Bank Of America To Pay Record $16.65B
Last Thursday, Bank of America and two of its subsidiaries agreed to settle its case with the U.S. Department of Justice for $16.65 billion. The settlement will put to end claims that the bank engaged in faulty lending during the housing boom years, making it the biggest settlement stemming from the 2008 financial crisis. The […]
Bank Of America Could Pay Up To $17B For Securities Fraud
Bank of America is in talks to settle an investigation into its role in the sale of mortgage-backed securities before the 2008 financial crisis and could pay between $16 and $17 billion, making it the biggest Justice Department settlement by a long shot arising from the economic collapse. However, the deal has not been finalized, […]
UBS Ordered To Post €1.1B Bail Amidst Money Laundering Investigation
UBS AG is being formally investigated for money laundering by French officials, who ordered the bank to post €1.1 billion ($1.49 billion) bail amidst a growing investigation into claims that it assisted high-profile clients evade French taxes. Just a month ago, UBS’ French subsidiary was fined a record-setting €10 million for being slow to correct […]
JP Morgan Settles Suit Over Toxic Mortgage Backed Securities for $400 Million
US banking giant JPMorgan Chase has agreed to pay USD 400 million in a settlement for litigation filed by Syncora Guarantee Inc. over mortgage-backed securities . Syncora said it would drop the rest of its cases against the banking giant as a result of the $400 million settlement The securities sold to Syncora came from […]
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 […]
U.S. Supreme Court Limits SLUSA; Allows State-Law Securities Class Actions to Proceed
On February 26, 2014, the Supreme Court decided Chadbourne & Parke LLP v. Troice, 571 U.S. ___ (2014), ruling by a 7-2 vote that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) does not bar state-law securities class actions in which the plaintiffs allege that they purchased uncovered securities that the defendants misrepresented were […]
AGENCIES ON BOTH SIDES OF THE ATLANTIC INVESTIGATE BANK SCANDALS
In the aftermath of the Barclays scandal, United States and British Lawmakers are cracking down on regulators that should have been more proactive and dedicated in preventing the years of illegal banking behaviors. The Dealbook.com article said that the Barclays $450 million settlement is but the first action from this broad and far-reaching investigation. The article lists some […]
THE VOLCKER RULE AND RESTRICTING BANKS
The Volcker Rule restricts the ability of federally insured banks to trade for their own benefit, according to this article in the New York Times. The article states that with the large losses by banks in the trading of financial securities, especially mortgage-backed assets, there has been a push for more federal regulations. The Volcker Rule is […]