archive-com.com » COM » 9 » 911OMISSIONREPORT.COM

Total: 693

Choose link from "Titles, links and description words view":

Or switch to "Titles and links view".
  • Citigroup paying $285M to settle SEC fraud charges
    the financial crisis since Goldman Sachs Co paid 550 million to settle similar charges last year JPMorgan Chase Co resolved similar charges in June and paid 153 6 million All the cases have involved complex investments called collateralized debt obligations Those are securities that are backed by pools of other assets such as mortgages Citigroup s payment includes the fees and profit it earned plus 30 million in interest and a 95 million penalty The money will be returned to the investors the SEC said In the July September quarter Citigroup earned 3 8 billion CEO Vikram Pandit this year was awarded a multi year bonus package that could be worth nearly 23 4 million if performance goals are met At the height of the financial crisis in 2008 regulators worried that Citigroup was on the brink of failure It received 45 billion as part of the 700 billion government bailout In the civil lawsuit filed Wednesday the SEC said Citigroup traders discussed in late 2006 the possibility of buying financial instruments to essentially bet on the failure of the mortgage assets being assembled in the deal Rating agencies downgraded most of the investments that Citigroup had bundled together just as many troubled homeowners stopped paying their mortgages in late 2007 That pushed the investment into default and cost its buyers hedge funds and investment managers several hundred million dollars in losses Among the biggest losers were Ambac a bond insurer and BNP Paribas a European bank Ambac had sold Citigroup protection against losses on the investment allowing Citigroup to bet against it Hedge funds had asked Citigroup to sell them investments that would decline if the housing market crashed Citigroup did so and wanted to get in on the action the SEC said Citigroup bet that the investments would

    Original URL path: http://www.911omissionreport.com/citigroup_285m_fraud.html (2016-02-14)
    Open archived version from archive


  • J.P. Morgan pays $700 million to settle with SEC
    MarketWatch J P Morgan Chase Co agreed to pay more than 700 million to settle with the Securities and Exchange Commission over charges that two of the institution s former management directors engaged in an unlawful payment scheme that enabled them to win business involving municipal bond offerings in Jefferson County Ala J P Morgan Securities settled the SEC s charges and agreed to pay a penalty of 25 million

    Original URL path: http://www.911omissionreport.com/jp_morgan_700mln.html (2016-02-14)
    Open archived version from archive

  • JPMorgan hit with record £33m fine
    put at risk If the bank had got into financial trouble or became insolvent customers may have found it difficult to get their money back The penalty comes as the FSA seeks to demonstrate that it is taking tough action against City firms amid the threat that it could be abolished or emasculated by the Tories Margaret Cole the FSA s director of enforcement and financial crime said JPMorgan had committed a serious breach of our client money rules by failing to segregate billions of dollars of its clients money for nearly seven years The FSA added that it has other cases against banks in the pipeline warning This problem goes far wider than JPMorgan and firms need to sit up and take notice JPMorgan s breach is partly blamed on a failure by the bank to put adequate controls in place following the merger of JPMorgan and Chase Manhattan in 2000 Sources close to the investigation said a schoolboy error meant that JPMorgan s Treasury department wrongly believed that the issue had been dealt with by the Compliance department and vice versa JPMorgan did not profit from the breach and notified the FSA as soon as the problem was

    Original URL path: http://www.911omissionreport.com/jpmorgan_33m_fine.html (2016-02-14)
    Open archived version from archive

  • JPMorgan pays $211M to settle bid-rigging charges
    of a true competitive process that would produce the best returns on their investments Assistant Attorney General Christine Varney said in a statement JPMorgan s settlement covers complaints brought by the SEC the Internal Revenue Service bank regulators and 25 state attorneys general Nearly a quarter of the money will go toward settling civil fraud charges brought by the SEC A large portion will be divided among states in part to pay restitution to victims of the fraud JPMorgan agreed to cooperate with the Justice Department s investigation in exchange for not being prosecuted the agency said The company admitted and accepted responsibility for the illegal conduct It blamed it on former employees of a division that has since been shut down The company said it is pleased to have resolved this matter with its regulators It said the settlement will not affect its financial performance It was the second major federal settlement for the bank in the past month JPMorgan settled civil fraud charges with the SEC in June It agreed to pay 154 million for allegedly misleading buyers of complex mortgage investments as the housing market collapsed One former executive of the bank s securities unit James Hertz pleaded guilty in December to criminal charges related to the bid rigging issue He also is cooperating with authorities In all the Justice probe has resulted in criminal charges against 18 former executives of financial services companies and one corporation Including Hertz nine of the executives have pleaded guilty Here s how the money from Thursday s settlement will be divided The SEC will receive 51 million to settle civil fraud charges JPMorgan will pay the IRS 50 million because its actions violated rules governing municipal bonds which are tax exempt The bank s main regulator the Office of the

    Original URL path: http://www.911omissionreport.com/jpmorgan_bid-rigging.html (2016-02-14)
    Open archived version from archive

  • JPMorgan Accused of Breaking Its Duty to Clients
    I can see where the banks would come back and say The Chinese walls are there for a reason We don t want to put in manual overrides In many cases the rules and practices banks follow are based on nonpublic information they receive It s not as clear what a bank s obligations are with insights that are based on public information like some of the information related to Sigma Within the financial services industry the case is being closely watched A victory by JPMorgan s clients may mean that banks will have to be more careful about deciding whether to share or silo information that affects their clients investments The Securities Industry and Financial Markets Association a prominent trade group wrote a brief in support of JPMorgan last month saying that the pension funds that are suing had an unprecedented and novel theory that contradicts decades of Congressional and regulatory guidance The trade group said that if the plaintiffs won it would impose greater costs on banks Whatever the legal outcome the new documents paint a picture of how one of Wall Street s strongest players profited in its deals with the weak The events described in the suit which was filed in Federal District Court for the Southern District in New York began in the summer of 2007 That June JPMorgan s unit put about 500 million from pension funds and other clients into notes issued by Sigma meaning those clients would be repaid based on how Sigma s financial bets performed The investments were made by the bank s securities lending unit which stood to share in profits if the bet was successful but would not share in losses if it wasn t According to the new documents by that August JPMorgan executives elsewhere in the bank began to worry about Sigma and other similar entities called structured investment vehicles or SIVs Mr Dimon is named in several documents related to these vehicles One e mail in August 2007 said Mr Dimon was interested in hearing about the systemic risk of a complete unwind of all SIVs according to the suit Another e mail told a bank worker to prepare a very real picture of the assets that will be unwound with particular focus on Sigma At the end of August Mr Dimon received a memo on the SIV market with a note about Sigma in the cover sheet according to the lawsuit That same month a fixed income executive John Kodweis wrote in an e mail that he believed it was probable the entire sector would run into trouble If that were to happen the SIVs might have to unload 400 billion in valuable assets at fire sale prices he wrote He suggested the bank create a team which the suit says it did to take advantage of the forced selling In the same e mail Mr Kodweis noted that the block of SIV investments that JPMorgan had made on behalf of its clients was

    Original URL path: http://www.911omissionreport.com/jpmorgan_duty.html (2016-02-14)
    Open archived version from archive

  • JPMorgan Wins Case Against Trader Over Decimal Point Dispute
    he signed a contract to relocate to Johannesburg for a salary of 24 million rand 3 1 million JPMorgan said there was a typographical error and the figure should have been 2 4 million rand Herbert took the commercial risk of accepting the offer knowing full well that the figure was an error Judge Henry Globe said in today s judgment The trader resigned from UBS AG in June 2010 following the offer from New York based JPMorgan to relocate to South Africa Herbert didn t report for work after discovering the discrepancy and JPMorgan rescinded the employment offer in December 2010 Herbert has been unemployed since other than eight months at Credit Suisse Group AG where he was fired in a round of job cuts in November Banks globally have cut about 196 000 jobs since the start of 2011 according to data compiled by Bloomberg Eyes Wide Open Herbert with his eyes wide open took a chance and it has not worked out for him Charles Ciumei a lawyer for JPMorgan said in court Herbert originally sought more than 2 million pounds Globe said That figure subsequently fell to just over 1 million pounds and finally to 580

    Original URL path: http://www.911omissionreport.com/jpmorgan_decimal_point.html (2016-02-14)
    Open archived version from archive

  • Wells Fargo agrees to pay $37M in bid-rigging case
    of New York in 2008 It alleges many top investment banks conspired to rig the bidding process sharing their illegal gains through kickbacks to one another and making other secret undisclosed arrangements Among those named are Wells Fargo and Wachovia Bank which Wells acquired in 2008 Wells Fargo said Tuesday in a regulatory filing that it reached a settlement on Oct 21 A spokeswoman said Wells Fargo never had a significant presence in the municipal bond market business and the company s primary involvement was through Wachovia We re pleased to resolve this legacy Wachovia matter which relates to events that occurred prior to the Wells Fargo merger spokeswoman Dana Obrist said If approved by the court the San Francisco based bank will pay 37 million or an amount equal to 65 percent of the restitution in a future settlement if one is reached with various state attorneys general investigating Wachovia The settlement agreement is expected to be filed with the court by the end of the month Wells Fargo sets aside money to cover legal costs and said pending litigation including the municipal bond case would not have a material adverse effect on its financial position Other banks have

    Original URL path: http://www.911omissionreport.com/wells_fargo_bid-rigging.html (2016-02-14)
    Open archived version from archive

  • Merrill paying $10M to settle SEC fraud charges
    the allegations under the settlement but agreed to refrain from future violations of the securities laws The SEC said the violations occurred from 2002 to 2007 The agency said Merrill s equity strategy desk obtained information on institutional customers orders from other traders and used it to make trades on Merrill s behalf That was done even though the firm had told customers their order information would be kept on a strictly need to know basis the SEC said It also said that New York based Merrill charged some institutional and wealthy customers undisclosed trading fees Investors have the right to expect that their brokers won t misuse their order information Scott Friestad an associate enforcement director at the SEC said in a statement The conduct here was clearly inappropriate Merrill s proprietary traders had improper access to information about the firm s customer orders and misused it to place trades on the firm s behalf The sweeping financial overhaul law enacted last summer limits proprietary trading by banks or trading on their own account for their own profit Charlotte N C based Bank of America Corp is cutting about a third of its proprietary trading jobs to comply with

    Original URL path: http://www.911omissionreport.com/merrill_fraud.html (2016-02-14)
    Open archived version from archive



  •