Daily Archives: August 8, 2016

Prosecution says ex-Wall Street banker lied in insider trading trial

U.S. prosecutors on Monday sought to brand a former Wall Street investment banker as a liar after he took the stand in his own defense to deny engaging in a years-long insider trading scheme with his father.

In her closing argument, Assistant U.S. Attorney Sarah McCallum urged a federal jury in Manhattan to reject a “web of lies” conveyed during testimony by Sean Stewart, an ex-banker at Perella Weinberg Partners and JPMorgan Chase & Co.

While Stewart, 35, had testified that he never intended to help his father profit through insider trading, McCallum said evidence, ranging from emails to trading records, and the testimony of a cooperating witness showed his testimony was “ridiculous.”

“This is no place for stories,” she said. “It is a place for evidence.”

Martin Cohen, Stewart’s lawyer, sought to show his client’s story was supported by evidence.

While Stewart may have in violation of his employers’ policies by speaking with his family about confidential matters at his work, Cohen said, he never did so intending to help his father, Robert Stewart, to illegally trade on the information.

Read on.

Elizabeth Warren tweets responses to Trump’s economic plan speech

Housingwire:

But for now, Trump did talk about regulations, and how they are suffocating the economy. To prove it, he cited the low homeownership rate, which is in fact at itslowest rate since 1965.

So what will he do about it? He said if he is elected he will immediately stop all new regulations from agencies. During that time, he’ll analyze current regulations and their effect on the economy.

In July, at the Republican National Convention, the Republican Party approved its 2016 party platform, which included changing the structure of the Consumer Financial Protection Bureau.

The platform also reiterated several points of the recently released Republican-crafted plan to repeal and replace the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Of course, the architect of Dodd–Frank doesn’t agree with these notions to dismantle it.

And here are some of Sen. Warren’s tweets in response to Trump’s economic plan:

 

  1. .‘s economics plan is all about helping rich guys like Donald Trump get richer – & leaving everyone else behind.

  2. Even ‘s childcare plan gives billionaires w/ a nanny a tax break while millions of low-income households get nothing.

  3. And taxes? wants billionaires & giant corps to pay EVEN LESS – so there’s less money for ed, infrastructure & research.

  4. Cheating customers & gaming the system might be your business, , but it’s not the way America is going to do business.

  5. Trump gets advice from Bear Stearns’ fmr chief economist. So : did BS need FEWER regs when they helped crash our economy?

  6. W/o rules, , too many huge banks juiced profits by cheating ppl on mortgages, credit cards, etc, then crashed our economy.

  7. A “moratorium” on agency regulations means stopping new rules on shady payday lenders & too-big-to-fail banks, .

  8. “Cut regulations massively,” ? No rules & no accountability means people get ripped off & markets blow up. Remember 2008?

  9. .‘s econ plan was written by rich corporate insider advisors to make the economy even greater for rich corporate insiders.

Fannie, Freddie Could Need as Much as $126 Billion in Crisis

  • Regulator’s stress test subjects companies to severe downturn
  • Companies would still have $132 billion in funding remaining

Fannie Mae and Freddie Mac could need as much as $125.8 billion in bailout money from taxpayers in a severe economic downturn, according to stress test results released Monday by their regulator.

The Federal Housing Finance Agency said that the government-controlled companies, which back nearly half of new mortgages, would need at least $49.2 billion.

The annual test, required by the Dodd-Frank Act, is likely to be used both by proponents of allowing Fannie Mae and Freddie Mac to build capital and by those who think there’s not an urgent need for the government to take that move.

Read on.

Tim Canova files FEC complaint today against Wasserman Schultz

 

Bernie Sanders’ Our Revolution is hosting an event on August 24

Live stream event will be August 24 at 9 pm ET.

Trump’s Big Economic Policy Address Is Short On Specifics, Other Than Help For Wealthy

Huffington Post:

Trump’s campaign on Monday pulled down his old tax plan from his website, and replaced it with the text of his Detroit speech. The original plan would have capped income taxes at 25 percent and long-term capital gains and dividends at 20 percent, while adding $12 trillion to the national debt.

In its place, Trump offered the same basic ideas, with some slightly shifted details. More details, he said, would be provided “in the coming weeks.”

He also offered some of his usual refrains: Trump lamented that the country had strayed from an “America First” policy; bemoaned that skyscrapers had been built in Beijing and refugees had been accepted into the U.S.; and called the unemployment rate a hoax.

“All of our policies should be geared towards keeping wealth inside the United States,” he said.

Trump is struggling in the polls after spending the last several days insulting the Gold Star family and refusing to endorse prominent Republicans for office.

Barclays reaches $100 million U.S. Libor settlement – NY attorney general

Barclays (>> Barclays PLC) has reached a $100 million (£76.70 million) multi-state settlement over charges that it manipulated the Libor and Euribor interest rate benchmarks, New York Attorney General Eric Schneiderman said on Monday.

The settlement with 44 states marks the latest in a series of enforcement actions the bank has faced in connection with Libor manipulation.

Barclays is the first of several banks under investigation by state attorneys general to reach a settlement, Schneiderman said in a statement, adding that the bank cooperated with the multi-state probe.

He said government entities and non-profits were “defrauded of millions” when they entered into swap contracts with Barclays as a result of the rate-rigging.

In 2012, Barclays reached a $453 million agreement with the U.S. Justice Department, the Commodity Futures Trading Commission and British authorities to settle parallel charges.

As part of its agreement with the Justice Department, Barclays admitted to wrongdoing that occurred between August 2005 and May 2008, when some of its traders called their counterparts at competing institutions and colluded to submit Libor rates that benefited their trading positions.

“Barclays is pleased to have resolved the state attorneys’ general investigation into Barclays’ legacy LIBOR- and Euribor-related activities,” a Barclays spokesman said.

“We believe this settlement is in the best interests of our shareholders and clients, and allows us to continue to focus on the future and serve our clients.”

Read on.