Daily Archives: October 27, 2015

Wells Fargo resolves claim it breached 2010 mortgage pact

Reuters:

Wells Fargo has reached an agreement with homeowners who accused it of reneging on a 2010 settlement over so-called adjustable-payment mortgages issued before the 2007 housing crisis.

Disclosed in a court filing on Friday, the agreement resolves a long-running dispute over Well Fargo’s compliance with the 2010 settlement, which called for the bank to provide up to $2.7 billion in mortgage relief to help borrowers avoid foreclosure. The homeowners are represented by lawyers Jeffrey Berns and Lee Weiss.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/1MoO4mz

Goldman Sachs to pay $50M fine over documents scandal

This time, the revolving door smacked Goldman Sachs on the backside.

Lloyd Blankfein’s bank is expected to pay a roughly $50 million fine and an ex-banker is expected to plead guilty to federal criminal charges that he took confidential documents from the Federal Reserve Bank of New York, The Post has learned.

The civil penalties against Goldman are among the harshest ever levied by New York. The settlement is being ironed out between Goldman and the Department of Financial Services.

Read on.

NYDFS superintendent to step down amid rumors of tension with Cuomo’s office

Anthony Albanese served as chief of staff for Benjamin Lawsky

The acting superintendent of the New York Department of Financial Services will step down later this year, amidst rumors of tension between the NYDFS and the office of New York Governor Andrew Cuomo.

According to a report from Bloomberg, Anthony Albanese, who took over as NYDFS superintendent when Benjamin Lawsky announced his departure earlier this year, will step down himself before the end of the year.

Albanese was Lawsky’s chief of staff, and seen by many as his protégé, but now he too is leaving the NYDFS.

According to the Bloomberg report, the relationship between the NYDFS and Cuomo’s office has become strained recently over the reach of the NYDFS, which wielded a great deal of supervisory power during Lawsky’s reign.

From the Bloomberg report:

Albanese’s departure comes amid rising tensions between the DFS and Cuomo’s office over the independence of the agency, said a person briefed on the matter, who asked not to be identified because the discussions between DFS and Cuomo’s office were confidential. Albanese will leave in December, the person said.

For more than a year, New York’s financial community has lobbied Cuomo about DFS, urging him to rein in what they have said are excessive financial penalties.

Read on.