The Federal Deposit Insurance Corp. has filed a lawsuit against Bank of America Corp. (NYSE: BAC), claiming the Charlotte-bank owes at least half a billion dollars in unpaid deposit insurance, according to a Bloomberg report.
The U.S. banking regulator sued Bank of America in federal court in Washington on Monday over accusations that the bank “ignored FDIC instructions on how to account for its exposure to counterparties,” Bloomberg and other media outlets reported.
Wells Fargo has not done enough to address the problems brought to light in its $190 million settlement over secret accounts, former FDIC Chair Sheila Bair told CNBC on Tuesday.
“If you’re going to use clawbacks, this would be the situation,” Bair said, referring to possibly recouping any compensation fired employees received as a result of creating fee-generating accounts for unsuspecting customers in order to reach sales and bonus targets.
According to Fortune, Carrie Tolstedt, the Wells Fargo executive in charge of the unit where employees opened more than 2 million largely unauthorized customer accounts, retired over the summer with an exit package worth $124.6 million.
JPMorgan Chase’s legal battle with the Federal Deposit Insurance Corp. andDeutsche Bank AG over its acquisition of Washington Mutual’s banking operations is finally over, closing the door on issues dating back to the financial crisis.
According to an 8-K filing from JPMorgan Chase, “As previously disclosed, JPMorgan Chase Bank signed a term sheet with Deutsche Bank and the FDIC to resolve pending litigation brought by DBNTC against the FDIC, in its capacity as receiver for Washington Mutual Bank and in its corporate capacity, and JPMorgan Chase Bank, as defendants, relating to alleged breaches of certain representations and warranties given by certain WMB affiliates in connection with mortgage securitization agreements.”
The filing also stated it resolved “JPMorgan Chase’s outstanding indemnification claims pursuant to the terms of the Purchase & Assumption Agreement between JPMorgan Chase Bank and the FDIC relating to JPMorgan Chase’s purchase of substantially all of the assets and certain liabilities of Washington Mutual Bank.”
In early August, JPMorgan’s quarterly regulatory filing revealed that the settlement was nearing an end.
Eighteen former Midwest Bank officers and directors will pay a total of $26.5 million to the Federal Deposit Insurance Corp. to settle a 2013 lawsuit alleging that their negligence in lending to risky borrowers contributed to losses at the failed institution.
Midwest Bank, based in Elmwood Park, was a $3.17 billion-asset lender that was among the first community banks to get federal bailout funds after the financial crisis erupted. It was part of Midwest Banc Holdings, which had been a publicly traded banking company, and was seized by regulators in 2010. It was among the largest local banks to fail after the financial crisis.
The FDIC occasionally sues executives of banks that collapse. The Midwest Bank lawsuit was filed in U.S. District Court in Chicago.
From the filing:
Proceedings related to Washington Mutual’s failure are pending before theUnited States District Court for the District of Columbia and include a lawsuit brought by Deutsche Bank National Trust Company, initially against the FDIC and amended to include JPMorgan Chase Bank, N.A. as a defendant, asserting an estimated $6 billion to $10 billion in damages based upon alleged breaches of certain representations and warranties given by certain Washington Mutual affiliates in connection with mortgage securitization agreements.
JPMorgan Chase & Co. is close to resolving litigation that followed its takeover of Washington Mutual Inc.’s banking operations during the height of the financial crisis, the bank said Wednesday.
A U.S. congressional watchdog said on Tuesday it has formally added three agencies to its investigation into whether government regulators are too soft on the banks they are meant to police.
In March, Reuters exclusively reported that the Government Accountability Office (GAO) was preparing a probe of the U.S. Federal Reserve and other to-be-determined regulators, in response to a request by Democratic U.S. Representatives Maxine Waters and Al Green for it to look into “regulatory capture.”
The review, requested last October, is the first by an outside agency into the perception that financial regulators are “captured” by and too deferential toward the bankers they supervise, so that Wall Street benefits at the public’s expense.
Lawrance Evans, director of the GAO’s financial markets and community investment division, said in an email on Tuesday that the probe would include the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) and the National Credit Union Administration (NCUA). The GAO will also look back at work by the Office of Thrift Supervision, which merged with the OCC in 2011, and regulates savings and loan institutions.