Announced very late on a Friday afternoon in late August, presumably designed to get the least notice and attention, Goldman Sachs, yet another big Wall Street bank, will walk away almost scot-free from its role in causing the worst financial crash since 1929 and the worst economy since the Great Depression of the 1930s. As […]
Bank of America will pay nearly $17 billion for its role in writing and securitizing risky home loans in the run up the housing crisis. For a closer look at the Justice Department deal, and the impact it and earlier bank settlements might have on Wall Street and across the U.S., Hari Sreenivasan talks to […]
Washington, D.C., August 21, 2014 – Dennis Kelleher, the President and CEO of Better Markets, issued the following statement in response to the settlement reached between the U.S. Department of Justice and Bank of America regarding the bank’s illegal conduct inflating the subprime lending bubble and contributing to the financial crash in 2008: “DOJ’s latest […]
“WASHINGTON — How much will Bank of America’s expected US$17 billion mortgage settlement cost the company? The answer is, almost certainly not that much. “In mega-settlements negotiated with the government, a dollar is rarely worth an actual dollar. “Inflated figures make sensational headlines for the Justice Department, and US$17 billion would be the largest settlement […]
“The megabanks are finally feeling the hurt for the depredations of the mortgage era. That’s what the government, and some in the financial press, too, would have us believe. Bank of America is reportedly about to fork over a whopping $17 billion dollar settlement to the Justice Department, topping the previous record of $13 billion […]
“The surge in subprime auto loans since the end of the recession has been most pronounced among riskier borrowers, and auto finance companies typically tied to car manufacturers are leading the parade, according to a new study released by the New York Federal Reserve Bank on Thursday. “Banks make up only a small share of the subprime […]
“Bankers are nearly unanimous on the subject of Anat R. Admati, the Stanford finance professor and persistent industry gadfly: Her ideas are wildly impractical, bad for the American economy and not to be taken seriously. “But after years of quixotic advocacy, Ms. Admati is reaching some very prominent ears. Last month, President Obama invited her […]
“WASHINGTON — The Department of Justice and Bank of America have reached a record settlement in principle in which the bank will pay just under $17 billion to resolve allegations related to fraudulent marketing of mortgage-backed securities that helped cause the nation’s economic crisis, an official with knowledge of the negotiations said Wednesday. “The tentative […]
Washington, D.C., August 6, 2014 – Dennis Kelleher, the President and CEO of Better Markets, issued the following statement on the media reports that the U.S. Department of Justice and Bank of America have come to a settlement deal over the bank’s illegal conduct inflating the subprime lending bubble and contributing to the financial crash […]
Washington, D.C., August 6, 2014 – This week, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) found the resolution plans or “living wills” submitted by Wall Street’s eleven largest banks grossly deficient. That should surprise no one. Workable and effective resolution plans are a key part of the new financial reform law to […]
Better Markets’ Senior Fellow, Robert Jenkins, had the following column published in Financial World: “The financial crisis shone a harsh light on many issues in banking including: excessive leverage in the banking system; imprudent liquidity management; risks associated with interconnectivity; too big to fail; too big to manage; pay structures; accounting conventions; transparency; subsidies; accountability and corporate […]
“Four years after passage in July, 2010 of the grandiloquently-named Dodd-Frank Wall Street Reform and Consumer Protection Act we’re pretty much back to square one in terms of fixing the major causes of the financial meltdown of 2008-2009. “Yes, a very few positive things have happened. Thanks mainly to prodding from Federal Reserve Governor Daniel Tarullo, […]
“With Citigroup Inc. agreeing to pay $7 billion for issuing toxic mortgage securities, the Justice Department now turns to settling its case against what analysts call the biggest mortgage miscreant of all: Bank of America Corp. “The government has contended that the Charlotte, N.C., lender bears responsibility not only for its own mortgage bonds, but […]
News Release FOR IMMEDIATE RELEASE Contact: Alex Formuzis Email: [email protected] Tel: 202-618-6430 DOJ also fails to disclose massive CDO ‘immunity-gift’ Washington, D.C., July 14, 2014– Better Markets President and CEO Dennis Kelleher issued the following statement today in response to the announced settlement between the U.S. Department of Justice and Citigroup over the bank’s billions […]
The Securities and Exchange Commission adopted a rule on Wednesday to rein in derivatives trading by foreign branches of United States banks, moving to strengthen oversight of a risky business that helped cause the financial crisis. The rule, unanimously supported in a vote by the agency’s five commissioners, clarifies which foreign subsidiaries need to register with the […]
You may not see it on the front pages of your newspaper, but close examination will reveal an extreme unease from banking regulators about the current trajectory on Wall Street. The Office of the Comptroller of the Currency (OCC), not typically seen as a strident regulator, is warning about risky lending as low interest rates drive a […]
They’re living at home in growing numbers. They’re not buying homes, which creates ripple effects throughout the housing market. They’re having more babies out of wedlock than in it. Why can’t millennials get it together? The first and most obvious answer is “jobs.” If you can’t find a stable job, it’s hard to move out […]
“Regulators around the world are struggling to keep pace with the constantly evolving shadow banking sector, as they grapple with gaps in their understanding of the financial system and inter-agency turf wars play out in key jurisdictions. “While the broad concept of shadow banking is easy to sketch out – essentially lending or other credit […]
“Bank of America Corp. failed to win dismissal of two government lawsuits in which it’s accused of misleading investors about the quality of loans tied to $850 million in residential mortgage-backed securities. “U.S. District Judge Max O. Cogburn Jr. in Charlotte, North Carolina, ruled yesterday that the U.S. Securities and Exchange Commission properly laid out claims […]
“BNP Paribas SA and U.S. prosecutors have agreed to broad terms of a deal in which the bank would pay $8 billion to $9 billion and accept other punishment based on what investigators say is evidence the bank intentionally hid $30 billion of financial transactions that violated U.S. sanctions, according to people close to the probe. “The […]
Washington, D.C., June 19, 2014 – Better Markets released the attached Cross Border Fact Sheet today detailing Wall Street’s latest tactic to avoid important financial reforms designed to protect U.S. taxpayers from having to bail out Wall Street again. The tactic is called “de-guaranteeing” foreign affiliates, which is just a fancy word for Wall Street’s […]
Wall Street’s latest gambit to avoid sensible and modest financial reform rules is to pretend that they are not guaranteeing their overseas affiliates. This is great for Wall Street, which gets around the rules, but bad for everyone else who will have to pay the bill when their gambling blows up and causes another crash. […]
“A relaxed rule aimed at improving mortgage quality moved closer to approval after the Securities and Exchange Commission removed a key objection, according to officials familiar with the process. “The compromise approach is designed to assuage some regulators’ concerns that the rule may not go far enough to prevent the type of lax underwriting that […]
“A relaxed rule aimed at improving mortgage quality moved closer to approval after the Securities and Exchange Commission removed a key objection, according to officials familiar with the process. “The compromise approach is designed to assuage some regulators’ concerns that the rule may not go far enough to prevent the type of lax underwriting that […]
“United States bank regulators are descending deep into the plumbing of the financial system as they seek the most fitting punishment for the giant French bank now in the cross hairs of the law enforcement authorities. “BNP Paribas is expected to plead guilty in the coming weeks to charges that it processed payments for companies and […]
“Bank of America Corp (BAC.N) is looking to diversify its investment banking business by doing more equity underwriting and merger advisory work and by winning more clients outside the United States, a senior executive said on Tuesday. “Underwriting debt “has been one of [Bank of America’s] great strengths, but clearly thebusiness is changing” as industry-wide volumes look set to fall […]
“Credit Suisse has done what no other bank of its size and significance has done in over two decades: plead guilty to criminal wrongdoing. “In a sign that banking giants are no longer immune from criminal charges, despite concerns that financial institutions have grown so large and interconnected that they are too big to jail, federal […]
“The official line on Wall Street is that an abundance of caution among clients in the face of uncertainty, especially around the direction of interest rates, has depressed trading volumes, volatility and revenues. A similar tale appears to be unfolding at banks themselves. “In the first quarter, the collective holdings of Treasurys by U.S. banks […]
“The White House has been getting an earful in the past year from members of the Senate Banking Committee, who haven’t been shy about suggesting criteria for nominees at the Federal Reserve. “On Wednesday, Sens. Jeff Merkley (D., Ore.) and Elizabeth Warren (D., Mass.) continued with such unsolicited advice, sending a letter to President Barack Obama urging him to fill two vacant seats […]
“Executives from some of the biggest U.S. financial firms said a slump in trading that has hammered bank results for more than a year is likely to continue to weigh on profits. “Large investors are retreating from the market, big trades are rare and price swings are shrinking, executives told investors at an industry conference […]
“J.P. Morgan Chase & Co. Chief Executive Officer James Dimon has told investors he wants to stay with the largest U.S. bank for as many as five more years, according to people familiar with the conversation. “‘I’m going nowhere,’ Mr. Dimon said during an April 23 lunch at a hotel overlooking Boston Harbor, according to people who attended. […]
Originally published in Financial World Robert Jenkins tells a cautionary tale to foreign banks operating in Greece Few financiers study the history of finance. This ensures that the tried and true will continue to surprise. Might a long-ago event in Vietnam hold lessons for Europe? As the Greek saga unfolds, it might be useful to recall the […]
“Jesse Jackson made an appearance. An investor told the chief executive “I love you.” And a young girl asked why her dad was laid off. “But it was Bank of America’s (BAC) huge capital-plan gaffe that stole the show at its annual meeting Wednesday in Charlotte, N.C. “This was supposed to be the year that […]
“Shareholders in Bank of America supported the election of all 15 nominees to the board despite investor calls to punish directors with audit responsibilities in the wake of an embarrassing accounting error that forced the bank to suspend its dividend and share buyback plans. “PwC, the external auditor, was also backed at the annual shareholders meeting despite opposition […]
“U.S. regulators have spent the past six years forcing banks out of businesses seen as risky. Now, they are beginning to worry that they have pushed some financial activity into the shadows and outside their legal reach. “Regulators on the Financial Stability Oversight Council on Wednesday said they are monitoring new practices by nonbank financial […]
“Lawmakers are increasing pressure on the Federal Reserve Board to apply different capital rules to nonbank financial firms, like insurance companies, thought to be risky to the financial system. “A bipartisan group of senators introduced a bill this week that would clarify a provision of the Dodd-Frank Act to say that the central bank does […]
“Russell Goldsmith, the CEO of City National Bank in Los Angeles, remembers the moment when the Mid-Size Bank Coalition of America was born. “It was 2009 and lawmakers were deep in the weeds of a massive financial regulatory overhaul bill that aimed to prevent the kinds of misdeeds that led to the financial crisis and […]
“Banks again are doling out money to hedge funds and other investors to finance purchases of complex debt securities, returning to a practice that helped fuel the debt boom ahead of the financial crisis. “RBC Capital Markets, Société Générale SA and Wells Fargo & Co. are among the banks offering to let investors borrow money, also known as providing leverage, […]
“A federal regulator confirmed on Wednesday that the country’s biggest banks committed widespread errors in dealing with homeowners who faced foreclosures at the height of the mortgage crisis, but the findings are unlikely to put to rest questions from lawmakers and others about the extent of the problems. “The report released by the Office of the Comptroller […]
“Chair Janet Yellen said the Federal Reserve will tailor its supervision of community banks to reduce their regulatory burden, and that small lenders shouldn’t face the same sort of oversight as the biggest financial firms. “’We are taking a fresh look at how we supervise community banks and possible ways that supervision can be smarter, […]
“A comprehensive review of major banks’ foreclosure files could have delivered an additional $1.5 billion in cash to consumers if it wasn’t halted last year, a federal watchdog has found. “The Government Accountability Office, in a report being released Tuesday, evaluated federal bank regulators’ decision last year to cancel a prolonged review of foreclosure-processing and […]
“The strange accounting that tripped up Bank of America is on its way to being changed. “That accounting rule, which has been around since 2007, has vexed investors in financial institutions ever since it began to be applied. The banks greatly enjoyed it at first because it had the seemingly perverse result of increasing their reported […]
“The Office of the Comptroller of the Currency has been tightening its supervision of the largest banks — and apparently that upgrade comes with a price. “The agency said Monday it plans to increase examination fees for the first time in nearly 20 years for institutions with over $40 billion in assets, a step the […]
“As regulators tighten rules on the U.S. swaps market, large American banks are maneuvering to take some of the business overseas. “Banks including Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and Morgan Stanley are changing the terms of some swap agreements made by their offshore units so they don’t get caught by U.S. regulations, according to people […]
“Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. “In doing so, prosecutors are confronting the popular belief that Wall Street institutions have grown so important […]
“Deutsche Bank AG pledged to take all possible measures to bolster its capital as its first-quarter profit tumbled 34%. “We would take all measures to reach our capital targets but keep focused on organic capital creation,” Co-Chief Executive Anshu Jain told analysts Tuesday. The bank said that a key capital ratio worsened in the first quarter, and analysts predicted […]
West Coast Friends, Better Markets President Dennis Kelleher will be speaking tonight at a Hammer Forum event at the UCLA Hammer Museum. He will be talking about “From Wall Street to Main Street: The Need for Community Banking.” The forum will be moderated by Ian Masters, journalist and author, and is free and open to […]
“WASHINGTON — The Senate Banking Committee is scheduled to vote Tuesday on a stack of pending nominees to the Federal Reserve Board and other agency positions, before it proceeds with a highly anticipated vote on a bill to overhaul the housing finance system.” “The banking panel will consider the nominations of Lael Brainard and Stanley […]
“WASHINGTON — The issue of serving so-called “underbanked” borrowers has taken on a new urgency since regulators began cracking down on payday and certain other low-dollar, high-interest loans, prompting fears of a credit crunch for low-income consumers.” “Even as the Consumer Financial Protection Bureau writes new rules for payday loans and the Justice Department continues […]
“European banks have been urged to take advantage of favourable market conditions to raise capital before tougher rules on tapping public backstops come into force.” “Vítor Constâncio, the European Central Bank ’s vice-president, said the current strong appetite among investors to plough money into euro area banks was “reassuring”, amid a series of fundraisings by euro area lenders.” However, […]
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