Daily Archives: January 21, 2018

Former banker sues Wells Fargo, says he blew whistle on mortgage practices

A former Wells Fargo mortgage banker in Beverly Hills who was fired and later fined by federal regulators has sued the bank, saying he was used as a scapegoat and that regulators ignored his attempts to report bad practices.

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David Eghbali, who had been one of the bank’s top mortgage bankers, said the bank fired him improperly as part of a scheme to focus investigators “on David’s possible minor violations … and away from Wells Fargo’s own predatory mortgage pricing policies.”

Apple Transfers $252 Billion in Citigroup Account from Irish Subsidiary to Parent Company

This is what bringing money back to the United States means. Under the old tax law, companies often attributed legal control of profits to foreign subsidiaries, so that they could defer paying taxes on this money. However, the money was often actually held in the United States since Apple could tell the subsidiary to keep the money wherever it wanted.

For this reason, the economic significance of bringing the money back to the United States is almost zero. The legal change of ownership is leading to the collection of taxes, but this is in lieu of the considerably larger tax liability that Apple faced under the old law.

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CFPB Signals Shift by Dropping Payday Lender Lawsuit

The Consumer Financial Protection Bureau is dropping a lawsuit against a group of payday lenders associated with an American Indian tribe in a sign the regulator is changing direction under Mick Mulvaney, the acting director appointed by the Trumpadministration.

The agency had accused the lenders of deceiving consumers and failing to disclose the true cost of the loans, which carried interest rates as high as 950 percent a year. The agency asked for the case in federal court in Kansas to be dismissed in a court filing on Thursday, giving no details about its reasoning.

The case, which was filed last year, shook the industry of online payday lenders associated with American Indian tribes. It’s a surprisingly big business that grew out of a loophole. Because payday loans are largely regulated at the state level, tribes can argue that the rules don’t apply to them. Regulators and consumer advocates say the loans, which are intended to be repaid quickly, can trap borrowers in cycles of costly debt that are difficult to escape.

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