Banks Rake In Profits – Largely From Government Supports

By: Wednesday December 5, 2012 3:37 pm

It goes without saying that you should not weep for the banking industry. In the years following a Great Recession they caused, they still manage to churn out record profits. This is the 13th straight quarterly rise in profits for financial institutions. The industry’s third-quarter earnings jumped 6.6% from the same period in 2011, to [...]

Citi Settles for $590 Million With Shareholders Over Misrepresentations During Financial Crisis

By: Thursday August 30, 2012 6:59 am

Citigroup has settled a class-action lawsuit with shareholders over how Citi managed subprime securities during the financial crisis, a second-order fraud unconnected to the actual fraud of securitization and knowingly selling the bad securities in the first place. Citigroup said on Wednesday that it had agreed to pay $590 million to settle a class action [...]

Judge Jed Rakoff Berates SEC for Secret Settlement Deals, in Judicial Filing

By: Wednesday August 15, 2012 11:53 am

I’m actually really enjoying the last stand of Jed Rakoff. He’s the federal judge who has engaged in a lonely crusade against the SEC’s practice of slap-on-the-wrist settlements against the nation’s largest financial firms. The SEC and Citigroup took Rakoff to court, essentially, to get their settlement on some mortgage-backed securities deals approved. Rakoff refused [...]

Ryan Made Series of Bank Trades in 2008 During Financial Crisis

By: Monday August 13, 2012 11:33 am

Like everyone else but two members of the House, Paul Ryan voted for the STOCK Act, a watered-down version of a bill that would ban insider trading among members of Congress. Before he did that, however, Ryan spent 2008 wheeling and dealing his bank stock portfolio to match his knowledge gained as a member of [...]

Rakoff Decision Could Expose Citi to Numerous Additional Lawsuits

By: Wednesday November 30, 2011 8:22 am

One reason why rating agencies may be downgrading US banks is because of the extraordinary Jed Rakoff opinion, blocking the settlement between the SEC and Citigroup. Matt Taibbi examines the settlement today: Rakoff’s 15-page final ruling read like a political document, serving not just as a rejection of this one deal but as a broad [...]

Banks Realize People Don’t Like Being Charged to Use Their Own Money

By: Friday October 28, 2011 7:35 am

I’ve said before that no issue has resonated more over the last month or so than Bank of America’s plan for a monthly $5 debit card purchase fee. It helped drive the Occupy Wall Street protests, kickstarted a new incarnation of the Move Your Money movement, bolstered community banks and offered a powerful real-world example [...]

SEC Doing Collusion Deals With Big Banks over Dodgy CDO Deals?

By: Friday October 21, 2011 7:35 am

Yesterday, I acknowledged and came within inches of praising an SEC resolution with Citigroup on a $1 billion mortgage-backed securities deal. They got $285 million in the settlement, all of which went to investors burned on the deal, which was similar to the setup of deals like Abacus or Magentar: end-bubble deals of synthetic CDOs [...]

Banks Stopping “Protesters” from Closing Accounts Not New

By: Monday October 17, 2011 7:35 am

Over the weekend, as Occupy Wall Street protests escalated, the video of a woman arrested at a Citibank branch for trying to close her account shot through the blogosphere. It wasn’t even the only example of people being denied the opportunity to close their bank accounts over the weekend. A Bank of America branch in [...]

Moody’s Downgrades BofA, Other Banks

By: Wednesday September 21, 2011 1:14 pm

The market didn’t like the Federal Reserve’s “Operation Twist” plan. I don’t quite know what else they were expecting, but the market fell pretty hard on the news. Long-term Treasuries were down and short-term yields were up, which is precisely what Operation Twist is meant to achieve. Now we’ll see if it translates into any [...]

Citi Magically Changes Assets to Avoid Capital Requirements

By: Tuesday April 19, 2011 12:15 pm

Felix Salmon brings us the news of how Citigroup is skirting its capital requirement: At issue is a pool of $12.7 billion in assets, which is housed at Citi’s “bad bank”, Citi Holdings. In 2008, Citi decided that these assets were not available for sale, and rather were going to be held to maturity. Presto [...]

Citi Knew About Madoff Fraud, Tried to Pass Off Exposure in 2008

By: Wednesday February 23, 2011 9:15 am

We have already heard about JPMorgan’s travails with Bernie Madoff’s Ponzi scheme. A recent report identified JPMorgan as complicit in the Madoff scheme, and potentially liable in a civil lawsuit. According to emails and documents, JPMorgan apparently knew something was amiss with Madoff’s performance figures but never reported the crime to the SEC. Some lawsuits [...]

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