situation.

AL.com reports that in an attempt to make others aware of what he claims is “corporate bullying,” a local business owner hung signs declaring “Wells Fargo: LIARS” on several establishments in the Mobile area.

The man says the signs were created after the bank refused to fix a mistake in its system that cost his employees $29,400 in tips.

The issue began four years ago, when the man and his brother – who own several businesses in the area – moved their credit card processing system to Wells Fargo.

The man claims that during the transfer process Wells Fargo incorrectly entered the business into the system as retail, rather than tip service.

As a result, the tips customers left on their credit card bills were not going to the business’ servers.

Wells Fargo’s response?:

A spokesperson for Wells Fargo tells AL.com that the company has repeatedly reviewed the credit card processing situation.

“We believe we have acted appropriately to resolve this situation. Wells Fargo worked with [the owners] in the spring of 2011 to resolve issues involving his credit card processing,” the spokesperson says. “While the underlying error that led to this issue was not caused by Wells Fargo, we worked diligently to assist [the owner] and his business in the resolution of this situation. We take customer privacy seriously and therefore cannot discuss further details of his account.”

JPMorgan Chase class action settlement: to pay $34 million for unsolicited robocalls

Did you get an automated call from JPMorgan Chase on your cell phone?

Allegations are the company made unsolicited robocalls to cell phones, which is illegal. Now they are settling a class action lawsuit, and you could get up to $50 back if you qualify.

JPMorgan Chase does not admit any wrongdoing.

Do you qualify for the JPMorgan Chase settlement ?

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‘Thousands’ of political figures stashing cash in Swiss accounts, says foreign ministry

Thousands of so-called “politically exposed persons”, or PEPs – a category that includes heads of state and other top officials – hold Swiss bank accounts, a Swiss foreign ministry official said.

Swiss authorities estimate that “there are thousands of PEPs [with accounts] in Switzerland, not hundreds,” Valentin Zellweger, who heads the ministry’s Directorate of International Law, told reporters on Monday.

Switzerland has repeatedly been embarrassed by revelations, splashed across front pages worldwide, of global political heavyweights hiding funds – sometimes embezzled from public coffers – in the Alpine nation’s famous banks.

But the country has not taken such scandals sitting down: it has been freezing suspicious assets for a quarter century.

By the end of this year, Bern aims to finalise a law aimed at simplifying the process of freezing and unblocking such funds.

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Progressives Demand Answers From Clinton on Golden Parachutes for Wall Streeters-Turned-Government Officials

A coalition of eight progressive organizations, using material previously published at The Intercept, have challenged Hillary Clinton to disavow the use of “golden parachute” bonuses for former Wall Street executives who enter government service.

In a letter to the Clinton campaign delivered today, the organizations, including Rootstrikers, Democracy for America, CREDO and MoveOn.org Political Action, refer to two top aides to Clinton when she served as secretary of state, Thomas Nides and Robert Hormats. As The Intercept reportedin July, Nides and Hormats received millions of dollars in golden parachute payments from their respective ex-employers, investment banks Morgan Stanley and Goldman Sachs, after becoming Clinton’s deputies.

Goldman Sachs paid out Hormats’ unvested restricted stock units, valued between $250,000 and $500,000. Morgan Stanley’s accelerated payout for Nides of restricted stock units was worth between $5 million and $25 million. Deferred compensation awards like these would have been forfeited, had the executives left their jobs for somewhere other than the government.

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Family gives up hope of finding missing Realtor alive

For those who are realtors, be careful out there. I am reading more stories of realtors that are being murdered, attacked, and/or kidnapped.

The family of the Arizona Realtor missing since mid-June is giving up hope on finding Sidney Cranston alive.

Cranston, was last seen on June 16 when he reportedly went to show an unknown property to an unknown client near Kingman, Arizona, about 100 miles southeast of Las Vegas.

In an emotional and raw interview with Doug McMurdo of the Daily Miner, the family members say that they are at the point of asking hunters, particularly those who will be in the Hualapai Mountains, to be on the lookout for the 40-year-old man’s remains.

Cranston’s disappearance is still an active investigation, local authorities say. But the family isn’t optimistic.

“We have to be realistic,” said Chris Cranston, Sid Cranston’s brother, from his home in North Carolina. “They’re obviously not going to find him alive, sitting down drinking a bottle of water.”

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Wells Fargo told R.I. it didn’t owe a payment on building notes; it did

PROVIDENCE, R.I. — With Wells Fargo Securities still a target of the state’s legal fight to recover its 38 Studios losses, another subsidiary of the huge financial-services company — Wells Fargo Bank — had a role in the state’s recent default on a principal payment due on a portion of the $30.4 million borrowed to build a new School for the Deaf.

In the 38 Studios lawsuit, the state’s lawyers allege Wells Fargo withheld information that would have warned decision-makers at the state’s Economic Development Corporation that 38 Studios was so under-capitalized it was likely to “go out of business in 2012,” while Wells Fargo Securities  “secretly” was receiving $473,912 from 38 Studios to help it get financing. Wells Fargo has denied culpability.

The more recent incident is described as an “unintentional late principal payment” that came to light in a July 22 offering statement for an unrelated refunding bond. Had the state controller not discovered the lapse in time to make amends, the state would have had to pay the $25.2 million outstanding on the School for the Deaf notes, in full, immediately.

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‘Wells Fargo LIARS’: Fed up with service, Mobile bar owner sticks it to big bank

Mobile restaurant owner Jim Walker has a simple message for Wells Fargo: LIARS.

That’s the message he displayed a little more than two weeks ago in a banner hung outside one of his businesses, the OK Bicycle Shop, located at Dauphin Street and Washington Avenue.

Since then, Walker had raised the same banner above the Alchemy Tavern and a building near the Hardee’s in downtown Mobile. He is also planning to hang a similar banner over a bridge that’s facing Interstate 10 during Labor Day weekend for maximum exposure.

He said that several bad experiences he has had with the bank, which has $1.4 trillion in assets, inspired him to create the sign.

“At some point the consumer is going to have to stand up,” Walker said. “They are corporate bullies that are endorsed by the federal legislature. They are given unlimited power and this is the way they treat people.”

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Ex-JP Morgan Analyst, Friends Charged With Insider Trading

Law360, New York (August 25, 2015, 4:50 PM ET) — An ex-JP Morgan Securities LLC analyst and two of his friends were taken into custody Tuesday morning after a federal grand jury indicted them on insider trading charges for an alleged scheme that earned them more than $600,000 in illegal profits, the U.S. Department of Justice said.

Former JP Morgan Securities analyst Ashish Aggarwal is alleged to have disclosed nonpublic information about upcoming mergers and acquisitions involving publicly traded companies that were JP Morgan clients to friends Shahriyar Bolandian and Kevan Sadigh between June 2011 and…

Source: Law360

USA Discounters Seeks Bankruptcy Protection

USA Discounters Ltd., a retailer accused of misleading U.S. service members, filed for bankruptcy protection and plans to wind down its business.

Until recently, USA Discounters sold furniture, appliances, electronics, jewelry and other products from stores located near military bases, often financing such purchases through its own credit program. The company cited the tough retail climate, a defaulted loan and various governmental actions regarding its operations as factors for the chapter 11 filing.

Last year, the retailer agreed to pay a $50,000 civil penalty to the Consumer Financial Protection Bureau and to stop charging military customers a fee to obtain certain financial protections, following an investigation by the agency. USA Discounters didn’t admit or deny any wrongdoing.

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