Daily Archives: March 16, 2016

Congressman calls on bankers to ‘neuter’ Elizabeth Warren — the ‘Darth Vader’ of Wall Street

Elizabeth Warren pic

Senior House Financial Services Committee member, Rep. Blaine Luetkemeyer (R-MO) told a conference of bankers Wednesday morning that they needed to “find a way to neuter” Sen. Elizabeth Warren, according to Politico. Luetkemeyer was at an American Bankers Association conference in Washington when he made the remark, also calling Warren “the Darth Vader of the financial services world.”

According to Allied Progress, Luetkemeyer is an old friend to the banking and predatory lending industry, receiving more than $1 million in campaign donations from the industry.

He’s also scored more than $63,000 from predatory payday lenders which Senator Warren sought to put out of business with a bill she proposed in 2014 that would replace them with the United States Post Office. Nearly one in ten service members end up taking out loans from these sketchy lenders with high interest rates and end up crushed under the weight of debt. “When these financial predators come after them I feel ashamed for the rest of us,” Warren said on an episode of “Taking The Hill.”

Luetkemeyer sponsored HR 766 last year, a bill that would close a Department of Justice (DOJ) effort that targets unscrupulous lending practices. In 2012, he proposed another bill that would weaken oversight of payday lenders by enabling them to skirt the regulatory authority of Warren’s previous project the Consumer Financial Protection Bureau and state laws that have just as much oversight or stronger.

Read on.

J.P.Morgan, Citi shareholders to vote on potential breakup plans: WSJ

Now that’s a start…

(Reuters) – Shareholders of J.P.Morgan Chase & Co (>> JPMorgan Chase & Co.) and Citigroup Inc (>> Citigroup Inc) will get to vote on whether the two banks should break up into smaller pieces, the Wall Street Journal reported, citing people familiar with the matter.

The question will be included in their proxy filings, and voted on at a shareholder meeting later this year, the Journal reported.

The vote was requested by Bartlett Naylor, a shareholder in both Citigroup and J.P. Morgan, according to the Journal.

J.P.Morgan declined to comment, while Citi was not immediately available for comment.

The breakup of large banks into smaller ones has been an ongoing issue in the U.S. campaign trail.

Read on.

Western NY lawmakers want Citigroup to pay

Former SunTrust employee, Wells Fargo employee sentenced for $2.8 million tax refund fraud scheme

Jeoffrey Jenkins, a former employee of Wells Fargo Bank, and Vaughn Chambers, a former employee of SunTrust Bank, were sentenced for their roles in a two-year long tax refund fraud scheme that generated hundreds of false tax returns and sought more than $2.8 million in fraudulent tax refunds.

According to the U.S. Department of Justice, Jenkins and Chambers, both bank employees, stole personally identifying information from bank customers and used that information to open bank accounts to receive the fraudulent tax refunds.

Read on.

JPMorgan Chase Prepares $1.9 Billion MBS Deal

JPMorgan Chase & Co., is preparing to sell a group of mortgage-backed securities worth nearly $2 billion, the company confirmed toMReport Wednesday morning.

This credit risk transfer is expected to reduce the risk borne by U.S. taxpayers and bring more private capital back into the mortgage market. In addition, this transaction will help restore private-sector securitization, a necessary component of the broader recovery of the housing system in the U.S.

According to Wall Street Journal writer, Emily Glazer, the bank is expected to price the residential mortgage-backed  securities deal over the next two weeks. JPMorgan Chase would hold 90 percent of the deal by holding the safest parts and selling off the riskier pieces to investors, she wrote.

Read on.

Revolving door: JPMorgan Chase appoints a former Obama advisor to lead its burgeoning fintech strategy

Seth Wheeler, a former economic advisor to President Obama, has joined JPMorgan Chase as a managing director leading fintech and innovation strategy, multiple sources told Quartz.

Wheeler will “help lead fintech and innovation strategy at the bank’s Consumer and Community Bank,” according to an email he sent on March 6. “I’m thrilled that I’ll get to work with a talented team in helping JP Morgan Chase refine its strategy in digital banking and consumer lending, digital wealth management, payments, and small business banking,” Wheeler’s email said. He most recently was a guest scholar at the Brookings Institute.

Read on.

CFPB director Cordray: Credit unions misrepresent mortgage success

Consumer complaints also nearing half a million

[Update 1: Includes NAFCU rebuttal to Cordray’s remarks on credit unions.]

The director of the Consumer Financial Protection Bureau, the nation’s most powerful financial services regulator, provided a semi-annual update to the House Financial Services Committee this morning.

So how are things going at the CFPB?

Short answer: The American hate-hate relationship with lenders appears to be growing.

In fact, consumer complaints against lenders and servicers are nearing half a million complaints.

This is so bad, Cordray is reporting that the CFPB is working to improve consumer access to the database, by making it easier and simpler for consumers to complain.

As of September 30, 2015, the database passed 465,000.

The semi-annual report covers April to September 2015. During that time, the CFPB reported $5.8 billion in consumer relief. There is also $153 million in civil money penalties.

The growing number of complaints, however, is not a concern for the esteemed members of Congress. However, identifying and eliminating discrimination in lending became the clear, preferred topic of conversation.

The representatives grilled the director on discrimination in auto loans and payday lending. No less than 5 representatives used their time to grandstand on lending discrimination, basically asking no pertinent questions and talking down to the director.

Read on.