U.S. federal prosecutors subpoenaed several banks last month as part of a criminal investigation into possible manipulation of the U.S. Treasuries market, Bloomberg reported on Monday.
The banks include UBS Group AG (>> UBS Group AG), BNP Paribas SA (>> BNP Paribas) and Royal Bank of Scotland Plc (>> Royal Bank of Scotland Group plc), Bloomberg reported, citing people familiar with the matter.
A series of class action lawsuits have accused various banks and brokerages of conspiring to manipulate U.S. Treasury auctions.
The lawsuits have alleged that the banks colluded to manipulate Treasury Department auctions and the pricing of Treasury securities, as well as derivative products such as futures, whose value is pegged to the Treasury.
Royal Bank of Scotland Group Plc will pay $1.1 billion (£847.07 million) to resolve claims that it sold toxic mortgage-backed securities to credit unions that later failed, the U.S. National Credit Union Administration (NCUA) said.
The resolution comes as RBS prepares to settle a number of U.S. cases where it is accused of mis-selling mortgage-backed bonds and brings the U.S. regulator’s recoveries against various banks to $4.3 billion over their sales of such securities before the 2008 financial crisis.
NCUA Board Chairman Rick Metsger said the regulator plans to continue “to pursue recoveries against financial firms that we maintain contributed to the corporate crisis.”
This case is included in the around $5 billion RBS has set aside to settle historic misconduct charges, but some analysts estimate the total claims will be much larger.
The settlement on Tuesday resolves lawsuits filed in federal courts in California and Kansas in the NCUA’s role as the liquidating agent for Western Corporate Federal Credit Union and U.S. Central Federal Credit Union.
Suit by Alaska pension fund can proceed to trial, judge rules
Bank of America, Barclays accused of rigging ISDAfix rate
Bank of America Corp., Barclays Plc and a dozen more banks must face investor claims that they rigged a benchmark used in the sales of interest-rate derivatives and other financial instruments.
U.S. District Judge Jesse Furman in Manhattan Monday rebuffed the banks’ request to throw out antitrust lawsuits accusing the institutions of colluding to set ISDAfix, affecting trillions of dollars of financial instruments. The rate is used to set prices on interest-rate swap transactions, commercial real-estate mortgages and other securities.
An Alaska pension fund and other investors raised “plausible allegations that a conspiracy among the defendants existed,” Furman said in a 36-page ruling. He allowed antitrust and breach-of-contract contract claims to proceed to trial, while throwing out other allegations.
Starting in 2009, the banks used electronic chat rooms and other means of private communication to set ISDAfix, typically submitting identical rate quotes, investors said in their suit. They are seeking billions in losses tied to the alleged rate-fixing scheme.
John Yiannacopoulos, a Bank of America spokesman, had no immediate comment on Furman’s ruling. Kerrie Cohen, a Barclays spokeswoman, declined to comment.
Investors also named as defendants Deutsche Bank AG, BNP Paribas SA, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Credit Suisse Group AG, UBS AG, Goldman Sachs Group Inc., Nomura Holdings Inc., Wells Fargo & Co. and JPMorgan Chase & Co.
Posted in Uncategorized
Tagged Banks, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan Chase, Normura Holdings, RBS, UBS, Wells Fargo
Federal prosecutors are said to be preparing to bring criminal charges against Adam Siegel, a top trader at the Royal Bank of Scotland, for allegedly manipulating the price of complex debt securities, The Post has learned.
Deirdre M. Daly, Connecticut’s top federal prosecutor, is building a case against Siegel and RBS, which used to house its bond trading unit in Stamford, for lying to purchasers — such as hedge funds — about how much the bank paid for bundles of debt, two sources familiar with the investigation told The Post.
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NEW YORK (IFR/Reuters) – A class action lawsuit, filed Wednesday, accuses 10 of Wall Street’s biggest banks and two trading platforms of conspiring to limit competition in the $320 trillion market for interest rate swaps.
The class action lawsuit, filed in U.S. District Court in Manhattan, accuses Goldman Sachs Group, Bank of America Merrill Lynch, JPMorgan Chase, Citigroup, Credit Suisse Group, Barclays Plc, BNP Paribas SA, UBS, Deutsche Bank AG, and the Royal Bank of Scotland of colluding to prevent the trading of interest rate swaps on electronic exchanges, like the ones on which stocks are traded.
As a result, the lawsuit alleges, banks have successfully prevented new competition from non-banks in the lucrative market for dealing interest rate swaps, the world’s most commonly traded derivative.
The banks “have been able to extract billions of dollars in monopoly rents, year after year, from the class members in this case,” the lawsuit alleged.
Posted in Uncategorized
Tagged Bank of America, Banks, Barclays, BNP Paribas, Citigroup, Credit Suisse, Derivatives, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Merrill Lynch, RBS, UBS, Wall Street
Attention Justice League readers: We heard this story before over and over again from the DOJ. I’ll believe it when I see it…
Following through on policy changes announced earlier this year that opened the door to individuals being held criminally responsible for corporate misconduct that helped cause the financial crisis, the Department of Justice is reportedly pursuing criminal charges against executives at the Royal Bank of Scotland (RBS) andJPMorgan Chase (JPM).
According to a report from the Wall Street Journal, federal investigators are working on establishing cases against the RBS and JPMorgan Chase executives for “allegedly selling flawed mortgage securities,” despite reportedly receiving warnings that they were securitizing too many potentially toxic mortgages.
From the Wall Street Journal report:
Officials are working to establish that the bankers ignored warnings from associates that they were packaging too many shaky mortgages into investment offerings and are weighing whether they can prove that constituted fraud, the people said.
At RBS, prosecutors are scrutinizing a $2.2 billion deal that repackaged home mortgages into bonds in 2007, the people said. In a 2013 civil settlement with RBS, the Securities and Exchange Commission described the lead banker on that deal, whom it didn’t name, as trying to push it through over concerns of the diligence department.
At J.P. Morgan, prosecutors are focusing on two people who worked on a different residential-mortgage deal, the people said.
Nomura Holdings (NMR) and The Royal Bank of Scotland(RBS) have agreed to a settlement in federal court to pay $839 million over the sale of mortgage-backed securities.
Both banks were found guilty in May by U.S. District Judge Denise Cote in Manhattan after a non-jury trial and were directed to pay $806 million including $26.6 million toFannie Mae and $779.4 million to Freddie Mac.
“The offering documents did not correctly describe the mortgage loans,” the judge said in his lengthy, 361-page decision. “The magnitude of falsity, conservatively measured, is enormous.”
Nomura and RBS denied the FHFA’s allegations at the time of the verdict.
A U.S. judge on Friday ordered Nomura Holdings Inc (>> Nomura Holdings, Inc.) and Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc) to pay a collective $806 million for making false statements in selling mortgage-backed securities to Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp).
U.S. District Judge Denise Cote in Manhattan entered the judgment after finding the banks liable on Monday following a non-jury bench trial in a lawsuit by the Federal Housing Finance Agency over securities sold ahead of the 2008 financial crisis.
Under the order, Fannie Mae will receive $26.6 million while Freddie Mac will be paid $779.4 million by the two firms.
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NEW YORK (Reuters) – In 2007, a Royal Bank of Scotland Group Plcemployee emailed his boss with his view of a sample of mortgages underlying a bond that the bank was underwriting: “This one is crap.”
Asked about it this week in Manhattan federal court, Brian Farrell, the employee, said he did not recall the deal. But a U.S. regulator cited the email as evidence that Nomura Holdings Inc <8604.T> and RBS made false statements about mortgage securities they sold to Fannie Mae and Freddie Mac.
The email and others like it are part of a $1.1 billion lawsuit by the Federal Housing Finance Agency against Nomura and RBS that went to trial this month. The messages add to a litany of arguably embarrassing electronic musings by bank employees that have resurfaced in litigation over the 2008 financial crisis.
Private plaintiffs and U.S. regulators alike have seized upon internal emails from the likes of JPMorgan Chase & Co and Deutsche Bank AG calling the mortgage products they sold investors “lemons,” “junk,” and “pigs.”
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