Daily Archives: April 21, 2016

Voter Grills Clinton: “For The Sake Of Transparency, Are You Going To Release Your Wall Street Transcripts?”

 

Hillary Clinton fields a question from a Sanders supporter about her Wall Street speech transcripts during a town hall event on “Good Morning America” today.

Real Clear Politics:

QUESTION: Good morning, Sec. Clinton. Over the past couple of days — maybe a couple of weeks ago– you were calling on Sen. Sanders to release his tax returns, which he did. And you were calling for more transparency, so for the sake of transparency, and just being fair, are you going to release your Wall Street transcripts?

HILLARY CLINTON: Well that is a good question. It is a very fair question. And let me answer it this way. I have released 33 years of tax returns, and you can go to my website and see the last eight years of my tax returns. That is the standard that has been set for years…

Now there is a new request. To release transcripts of speeches that were given. When everybody agrees to do that, I will as well. It is important we all abide by the same standards. So let’s do the tax return standard first, because that has been the standard for a long time.

GEORGE STEPHANOPOULOS: That’s been your position for several weeks. Do you regret at all giving those speeches?

CLINTON: No, I don’t. I like everybody who served as Sec. of State have a unique perspective. That is why Madeline Albright, and Colin Powell, and Condi Rice. When you leave the Secretary of State office, people from all kinds of perspectives want to know what you think is going on in the world. I think that is actually a useful conversation, like all my predecessors, I gave speeches to a wide variety of groups. It was predominantly about what is going on in the world.

The most common question I was asked was to talk about the raid that went after Osama bin Laden.

Regulators introduce new rules to curb Wall Street pay

NEW YORK—U.S. regulators proposed new rules on Thursday to overhaul the way Wall Street executives are paid, addressing years of complaints that excessive bonuses helped lead to the 2008 financial crisis.

The long-awaited rules are aimed at stopping executives from making risky financial bets to boost their pay and then collecting large bonuses before the fallout is clear. Under the proposed rules, big banks could soon demand the return of an executives’ bonus if their gambles don’t pay off,

The regulations could potentially affect the pay of thousands of bankers and senior executives at some of the country’s largest financial institutions, but public advocates quickly charged that regulators likely didn’t go far enough.

Read on.

Elizabeth Warren calls SEC’s settlement with hedge fund manager Steve Cohen a joke

Sen. Elizabeth Warren reignited her feud with Securities and Exchange Commission chair Mary Jo White — and this time she’s dragging billionaire hedgie Steven Cohen into the middle of it.

Warren (D-Ma.) on Thursday ripped into the SEC for allowing the former SAC Capital chieftain to start a new hedge fund firm just two months after he was barred from managing outside money until 2018.

Cohen’s move has made a “mockery of the SEC’s core mission to protect investors,” Warren wrote in an open letter to White.

In January, Cohen agreed to a two-year ban on managing outside money to resolve allegations of insider trading at his former firm. He didn’t admit to any wrongdoing as part of his agreement with the SEC.

SAC Capital had already paid $1.8 billion to settle civil and criminal charges tied to the long-running investigation. After the plea deal, Cohen converted SAC into an $11 billion “family office,” Point 72, which mostly manages his huge personal fortune.

Read on.

Three major nonbank mortgage servicers; Only one is profitable

The common view that nonbanks are taking over the mortgage space from the big banks in a meaningful way is being muted by a harsh-reality report from Moody’s Investors Service.

While nonbanks continue to make decent inroads on the originations side of the business, it’s the servicing side that’s proved more of a struggle.

According to a Moody’s review of 2015 financials at the three largest US non-bank mortgage servicers — Nationstar Mortgage, Ocwen Financial andWalter Investment Management — only one was profitable.

Read on.

Department of Justice loses another one of its top cops on mortgage fraud

Less than a month after Stuart Delery, the third in command at the Department of Justice and leader of the DOJ’s investigations into the conduct of banks during the financial crisis, announced he was stepping down, the DOJ is about to lose another of its big guns in the fight against mortgage fraud.

The DOJ announced Wednesday that Benjamin Wagner, who served as the U.S. Attorney for the Eastern District of California and spent five years as a co-chair of the Mortgage Fraud Working Group of the President’s Financial Fraud Enforcement Task Force, is resigning at the end of April.

Read on.

U.S. Attorney Preet Bharara sent a letter to the International Consortium of Investigative Journalists (ICIJ) finding wrongdoing by U.S. firms and individuals connected to Panama Papers

Letter from the Department of Justice to the International Consortium of Investigative Journalists stating they have opened an investigation. Photograph: US Department of Justice.

 

Judge sets hearing for May 27 in Trump University lawsuit

 

The Washington Post’s bid to unseal documents filed in a class-action case against Trump University will get a hearing in May.

Earlier this month the newspaper asked a San Diego District Court to unseal hundreds of pages of documents in the case against GOP presidential front-runner Donald Trump. The Post argued the lawsuit filed by former Trump University students has become a campaign issue and the documents should thus be available to the public.

 

Former students allege Trump University pitched them expensive real estate coursework, sometimes amounting to tens of thousands of dollars, for real estate seminars where students learned little. Trump has denied the claims and said students overwhelmingly approved of the school.

“This case focuses on allegedly deceptive commercial practices by a leading presidential candidate whose claim to be qualified for the presidency hinges on his business record,” the Washington Post argued in a filing. “Plaintiff’s allegations in this case, and the lawsuit itself, have become prominent campaign issues,” which makes the need for transparency in the case paramount. The hearing on the Post’s request is scheduled for May 27.

Read more: http://www.politico.com/story/2016/04/donald-trump-university-lawsuit-222227#ixzz46RKJtm4q