UBS Fined $1.5 Billion, Pleads Guilty to Fraud Charge in Libor Case

By: Wednesday December 19, 2012 8:30 am

Swiss bank UBS will pay $1.5 billionfor their role in the Libor rate-rigging scandal. The sum is over three times the fine imposed on Barclays Bank for the same violations. UBS also admitted to one count of wire fraud in its Japanese unit, according to the Justice Department. Much of the rate rigging in the [...]

Mortgage Backed Securities Lawsuits Still Proliferate

By: Tuesday December 18, 2012 7:35 am

While we wait for more settlements in the Libor case, banks continue to face exposure for their fraudulent mortgage conduct dating back to the housing bubble. Two more major lawsuits emerged yesterday. DZ Bank, a cooperative from Germany, sued Bank of America over $546 million in mortgage backed securities. The same firm has sued Morgan [...]

Republicans and Democrats Speak Out Against “Too Big to Jail” HSBC Case

By: Monday December 17, 2012 8:30 am

We now have bipartisan anger at the decision to hold HSBC and its executives harmlessfor years of money laundering and facilitating the culture of Mexican drug cartels. In fact, only the shareholders will pay, and not all that much, what amounts to five weeks’ worth of profits for the bank. The certainty of not being [...]

Felix Salmon’s Unpersuasive Argument to Hold HSBC and Its Executives Harmless

By: Friday December 14, 2012 8:30 am

It would be irresponsible for me to say that Felix Salmon probably cashed a nice check from the banking industry when he produced this defense of the US declining to prosecute HSBC for money laundering. I think a couple elements of his piece wind up being self-negating, so I don’t have to do much work. [...]

In Bank Fraud, Responsibility Lies at the Very Top

By: Friday December 14, 2012 6:59 am

The Office of the Comptroller of the Currency, which under the direction of Thomas Curry has been moderately more tough-minded against the banks, released a report that essentially admits that the big banks are poorly managed and have inadequate risk management controls. As Yves Smith points out, this means that the executives need to go [...]

First Libor Arrests Net Three Former Low-Level Traders

By: Wednesday December 12, 2012 8:30 am

Everyone expects UBS, the Royal Bank of Scotland and several others to face some sort of sanction. But we’ve been hearing about imminent charges for months now, with nothing to show for it.

Justice: Wells Fargo Still Liable for FHA Abuse, Despite Foreclosure Fraud Settlement

By: Monday December 3, 2012 11:37 am

Late last week, the Justice Department issued a filing that attempts to reinforce the release limitations set by the foreclosure fraud settlement, stopping Wells Fargo from reimagining the deal as a broader release of liability on various mortgage claims. However, a judge will have to make the final decision. The US sued Wells Fargo in [...]

No, Mary Schapiro Didn’t “Fix” The SEC

By: Monday December 3, 2012 10:51 am

Regardless of my belief that Republicans are being ridiculous by trying to make a scandal out of the SEC allowing a public comment period for a rule change prompted by the JOBS Act, I think I’m pretty clear on the record about the SEC’s failings as a regulatory body. William Cohan wrote well on this [...]

Morgan Stanley Trader Investigated for Manipulation

By: Monday December 3, 2012 8:30 am

It has taken many years, but we might see one Wall Street trader investigated for malfeasance. Glenn Hadden, a former partner at Goldman Sachs now on the trading desks at Morgan Stanley, faces an inquiry into his practices at Goldman. Specifically, regulators at the CME Group, which runs commodity and futures exchanges, are investigating whether [...]

With Unclear Successor at SEC, a Look at the Agency’s Recent Failures

By: Thursday November 29, 2012 8:30 am

Mary Miller, a Treasury Department official seen as the expected pick for the next head of the SEC, dropped out of contention yesterday, leaving an unclear path forward. Elisse Walter, who was designated as the new chair, replacing the departing Mary Schapiro, is seen as a stopgap pick. But her elevation to the top slot [...]

Lorraine Brown, Convicted Fraudulent Mortgage Document Preparer, Charged With Racketeering By State of Michigan

By: Monday November 26, 2012 10:00 am

The pile-on for Lorraine Brown continues. When we last left this story, Brown, the former President of fraudulent document processor DocX, pleaded guilty in federal court to one count of wire and mail fraud, and agreed to face a sentence of up to five years in prison. The state of Missouri also reached a plea [...]

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