Daily Archives: December 11, 2015

Citigroup Trader Fired Over Currency Probe Sues in Singapore

A former Citigroup Inc. trader fired over claims she and a colleague colluded to rig the currency market sued the bank in Singapore for wrongful dismissal.

Tian Yuhui, fired the day she returned to work after a four-month maternity leave, is suing for loss of income, deferred stocks and cash awards and for her job to be reinstated, according to a lawsuit filed in August at the Singapore High Court. She’s also asking Citicorp Investment Bank (Singapore) Ltd., the bank’s local unit, to rescind “adverse notifications” sent to regulators.

Citigroup was entitled to terminate the currency spot options trader in May, the bank said in its defense filed with the court in October. The bank in a 2014 internal probe uncovered five chats from 2011 to 2013 with a Japanese colleague, according to court papers. The bank claims the chats revealed her “intention to trade with a view to affect or manipulate” the U.S. dollar-Japanese yen spot price around the time of the 3 p.m. Tokyo fix, a key currency market benchmark.

Read on.

Workers respond to Bank of America’s “spin” on layoffs

WKTV.com:

Bank of America officials say new jobs are coming here to the call center on Horatio Street and while that might be true, the 250 current employees will soon be out of a job and not guaranteed one of those new ones.

Those employees were told they would have to reapply for the new jobs, and they are hearing the jobs won’t be the same and the pay won’t be as high.

The wife of one worker took to social media saying:

“Your recent press release is slightly misleading.  My spouse received a phone call today that changed the future for our family. It should say we are sorry this is in the best interest for the company.  Don’t lie….don’t make it out to be some grand hiring spree….great for our local economy.   It’s not. These people will make less, spend less.”

Several employees reached out to us saying the same thing but were told they could not go on camera or they would lose their severance package. The message below was sent to us via Facebook.

– See more at: http://www.wktv.com/news/Workers_respond_to_Bank_of_Americas_spin_on_layoffs.html#sthash.RDmTF392.dpuf

Bank of America confirms 250 employees will be laid off in June

UTICA, NY– UPDATE: Bank of America officials are now saying 250 employees at the call center in Utica are being laid off.

The workers were told this week that the company is not closing the doors; however, they will be expanding the call center with 400 new jobs.

These 250 workers are not guaranteed one of these jobs though, and they need to reapply for a spot in the expanded center.

We’ve heard from some workers who are upset that the company is making this look like a good economic move for the region. They say these new jobs will be for less money and feel the company is bringing this bad news at the worst time – two weeks before Christmas.

We’re told the current employees will retain their jobs through June.

– See more at: http://www.wktv.com/news/Bank_of_America_claims_Utica_call_center_is_expanding.html#sthash.Dy4Qyt20.dpuf

Star of ‘The Big Short’ backs new mortgage venture

Up until the motion picture The Big Short, which is based on the best-selling book by Michael Lewis, the name Michael Burry was probably unfamiliar to most people.

The comedy motion picture flashes back to the 2008 timeframe where the subprime debacle was just taking hold.

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One of the characters is Michael Burry, played by Christian Bale. According to an article in CNBC, Burry made a fortune in last decade’s financial crisis by betting that the housing bubble would burst, is also gaining a following north of Hollywood, as a Silicon Valley tech investor.

Now, in 2015, the article explained his latest venture. Burry is an early investor in PeerStreet, an online marketplace for real estate-backed loans.

From CNBC:

PeerStreet’s mission is to open up a particular segment of the real estate market — residential, typically non-owner occupied — to a wider swath of investors, thus adding capital to the system and ultimately bringing down borrowing costs.

“What happened in the crisis is there was practically no underwriting — if something could be sold it would be made,” Burry said in an interview. “It’s important for the next-generation alternative lending model that there be controls in place. There’s somebody at the door checking for excess credit risk.”

Read on.

Golden Globe nominations prove you need to see The Big Short

The financial crisis struck a chord with Hollywood this year as two major motion pictures were listed in the nominations for the 73rd Golden Globe Awards, which were announced early Thursday morning.

The Big Short was one of three motion pictures to lead the nominations for the 73rd Golden Globe Awards, which were announced early Thursday morning.

The comedy motion picture flashes back to the 2008 timeframe where the subprime debacle was just taking hold.

The cast of characters bet against the big banks, and potentially, the American economy to get rich while the Empire crumbled.

Add in a couple of Hollywood A-listers and you get The Big Short movie, based on the book by Michael Lewis.

Golden Globe nominations for The Big Short include:

  • Best motion picture – musical or comedy
  • Best performance by an actor in a motion picture – musical or comedy – Christian Bale
  • Best performance by an actor in a motion picture – musical or comedy – Steve Carell
  • Best screenplay – motion picture – Charles Randolph, Adam Mckay

Read on.

Morgan Stanley reaches $225 million settlement with NCUA

Morgan Stanley (MS) reached a settlement with theNational Credit Union Administration for $225 million in order to resolve claims arising from losses related to corporate credit unions’ purchases of faulty residential mortgage-backed securities.

This is the most recent in a string of settlements from NCUA.

n 2013, the NCUA filed suit against Royal Bank of Scotland (RBS), Morgan Stanley (MS) and eight other institutions over the sale of nearly $2.4 billion in mortgage-backed securities to U.S. Central Federal Credit UnionWestern Corporate Federal Credit Union,Members United Corporate Federal Credit Unionand Southwest Corporate Federal Credit Union.

In October, Barclays (BCS) and Wachovia, now a part of Wells Fargo (WFC), said they would pay a total of $378 million to NCUA as part of two separate settlements stemming from losses related to purchases of residential mortgage-backed securities.

And in September, RBS agreed to a $129.6 million settlement with the NCUA over similar claims.

Read on.

New House bill would end ‘FICO monopoly’ at Fannie Mae, Freddie Mac