Daily Archives: August 21, 2016

Goldman Sachs : seeks to force ex-employee in Fed leak case to arbitrate

Goldman Sachs Group Inc filed a lawsuit on Thursday seeking to force a former managing director to arbitrate his claim for legal fees stemming from probes into his alleged use of confidential Federal Reserve documents.

The lawsuit was filed in New York state Supreme Court in Manhattan against Joseph Jiampietro, an ex-Goldman employee whom the Federal Reserve Board this month brought an enforcement case against.

Goldman’s lawsuit came after Jiampietro in July sued the bank in Delaware Chancery Court seeking to force it to cover at least $350,000 in legal expenses stemming from probes by the Federal Reserve and the Financial Industry Regulatory Authority in 2015.

Adam Ford, a lawyer for Jiampietro, in a statement called Thursday’s lawsuit “a classic example of inappropriate forum shopping” by Goldman Sachs to delay advancing his client’s defense fees.

The Fed brought enforcement proceedings against Jiampietro on Aug. 3, the same day it announced a $36.3 million settlement with Goldman Sachs for the unauthorized use and disclosure of confidential information.

Read on.

Deutsche Bank’s Stock Drops as Whistleblower Says Executives Should Pay

Great idea!

The Street:

Deutsche Bank  (DB) fell sharply Friday as the beleaguered bank took another hit, this time from a whistleblower who says that its executives should foot the bill for an $8.25 million award to him granted under U.S. law.

The stock slid 3.4% to $13.50 in afternoon trading in New York. Before today, the Frankfurt-based bank’s shares had fallen 44% this year, far worse than the KBW Bank Index, as litigation expenses mounted into the billions amid allegations of financial misconduct, including manipulation of its balance sheet; working with countries under American sanctions; and manipulating global benchmark interest rates.

Whistleblower Rejects Award to Protest SEC and Wall Street’s “Looting”

What guts!

‘After suffering at the hands of the Deutsche [Bank] executives I will not join them simply because I cannot beat them’

A Deutsche Bank whistleblower rejected his portion of a $16.5 million award for exposing corporate crime because the Securities and Exchange Commission (SEC) let bank officials off the hook, he said Thursday.

Former risk manager Eric Ben-Artzi, who went to federal authorities in 2010 after he was fired from Deutsche Bank for alerting its officials of improper accounting, said the bank and the SEC were so deeply entwined in a revolving-door culture that commissioners refused to properly investigate the firm’s top executives.

“This goes beyond the typical revolving door story. In this case, top SEC lawyers had held senior posts at the bank, moving in and out of top positions at the regulator even as the investigations into malfeasance at Deutsche were ongoing,” Ben-Artzi wrote in an op-ed for the Financial Times.

Instead, the punishment fell on the bank’s rank-and-file employees, he said, with the SEC imposing a perfunctory $55 million fine on the institution that sent the shareholders and workers out the door and left top executives untouched.

Read on.

Morgan Stanley accused in lawsuit of mismanaging its 401(k) retirement savings plan

Even Wall Street workers are unhappy with how their retirement plans are run.

A participant in Morgan Stanley’s 401(k) plan filed a lawsuit Friday in U.S. District Court in New York alleging that it offers investment options that have too-high fees and poor track records, including some mutual funds run by Morgan Stanley itself. The suit accuses the $8 billion plan of causing “hundreds of millions of dollars” in losses for its roughly 60,000 participants.

Morgan Stanley declined to comment on the lawsuit.

Friday’s suit is the latest in a lengthening string of complaints about high fees and poor investment choices at 401(k) and 403(b) retirement plans around the country. Franklin Templeton’s 401(k) plan was hit with a similar suit last month, for example. Participants filed suits against the Massachusetts Institute of Technology, New York University and Yale University earlier this month.

Read on.

Trump says he will introduce reforms to legalize some undocumented immigrants

Will be interesting what Trump supporters on Capital Hill will say on this latest by Trump since GOP Congress have been fighting and haven’t address immigration reform and don;t want legalization of undocumented immigrants.

Sources tell Univision that the announcement is coming this week. The Republican candidate spoke Saturday at a meeting with Hispanic leaders where he also said he regrets comments about Mexicans.

Republican presidential nominee Donald Trump plans to present an immigration plan in Colorado Thursday that will include legalizing millions of undocumented immigrants, according to three people present at a meeting the candidate attended Saturday with Hispanic leaders at Trump Tower in New York.

“I really liked that Trump acknowledged that there is a big problem with the 11 million [undocumented] people who are here, and that deporting them is neither possible nor humane,” said Jacob Monty, a Texas immigration lawyer who attended the meeting.

Lee esta nota en español

“The candidate also said he would announce a way to give them [legal] status that wouldn’t be citizenship but would allow them to be here without fear of deportation.” said Monty, adding that Trump told the group that he planned to announce the plan this week.

Read on.

Trump’s companies have at least $650 million in debt to Bank of China, Goldman Sachs, others

Interesting that Trump owes debt to the Bank of China…

Click here to read article: http://nyti.ms/2bq2RyH

The Bern Is Back: Bernie Sanders And His Big Rallies Are Returning To Put The Final Nail In Trump’s Coffin

Coming to a swing state near you…

The big Bernie rallies are returning, but this time, Sen. Sanders will be campaigning in swing states to get Hillary Clinton elected president.

According to The Washington Post:

Sanders, who endorsed Clinton last month, ticked off a list of states that he is likely to hit in coming weeks, including some where he won primaries and caucuses (New Hampshire, Maine, Michigan and Wisconsin) and some where he fell short but ran strongly among key segments of the electorate (Ohio, Pennsylvania and Nevada).

….

Sanders said that during some of those visits he will also campaign on behalf of Democratic Senate candidates, including Katie McGinty in Pennsylvania, Ted Strickland in Ohio and Maggie Hassan in New Hampshire. He is also planning to campaign for other progressive down-ballot candidates, he said.

Read on.