Daily Archives: May 18, 2017

Judge questions Wells Fargo’s $142-million class-action settlement over sham accounts

San Francisco federal judge is leaning toward rejecting some of the terms of a $142-million settlement aimed at ending a bevvy of class-action lawsuits against Wells Fargo & Co. over its sham accounts scandal.

In a filing Wednesday, U.S. District Judge Vince Chhabria asked attorneys on both sides for more information about claims made last week by plaintiffs’ attorneys that as many as 3.5 million bogus checking, savings and credit card accounts may have been created by the bank.

That figure is far more than the 2.1 million accounts the bank had estimated when it reached a $185-million settlement with regulators in September.

Read on.

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JPMorgan CEO Jamie Dimon: ‘I’m a patriot’ so I’ll help Trump

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JPMorgan Chase Chairman and CEO Jamie Dimon highlighted several critical issues confronting the United States during the bank’s annual shareholder meeting Tuesday and urged the business community and the Trump administration to come together to find meaningful solutions to these problems.

During Q&A with shareholders, Dimon was asked multiple questions related to his willingness to support President Trump. The CEO is on Trump’s Strategic and Policy Forum.

In the answer to a question related to Trump’s tighter immigration policy, Dimon took a moment to address the elephant in the room that kept coming up.

“He is the President of the United States. I believe he is the pilot flying our airplane,” Dimon said, “I would try to help any President of the United States because I’m a patriot.”

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Lawyer with Responsibility for Mortgage Crisis Appointed to Take Care of Mortgage Banks

NEP’s Bill Black appears on The Real News Network discussing Trump’s appointment of Craig S. Phillips, who contributed to the 2008 financial crisis at Morgan Stanley, to take care of FannieMae and FreddieMac. You can view with a transcript here.

Source: http://neweconomicperspectives.org/

STEVE MNUCHIN’S OLD COMPANY JUST SETTLED FOR $89 MILLION FOR RIPPING OFF THE GOVERNMENT ON DODGY LOANS

FOR FOUR YEARS during Treasury Secretary Steven Mnuchin’s tenure as chair of OneWest Bank, its reverse-mortgage subsidiary Financial Freedom ripped off the government by receiving unlawful federal insurance payments on reverse mortgages, according to an $89 million Justice Department settlement made public today.

Financial Freedom serviced thousands of government-insured reverse mortgages from 2011 to 2016. According to the settlement, the company repeatedly filed insurance claims with the Federal Housing Administration (FHA), and received interest payments, without following program guidelines. This gave Financial Freedom a critical backstop for reverse mortgages that often harmed borrowers.

“This lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said Inspector General for the Department of Housing and Urban Development David Montoya, in a statement accompanying the settlement.

Read on.