April 10, 2013
SECURITIES Madoff victims lose their bid to sue SEC Victims of Bernard Madoff's investment fraud have lost their bid to sue the Securities and Exchange Commission for negligence in failing to uncover the swindler's Ponzi scheme. A federal appeals court in New York on Wednesday upheld the dismissal of lawsuits against the regulator brought by Madoff investors. The court said the SEC's actions and "regrettable inaction" were protected by a law that shields federal agencies from...
March 23, 2013
Last weekend, Cyprus banks — caught short on bond holdings of Greece's debt — reached an agreement with international lenders for a bailout. Part of the deal: Bank depositors with more than $131,000 in their accounts would take a 9.9 percent haircut. Everyone else would see their accounts reduced by 6.75 percent. Cypriots reacted by draining the cash out of ATMs. The European Central Bank is now on high alert, monitoring activity in Greece, Spain and euro-zone countries for evidence that the Cyprus precedent will...
March 20, 2013
HOUSING Freddie Mac sues banks over Libor fix Freddie Mac has sued 15 big banks, including JPMorgan Chase, Bank of America and Citigroup, accusing them of rigging a key interest rate and causing huge losses for the government-controlled mortgage giant. Freddie filed the lawsuit Thursday in federal court in Alexandria. It names the banks that set the London interbank offered rate, known as Libor, which provides the basis for trillions of dollars in contracts around the world, including...
March 14, 2013 |
Washington dealt a double blow Thursday to JPMorgan Chase as a Senate report accused its iconic chief executive of hiding information about a massive loss from regulators while the Federal Reserve unexpectedly said it had found a "weakness" in the bank's capital plans. The twin announcements, both unveiled in the late afternoon, escalates the problems for JPMorgan, the nation's largest bank and arguably its most prestigious. Once viewed as the strongest bank to emerge from the 2008...
February 19, 2013 |
On paper, the nation's banks are making a comeback: More money is being set aside in case of trouble, there are fewer losses on loans and there is less reliance on volatile funding. Too bad the markets don't seem to care. Despite the strides banks have made to repair their balance sheets since the financial crisis, their stocks are trading below book value. Wall Street remains skeptical about the overall health of these institutions, even as profits have soared in the past year.
January 14, 2013 |
Federal regulators Monday ordered JPMorgan Chase to fix the poor risk management that led to the bank's $6 billion trading loss last year. The bank is also being pressed to improve the way it monitors cash transactions that may have enabled terrorists and drug dealers to launder money. The Office of the Comptroller of the Currency and the Federal Reserve slapped the nation's largest bank with two cease-and-desist orders that call for sweeping changes to the bank's practices. There are no monetary...