Daily Archives: September 2, 2017

Fed’s Dudley Failed to Disclose Sibling Worked at Wells Fargo

  • Outside law firm found no evidence of preferential treatment
  • Ten-year mistake came to light after Hogg quit Bank of England

Federal Reserve Bank of New York President William Dudley was investigated and cleared by an outside law firm for failing to disclose his half-sister’s position as an executive at Wells Fargo & Co., according to an annual disclosure filing.

The omission was deemed to be unintentional, according to the documents. Dudley notified compliance officials and board members at the New York Fed when he realized his error in April, who in turn brought in the law firm to conduct an independent investigation, according to a note with the filing, which was posted on the district bank’s website.

Attorneys at Jenner & Block LLP in New York reviewed thousands of documents including personal emails and text messages and interviewed more than 20 people inside and outside the New York Fed as part of its investigation, according to the firm’s report, which was also attached to the filing.

Read on.

Banker faces no punishment in Bank of America case

NEW YORK — Bank of America Corp.’s Merrill Lynch unit paid $415 million last year to resolve allegations that it misused customers’ cash. On Friday, the US Securities and Exchange Commission finally got around to settling a case against the former bank executive who it said was ultimately responsible.

His penalty was considerably lower: Nothing.

William Tirrell, the former head of regulatory reporting at Merrill Lynch, negligently caused the firm to violate securities rules, the SEC said in an order Friday. The regulator ordered Tirrell to “cease and desist” from any future transgressions.

“The terms of the settlement — no fine, no suspension, no penalty — speaks for itself,” Steven Witzel, Tirrell’s attorney, said in an e-mailed statement. “After four years of investigation by the SEC, Mr. Tirrell is more than ready to put this matter behind him and move on with his life.”

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DOJ Redaction Flub May Undermine Libor Case

Law360, New York (August 31, 2017, 10:54 PM EDT) — U.S. Department of Justice lawyers made a potentially serious error in a Libor-rigging case against a former Deutsche Bank trader Wednesday when they mistakenly revealed the nature of testimony he was compelled to give to U.K. authorities in a separate probe.

The DOJ partially redacted a motion to conceal the content of former Deutsche Bank trader Gavin Black’s testimony before the U.K. Financial Conduct Authority out of concern it could taint the DOJ’s Libor-rigging case against him. But the DOJ lawyers failed to properly excise the…

Source: Law360

Nine years on, another Lehman Brothers bankruptcy

The two affiliates, Lehman Brothers U.K. Holdings (Delaware) Inc and Lehman Pass-Through Securities Inc, were put into bankruptcy as part of a deal that will generate $485 million cash for the Lehman estate, according to court documents.

The affiliates own residential mortgage-backed securities, real estate and stock in First Data Corp (>> First Data Corp), which helps process credit card transactions, among other assets, according to papers filed in the U.S. bankruptcy court in Manhattan. Affiliates of Brookfield Asset Management Inc of Canada (>> Brookfield Asset Management Inc) are buying stakes in the Lehman affiliates, which were put into bankruptcy to carry out the deal.

Administrators have spent years winding down Lehman’s holdings and have distributed around $147 billion to creditors, according to court records.

Read on.