Monthly Archives: July 2017

Jamie Dimon: You Make Us Embarrassed to be Americans

By William K. Black
July 24, 2017     Kansas City, MO

Jamie Dimon talked about his personal pain recently using the exact phrase that many of us have used to explain his personal anguish that “It’s almost an embarrassment to be an American citizen traveling around the world and listening to the stupid sh—t we have to deal with in this country.”  The Wall Street Journal’s Market Watch” described Dimon’s fervor.

“J.P. Morgan Chase & Co.’s outspoken CEO on Friday broke into an impassioned, expletive-tinged rant.”

The WSJ, in the introduction of an online video interview of Paul Gigot, its editorial page editor, termed it a “remarkable diatribe.”

Most United States readers share Dimon’s embarrassment at President Trump’s actions and words and can empathize with Dimon’s rant.  Except, Dimon was not ranting about Trump’s actions and words that have dishonored America and everything that once made America great.  Dimon launched his diatribe because Trump has been too slow in completing the destruction of those things that once made America great.  The WSJ was praising, not criticizing, Dimon when they described his statements as an “expletive-tinged rant” and a “remarkable diatribe.”

Dimon said U.S. growth was held in check by a lack of policy momentum in D.C. that has failed to deliver a spate of pro-growth legislation that could help to boost an otherwise sluggish economy. “We have to focus on policy that is good for all Americans,” Dimon said, speaking Friday morning on a call with reporters to discuss earnings.

When Dimon calls for “policy that is good for all Americans,” one can be sure that he is calling for policies that will be great for Dimon and terrible for nearly all Americans.  The context is that Dimon was complaining that U.S. growth was too slow.

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Bank fraud shows failure of controls, says fraud expert

 

NEP’s Bill Black appears on ABS-CBN news discussing bank fraud and specifically Metrobank loan fraud involving one of its executives.

Major Banks Still on Hook in Interest-Rate Swap Case

MANHATTAN (CN) — A federal judge in New York advanced part of a consolidated lawsuit accusing 12 major banks — including Bank of America, Deutsche Bank and Goldman Sachs — of colluding to rig a $275 trillion market on interest-rate swaps.

An increasingly common and complex form of financial derivatives, interest-rate swaps allow two parties to trade interest-rate-based cash flows on a specific amount of money over a fixed time period.

U.S. District Judge Paul Engelmayer noted in his Friday ruling that this market has ballooned over the past three decades, estimating that its notional quantity grew from roughly $230 trillion in 2006 to $381 trillion by 2014.

Read on.

Gripped with fake-accounts scandal, Wells Fargo cuts 70 senior executive jobs

CALIFORNIA, U.S. – Amid a scandal over fake-accounts in its community bank, Wells Fargo & Co. has said that the division’s new leader is cutting about 70 senior executive jobs.

In a memo sent out to staff on Friday, Mary Mack, head of the retail bank reportedly said that the company will reduce the number of regional and area presidents to 91.

According to reports, the bank’s spokeswoman Bridget Braxton confirmed the contents of the memo and added that employees whose positions are eliminated will remain staff members for 60 days until further steps are decided.

The memo meanwhile highlighted that most of the remaining managers will be re-titled as region bank presidents with direct responsibility for more employees than before.

Read on.

Glancy Prongay & Murray LLP : Commences Investigation on Behalf of Wells Fargo & Company Investors

Glancy Prongay & Murray LLP (“GPM”) announces an investigation on behalf of Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) investors concerning the Company and its officers’ possible violations of federal securities laws. To obtain information or aid in the investigation, please visit the Wells Fargo investigation page on our website at www.glancylaw.com/case/wells-fargo-company.

On July 27, 2017, Wells Fargo disclosed that it would pay approximately $80 million in remediation to customers that may have been financially harmed by the Company’s Collateral Protection Insurance (“CPI”) policies. Wells Fargo stated that “customers may have been charged premiums for CPI even if they were paying for their own vehicle insurance, as required, and in some cases the CPI premiums may have contributed to a default that led to their vehicle’s repossession.”

Read on.

Wells Fargo : faces angry questions after new sales abuses uncovered

4Trade:

Shareholders, analysts, lawmakers and consumer advocates demanded answers about how the situation manifested, and why Wells Fargo did not disclose the problems sooner, given existing turmoil over phony deposit and credit card accounts opened in customers’ names without their permission.

“This is a full-blown scandal — again,” said New York City Comptroller Scott Stringer, who oversees public pension funds that hold roughly 11.6 million Wells Fargo shares. “It’s unbelievable, outrageous, sad, and yet quintessential Wells Fargo. This isn’t just a corporate debacle. It’s caused real human harm.”

Stringer called on the bank to install a new independent chair and “immediately” disclose more information.

Wells Fargo first became aware of potential problems a year ago, when the auto lending business began receiving an unusually high number of complaints, Franklin Codel, head of consumer lending, said in an interview.

The auto insurance program was quickly suspended, and the problem escalated to senior management, the board and regulators, he said. Wells Fargo planned to delay public disclosure until it could notify affected customers and reimburse them.

Treasury Secretary Mnuchin: Do not call me the ‘foreclosure king

 CNN Money:

In a heated exchange with Rep. Keith Ellison, Mnuchin brought up the moniker himself when asked about the thousands of Americans whose homes were foreclosed upon during the great recession.

“I take great offense to anybody who calls me the foreclosure king,” the former Goldman Sachs bankerrebuked.

Ellison then asked Mnuchin what his position was on robo-signing, a term used to refer to the improper foreclosure practices.

“I don’t think you even know what the definition of robo-signing is,” Mnuchin quipped.

“You don’t know what I know,” Ellison punched back.

Rep. Maxine Waters, the top Democrat on the panel, interjected to ask if Chairman Jeb Hensarling “Would like to give the secretary an opportunity to apologize to Mr. Ellison?”

But Mnuchin refused to bite. “I’m not apologizing to anybody because robo-signing is not a legal term and I was being harassed.”

JPMorgan and Goldman Sachs bosses receive $314m windfall, boosted by Donald Trump

Living the thug life…

The bosses of two of Wall Street’s biggest banks received a $314m (£241m) windfall last year as the value of their shares soared after Donald Trump’s victory in the US presidential election.

Jamie Dimon, who is chairman, president and chief executive of JP Morgan, and Lloyd Blankfein, the chief executive of Goldman Sachs, each saw their stock and options rise by more than $150m, new figures compiled by consultancy Equilar for the Financial Times show.

US bank shares jumped in the aftermath of Mr Trump’s win on 9 November, as investors predicted Wall Street-friendly policies and increased spending from the new administration.

Read on.

Barclays bank and former bosses, charged with fraud, to stand trial in January 2019

John Varley, the former boss of Barclays, will stand trial alongside three former colleagues and the bank itself in January 2019, Southwark crown court was told on Monday.

Varley is charged along with Roger Jenkins, Tom Kalaris and Richard Boath over the way the bank raised billions of pounds from Qatar in 2008.

The four men sat alongside each other in the dock at Southwark crown court in London for their first appearance since the high-profile case was transferred there from Westminster magistrates’ court this month. They spoke to confirm their identities.

They are the first senior bankers to face criminal charges in relation to events dating back to the banking crisis almost a decade ago, when Barclays raised £11.8bn in emergency funds from a number of big investors, including Qatar.

Read on.

Pennsylvania AG’s new consumer financial protection unit’s watchdog is former CFPB enforcement lawyer

Housingwire:

According to Shapiro’s office, the state’s Consumer Financial Protection Unit will “focus on lenders that prey on seniors, families with students, and military service members, including for-profit colleges and mortgage and student loan servicers.”

While there is a serious push in Washington, D.C. to blunt, if not do away with the CFPB, Pennsylvania’s Consumer Financial Protection Unit will be led by one of the attorneys that helped found the agency.

According to Shapiro’s office, the state’s new financial watchdog will be run by Nicholas Smyth, who was the CFPB’s fourth employee and served as assistant director of the Office of Attorney General’s Bureau of Consumer Protection (the precursor to the CFPB).

Smyth also helped draft the Consumer Financial Protection Act of 2010 (Title X of the Dodd-Frank Act), which created the CFPB.