Nobody would look at how the government handled white-collar fraud cases after the financial crisis, when big bankers who sent the economy into chaos escaped criminal charges and often got promoted, and see some kind of model. Nobody, that is, except for James McDonald, the new enforcement chief at the Commodity Futures Trading Commission (CFTC), an obscure US agency that oversees the $483 trillion derivatives market.
In a Monday night speech in New York City, McDonald announced a new initiative to provide significant benefits to financial institutions that “self-report” crimes and cooperate with investigators. In exchange, he said, companies might see civil penalties slashed, and in some instances, cases dropped altogether. A former federal prosecutor, McDonald noted the idea originated in gang prosecutions—he’s done a lot of those—where it made sense to let individuals report on higher-level colleagues in exchange for leniency.
“We’re committed to giving companies and individuals the right incentives to voluntarily comply with the law in the first place—and to look for misconduct and report it to us when they see it,” McDonald said, according to an official transcript.
In a vacuum, this initiative doesn’t sound that bad. McDonald seems to be committing his agency to real police work: going up the chain to find the highest-level individual who can be prosecuted for wrongdoing. And only those companies disclosing all known facts and continuing to actively investigate—including rooting out those responsible—would be eligible for a reduced fine. Oh, and they would have to make sure the misconduct didn’t happen again, either.
That’s billion with a B….
JPMorgan Chase & Co. was ordered by a Dallas jury to pay more than $4 billion in damages for mishandling the estate of a former American Airlines executive, but the verdict will probably be knocked down on appeal.
Jo Hopper and two stepchildren won the probate court verdict over claims that JPMorgan mismanaged the administration of the estate of Max Hopper, who was described as an airline technology innovator in a statement issued by the family’s law firm.
Large punitive damages verdicts like the one in the Hopper case are often scaled back because the U.S. Supreme Court has ruled they can’t be disproportionate to actual damages. In this case, the jury awarded less than $5 million in actual damages.
Operation Forty Five:
As reported in the Washington Post, new FOIA-obtained documents show the White House National Security Council (NSC) paid over $1,000 for an unidentified guest to stay two nights at Donald Trump’s luxury resort Mar-a-Lago. This payment, made with a U.S. government charge card, constitutes the first documented violation by President Trump of the Constitution’s Domestic Emoluments Clause. President Trump owns 99.99% of Mar-a-Lago, LLC directly, and the company’s profits are held in a revocable trust from which Trump may withdraw funds without restriction.
As the Washington Post writes, Property of the People’s work “offers one of the first concrete signs that Trump’s use of Mar-a-Lago as the ‘Winter White House’ has resulted in taxpayer funds flowing directly into the coffers of his private business.”
Today, we are calling upon the Department of Justice to investigate this constitutional violation.
And here is the NFL Bylaws and Constitution: Clickhere.
Here is our U.S. Constitution -1st amendment:
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
And maybe the President should read the bylaws and constitutions for NFL, NBA, WNBA, NHL, etc. as well as the U.S. Constitution. NFL players aren’t mandated to stand for the national anthem by law.
And maybe Trump should go back reread his January tweet… Hmmm…
Morgan Stanley plans to bring its mortgage origination business in-house, as the bank ramps up the business to create a bigger presence in the mortgage market.
According to the Reuters article by Olivia Oran, Morgan Stanley wants to bring the business in-house to improve customer service and generate more mortgages, citing two people familiar with the matter.
“Morgan Stanley executives hope that handling originations in-house will smooth out the process and give the bank a chance to market other products and services to wealthy clients,” the article stated.
Before bringing the business in-house, Morgan Stanley used PHH Corp. as a third-party provider for its originations.
DALLAS (CN) – CitiFinancial Credit has agreed to pay $907,000 to settle claims it illegally repossessed cars belonging to active-duty service members, federal prosecutors said Monday.
The Department of Justice says at least 164 cars were repossessed between 2007 and 2010 in violation of the Servicemembers Civil Relief Act, which shields members of the military from certain civil actions while they are serving.
“During the investigation, the Department learned that CitiFinancial conducted repossessions without court orders even when CitiFinancial had evidence in its own records suggesting that a borrower could be a protected servicemember,” prosecutors said in a statement. “In several cases, loan servicing notes indicated that CitiFinancial was informed that the borrower was in military service or had received orders to report for military service. CitiFinancial, nevertheless, continued repossession efforts and eventually succeeded in repossessing the servicemembers’ vehicles.”