SEC Examining Possible Changes To The Definition Of “Accredited Investor”
The SEC is currently examining potential changes to its definition of “accredited investor.” Section 413(b)(2)(A) of the Dodd-Frank Act of 2010 states that the SEC must examine the definition of “accredited investors” under the Securities Act of 1933 every four years to determine whether it should be changed “for the protection of investors, in the […]
Jefferies Agrees To Pay $25 million For Mortgage Backed SecuritiesViolations
The Securities and Exchange Commission has charged global investment bank and brokerage firm Jefferies LLC with failing to supervise its employees who sold mortgage-backed securities desk and were in turn lying to customers about pricing . An SEC investigation found that Jefferies representatives including Jesse Litvak, who the SEC charged with securities fraud last year, […]
RBS reaches $275 million mortgage-backed securities settlement
On Feb. 19, RBS officials announced that the company had reached a $275 million settlement with the U.S. government to resolve allegations of misleading investors in mortgage-backed securities. The settlement is the third-largest settlement in the U.S. class action against banks packaged and sold mortgage securities . This case was originally filed in 2008 by […]
Countrywide Alleges Fraud and Misrepresentations Claims Against It Are Time Barred
Countrywide Financial group is urging a California court to dismiss racketeering claims brought against it by Prudential Life Insurance Company. Prudential’s suit alleges that Countrywide used omissions and misrepresentations to sell low-quality mortgage backed securities to unknowing consumers. Countrywide is alleging that the claim is time barred based on an inquiry notice standard that would […]
Collateral Manager Of CDO Charged With Fraud
Investment advisory firm, Harding Advisory, LLC, and its owner were charged recently by the SEC for misleading investors and breaching their fiduciary duties. According to a recent press release, the SEC alleged Harding “compromised their independent judgment as collateral manager to a CDO named Octans I CDO Ltd.” The firm and owner allegedly did so […]
FDIC Against Proposed Countrywide Settlement
The FDIC recently advised a U.S. District Court Judge to reject the proposed $500 million class-action settlement between Bank of America Corp.’s Countrywide unit and investors due to the relatively small percentage of the settlement that will go the investors, Bloomberg.com reported. The FDIC stated in their filing that only $41 million dollars would go […]
Bank of America to Pay $10.3 Billion Over Questionable Mortgages
A recent CNN Money article disclosed a $10.3 billion settlement between Fannie Mae and Bank of America over questionable home loans sold during the housing bubble and subsequent burst. The article stated the large settlement would be comprised of a direct payment of $3.55 billion in cash as well as $6.75 billion paid to repurchase […]
SEC CHARGES JP MORGAN & CREDIT SUISSE FOR MISLEADING INVESTORS
Once again JP Morgan has found itself in hot water with the SEC, this time alongside with Credit Suisse. The announcement came in a recent SEC News Digest that JP Morgan and Credit Suisse agreed to settlements to pay around $400 million dollars to investors harmed by their misleading information regarding residential mortgage backed securities. […]
Basel May Provide Tougher Rules for Asset Backed Securities
The Basel Committee on Banking Supervision is posed to review how securitization is regulated globally in response to concerns that current regulations are not reducing excessive risk tasking, according to a recent Bloomberg.com article. The Basel Committee is associated with the Bank for International Settlements and is a forum for regular cooperation on banking supervisory […]
JP MORGAN SUED BY NY ATTORNEY GENERAL
In the first suit to be filed under RMBS Working Group, JP Morgan has been served civilly over the mortgage backed securities sold by Bear Stearns, according to an article in the New York Daily News. The RMBS Working Group, created by the Obama Administration, investigates and prosecutes misconduct that contributed to the financial crisis. […]
