Daily Archives: December 17, 2016

How Bank of America and J.P. Morgan Chase Dodge Taxes In England, Too

And it’s perfectly legal.

Some of the biggest foreign investment and commercial banks operating in Britain paid an average tax rate of just 6% on the billions of dollars of profits they made in the country last year, a Reutersanalysis of regulatory filings shows.

That is less than a third of Britain’s corporate rate of 20%. There is however nothing illegal about how they managed to reduce their taxes, and includes using losses built up during the financial crisis to offset current bills.

Seven of the biggest international banks operating in London—Europe’s main investment banking center—have published profit and tax data ahead of a year-end deadline stipulated by EU law.

Read on.

Deutsche Bank to pay more than $40 million to settle dark pool cases

A unit of Deutsche Bank AG conceded that it misled investors and violated securities laws and will pay more than $40 million to settle charges that it misinformed clients about how it routed orders to anonymous trading platforms known as dark pools, regulators said on Friday.

The bank agreed to pay $37 million to settle charges from federal and New York state regulators, and an additional $3.25 million to the Financial Industry Regulatory Authority (FINRA), Wall Street’s self-funded regulator.

In settling with both the New York Attorney General and the U.S. Securities and Exchange Commission, Deutsche Bank also admitted that its marketing materials about how it routed orders to various dark pools were misleading. The problems were due to a computer coding error, according to the documents related to that settlement.

Read on.

Goldman Sachs to settle U.S. rate-rigging lawsuit for $56.5 million

Goldman Sachs Group Inc (>> Goldman Sachs Group Inc) has agreed to pay $56.5 million (45.22 million pounds) to resolve a U.S. class action lawsuit accusing it and other banks of rigging an interest rate benchmark used in the $553 trillion derivatives market.

The proposed settlement was disclosed in papers filed in federal court in Manhattan on Friday. It came after seven other banks agreed in May to pay a combined $324 million to resolve the litigation.

As part of the deal, Goldman has also agreed to provide lawyers for the plaintiffs evidence including transaction data, documents and witness interviews, which could be used in litigations against the remaining banks, the court papers said.

Neither a spokesman for Goldman Sachs nor a lawyer for the plaintiffs immediately responded to a request for comment late on Friday.

Read on.

Democrats want people’s complaints about Steve Mnuchin, the “foreclosure king”

Senate Democrats, led by Sen. Elizabeth Warren, D-Mass., appear to be showing their hand a bit when it comes to how they plan to handle the confirmation hearing of one of President-elect Donald Trump’s top cabinet nominees.

On Friday, Warren took to Twitter to unleash one of her trademark tirades. This time, the target was Steve Mnuchin, a former executive at Goldman Sachs, the former chairman of OneWest Bank, and Trump’s choice to lead the Department of the Treasury.

And it appears that the Democrats will seek to use Mnuchin’s time at OneWest as part of their case against approving him as Treasury secretary, calling Mnuchin the “foreclosure king” and asking people who may have been “impacted” by OneWest’s practices to share their stories.

Read on.

San Francisco bars Wells Fargo from some city business for 2 years

Wells Fargo & Co., the bank working to contain a scandal over bogus accounts, was suspended from doing some business with its hometown of San Francisco.

The city’s Board of Supervisors on Tuesday suspended the firm for two years from providing services as a broker dealer, in commercial banking and in commercial paper. Themeasure, sponsored by Supervisor John Avalos, also removed Wells Fargo from securities investments and counterparty/repurchasing agreements. San Francisco had barred the lender in September from a banking program for low-income residents.

Read on.