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Tag Archives: Bank Regulation

Banks Enabling Fraud Beware: DOJ is on the Case

Posted in Banks and Financial Services, Consumer Protection

Four years ago, I began representing victims of fraudulent schemes who filed suits against banks for providing the financial services that were essential to perpetrating the fraud.  We developed our case on the theory that the banks (some of the largest in the land) aided and abetted the fraud.  These cases seemed like “no brainers.” … Continue Reading

College Students, Protect Your Rights: the CFPB’s Latest Area of Interest

Posted in Banks and Financial Services, Consumer Protection

College students are not a group that immediately comes to mind when we think of “vulnerable” populations but once you start looking at their circumstances it becomes clear: college students need help.  Financial control is likely new to most students, it might even be the first time many students pay a bill on their own…. Continue Reading

Mary Jo White’s Recent Stint In Private Practice Questions Whether She Is the Right Person to Head An SEC that Must Shift From Feasting on Low Hanging Fruit

Posted in Banks and Financial Services

We recently defended a securities broker who had been banned for life for some impropriety relating to his expense account.  Amount at issue:  $1,100.  Harm to customers $0.   Time spent prosecuting the case by the SEC: substantial.  In researching that case we saw numerous examples of the SEC, time and again, using what they often… Continue Reading

WATCH IT: PBS’s The Untouchables Asks Why No Wall Street Executive Have Been Criminally Prosecuted for Loan Fraud

Posted in Banks and Financial Services

The Untouchables, PBS’ Frontline investigation into why no Wall Street executives have gone to jail for activities connected to the housing and financial sector in 2008, recently aired.  I took the time to watch it and strongly encourage each one of you to do the same –paints a very clear picture, in less than an… Continue Reading

CFPB Brings Practical, Well-Informed Balance to Lending Rules

Posted in Banks and Financial Services, Consumer Protection

Last week, the CFPB issued “one of our most important rules to date, the Ability-to-Repay rule.”  While the rule itself is a good step forward for consumers, what I found most interesting is the analysis of a financial market that was “reckless about lending money.”  The CFPB has always taken a very practical approach that… Continue Reading

The Insider Trader Circle Tightens Around Billionaire Steven Cohen and His Hedge Fund, SAC Capital

Posted in Banks and Financial Services

An article in the New York Times’ Dealbook shines a spotlight on a situation I’ve been keeping a close watch on for some time now:  billionaire Steven A. Cohen and his group/company/fund, SAC Capital Advisors.  This is the hedge fund that was found to have achieved 30% investment returns for the past two decades, or,… Continue Reading

Aiding Drug Lords, Terrorists, and Rogue Nations Should Not Be Profitable… Ever

Posted in Banks and Financial Services

A few months ago we were astounded to see HSBC actually apologize for its money laundering scheme, in which it “aided drug lords, terrorists, and rogue nations” by helping them launder money through HSBC banks.  Today’s New York Times reports that HSBC’s earnings are down $3.3 Billion for the last quarter. Some of these expenses… Continue Reading

Bankers – Not Banks – Must Be Regulated As Professionals

Posted in Banks and Financial Services

Bankers behaving badly, ho hum.  We’ve written about it time and again.  One day it’s manipulating the LIBOR rate to cheat their own customers, the next day its packaging questionable mortgages into risky securities and oops failing to disclose what they know to investors; or providing banking services, aid, and comfort to one Ponzi schemer… Continue Reading

Bankers and Politicians Disapprove of Dodd-Frank, but Is There Really an Alternative?

Posted in Banks and Financial Services

Following recent lawsuits, court decisions, and presidential debates, more Americans than ever are becoming familiar with the Dodd-Frank Act, which was passed in 2010 to increase the government’s ability to regulate big banks.  Many politicians and lobbyists have argued for repealing the Dodd-Frank Act, but a recent New York Times editorial poses an interesting question:… Continue Reading

Paul Volcker Says the Hardest Part is Getting Banks to Listen

Posted in Banks and Financial Services

A couple days ago, Paul Volcker (of “Volcker Rule” fame) testified before the British Parliament’s Commission on Banking Standards Joint Committee on Wednesday.  Volcker answered questions about the Volcker Rule and bank regulation, but the most interesting part was his answer to a question we’ve all wondered about: “What is it that makes it so… Continue Reading

The Devil is in the Details: Federal Reserve Governor Daniel Tarullo Addresses Systemic Risk

Posted in Banks and Financial Services

There has been a lot of discussion lately over whether or not our nations HUGE banking and financial institutions should be broken up. Current and former Wall Street insiders, scholars, regulators and a host of others have all offered their opinion – and over the past few months the tide seems to have been shifting… Continue Reading

Government Prosecutors Get Creative to Hold Wells Fargo Accountable for Mortgage Fraud

Posted in Banks and Financial Services

The United States filed suit against banking and mortgage giant Wells Fargo Tuesday, for allegedly lying to the Federal Housing Administration about mortgages Wells Fargo approved during the housing boom.  Not only did Wells Fargo approve mortgages for people who would not likely be able to pay them, they told the FHA that the mortgages… Continue Reading

Consumer Advisory Board: First Meeting Shows Promise

Posted in Banks and Financial Services, Consumer Protection

Last week, the CFPB held the inaugural meeting of its consumer advisory board in St. Louis, Missouri.  Director Richard Cordray began the meeting with prepared remarks stressing the CFPB’s public focus.  He reminded us that the CFPB’s close relationship with consumers is what makes it work, citing the CFPB’s consumer complaint submission form and hundreds… Continue Reading

Consumer Advisory Board: Great Name, Now What Will it DO?

Posted in Banks and Financial Services, Consumer Protection

The CFPB recently announced the creation of their new Consumer Advisory Board. Created under the Dodd-Frank act, the Consumer Advisory Board is intended to be “a key resource” for the CFPB according to director Richard Cordray. But will this new advisory board really be an asset to consumers, or just another piece of showy government… Continue Reading

Does Banking Complexity Make Your Eyes Bleed?

Posted in Banks and Financial Services

I’ve heard a lot of people describe the current state of our country’s largest financial institutions.  I frequently hear things like “too complex,” “too big,” or “in desperate need of an overhaul.”  But Sallie L. Krawcheck, former head of Bank of America’s wealth management division, gave a description yesterday that takes the cake: “It is… Continue Reading

Citigroup Complains to the SEC About Conflicts of Interest, Just Not its Own

Posted in Banks and Financial Services

It is fascinating to watch the banking and finance industry pointing fingers at each other for the botched Facebook IPO. Yesterday, attempts to shift blame and recover some losses led to some wonderful quotes from Citigroup. The New York Times’ Dealbook recently summed up Citigroup’s position: “Citigroup on Wednesday also criticized Nasdaq’s claim that its… Continue Reading

Recidivist Money Launderer Standard Chartered Bank Walks Away With A Slap on the Wrist

Posted in Banks and Financial Services

It’s easy to take pot shots at regulators.  They didn’t find out soon enough; they need to be tougher.  Sure, when you are on the sidelines or reporting on Monday morning, it’s easy to criticize.  But the recent case of Standard Chartered Bank is baffling and worthy of second guessing to be sure.  They were… Continue Reading

Bank Officer: “Will No One Rid Me of This Troublesome Mortgage-Backed Security?!”

Posted in Banks and Financial Services, Corporations

The decision by both the Justice Department and the SEC to close investigations into various questionable actions taken by Goldman Sachs reveals an interesting tension in our regulatory laws: between what we think is the “right” or “moral” code of conduct for the banking industry verses what is legal under existing laws and regulations.  In… Continue Reading