Banks should fear ominous new rulings in Fannie/Freddie MBS cases

Alison Frankel, Reuters JPMorgan Chase filed quite a remarkable quarterly report with the Securities and Exchange Commission on Thursday, crammed with far more details about its exposure to litigation and mortgage repurchase demands than the earnings report the bank issued in mid-October. Among the revelations: JPMorgan has reached an agreement in principle to settle two SEC investigations, one involving […]

New Archbishop of Canterbury Takes RBS Chief To Task

Justin Welby, the incoming Archbishop of Canterbury, has upbraided Stephen Hester, the boss of Royal Bank of Scotland, for failing to explain the lender’s “duty to society”. By Rachel Cooper, UK Telegraph Questioning Mr Hester as he gave evidence to the parliamentary commission on banking standards, Mr Welby accused the senior banker of resorting to “motherhood […]

Assured Guaranty And Flagstar Duke It Out One Final Time On Loan Case

Nate Raymond, Reuters Lawyers delivered closing arguments in a closely watched U.S. case brought by Assured Guaranty Ltd (AGO.N) against Flagstar Bancorp Inc (FBC.N) over claims the quality of loans underlying $900 million in mortgage-backed securities were misrepresented. More than three-fourths of 800 loans the bond insurer examined failed to comply with Flagstar’s underwriting guidelines, […]

FDIC seeks damages from three former IndyMac executives

Trial begins on a civil lawsuit that accuses them of negligence in approving loans that developers and home builders never repaid. E. Scott Reckard, Los Angeles Times When the Federal Deposit Insurance Corp. seized Pasadena housing lender IndyMac Bank four years ago, the scene resembled the grim bank failures of the 1930s. Panicked depositors, seeking […]

US Students Detected Libor-Fixing Years Before Banking Scandal

Carl Schreck for RIA Novosti In April 2010, University of Minnesota graduate students Connan Snider and Thomas Youle released a paper suggesting that leading global banks were manipulating the Libor—the world’s most important lending rate—to benefit their own trading positions. The two economists shopped the paper to academic finance journals but were repeatedly rebuffed, according […]

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