News Clips – Friday, December 2, 2011

For Wall Street Watchdog, All Grunt Work, Little Glory – NYTimes.com Posted on December 2, 2011  by admin

Last week, when a former Boston Red Sox infielder faced accusations of insider trading, the Securities and Exchange Commission got credit for levying a $100,000 fine. The Department of Justice in May heralded a guilty plea from a one-time senior executive at the Nasdaq Stock Market who traded on secret information. And earlier this year, after a lawyer was accused of stealing insider tidbits, federal prosecutors in New Jersey boasted of the arrest. But in each case, the federal government was not the first to detect the potential fraud. Rather, the initial alarm bells were sounded by an obscure group of private-sector analysts stationed here in suburban Maryland. In an office park 20 miles outside Washington, the Financial Industry Regulatory Authority, Wall Street’s nonprofit self-regulator, has quietly built a small army of market police. Since Wall Street’s financial crisis in 2008, this fledgling fraud task force has entered the front lines of fighting insider trading, even if the group rarely earns the credit.  For Wall Street Watchdog, All Grunt Work, Little Glory – NYTimes.com .

Posted in Regulators & Agencies – Domestic  | Comments Off

Assem. Morelle Talks DFS, Government Consolidations – YNN Capital Tonight Posted on December 2, 2011  by Ins News   The merger of the state banking and insurance departments into the Department of Financial Services was one of the first government consolidation projects from Governor Cuomo. http://www.capitaltonight.com/2011/12/assem-morelle-talks-dfs-government-consolidations/ Posted in Banking Department Mention , Benjamin Lawsky , Department of Financial Services (DFS) , Institutions We Regulate , Insurance Department Mention , Insurance Industry , Insurance Regulation  | Comments Off

Dodd-Frank Progress Report Posted on December 2, 2011  by admin   Law firm Davis Polk has updated its indispensible progress report on Dodd-Frank implementation: Dec2011_Dodd.Frank.Progress.Report.pdf (application/pdf Object) . Posted in Dodd-Frank  | Comments Off

Foreclosure Crisis Isn’t Even Halfway Over, Analysis Finds – NYTimes.com Posted on December 1, 2011  by admin   A new analysis suggests that the tide of home foreclosures isn’t going to recede soon. The report from the Center for Responsible Lending, “Lost Ground, 2011,” finds that at least 2.7 million mortgages loaned from 2004 through 2008, or about 6 percent, have ended in foreclosure and that nearly 4 million more home loans (roughly 8 percent) from the same period remain at serious risk. Put another way, “The nation is not even halfway through the foreclosure crisis,” says the report, which analyzed 27 million mortgages made over the five years.  Foreclosure Crisis Isn’t Even Halfway Over, Analysis Finds – NYTimes.com . Posted in Foreclosure & Mortgage Mods  | Comments Off

New York probes military foreclosures – FT.com Posted on December 1, 2011  by admin   Eric Schneiderman, New York attorney-general, has launched an investigation into possibly unlawful foreclosures on the mortgages of active-duty members of the US military. Data released last week by a federal banking regulator suggested that 10 leading lenders may have seized the homes of about 5,000 service members in violation of the Servicemembers Civil Relief Act. The nearly-decade old law restricts foreclosures on the homes of members of the US armed forces while they are on active duty.  New York probes military foreclosures – FT.com . Posted in Consumer Protection , Foreclosure & Mortgage Mods , SCRA  | Comments Off

Inspector general says housing regulator failed to stop Fannie, Freddie mortgage issues – The Washington Post Posted on December 1, 2011  by admin   A government watchdog said Fannie Mae and Freddie Mac improperly foreclosed on homeowners and cost the government billions of dollars by not holding major banks to strict underwriting requirements. The report released Tuesday also said the Federal Housing Finance Agency gave “undue deference” to Fannie and Freddie officials and didn’t scrutinize more than $35 million in bonuses and compensation to Fannie and Freddie executives.  Inspector general says housing regulator failed to stop Fannie, Freddie mortgage issues – The Washington Post . Posted in Foreclosure & Mortgage Mods , GSEs  | Comments Off

Fed Names a New Chief Regulator – WSJ.com Posted on December 1, 2011  by admin   The Federal Reserve said Wednesday that Michael Gibson would take over as director of its regulatory division, a key role as the U.S. central bank implements the Dodd-Frank financial overhaul law. Mr. Gibson, 45 years old, a deputy chief at the Fed’s economic research department with expertise in risk management and financial markets, will take on his new role at the start of next year. He succeeds Patrick Parkinson, 59, who is retiring after more than 30 years at the central bank. Fed Names a New Chief Regulator – WSJ.com . Posted in Fed (The Federal Reserve)  | Comments Off

CFPB Consumer Response Interim Report on Credit Card Complaint Data.pdf (application/pdf Object) Posted on December 1, 2011  by admin   The Consumer Financial Protection Bureau (CFPB) issued a report on its first three months of collecting credit card complaint data while also asking the public for feedback on a proposed policy for releasing consumer complaint data in the future. ‘When consumers contact us, we get a snapshot of how the consumer finance markets are working,’ said Raj Date, Special Advisor to the Secretary of the Treasury on the CFPB. ‘And we are learning that there is a lot of consumer confusion about credit card terms.” CFPB Consumer Response Interim Report on Credit Card Complaint Data.pdf (application/pdf Object) . Posted in Bank Products, Fees & Accounts , Consumer Credit , Consumer Protection  | Comments Off

Casey B. Mulligan: Bankers, Too, Cast a Safety Net – NYTimes.com Posted on November 30, 2011  by admin   Bankers deserve a lot of blame for getting us into this mess, have dipped far too deeply into the United States Treasury to help themselves, and have been far too slow to modify mortgages. For these reasons, it’s remarkable that their own selfish pursuits have forced them to create a safety net of sorts that rivals the amounts spent by public sector safety net programs. Casey B. Mulligan: Bankers, Too, Cast a Safety Net – NYTimes.com . Posted in Foreclosure & Mortgage Mods , Mortgage Industry  | Comments Off

Judge – Goldman Sachs Chairman Can Be Deposed in NY – NYTimes.com Posted on November 30, 2011  by admin   Goldman Sachs chairman Lloyd Blankfein can be deposed in a civil case even before the April criminal trial of a former Goldman Sachs board member accused of insider trading, a judge has ruled. U.S. District Judge Jed Rakoff signed an order Tuesday that requires Blankfein and six others to answer questions related to the civil case brought against former board member Rajat Gupta. Judge – Goldman Sachs Chairman Can Be Deposed in NY – NYTimes.com . Posted in Institutions We Regulate  | Comments Off

Study: Employers Could Dump Sickest Employees On To Exchanges – Kaiser Health News Posted on November 30, 2011  by admin   A loophole in the federal health care overhaul could allow employers to game the system by getting their sicker employees to opt into buying coverage on the health insurance exchanges, according to two University of Minnesota law professors.They say the loophole could have dire consequences for the financial health of the exchanges, which are a key part of President Barack Obama’s health care law. The online marketplaces are intended to make it easier to comparison shop for health plans and also to expand access to coverage for the uninsured. Study: Employers Could Dump Sickest Employees On To Exchanges – Kaiser Health News . Posted in Health Insurance & Exchanges , Insurance Regulation  | Comments Off

U.S. Mortgage Relief Program Widens Its Scope – NYTimes.com Posted on November 30, 2011  by admin   When the Treasury Department announced the program, referred to as HARP, two years ago, it said it could help four million to five million homeowners whose home values had plunged. Yet just 900,000 borrowers — whose loans are owned by Fannie Mae and Freddie Mac, the government-sponsored housing finance companies — have successfully refinanced through the program. Starting early next month, though, banks will begin using new criteria intended to make more borrowers eligible: raising the ceiling on how much owners can borrow over the value of their home as well as relaxing rules that might force banks to take back bad loans from the government. In announcing the change, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, carefully eased expectations, suggesting about 900,000 more homeowners would be helped, roughly doubling the size of the program to date. U.S. Mortgage Relief Program Widens Its Scope – NYTimes.com . Posted in Foreclosure & Mortgage Mods , Mortgage Industry  | Comments Off

Opinion: Tackling the power of the 1% – Jonathan Macey – POLITICO.com Posted on November 30, 2011  by admin   This time it is the Wall Street bankers and not the Occupiers who are getting hit with pepper spray. The spray comes straight from the laser printer in the chambers of a federal judge, Jed Rakoff, in New York. The victory that Rakoff gave to the [OWS] movement Monday came from the federal courthouse – not far from Zucotti Park, the lower Manhattan headquarters of OWS. Rakoff … refused to allow the usual chummy settlement between a government agency – the [SEC] – and a major bank – Citigroup. “He instead created a new legal paradigm – in which the big banks and their purported government watchdogs must give the rest of us a look at the backroom machinations that have ruined the U.S. economy. … Rakoff’s decision is a watershed event for the capital markets. It is a significant victory for the ideals of the Occupy Wall Street Movement. And it just might be the first step on to restoring accountability to both Wall Street and the SEC. Opinion: Tackling the power of the 1% – Jonathan Macey – POLITICO.com . Posted in Capital Markets  | Comments Off

Feds vs. state in flooding claim tussle – Times Union Posted on November 30, 2011  by admin   Tropical Storm Irene has triggered a behind-the-scenes turf battle between the Cuomo administration and the Federal Emergency Management Agency over who should police the insurers that sell flood insurance to New Yorkers. As Irene’s floodwaters were receding in September, Cuomo’s Department of Financial Services Superintendent Benjamin Lawsky urged insurance firms to pay up as promptly as possible. “We will continue to ensure that insurers do not abuse those they insure,” Lawsky said in a release as he traveled to flood-ravaged areas. Through September and early October, Lawsky’s office began calling insurance companies if homeowners had problems collecting their payments.  Feds vs. state in flooding claim tussle – Times Union . Posted in Insurance Industry  | Comments Off

Conn. Commissioner Voted To National Committee Of Insurance Regulators – Courant.com Posted on November 30, 2011  by admin   Insurance Commissioner Thomas B. Leonardi was elected an officer of the National Association Insurance Commissioners Northeast Zone, a leadership body for the association. Leonardi was elected by regulators in other states in the Northeast region, including all New England states, New York, New Jersey, Pennsylvania, Washington D.C. and Delaware. Earlier this month, Leonardi was chosen by the U.S. Treasury Department to be one of 15 people on the Federal Advisory Committee on Insurance, which will provide advice to the Treasury’s Federal Insurance Office. The federal office was created by the Dodd-Frank Act.  Conn. Commissioner Voted To National Committee Of Insurance Regulators – Courant.com . Posted in Congress & Committees , Fed (The Federal Reserve) , Insurance Industry  | Comments Off

Study – Swiss Banks Could Lose $1.2B From Tax Deals – NYTimes.com Posted on November 29, 2011  by admin   A study by consultancy firm Booz & Co. claims Swiss banks stand to lose 1.1 billion Swiss francs ($1.2 billion) in annual revenue because of new deals to crack down on tax evasion. The Booz study says clients will likely withdraw some 47 billion francs ($51 billion) from Switzerland’s financial sector after Bern signed new tax agreements with Germany and Britain. The report released Tuesday predicts that Switzerland’s private banking industry will shrink but benefit from the stability afforded by the two agreements. The Swiss government has been eager to improve its cooperation with other countries to avoid being blacklisted as a haven for tax cheats. Last year Switzerland’s financial sector managed foreign assets totaling 2.05 trillion francs ($2.2 trillion).  Study – Swiss Banks Could Lose $1.2B From Tax Deals – NYTimes.com . Posted in Tax Evasion  | Comments Off

Barney Frank’s War of Words With Wall Street – NYTimes.com Posted on November 28, 2011  by admin   Barney Frank, the famously grumpy Massachusetts representative, who announced on Monday that he will not seek re-election next year, has had a 16-term legacy studded with legislative accomplishments. Among them: his work on the House Financial Services Committee, which he chaired from 2007 through 2011, and his co-authorship, with former Senator Chris Dodd of Connecticut, of the Dodd–Frank Wall Street Reform and Consumer Protection Act that was signed into law in 2010.  Barney Frank’s War of Words With Wall Street – NYTimes.com . Posted in Consumer Protection  | Comments Off

Judge Blocks Citigroup Settlement With S.E.C. – NYTimes.com Posted on November 28, 2011  by admin   A federal judge in New York on Monday threw out a settlement between the Securities and Exchange Commission and Citigroup over a 2007 mortgage derivatives deal, saying that the S.E.C.’s policy of settling cases by allowing a company to neither admit nor deny the agency’s allegations did not satisfy the law. Judge Blocks Citigroup Settlement With S.E.C. – NYTimes.com . Posted in Foreclosure & Mortgage Mods , Mortgage Industry  | Comments Off

Secret Fed Loans Gave Banks Undisclosed $13B – Bloomberg Posted on November 28, 2011  by admin   The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse.  Secret Fed Loans Gave Banks Undisclosed $13B – Bloomberg . Posted in Bank Lending & Borrowing , Fed (The Federal Reserve)  | Comments Off

Criminal probe into online mortgage scams widens – AP Posted on November 23, 2011  by admin   A criminal investigation into mortgage swindlers has expanded beyond deceptive advertising on Google’s Internet search engine to root out con artists who were luring their victims on Bing and Yahoo, too. Monday’s news of the widening probe confirmed that the Internet’s three largest search engines had been turned into tools of prey for crooks looking to bilk homeowners scrambling to avoid foreclosure. The scams involved online ads making bogus promises of help people hold onto their homes under a government-backed program to modify mortgage payments.  The Associated Press: Criminal probe into online mortgage scams widens . Posted in Consumer Protection , Foreclosure & Mortgage Mods , Mortgage Industry , Scams, Schemes & Frauds  | Comments Off

Examiner News – Tuesday, November 8, 2011

Fed: Banks Tighten Lending Standards to Banks and Firms with European Exposures  

The Federal Reserve released the quarterly October 2011 Senior Loan Officer Opinion Survey on Bank Lending Practices  today. The survey had a special question on lending to European banks and firms. With regards to banks, the tightening was “considerable”, however to European firms the tightening was “moderate”: About one-half of the domestic bank respondents, mostly large banks, indicated that they make loans or extend credit lines to European banks or their affiliates or subsidiaries, and about two-thirds of the foreign respondents indicated the same. Among those domestic and foreign respondents, a large share– about two-thirds–reported having tightened standards on loans to European banks over the third quarter . Many domestic banks indicated that the tightening was considerable .

About three-fifths of the domestic respondents, mostly large banks, and all foreign respondents indicated that they make loans or extend credit lines to nonfinancial firms that have operations in the United States and significant exposures to European economies. Among those domestic and foreign respondents, a moderate fraction indicated that they had tightened standards on C&I loans to such firms .

On the U.S. Commercial and Industrial (C&I): A small net fraction of domestic banks reported having eased standards on C&I loans during the third quarter , in contrast to more widespread reports of such easing in previous quarters. This moderate net reduction in easing was concentrated in loans to large and middle-market firms rather than in loans to smaller firms. … Reports of weaker demand for C&I loans outnumbered reports of stronger demand in a reversal from recent quarters, particularly with respect to demand from large and middle-market firms.
For Commercial Real Estate:

Domestic banks continued to report little change in their standards on CRE loans, which were widely described in a special question in the previous survey as being at or near their tightest levels since 2005. In contrast, a large fraction of foreign respondents reported having tightened standards on CRE loans, in a substantial shift from the net easing reported by those institutions in the prior two surveys.

And on consumer lending: Modest fractions of banks reported having eased standards on consumer credit card loans and on other non-auto loans. As in the previous survey, somewhat larger fractions of banks reported having eased standards on auto loans.

So far the European financial crisis hasn’t led to tighter lending standards in the U.S., but standards are already pretty tight.

FRB Economic Highlights  
Consumer spending rose in September while real personal income fell during the same month. See the latest data on consumer spending, real estate, manufacturing, and more.

FRB Financial Highlights  
Between the September and November FOMC meetings, corporate bond spreads narrowed as market conditions stabilized. See the latest data on bond and equity markets, financial markets, and more.

News Clips – Tuesday, November 8, 2011

SEC to propose money fund reforms – FT.com Posted on November 8, 2011  by admin

The US Securities and Exchange Commission will soon propose sweeping reforms of money market funds that could include capital standards and an end to practices that encourage investors to believe they will never lose money. Money market funds – traditionally viewed by US investors as a higher-yielding alternative to government-insured bank deposits – played a prominent role in the financial crisis when one popular fund, the Reserve Primary Fund, “broke the buck” by falling to a value of 97 cents a share in 2008.  SEC to propose money fund reforms – FT.com .

Posted in Regulators & Agencies – Domestic  | Comments Off

US consumer cop to warn lenders before fining them | Reuters Posted on November 8, 2011  by admin   The new U.S. consumer financial cop will give banks and other lenders a chance to plead their case before hitting them with fines or other penalties. The Consumer Financial Protection Bureau said on Monday that it is initiating this “early warning” system as a matter of fairness to the accused. Any person or lender in the agency’s cross-hairs will be given two weeks to respond to a notice that the bureau has enough evidence to bring an enforcement action for violating consumer laws.  US consumer cop to warn lenders before fining them | Reuters . Posted in CFPB , Consumer Protection  | Comments Off

NY attorney general, comptroller to jointly investigate unpaid life insurance benefits | The Republic Posted on November 3, 2011  by admin   New York’s attorney general and comptroller have begun jointly investigating unpaid life insurance benefits, citing data they say indicates millions of dollars may have been withheld improperly from thousands of possible beneficiaries. The goal is to make sure that life insurance companies keep promises to beneficiaries and to the state, Attorney General Eric Schneiderman said Thursday. “Together, our offices will undertake the largest and most comprehensive investigation of life insurance practices in the country.”  NY attorney general, comptroller to jointly investigate unpaid life insurance benefits | The Republic . Posted in Insurance Industry , Life Insurance  | Comments Off

Selling More CDS on Europe Debt Raises Risk for U.S. Banks – Bloomberg Posted on November 3, 2011  by admin   U.S. banks increased sales of insurance against credit losses to holders of Greek, Portuguese, Irish, Spanish and Italian debt in the first half of 2011, boosting the risk of payouts in the event of defaults. Guarantees provided by U.S. lenders on government, bank and corporate debt in those countries rose by $80.7 billion to $518 billion, according to the Bank for International Settlements. Almost all of those are credit-default swaps, said two people familiar with the numbers, accounting for two-thirds of the total related to the five nations, BIS data show.  Selling More CDS on Europe Debt Raises Risk for U.S. Banks – Bloomberg . Posted in Asset/Mortgage Backed Securities , Derivatives  | Comments Off

The Associated Press: NY foreclosure firm: Sorry for mocking homeless Posted on November 3, 2011  by admin   Amid an investigation by the U.S. attorney’s office in Manhattan, Baum agreed last month to pay $2 million and change its practices after admitting to errors in legal filings that it blamed on the high volume of mortgage defaults and foreclosures it handles. New York Attorney General Eric Schneiderman also is investigating the firm’s practices, a person familiar with the investigation said, speaking on condition of anonymity because active investigations are not discussed publicly. After denying to the Times that employees had mocked those who had lost their homes, the firm has in recent days acknowledged the costumes were inappropriate and apologized for last year’s Halloween party.  The Associated Press: NY foreclosure firm: Sorry for mocking homeless . Posted in Foreclosure & Mortgage Mods  | Comments Off

The Eurozone crisis will not go away until banks face reality: Sheila Bair Posted on November 3, 2011  by admin   Former FDIC Chairman Sheila Bair’s first FORTUNE column entitled, “The Eurozone Crisis Will Not Go Away Until Banks Face Reality”: “European regulators should supplement this requirement with the Basel III 3% leverage ratio — or even better, the U.S. 5% requirement, adjusting for accounting differences. The EBA should also use realistic loss estimates more in line with those of the IMF and private analysts. If banks have to accept dilution of their stock or temporary nationalization, so be it.” http://bit.ly/uFCvEg The Eurozone crisis will not go away until banks face reality – The Term Sheet: Fortune’s deals blog Term Sheet . Posted in Basel (I, II, III) , Capital Requirements  | Comments Off

SEC expects to file further CDO charges – FT.com Posted on November 3, 2011  by admin   The Securities and Exchange Commission expects to file charges against more Wall Street firms related to the sale of mortgage-linked securities, with hopes of wrapping up probes from the financial crisis in the near term, according to a senior enforcement official. The potential charges would follow SEC settlements with three Wall Street banks that allegedly misled investors who bought collateralised debt obligations – mortgage-linked securities.  SEC expects to file further CDO charges – FT.com . Posted in Asset/Mortgage Backed Securities  | Comments Off

Attorney Convicted Of Bank Fraud, Money Laundering – North Country Gazette Posted on November 3, 2011  by admin   Cherico served as the attorney for various co-conspirators in negotiating and closing the fraudulent purchases that were part of the scheme. He and his co-conspirators submitted various documents, including loan applications, contracts of sale, deeds, real estate transfer documents, and title reports to federally insured banks. Those documents contained materially false or misleading information about the income, assets, existing debt and creditworthiness of the borrower, the chain of title to the property, and the sale price of the home. Those documents also certified the borrower’s intent to reside in the property as a primary residence, when, in fact, the properties were typically purchased for investment purposes.  North Country Gazette » Attorney Convicted Of Bank Fraud, Money Laundering . Posted in Fraud Against Institutions , Mortgage Fraud  | Comments Off

Santander CEO: New Regulation Doesn’t Help With Current Crisis – WSJ.com Posted on November 3, 2011  by admin   Progress is being made in improving financial regulation, but much of it doesn’t address current problems and all of it will be futile if rules are not consistently applied, Spain’s Banco Santander SA (STD) said Thursday. Santander CEO: New Regulation Doesn’t Help With Current Crisis – WSJ.com . Posted in Capital Requirements  | Comments Off

Treasury Dept. Announces FACI Members Who Will Advise FIO | PropertyCasualty360 Posted on November 3, 2011  by admin   Officials of Chubb and Liberty Mutual and consumer advocate Birny Birnbaum are among 15 people named today to the Treasury Department’s Federal Advisory Committee on Insurance. An official at Lloyd’s was named the international representative. Also among those named were seven insurance regulators: the commissioners of New York, Connecticut, Pennsylvania, the District of Columbia, Virginia, Montana and Oregon. The committee will provide advice to the Treasury’s Federal Insurance Office, which was established as part of the Dodd-Frank financial services reform law, on issues related to the responsibilities of the office.  Treasury Dept. Announces FACI Members Who Will Advise FIO | PropertyCasualty360 . Posted in Benjamin Lawsky , Department of Financial Services (DFS)  | Comments Off

Wells Fargo pulls out of MBIA transformation lawsuit – HousingWire Posted on November 2, 2011  by admin   Wells Fargo dropped out of a high-profile lawsuit that publicly challenged monoline insurer MBIA’s structural transformation in the wake of the financial crisis. The original suit, which included Wells Fargo and 21 other banking entities, challenged MBIA’s plan to transform its business under New York state’s Article 78. The complaint was filed after MBIA created a second mortgage insurer using $5 billion siphoned from the company’s original insurance subsidiary. Financial firms involved in the suit ended up challenging MBIA’s structural transition and the New York Insurance Department’s approval of the plan. Wells Fargo pulls out of MBIA transformation lawsuit « HousingWire . Posted in Insurance Industry | Comments Off SEC to propose money fund reforms – FT.com Posted on November 8, 2011  by admin   The US Securities and Exchange Commission will soon propose sweeping reforms of money market funds that could include capital standards and an end to practices that encourage investors to believe they will never lose money. Money market funds – traditionally viewed by US investors as a higher-yielding alternative to government-insured bank deposits – played a prominent role in the financial crisis when one popular fund, the Reserve Primary Fund, “broke the buck” by falling to a value of 97 cents a share in 2008.  SEC to propose money fund reforms – FT.com . Posted in Regulators & Agencies – Domestic  | Comments Off US consumer cop to warn lenders before fining them | Reuters Posted on November 8, 2011  by admin   The new U.S. consumer financial cop will give banks and other lenders a chance to plead their case before hitting them with fines or other penalties. The Consumer Financial Protection Bureau said on Monday that it is initiating this “early warning” system as a matter of fairness to the accused. Any person or lender in the agency’s cross-hairs will be given two weeks to respond to a notice that the bureau has enough evidence to bring an enforcement action for violating consumer laws.  US consumer cop to warn lenders before fining them | Reuters . Posted in CFPB , Consumer Protection  | Comments Off NY attorney general, comptroller to jointly investigate unpaid life insurance benefits | The Republic Posted on November 3, 2011  by admin   New York’s attorney general and comptroller have begun jointly investigating unpaid life insurance benefits, citing data they say indicates millions of dollars may have been withheld improperly from thousands of possible beneficiaries. The goal is to make sure that life insurance companies keep promises to beneficiaries and to the state, Attorney General Eric Schneiderman said Thursday. “Together, our offices will undertake the largest and most comprehensive investigation of life insurance practices in the country.”  NY attorney general, comptroller to jointly investigate unpaid life insurance benefits | The Republic . Posted in Insurance Industry , Life Insurance  | Comments Off Selling More CDS on Europe Debt Raises Risk for U.S. Banks – Bloomberg Posted on November 3, 2011  by admin   U.S. banks increased sales of insurance against credit losses to holders of Greek, Portuguese, Irish, Spanish and Italian debt in the first half of 2011, boosting the risk of payouts in the event of defaults. Guarantees provided by U.S. lenders on government, bank and corporate debt in those countries rose by $80.7 billion to $518 billion, according to the Bank for International Settlements. Almost all of those are credit-default swaps, said two people familiar with the numbers, accounting for two-thirds of the total related to the five nations, BIS data show.  Selling More CDS on Europe Debt Raises Risk for U.S. Banks – Bloomberg . Posted in Asset/Mortgage Backed Securities , Derivatives  | Comments Off The Associated Press: NY foreclosure firm: Sorry for mocking homeless Posted on November 3, 2011  by admin   Amid an investigation by the U.S. attorney’s office in Manhattan, Baum agreed last month to pay $2 million and change its practices after admitting to errors in legal filings that it blamed on the high volume of mortgage defaults and foreclosures it handles. New York Attorney General Eric Schneiderman also is investigating the firm’s practices, a person familiar with the investigation said, speaking on condition of anonymity because active investigations are not discussed publicly. After denying to the Times that employees had mocked those who had lost their homes, the firm has in recent days acknowledged the costumes were inappropriate and apologized for last year’s Halloween party.  The Associated Press: NY foreclosure firm: Sorry for mocking homeless . Posted in Foreclosure & Mortgage Mods  | Comments Off The Eurozone crisis will not go away until banks face reality: Sheila Bair Posted on November 3, 2011  by admin   Former FDIC Chairman Sheila Bair’s first FORTUNE column entitled, “The Eurozone Crisis Will Not Go Away Until Banks Face Reality”: “European regulators should supplement this requirement with the Basel III 3% leverage ratio — or even better, the U.S. 5% requirement, adjusting for accounting differences. The EBA should also use realistic loss estimates more in line with those of the IMF and private analysts. If banks have to accept dilution of their stock or temporary nationalization, so be it.” http://bit.ly/uFCvEg The Eurozone crisis will not go away until banks face reality – The Term Sheet: Fortune’s deals blog Term Sheet . Posted in Basel (I, II, III) , Capital Requirements  | Comments Off SEC expects to file further CDO charges – FT.com Posted on November 3, 2011  by admin   The Securities and Exchange Commission expects to file charges against more Wall Street firms related to the sale of mortgage-linked securities, with hopes of wrapping up probes from the financial crisis in the near term, according to a senior enforcement official. The potential charges would follow SEC settlements with three Wall Street banks that allegedly misled investors who bought collateralised debt obligations – mortgage-linked securities.  SEC expects to file further CDO charges – FT.com . Posted in Asset/Mortgage Backed Securities  | Comments Off Attorney Convicted Of Bank Fraud, Money Laundering – North Country Gazette Posted on November 3, 2011  by admin   Cherico served as the attorney for various co-conspirators in negotiating and closing the fraudulent purchases that were part of the scheme. He and his co-conspirators submitted various documents, including loan applications, contracts of sale, deeds, real estate transfer documents, and title reports to federally insured banks. Those documents contained materially false or misleading information about the income, assets, existing debt and creditworthiness of the borrower, the chain of title to the property, and the sale price of the home. Those documents also certified the borrower’s intent to reside in the property as a primary residence, when, in fact, the properties were typically purchased for investment purposes.  North Country Gazette » Attorney Convicted Of Bank Fraud, Money Laundering . Posted in Fraud Against Institutions , Mortgage Fraud  | Comments Off Santander CEO: New Regulation Doesn’t Help With Current Crisis – WSJ.com Posted on November 3, 2011  by admin   Progress is being made in improving financial regulation, but much of it doesn’t address current problems and all of it will be futile if rules are not consistently applied, Spain’s Banco Santander SA (STD) said Thursday. Santander CEO: New Regulation Doesn’t Help With Current Crisis – WSJ.com . Posted in Capital Requirements  | Comments Off Treasury Dept. Announces FACI Members Who Will Advise FIO | PropertyCasualty360 Posted on November 3, 2011  by admin   Officials of Chubb and Liberty Mutual and consumer advocate Birny Birnbaum are among 15 people named today to the Treasury Department’s Federal Advisory Committee on Insurance. An official at Lloyd’s was named the international representative. Also among those named were seven insurance regulators: the commissioners of New York, Connecticut, Pennsylvania, the District of Columbia, Virginia, Montana and Oregon. The committee will provide advice to the Treasury’s Federal Insurance Office, which was established as part of the Dodd-Frank financial services reform law, on issues related to the responsibilities of the office.  Treasury Dept. Announces FACI Members Who Will Advise FIO | PropertyCasualty360 . Posted in Benjamin Lawsky , Department of Financial Services (DFS)  | Comments Off Wells Fargo pulls out of MBIA transformation lawsuit – HousingWire Posted on November 2, 2011  by admin   Wells Fargo dropped out of a high-profile lawsuit

AIG Repays $972 Million to Treasury, Using Alico Proceeds – Bloomberg Posted on November 2, 2011  by admin   American International Group Inc. (AIG), the bailed-out insurer, repaid an additional $972 million to the government, reducing its obligation to the U.S. Treasury Department to about $50 billion. The payment was made mostly with proceeds from New York- based AIG’s sale of American Life Insurance Co. to MetLife Inc.  for about $16 billion last year, the Treasury said in an e- mailed statement today.  AIG Repays $972 Million to Treasury, Using Alico Proceeds – Bloomberg . Posted in Insurance Industry , TARP  | Comments Off

Cuomo signs legislation requiring insurers to cover autism disorders – Albany – The Buffalo News Posted on November 2, 2011  by admin   A measure requiring health insurers to cover autism disorders was signed into law Tuesday, making New York the 29th state to enact such coverage mandates for the complex neurobiological disorder. An estimated 30,000 children in New York are afflicted by autism spectrum disorders, such as Asperger’s and Rett’s disorder, that affect social skills and learning abilities…Cost estimates for insurers and ultimately policyholders vary, but the legislation’s fiscal impact statement said insurance expenses overall would rise one-half of 1 percent. The note said other states with similar laws have seen “very modest” cost increases.  Cuomo signs legislation requiring insurers to cover autism disorders – Albany – The Buffalo News . Posted in Autism & Insurance , Insurance Industry  | Comments Off

Manhattan U.S. Attorney Sues Allied Home Mortgage, CEO, and Executive Vice President for Fraudulent Lending Practices – Insurance News Posted on November 2, 2011  by admin   Manhattan U.S. Attorney Sues Allied Home Mortgage, CEO, and Executive Vice President for Fraudulent Lending Practices Currently Associated with $834 Million in Insurance Claims Paid by HUD. The U.S. Attorney for the Southern District of New York issued the following news release: Insurance News – Manhattan U.S. Attorney Sues Allied Home Mortgage, CEO, and Executive Vice President for Fraudulent Lending Practices Currently Associated with $834… . Posted in Mortgage Industry  | Comments Off

Berkshire Bank closing former Legacy branch in downtown Albany – The Business Review Posted on November 2, 2011  by admin   Berkshire Bank plans to close a former Legacy Banks branch in downtown Albany. Pittsfield, Mass.-based Berkshire, which acquired Legacy in June, notified the New York state Department of Financial Services in late October of plans to close the office at 39 North Pearl St. Berkshire Bank closing former Legacy branch in downtown Albany – The Business Review . Posted in Department of Financial Services (DFS)  | Comments Off

The Canadian Jewish News – German casino returns valuable painting Posted on November 2, 2011  by admin   A German casino has returned a Nazi-looted painting to the university heirs of the estate of the German-Jewish Montreal art dealer Max Stern. Representatives of Concordia University, acting on behalf of the executors of the estate and its two other main beneficiaries, McGill University and Hebrew University of Jerusalem, were in the Netherlands Oct. 25 for the unveiling of the Dutch Old Master oil that has been restituted by the unidentified German company. The return of The Masters of the Goldsmith Guild in Amsterdam in 1701 by Juriaen Pool II (1665-1745) took place at the Amsterdam Museum. The work is valued at close to $1 million. The Canadian Jewish News – German casino returns valuable painting . Posted in Holocaust Claims , Looted Art  | Comments Off

CFPB now employs 700 staffers – HousingWire Posted on November 2, 2011  by admin   The Consumer Financial Protection Bureau employs a staff of 700 after conducting a three-month hiring spree, the new regulator’s special adviser Raj Date said Tuesday. Date, who serves as special adviser to Treasury Secretary Timothy Geithner, said many of the CFPB’s employees were hired away from the consumer protection divisions of other state and federal regulators. Date issued this employment update while testifying before the House Subcommittee on Financial Institutions and Consumer Credit. The de facto CFPB leader said the bureau’s troop of bank examiners is already on-site at big banks to review the lenders’ operations and practices. The agency also is fielding complaints from consumers. v CFPB now employs 700 staffers « HousingWire . Posted in CFPB , Consumer Protection  | Comments Off

Attorney Steven J. Baum just doesn’t get it – Business First Posted on November 2, 2011  by admin   The Baum story has gone worldwide. Yahoo, Huffington Post, cable news, everyone is jumping on the chance to vilify a firm that certainly seems anything but sympathetic. I reached back out yesterday for comment from Baum. Sure, I knew he wouldn’t talk to me, but how about a statement? As I was writing this, the statement arrived.  Attorney Steven J. Baum just doesn’t get it – Business First . Posted in Foreclosure & Mortgage Mods  | Comments Off

Banks reach out to foreclosed borrowers – Reuters Posted on November 2, 2011  by admin   Banks and other mortgage servicers have begun mailing letters to more than 4 million borrowers who can have their cases reviewed by independent consultants hired by the banks, U.S. banking regulators announced. A website — here  — and a call center have also been created for borrowers to find out how they can have their case reviewed. Banks reach out to foreclosed borrowers | Reuters . Posted in Foreclosure & Mortgage Mods  | Comments Off

Time for No-Fault Reform – National Underwriter Posted on November 2, 2011  by Ins News   Over the past few years, increasing frustration with fraud, abuse and massive cost increases in several jurisdictions has forced legislators and regulators to take a serious look at reform of their state’s no-fault laws. http://www.propertycasualty360.com/2011/11/01/time-for-no-fault-reform?t=personal Posted in Insurance Industry , Insurance Regulation , No-Fault Insurance , Uncategorized  | Comments Off

 

Examiner’s News – Wednesday, November 2, 2011

Economic Highlights  
Consumer confidence in October fell to its lowest level since March 2009. See the latest data on consumer confidence, employment, real estate, and more.

Financial Highlights  
The premium investors demand to invest in stocks has declined for another week and is at its lowest level since early August. See the latest data on bond and equity markets, financial markets, and more.

 

 

News Clips – Wednesday, November 2, 2011

Wells Fargo pulls out of MBIA transformation lawsuit – HousingWire Posted on November 2, 2011  by admin

Wells Fargo dropped out of a high-profile lawsuit that publicly challenged monoline insurer MBIA’s structural transformation in the wake of the financial crisis. The original suit, which included Wells Fargo and 21 other banking entities, challenged MBIA’s plan to transform its business under New York state’s Article 78. The complaint was filed after MBIA created a second mortgage insurer using $5 billion siphoned from the company’s original insurance subsidiary. Financial firms involved in the suit ended up challenging MBIA’s structural transition and the New York Insurance Department’s approval of the plan. Wells Fargo pulls out of MBIA transformation lawsuit « HousingWire .

Posted in Insurance Industry  | Comments Off

AIG Repays $972 Million to Treasury, Using Alico Proceeds – Bloomberg Posted on November 2, 2011  by admin   American International Group Inc. (AIG), the bailed-out insurer, repaid an additional $972 million to the government, reducing its obligation to the U.S. Treasury Department to about $50 billion. The payment was made mostly with proceeds from New York- based AIG’s sale of American Life Insurance Co. to MetLife Inc.  for about $16 billion last year, the Treasury said in an e- mailed statement today.  AIG Repays $972 Million to Treasury, Using Alico Proceeds – Bloomberg . Posted in Insurance Industry , TARP  | Comments Off

Cuomo signs legislation requiring insurers to cover autism disorders – Albany – The Buffalo News Posted on November 2, 2011  by admin   A measure requiring health insurers to cover autism disorders was signed into law Tuesday, making New York the 29th state to enact such coverage mandates for the complex neurobiological disorder. An estimated 30,000 children in New York are afflicted by autism spectrum disorders, such as Asperger’s and Rett’s disorder, that affect social skills and learning abilities…Cost estimates for insurers and ultimately policyholders vary, but the legislation’s fiscal impact statement said insurance expenses overall would rise one-half of 1 percent. The note said other states with similar laws have seen “very modest” cost increases.  Cuomo signs legislation requiring insurers to cover autism disorders – Albany – The Buffalo News . Posted in Autism & Insurance , Insurance Industry  | Comments Off

Manhattan U.S. Attorney Sues Allied Home Mortgage, CEO, and Executive Vice President for Fraudulent Lending Practices – Insurance News Posted on November 2, 2011  by admin   Manhattan U.S. Attorney Sues Allied Home Mortgage, CEO, and Executive Vice President for Fraudulent Lending Practices Currently Associated with $834 Million in Insurance Claims Paid by HUD. The U.S. Attorney for the Southern District of New York issued the following news release: Insurance News – Manhattan U.S. Attorney Sues Allied Home Mortgage, CEO, and Executive Vice President for Fraudulent Lending Practices Currently Associated with $834… . Posted in Mortgage Industry  | Comments Off

Berkshire Bank closing former Legacy branch in downtown Albany – The Business Review Posted on November 2, 2011  by admin   Berkshire Bank plans to close a former Legacy Banks branch in downtown Albany. Pittsfield, Mass.-based Berkshire, which acquired Legacy in June, notified the New York state Department of Financial Services in late October of plans to close the office at 39 North Pearl St. Berkshire Bank closing former Legacy branch in downtown Albany – The Business Review . Posted in Department of Financial Services (DFS)  | Comments Off

The Canadian Jewish News – German casino returns valuable painting Posted on November 2, 2011  by admin   A German casino has returned a Nazi-looted painting to the university heirs of the estate of the German-Jewish Montreal art dealer Max Stern. Representatives of Concordia University, acting on behalf of the executors of the estate and its two other main beneficiaries, McGill University and Hebrew University of Jerusalem, were in the Netherlands Oct. 25 for the unveiling of the Dutch Old Master oil that has been restituted by the unidentified German company. The return of The Masters of the Goldsmith Guild in Amsterdam in 1701 by Juriaen Pool II (1665-1745) took place at the Amsterdam Museum. The work is valued at close to $1 million. The Canadian Jewish News – German casino returns valuable painting . Posted in Holocaust Claims , Looted Art  | Comments Off

CFPB now employs 700 staffers – HousingWire Posted on November 2, 2011  by admin   The Consumer Financial Protection Bureau employs a staff of 700 after conducting a three-month hiring spree, the new regulator’s special adviser Raj Date said Tuesday. Date, who serves as special adviser to Treasury Secretary Timothy Geithner, said many of the CFPB’s employees were hired away from the consumer protection divisions of other state and federal regulators. Date issued this employment update while testifying before the House Subcommittee on Financial Institutions and Consumer Credit. The de facto CFPB leader said the bureau’s troop of bank examiners is already on-site at big banks to review the lenders’ operations and practices. The agency also is fielding complaints from consumers. v CFPB now employs 700 staffers « HousingWire . Posted in CFPB , Consumer Protection  | Comments Off

Attorney Steven J. Baum just doesn’t get it – Business First Posted on November 2, 2011  by admin   The Baum story has gone worldwide. Yahoo, Huffington Post, cable news, everyone is jumping on the chance to vilify a firm that certainly seems anything but sympathetic. I reached back out yesterday for comment from Baum. Sure, I knew he wouldn’t talk to me, but how about a statement? As I was writing this, the statement arrived.  Attorney Steven J. Baum just doesn’t get it – Business First . Posted in Foreclosure & Mortgage Mods  | Comments Off

Banks reach out to foreclosed borrowers – Reuters Posted on November 2, 2011  by admin   Banks and other mortgage servicers have begun mailing letters to more than 4 million borrowers who can have their cases reviewed by independent consultants hired by the banks, U.S. banking regulators announced. A website — here  — and a call center have also been created for borrowers to find out how they can have their case reviewed. Banks reach out to foreclosed borrowers | Reuters . Posted in Foreclosure & Mortgage Mods  | Comments Off

Time for No-Fault Reform – National Underwriter Posted on November 2, 2011  by Ins News   Over the past few years, increasing frustration with fraud, abuse and massive cost increases in several jurisdictions has forced legislators and regulators to take a serious look at reform of their state’s no-fault laws. http://www.propertycasualty360.com/2011/11/01/time-for-no-fault-reform?t=personal Posted in Insurance Industry , Insurance Regulation , No-Fault Insurance , Uncategorized  | Comments Off

G.A.O. Says New York Fed Failed to Push A.I.G. Concessions – NYTimes.com Posted on November 1, 2011  by admin   The findings of a federal investigation released Monday raised new questions about the Federal Reserve Bank of New York’s handling of the 2008 bailout of American International Group. The report, by the Government Accountability Office, says that New York Fed officials have offered inconsistent explanations for their decision to pay other financial companies the full amounts they were owed by A.I.G., and that some of the explanations were contradicted by other evidence. The report also asserts that the decision to pay the full amounts, rather than seeking concessions as the government later did in other cases, disregarded the expectations of senior Fed officials in Washington and the expressed willingness of some of the companies to accept smaller payments.  G.A.O. Says New York Fed Failed to Push A.I.G. Concessions – NYTimes.com . Posted in Insurance Industry  | Comments Off

4M Homeowners Eligible for Foreclosure Review – NYTimes.com Posted on November 1, 2011  by admin   Up to 4 million borrowers who may have been improperly foreclosed upon in 2009 and 2010 are getting an opportunity to have their cases reviewed. The Office of the Comptroller of the Currency says mortgage services will begin sending out letters this month that ask borrowers if they want their case reviewed. The nation’s 14 largest mortgage servicers — including Citibank, Bank of America, JPMorgan Chase, and Wells Fargo — were ordered to offer to review cases after the government found that some rushed the foreclosure process without carefully reviewing documents.  4M Homeowners Eligible for Foreclosure Review – NYTimes.com . Posted in Foreclosure & Mortgage Mods , Mortgage Industry  | Comments Off

Bank of America Drops Plan for Debit Card Fee – NYTimes.com Posted on November 1, 2011  by admin   The reversal follows a huge backlash from customers, one of whom collected more than 200,000 signatures urging the bank to rethink its plan. The bank listened, but only after other large banks had indicated that they would not impose similar fees. Wells Fargo, JPMorgan Chase, SunTrust and Regions Financial have all pulled back on their plans.  Bank of America Drops Plan for Debit Card Fee – NYTimes.com . Posted in Bank Products, Fees & Accounts , Consumer Protection  | Comments Off

Feds Sue Mortgage Broker, Alleging Lending Fraud – NYTimes.com Posted on November 1, 2011  by admin   The federal government sued one of the nation’s largest privately held mortgage brokers on Tuesday, saying its decade-long fraudulent lending practices cost the government hundreds of millions of dollars and forced thousands of American homeowners to face eviction. The lawsuit in U.S. District Court in Manhattan sought unspecified damages and civil penalties and named as defendants Houston-based Allied Home Mortgage Corp., founder Jim Hodge and Jeanne Stell, the company’s executive vice president and director of compliance.  Feds Sue Mortgage Broker, Alleging Lending Fraud – NYTimes.com . Posted in Mortgage Industry  | Comments Off

Buy Here, Pay Here – A vicious cycle in the used-car business – latimes.com Posted on November 1, 2011  by admin   Squeezing hefty payments from credit-challenged people is possible because Buy Here Pay Here dealers don’t use outside lenders to finance their sales. In a conventional auto loan, the dealer is a middleman. The purchase money is provided by a bank or finance company. In a Buy Here Pay Here loan, there is no outside money. The cars are sold on installment plans, an approach once common for big-ticket purchases like refrigerators and still widely used by rent-to-own furniture stores catering to people who don’t have credit cards. The arrangement allows Buy Here Pay Here dealers to make their own rules and set their own interest rates, with far less regulatory scrutiny than mainstream lenders receive. “This is not the car business. This is the finance business,” said Ken Shilson, an accountant who founded the National Alliance of Buy Here Pay Here Dealers in Houston. “Not everybody has the stomach for it.” A vicious cycle in the used-car business – latimes.com . Posted in Consumer Protection , Predatory Lending  | Comments Off

Fannie, Freddie dole out big bonuses – POLITICO.com Print View Posted on November 1, 2011  by admin   The Obama administration’s efforts to fix the housing crisis may have fallen well short of helping millions of distressed mortgage holders, but they have led to seven-figure paydays for some top executives at troubled mortgage giants Fannie Mae and Freddie Mac. The Federal Housing Finance Agency, the government regulator for Fannie and Freddie, approved $12.79 million in bonus pay after 10 executives from the two government-sponsored corporations last year met modest performance targets tied to modifying mortgages in jeopardy of foreclosure. The executives got the bonuses about two years after the federally backed mortgage giants received nearly $170 billion in taxpayer bailouts — and despite pledges by FHFA, the office tasked with keeping them solvent, that it would adjust the level of CEO-level pay after critics slammed huge compensation packages paid out to former Fannie Mae CEO Franklin Raines and others. Fannie, Freddie dole out big bonuses – POLITICO.com Print View . Posted in Foreclosure & Mortgage Mods , GSEs , Mortgage Industry  | Comments Off

Angry bank clients to switch Nov. 5 | Bankrate.com Posted on October 31, 2011  by admin   There’s a bank protest afoot that doesn’t involve camping, picketing or being gawked at by the national media. It’s called “Bank Transfer Day,” and it’s a social-media driven movement started by art gallery owner Kristin Christian. It aims to convince bank customers angered by new fees to move their money en masse to small banks or credit unions on Nov. 5. The movement has largely been orchestrated through Facebook, where the page has nearly 24,000 likes and numerous comments left by supporters and critics alike. Christian herself has been careful to keep the movement nonpartisan and distance it from the Occupy Wall Street protests happening in metro areas all over the country.  Angry bank clients to switch Nov. 5 | Bankrate.com . Posted in Bank Products, Fees & Accounts , Consumer Protection  | Comments Off

Cheat Sheet: What’s Happened to the Big Players in the Financial Crisis – ProPublica Posted on October 31, 2011  by admin   Widespread demonstrations in support of Occupy Wall Street have put the financial crisis back into the national spotlight lately. So here’s a quick refresher on what’s happened to some of the main players, whose behavior, whether merely reckless or downright deliberate, helped cause or worsen the meltdown. This list isn’t exhaustive — feel welcome to add to it. Cheat Sheet: What’s Happened to the Big Players in the Financial Crisis – ProPublica . Posted in Consumer Protection  | Comments Off

A Foreclosure Settlement That Wouldn’t Sting – NYTimes.com Posted on October 31, 2011  by admin   AFTER months of back and forth, a deal that is supposed to punish large financial institutions for foreclosure misconduct may be nigh. While the exact terms remain under wraps, some aspects of this agreement — between banks on one side, and the federal government and a raft of state attorneys general on the other — are coming into focus. Things could change, of course, and the deal could go by the boards. But here’s the state of play, according to people who have been briefed on the negotiations but were not authorized to discuss them publicly.  A Foreclosure Settlement That Wouldn’t Sting – NYTimes.com . Posted in Foreclosure & Mortgage Mods  | Comments Off

Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan – Bloomberg Posted on October 31, 2011  by admin   This hidden network has been created by institutions that buy and sell unregulated credit-default swaps. These are essentially insurance contracts on bonds; in the event of a default on the bond, the seller of the swap promises to pay the buyer the bond’s value. Credit-default swaps are mostly arranged “over-the-counter,” not traded on any exchange or recorded by any central information repository…But these undisclosed ties matter a lot. They were the primary reason the U.S. government needed to intervene in 2008 to prevent the collapse of insurance giant American International Group Inc. Ignoring the looming trouble with subprime mortgages, AIG had blithely sold CDS contracts insuring mortgage-backed securities to Goldman Sachs Group Inc., Societe Generale SA, Deutsche Bank AG and other firms. Suddenly, AIG was potentially on the hook for almost half a trillion dollars in payments. Through CDS contracts, AIG’s failure could have spread distress throughout the global financial system.  Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan – Bloomberg . Posted in Derivatives , Insurance Industry  | Comments Off

 

Examiner News – Monday, October 31, 2011

Weekly Credit Outlook Moodys 2011_10_31

Normally we would not include Moody’s Credit Outlook in this email because it is quite long ……

however, this weeks publications has a number of articles on the foreign debt crisis and related issues that most in our FWD likely will find of interest.    

Additionally, HARP and student loan issues are commented on and a fair number of articles are on insurance related topics

News Clips – Monday, October 31, 2011

Angry bank clients to switch Nov. 5 | Bankrate.com Posted on October 31, 2011  by admin

There’s a bank protest afoot that doesn’t involve camping, picketing or being gawked at by the national media. It’s called “Bank Transfer Day,” and it’s a social-media driven movement started by art gallery owner Kristin Christian. It aims to convince bank customers angered by new fees to move their money en masse to small banks or credit unions on Nov. 5. The movement has largely been orchestrated through Facebook, where the page has nearly 24,000 likes and numerous comments left by supporters and critics alike. Christian herself has been careful to keep the movement nonpartisan and distance it from the Occupy Wall Street protests happening in metro areas all over the country.  Angry bank clients to switch Nov. 5 | Bankrate.com .

Posted in Bank Products, Fees & Accounts , Consumer Protection  | Comments Off

Cheat Sheet: What’s Happened to the Big Players in the Financial Crisis – ProPublica Posted on October 31, 2011  by admin   Widespread demonstrations in support of Occupy Wall Street have put the financial crisis back into the national spotlight lately. So here’s a quick refresher on what’s happened to some of the main players, whose behavior, whether merely reckless or downright deliberate, helped cause or worsen the meltdown. This list isn’t exhaustive — feel welcome to add to it. Cheat Sheet: What’s Happened to the Big Players in the Financial Crisis – ProPublica . Posted in Consumer Protection  | Comments Off

A Foreclosure Settlement That Wouldn’t Sting – NYTimes.com Posted on October 31, 2011  by admin   AFTER months of back and forth, a deal that is supposed to punish large financial institutions for foreclosure misconduct may be nigh. While the exact terms remain under wraps, some aspects of this agreement — between banks on one side, and the federal government and a raft of state attorneys general on the other — are coming into focus. Things could change, of course, and the deal could go by the boards. But here’s the state of play, according to people who have been briefed on the negotiations but were not authorized to discuss them publicly.  A Foreclosure Settlement That Wouldn’t Sting – NYTimes.com . Posted in Foreclosure & Mortgage Mods  | Comments Off

Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan – Bloomberg Posted on October 31, 2011  by admin   This hidden network has been created by institutions that buy and sell unregulated credit-default swaps. These are essentially insurance contracts on bonds; in the event of a default on the bond, the seller of the swap promises to pay the buyer the bond’s value. Credit-default swaps are mostly arranged “over-the-counter,” not traded on any exchange or recorded by any central information repository…But these undisclosed ties matter a lot. They were the primary reason the U.S. government needed to intervene in 2008 to prevent the collapse of insurance giant American International Group Inc. Ignoring the looming trouble with subprime mortgages, AIG had blithely sold CDS contracts insuring mortgage-backed securities to Goldman Sachs Group Inc., Societe Generale SA, Deutsche Bank AG and other firms. Suddenly, AIG was potentially on the hook for almost half a trillion dollars in payments. Through CDS contracts, AIG’s failure could have spread distress throughout the global financial system.  Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan – Bloomberg . Posted in Derivatives , Insurance Industry  | Comments Off

Credit Rating Companies Favoring Borrowers Paying Most – Bloomberg Posted on October 31, 2011  by admin   Credit-rating companies routinely award higher rankings to debt issued by banks and corporations that pay them the most, a conflict of interest that may escape Congressional efforts to change the way they do business. Credit Rating Companies Favoring Borrowers Paying Most – Bloomberg . Posted in Credit Ratings & Agencies  | Comments Off

Credit unions pounce after banks raise fees – The Washington Post Posted on October 31, 2011  by admin   In the past month, the National Association of Federal Credit Unions recorded a 350 percent increase in Web traffic to its online credit union locator, CUlookup.com. The portal matches visitors with institutions they might be eligible to join based on affiliations, such as school, employer or church…Analysts say there is no guarantee that credit unions will hold the line on fees, especially if the economy continues to sour. What’s more, the institutions have their own regulations to contend with. For instance, the industry has been pleading with Congress to raise the cap on its ability to lend to small businesses. For now, though, credit unions sense an opportunity.  Credit unions pounce after banks raise fees – The Washington Post . Posted in Consumer Protection , Credit Union , Institutions We Regulate  | Comments Off

U.S. judge skeptical of Citigroup-SEC accord | Reuters Posted on October 31, 2011  by admin   A federal judge expressed deep skepticism about a proposed $285 million civil settlement between the top U.S. market regulator and Citigroup Inc over charges that the bank defrauded investors. Rakoff directed the SEC and Citigroup to answer nine questions about the settlement. These go to fundamental issues such as the size of the fine imposed, why no individuals were held financially responsible, and why the SEC did not demand any admission of wrongdoing for a “serious securities fraud.” U.S. judge skeptical of Citigroup-SEC accord | Reuters . Posted in Asset/Mortgage Backed Securities , Derivatives  | Comments Off

Insurer profits at issue in Anthem Health Plans of Maine suit – The Washington Post Posted on October 31, 2011  by admin   A lawsuit challenging Maine’s authority over health insurers’ profit margins is drawing national attention from state regulators worried about the impact on their power to hold down rate increases. The state’s highest court has scheduled oral arguments Nov. 10 on a case brought by a Maine unit of WellPoint, one of the nation’s largest health plans. Anthem Health Plans of Maine argues that regulators violated state law and the U.S. Constitution when they reduced requested premium increases in each of the past three years, depriving the company of “a fair and reasonable return.” Insurer profits at issue in Anthem Health Plans of Maine suit – The Washington Post . Posted in Health Insurance & Exchanges , Insurance Industry  | Comments Off

Bank of America Rethinking Debit Card Fee – NYTimes.com Posted on October 31, 2011  by admin   Although bank officials said their thinking was “evolving” and no firm conclusions had been reached, the bank is likely to broaden the number of customers exempt from the fee. Customers who hold Bank of America credit cards, directly deposit wages into the bank or hold a minimum balance will not be charged under a new plan. Previously, the bank said the minimum balance required to avoid the fee was $20,000, but lowering that minimum is also possible.  Bank of America Rethinking Debit Card Fee – NYTimes.com . Posted in Bank Products, Fees & Accounts , Consumer Protection  | Comments Off

NYS Foreclosure Mill Sweatshop Employees Dressed for Halloween Party In Attire Mocking Booted Homeowners Posted on October 31, 2011  by admin   On Friday, the law firm of Steven J. Baum threw a Halloween party. The firm, which is located near Buffalo, is what is commonly referred to as a “foreclosure mill” firm, meaning it represents banks and mortgage servicers as they attempt to foreclose on homeowners and evict them from their homes. Steven J. Baum is, in fact, the largest such firm in New York; it represents virtually all the giant mortgage lenders, including Citigroup, JPMorgan Chase, Bank of America and Wells Fargo. What the Costumes Reveal – NYTimes.com . Posted in Foreclosure & Mortgage Mods  | Comments Off

Wall Street reform law bogged down – POLITICO.com Print View Posted on October 31, 2011  by admin   President Barack Obama signed the Dodd-Frank financial reform bill into law 15 months ago, saying he was anxious to put new rules of the road in place for Wall Street. But federal agencies have blown about 77 percent of the rule-making deadlines for the massive overhaul, according to a recent progress report by the law firm Davis Polk — meaning key parts of the bill are far from implementation.  Wall Street reform law bogged down – POLITICO.com Print View . Posted in CFPB , Consumer Protection , Dodd-Frank  | Comments Off

Fees Help Drive Working Poor From Banks – NYTimes.com Posted on October 28, 2011  by admin   “Hidden or unexpected” fees are the No. 1 reason given by the working poor for closing bank accounts, a recent study found. The study by the Safe Banking Opportunities Project, a project of the Pew Health Group, surveyed 2,000 predominantly low-income, Hispanic households in the Los Angeles area in a two-phase study. Study participants were screened and recruited through a door-to-door, interviewer-administered survey.  Fees Help Drive Working Poor From Banks – NYTimes.com . Posted in Bank Products, Fees & Accounts , Consumer Protection , Unbanked  | Comments Off

SEC Enforcers Frozen As Watchdog Turns Pitbull – Bloomberg Posted on October 28, 2011  by admin   The U.S. Securities and Exchange Commission’s internal watchdog has castigated the agency for missing the Bernard Madoff fraud, spotlighted employees who viewed online pornography and called for a criminal probe into the ethics of the SEC’s former top lawyer. His blunt reports have won Inspector General H. David Kotz admiration on Capitol Hill, where lawmakers summon him to testify about his efforts to improve what they have criticized as flawed management and oversight at the regulator. At the SEC, it’s a different story. While inspectors general are rarely beloved, a backlash against Kotz among staff and managers has grown in intensity and spread to the legal community outside the agency. Now critics led by former SEC Chairman Harvey Pitt say Kotz is undermining the market regulator’s effectiveness.  SEC Enforcers Frozen As Watchdog Turns Pitbull – Bloomberg . Posted in Regulators & Agencies – Domestic  | Comments Off

Health Insurance Premiums Transparency Story – Full Coverage Posted on October 28, 2011  by admin   Insurers Agree to Share Data – Wall Street Journal Seven more health insurers have agreed to disclose the details of their requests for insurance-rate increases in New York, bringing a standoff with state regulators closer to an end. The arrangement with the health … 7 More Insurers End Objections on Rate Filings – New York Times ‎In a competitive stampede toward transparency in health insurance premiums, seven more large carriers have dropped their objections to the public disclosure of their filings with New York State in support of rate increases… 5 health insurers opt for transparency – Buffalo News New York’s health insurers are falling into line behind state regulators’ plan to disclose full details of insurers’ rate hike requests, as five more companies joined UnitedHealth Group in withdrawing opposition… Pages: 1   2 Posted in Health Insurance & Exchanges , Insurance Industry  | Comments Off

MERS subpoenaed by New York, sued by Delaware | Reuters Posted on October 28, 2011  by admin   MERS, the electronic mortgage registry used by the banking industry, was sued by Delaware on Thursday and accused of deceptive practices that led to unlawful shortcuts in dealing with the foreclosure crisis. New York’s attorney general also took action against MERS, subpoenaing the registry this week for information about how it is used by major banks and a foreclosure law firm, a person familiar with the matter said on Thursday. The suit and subpoena were part of a joint New York-Delaware mortgage probe, the person told Reuters.  MERS subpoenaed by New York, sued by Delaware | Reuters . Posted in Foreclosure & Mortgage Mods , Mortgage Industry  | Comments Off

Insurers Weigh In on Health Care Law – NYTimes.com Posted on October 27, 2011  by admin   The health insurance industry is urging the Supreme Court to decide as quickly as it can whether the federal health care law is, in fact, constitutional and to consider what other parts of the law should be struck down if the individual mandate does not pass muster. America’s Health Insurance Plans, a Washington, D.C., trade group, filed its supporting brief on Tuesday about the case. The group represents the nation’s health insurance companies, many of which oppose crucial provisions of the Affordable Care Act signed into law by President Obama last year. Insurers Weigh In on Health Care Law – NYTimes.com . Posted in Health Insurance & Exchanges , Insurance Industry  | Comments Off

HARP plan keeps mortgage insurers in play « HousingWire Posted on October 27, 2011  by admin   The Mortgage Insurance Companies of America is supporting the revised Home Affordable Refinance Program as a step in the right direction since it aims to keep borrowers current while reducing default claims. Earlier this week, the government announced a revamped HARP plan that will refinance more underwater mortgages. The plan also will waive reps and warrants, making it easier for mortgages to transition to lower interest rates without buy-back risk coming into play. This also makes it easier for insurers to back the risk.  HARP plan keeps mortgage insurers in play « HousingWire . Posted in Foreclosure & Mortgage Mods  | Comments Off

Suits Claim BNY Mellon Reaped Big Forex Profits – WSJ.com Posted on October 27, 2011  by admin   Bank of New York Mellon Corp.’s currency-trading practices are under renewed legal fire, as a lawsuit alleges the bank made “bundles of cash” by overcharging customers. The civil lawsuit, filed by Massachusetts’ top securities regulator against BNY Mellon Wednesday, is seeking more than $30 million in damages for allegedly overcharging the state’s pension fund on currency trades for more than a decade. The lawsuit, along with separate legal actions against BNY Mellon, shed light on the high-financial stakes for the bank as it battles a widening enforcement drive that questions the way it processed currency transactions for state and public pension funds, private firms, universities and banks. Suits Claim BNY Mellon Reaped Big Forex Profits – WSJ.com . Posted in Institutions We Regulate  | Comments Off

Regulator Said to Mull Forgiving Mortgage Debt – NYTimes.com Posted on October 27, 2011  by admin   The regulator for Fannie Mae and Freddie Mac was reviewing a proposal to help troubled homeowners by forgiving a portion of their outstanding mortgage debt, Democrats in the House of Representatives said on Wednesday. The head of the Federal Housing Finance Agency (FHFA), which oversees the mortgage-financing companies, met with 19 Democrats and discussed a proposal that would allow bankruptcy judges to reduce principal amounts on loans. Representative Elijah Cummings, the top Democrat on the House Oversight and Government Reform committee, set up the meeting to discuss ways to dampen the foreclosure crisis.  Regulator Said to Mull Forgiving Mortgage Debt – NYTimes.com . Posted in Foreclosure & Mortgage Mods , GSEs  | Comments Off

New York Working With Delaware on Criminal Foreclosure Probe – Businessweek Posted on October 27, 2011  by admin   New York Attorney General Eric Schneiderman is working with his Delaware counterpart, Beau Biden, to investigate what he called possible “criminal acts” by financial institutions tied to the foreclosure crisis. “This was a man-made crisis — it was created by regulatory neglect and greed,” Schneiderman said last night in a TV interview. “Beau Biden, who is the attorney general of Delaware, and I thought we really needed to dig in a little bit deeper,” Schneiderman told MSNBC’s Rachel Maddow. “We’re also looking at the conduct of individual institutions and individuals to see if there were misrepresentations made, to see if there was any fraud committed, to see if criminal acts were also a part of this.”  New York Working With Delaware on Criminal Foreclosure Probe – Businessweek . Posted in Foreclosure & Mortgage Mods , Mortgage Industry  | Comments Off

 

The Passing of Retired Examiner Michael Hess

As we are sure you will recall Mike joined the Department in July 1965 as a Bank Examiner Trainee and moved up through the ranks retiring, as an Assistant Deputy Superintendent, after 37 years of services on October 10, 2002.

Condolences can be sent to the family at:

Mrs. Sallie Hess       
423 Coolidge Avenue  
Washington Township, NJ 07675  

In lieu of flowers, the family asks that donations can be made in Mike’s memory to the Bishop Dougherty Scholarship Fund, which Mike’s was chairman of for 15+ years. Please make checks payable to the “NJ State Knights of Columbus Bishop Dougherty Scholarship Fund” and put “In Memory of Mike Hess” in the memo line, and send to New Jersey Knights of Columbus, State Office, 172 Main St., West Orange, NJ 07052.

Mike’s obituary will appear in The New Jersey Record tomorrow. The information will be also available shortly at http://www.becker-funeralhome.com .
 
Viewing:
Friday, October 28, 2011
2:00 – 4:00 PM and 7:00 PM – 9:00 PM
Becker Funeral Home
219 Kinderkamack Road, Westwood, NJ 07675 Tel: 201-664-0292
http://www.becker-funeralhome.com
 
Funeral Mass
Saturday, October 29, 2011
10:00 AM
Our Lady of Good Counsel
668 Ridgewood Road
Washington Twp, NJ 07676-4898
(201) 664-6624
 
Hotels:
For those needing suggestions for out-of-town accommodations, these hotels are within a 10-20 minute drive from both the funeral home and church.
Crowne Plaza Hotel Paramus: 201-262-6900 (Closest of the bunch – 4 miles/10 minutes)
Woodcliff Lake Hilton: 201-391-3600
Park Ridge Marriott: 201-307-0800
Sheraton Mahwah: 201-529-1660 (12 miles/20 minutes. Farthest of the bunch, same as wedding) To make reservations, please email christine.chinigo@ihrco.com  and reference the Hess family rate: $139/weekdays; $119 weekends. Please note that this reservation rate can only be applied when you email Christine – you cannot call and get this rate. Christine will check her email constantly over the next 3 days.

Examiner News – Friday, October 21, 2011

Economic Highlights  
U.S. payroll employment increased by 103,000 in September, and July and August payrolls were revised upward. See the latest data on employment.

Financial Highlights  
Most European bond spreads have narrowed in the past week with the exception of Greece, whose spread hit a record high. See the latest data on European bond spreads, mortgage markets, and more

News Clips – Friday, October 21, 2011

Housing Market May Get Fed Aid – WSJ.com Posted on October 21, 2011  by admin

Federal Reserve officials are starting to build a case for a new program of buying mortgage-backed securities to boost the ailing economy, though they appear unlikely to move swiftly. The idea would be to target any new efforts by the central bank at the parts of the economy that are most severely impeding a recovery—the housing and mortgage markets—by working to push down mortgage rates. Lower mortgage rates, in turn, could encourage more home buying and mortgage-refinancing, and help the economy by freeing up cash for consumers to spend on other goods and services. Mortgage rates are already very low, but some Fed officials believe they might be pushed lower. Moreover, Fed officials believe their past purchase programs helped to lift stock markets, by driving investors from low-risk investments toward riskier investments.  Housing Market May Get Fed Aid – WSJ.com .

Posted in Fed (The Federal Reserve) , Mortgage Industry  | Comments Off

Analysis: Banks keen on stock buybacks, regulators wary | Reuters Posted on October 20, 2011  by admin   U.S. bank executives are eager to buy back their stocks at depressed prices, but regulators appear to be reining them in, showing a clear disagreement over how risky the financial world is today and how much banks need to conserve capital. Analysis: Banks keen on stock buybacks, regulators wary | Reuters . Posted in Capital Requirements  | Comments Off

BNY Mellon loses motion to get Countrywide lawsuit moved to state court « HousingWire Posted on October 20, 2011  by admin   A federal district judge has denied The Bank of New York Mellon motion to move a lawsuit filed by Countrywide RMBS investors out of federal court and back into state court. The case was originally filed by investors in soured Countrywide mortgage-backed securities who were trying to block a proposed $8.5 billion settlement between The Bank of New York Mellon, the trustee overseeing the securitized loans, and the loans’ originator, Countrywide (Bank of America).  BNY Mellon loses motion to get Countrywide lawsuit moved to state court « HousingWire . Posted in Asset/Mortgage Backed Securities , Mortgage Industry  | Comments Off

Bankers’ Objections to Volcker Rule Fail on the Merits: View – Businessweek Posted on October 20, 2011  by admin   Big U.S. banks have found a lot not to like in the Volcker rule. We agree that regulations shouldn’t be unduly burdensome. But we see no good reason to share banks’ objections on this one.  Bankers’ Objections to Volcker Rule Fail on the Merits: View – Businessweek . Posted in Volcker Rule  | Comments Off

BofA, Wells Fargo, JPMorgan Sued by ATM User Over Fees – Bloomberg Posted on October 20, 2011  by admin   Bank of America Corp., Wells Fargo & Co.  and JPMorgan Chase & Co. were sued for allegedly colluding to fix the fees paid by consumers for access to automated teller machines. The antitrust suit, brought in federal court in Washington by an ATM user and made public today, also names Visa Inc. and MasterCard Inc. , the world’s biggest payment networks, as defendants. It’s the third lawsuit filed in Washington in the past week alleging price-fixing of ATM fees and surcharges.  BofA, Wells Fargo, JPMorgan Sued by ATM User Over Fees – Bloomberg . Posted in Bank Products, Fees & Accounts , Consumer Protection  | Comments Off

Humphrey takes on senior scams at $3 billion and counting | Reuters Posted on October 20, 2011  by admin   Federal financial regulators on Wednesday created a new Office of Older Americans to focus on the financial abuses they say cost seniors some $3 billion a year. The Consumer Financial Protection Bureau named Hubert H. “Skip” Humphrey III, who is on the board of the AARP, to direct the office and focus on such issues as reverse mortgages and retiree bankruptcies. The CFPB, created by the Dodd-Frank financial reform legislation, is still awaiting the Senate-stalled confirmation of Richard Cordray, nominated to be its director. Humphrey takes on senior scams at $3 billion and counting | Reuters . Posted in Consumer Protection , Reverse Mortgages , Scams, Schemes & Frauds , Seniors  | Comments Off

GAO: Executives’ seats on Fed boards as firms benefit give appearance of conflict – The Washington Post Posted on October 20, 2011  by admin   Top executives from Goldman Sachs, J.P. Morgan Chase, General Electric and other firms sat on the boards of regional Federal Reserve banks while their firms benefited from the central bank’s policies during the financial crisis, creating an appearance of a conflict of interest, a federal watchdog said Wednesday. At least 18 board members of the Fed’s regional banks were affiliated with companies that tapped emergency Fed programs during the financial crisis, according to the Government Accountability Office. But though there was an appearance of a conflict, the watchdog found that none of these firms received special treatment.  GAO: Executives’ seats on Fed boards as firms benefit give appearance of conflict – The Washington Post . Posted in Fed (The Federal Reserve)  | Comments Off

Citigroup to pay $285 million to settle fraud case | Reuters Posted on October 20, 2011  by admin   Citigroup Inc will pay $285 million to settle charges that it defrauded investors who bought toxic housing-related debt that the bank bet would fail, the U.S. Securities and Exchange Commission said on Wednesday. The SEC said the bank’s Citigroup Global Markets unit misled investors about a $1 billion collateralized debt obligation by failing to reveal it had “significant influence” over the selection of $500 million of underlying assets, and that it took a short position against those assets. It said one experienced CDO trader called the portfolio “possibly the best short EVER!” while an experienced collateral manager said “the portfolio is horrible.”  Citigroup to pay $285 million to settle fraud case | Reuters . Posted in Asset/Mortgage Backed Securities  | Comments Off

California reportedly subpoenas BofA over toxic securities – latimes.com Posted on October 20, 2011  by admin   Investigators with the state attorney general’s office have subpoenaed Bank of America Corp. in connection with the sale and marketing of troubled mortgage-backed securities to California investors, according to a person familiar with the probe. The state is trying to determine whether the bank and its Countrywide Financial subsidiary sold investments backed by risky mortgages to institutional and private investors in California under false pretenses, according to the person, who was not authorized to speak publicly and requested confidentiality. The subpoenas, which were served Tuesday, come as talks continue for a broad foreclosure settlement by a coalition of state attorneys general and federal agencies. California walked away from those discussions with major banks more than two weeks ago, saying what the banks were offering was not enough and the state would pursue its own investigations.  California reportedly subpoenas BofA over toxic securities – latimes.com . Posted in Foreclosure & Mortgage Mods  | Comments Off

NY Attempting End to Health Insurers’ Rate Secrecy — LifeHealthPro Posted on October 19, 2011  by Ins News   The New York Department of Financial Services (DFS) intends to make public all previously approved health insurance rate applications filed with the department, attempting to abolish a policy shielding the applications. http://www.lifehealthpro.com/2011/10/17/ny-attempting-end-to-health-insurers-rate-secrecy Posted in Benjamin Lawsky , Department of Financial Services (DFS) , Health Care Reform , Insurance Industry , Uncategorized  | Comments Off

Dodd Frank may still apply to captives – Captive Review Posted on October 19, 2011  by Ins News   Jim McIntyre of the Vermont Captive Insurance Association (VCIA) has published a whitepaper stating that the broadness of definitions by Dodd Frank’s Non-admitted and Reinsurance Reform Act (NRRA) raises questions about the Act’s impact on captive insurance. http://www.captivereview.com/news/1699072/-dodd-frank-may-still-apply-to-captives-.thtml?utm_source=captive-review&utm_medium=newsletter&utm_campaign=captive-review Posted in Dodd-Frank , Insurance Industry , Insurance Regulation , Uncategorized  | Comments Off

Regional Feds Urged to Avoid Conflicts of Interest – NYTimes.com Posted on October 19, 2011  by admin   Regional Federal Reserve banks’ heavy reliance on directors linked to the financial industry can suggest conflicts of interest and the process of excluding officials from certain decisions should be clearer, a congressional study released on Wednesday found.  Regional Feds Urged to Avoid Conflicts of Interest – NYTimes.com . Posted in Fed (The Federal Reserve)  | Comments Off

Foreclosure deal near as banks win more immunity | Reuters Posted on October 19, 2011  by admin   Talks between U.S. states and top banks over mortgage abuses are nearing agreement on a major sticking point that has bogged down settlement negotiations for more than a year. A deal could be reached by the end of the month, according to three people familiar with the talks.  Foreclosure deal near as banks win more immunity | Reuters . Posted in Foreclosure & Mortgage Mods  | Comments Off

Life Insurers See an Opening in Commercial Mortgages – NYTimes.com Posted on October 19, 2011  by admin   Life Insurers Dive into Commercial Mortgages Investment banks, which typically dominate commercial mortgage lending, are sitting on the sidelines, as the weak economy takes its toll, The New York Times writes. That’s left life insurance companies to pick up the slack, underwriting $15.7 billion in new commercial mortgages in the second quarter, the largest volume on record. “Life insurance companies are pretty much the only game in town,” Lawrence J. Longua, a clinical associate professor at the Schack Institute of Real Estate at New York University, told the Times. Insurers See an Opening in Commercial Mortgages – NYTimes.com . Posted in Insurance Industry , Mortgage Industry  | Comments Off

Scotrecard: Countries fail to enforce Basel reforms – FT.com Posted on October 19, 2011  by admin   Six of the 27 countries that set global banking regulations still have not fully implemented the Basel II reforms agreed in 2004, and only 11 of the 27 have drafted rules to enact the tougher Basel III standards that are supposed to replace them. The scorecard issued on Tuesday by the Basel Committee on Banking Supervision, which writes the rules, raises serious questions about whether some of the world’s financial centres are paying lip-service to global efforts to make banks safer and prevent a repeat of the financial crisis. Both the US and China are among the countries that are in the process of implementing Basel II.  Countries fail to enforce Basel reforms – FT.com . Posted in Basel (I, II, III) , Capital Requirements  | Comments Off

State attorneys general push for Cordray to lead federal consumer agency – The Washington Post Posted on October 19, 2011  by admin   The National Association of Attorneys General on Tuesday sent a letter  to Senate leaders calling nominee Richard Cord­ray “brilliant and balanced.” Cordray was an attorney general in Ohio known for his aggressive pursuit of foreclosure fraud before joining the Consumer Financial Protection Bureau (CFPB) as head of enforcement in January. This summer, Obama picked him to lead the fledgling agency, and he now awaits Senate confirmation. via State attorneys general push for Cordray to lead federal consumer agency – The Washington Post . Posted in CFPB  | Comments Off

Dismantling the Myths Around Wall Street Reform – Day 2: A Look at U.S. Competitiveness Posted on October 19, 2011  by admin   Latest blog post from Deputy Treasury Secretary Neal S. Wolin pushes back against the idea that the law puts U.S. banks at a competitive disadvantage: “The United States moved first, enacting comprehensive financial reform last summer, and consistent with their international commitments, other major financial systems are now putting their legal and regulatory frameworks in place…”Strong U.S. leadership has been key to the important progress the world has made in the G-20 and other international fora… At the G-20 Finance Ministers meeting last week, we agreed to enhanced prudential standards for large, systemically important financial institutions, along with a new G-20 framework to resolve these firms without widespread disruption and cost to taxpayers.” Dismantling the Myths Around Wall Street Reform – Day 2: A Look at U.S. Competitiveness . Posted in Dodd-Frank , Fed (The Federal Reserve)  | Comments Off

Jon Huntsman: ‘Too Big to Fail’ Is Simply Too Big – WSJ.com Posted on October 19, 2011  by admin   Is Dodd-Frank an appropriate regulatory response to the 2007 financial crisis? Tragically, no. That legislation ignores the government’s pervasive role in causing the crisis, assures future transfers from taxpayers to bankers by institutionalizing a government backstop for “too big to fail” firms, and imposes massive new regulations and unreasonable compliance costs on smaller banks. As a result, lending to small businesses from small banks suffers. Jon Huntsman: ‘Too Big to Fail’ Is Simply Too Big – WSJ.com . Posted in Too Big To Fail  | Comments Off

Community Bankers Speak Out On the Impact of Dodd-Frank Regulations | House Committee on Financial Services Posted on October 18, 2011  by admin   From House Financial Services GOP blog: “One community banker from Illinois said, “The Dodd-Frank Act will add an additional, enormous burden, has stimulated an environment of uncertainty, and has added new risks that will inevitably translate into fewer loans to small businesses.” While community banks did not cause the crisis, they have to comply with the 2,300 page Dodd-Frank Act. Michael Martin, CEO of Lordsburg’s Western Bank, said “We’re small business people. We have to understand and comply with the regulations just like Wells Fargo. We don’t have 70 attorneys on staff to figure it out.” While Republicans continuously warned of the disproportionate impact these regulations would have on ‘too small to save’ community banks, Democrats relied on illusionary exemptions in the bill. Make no mistake about it: community banks are being placed at a disadvantage due to the 400 new regulations stemming from the Dodd-Frank Act.” On The Record: Community Bankers Speak Out On the Impact of Dodd-Frank Regulations | House Committee on Financial Services . Posted in Community Banks , Congress & Committees , Dodd-Frank  | Comments Off

Fed approves final rule on big banks’ living wills | Reuters Posted on October 18, 2011  by admin   The Federal Reserve announced on Monday that it had approved a final rule on the blueprints large banks will have to submit to U.S. regulators showing how they can be dismantled in the event of failure. The rule was written jointly with the Federal Deposit Insurance Corp, which approved it on September 13. Both agencies had to approve the regulation for it to become effective. Under the rule, the largest U.S. banks will have to submit a plan, known as a “living will,” by the middle of next year.  Fed approves final rule on big banks’ living wills | Reuters . Posted in Living Wills (Banks)  | Comments Off