Crain’s Insider – Wednesday, June 8, 2011

Crain’s Insider


Today’s News Wednesday, June 08, 2011
 

MTA Seeks Loan Christie Rejected

The MTA is applying for a federal loan that New Jersey’s governor lost out on when he canceled the ARC tunnel. Railroad Rehabilitation & Improvement Financing is normally for freight railroads, but state officials hope the money can be put toward the MTA’s $10 billion capital plan. “We’re saying, ‘If you were going to give it to Chris Christie, why not give it to us?’ ” said a transportation insider. The RRIF loan, which could total as much as $3 billion, can be paid back over 35 years at interest equal to the government’s cost of borrowing.

DOT Losing PR Battle

The city, which has given itself until 2030 to reduce annual traffic fatalities by half, has introduced bike lanes, pedestrian islands and other traffic-calming measures. The number of traffic deaths reached a record low last year. But the embattled Department of Transportation is losing the public relations war because it has failed to “capture the imaginations” of New Yorkers, asserts a report to be released today by Transportation Alternatives and the Drum Major Institute. The report says the city should make zero fatalities its goal, as Sweden has. “The city has not done an adequate job of communicating,” said co-author John Petro. “Let’s stop the yelling about bike lanes and cars and focus on the safety angle.” A DOT spokesman said, “It’s hard to be clearer that nothing is more important than the safety of everyone on our streets.”

Fire-Trap Crackdown’s Effect on Tenants

Affordable-housing advocates had a mixed reaction to the city’s announcement yesterday that Fire Department officials would join buildings inspectors in responding to some complaints about illegally converted apartments, which is expected to increase orders to vacate. “We applaud the City Council and mayor’s attention to tenant safety,” said Dave Hanzel, policy director of the Association for Neighborhood and Housing Development. “Yet we are equally concerned about affordability and what happens when those tenants are vacated with nowhere else to go.”

Liz’s New PAC

State Sen. Liz Krueger kicks off her new No Bad Apples PAC tonight with a fundraiser from 6 p.m. to 8 p.m. at the home of Jill and Barry Lafer. Tickets start at $500. RSVP to Jennie Berger at (646) 415-9021 or jennie@lizkrueger.com .

blogspot counter GOP’s calls for blood have ulterior motive

Republicans don’t want to wait until 2012 to go after Rep. Anthony Weiner’s seat. GOP leaders have blasted the six-term congressman’s sexting shenanigans and have called on him to resign for ethical reasons.

What they haven’t mentioned is that their best hopes for snatching the seat from Democrats is the special election that his resignation would trigger.

A special election would give Republicans several advantages, insiders say. Such elections traditionally have low turnout, so in this case, those who turn out to vote would likely do so in order to protest Weiner’s lewd online exchanges with women. Sources also point out that Democrats lack a likely successor for the Queens congressman.

Republicans have started reaching out to prospective candidates. Insiders say Kings County Republican Chair Craig Eaton has been in touch with Bob Turner, the largely self-funded candidate who lost by 7 points to Weiner in 2010. “He’s a well-funded guy and a businessman,” said Vince Tabone, vice chairman of the Queens Republican Party. “He also has integrity, and no skeletons in his closet.”

Local Republicans hope the national party will get involved. “It all depends on whether or not we’re talking about a special election,” said Tabone. “In a general [election], with Obama on top of the ticket, I don’t know if the same calculus is at play.”

Another reason that Republicans can’t wait until 2012 is that Weiner’s district might not exist by then. Insiders are already envisioning how the 9th Congressional District could be sliced up to feed many political mouths.

Because the state will lose two seats in reapportionment, every district must grow. The predominantly Jewish portion of Weiner’s Queens constituency could go to Rep. Gary Ackerman. That shift would help Ackerman’s Long Island colleagues, whose districts must grow westward. Reps. Michael Grimm and Jerry Nadler could grow further in Brooklyn. And Rep. Joe Crowley stands to benefit by losing the Latino part of his district in the Bronx and picking up Weiner’s white, Catholic neighborhoods in Queens.

The result would be a new 9th District dominated by minorities, who would strengthen their hand in Washington.

At A Glance

MOVING ON:  Louise Cohen, deputy commissioner for health care access and improvement at the city Department of Health and Mental Hygiene, is leaving to join nonprofit Public Health Solutions in Manhattan. She will be vice president for public health programs.

 

News Clips – Wednesday, June 8, 2011

Battle of the health plans | DFS Mention
Posted on June 8, 2011  by admin  
Consumer advocates also like the leadership structure of the governor’s plan. Under the proposal, the exchange would be overseen by seven voting board directors, including the state health commissioner, the superintendent of the Department of Financial Services, the state Medicaid director, and four directors appointed by the governor, including one recommendation from the temporary president of the Senate and one recommendation from the speaker of the Assembly. The Senate plan calls for nine voting directors — three appointed by the governor, two appointed by the temporary president of the Senate, two appointed by the speaker of the Assembly, one appointed by the minority leader of the Senate, and one appointed by the minority leader of the Assembly — and two nonvoting members: the superintendent of the Department of Financial Services and the health commissioner. Battle of the health plans – Times Union .
Press Release: Neiman Named to Key Leadership Role | BD Mention
Posted on June 8, 2011  by admin  
Richard H. Neiman has joined PwC as vice chairman of the firm’s global financial services regulatory practice. Neiman, who recently completed his term as Superintendent of Banks for the State of New York and as a member of the Congressional panel overseeing the implementation of TARP, is a highly respected veteran of the financial services industry who has extensive experience as a banking executive, regulator and consultant. In his new role, Mr. Neiman will advise and work with financial institutions, financial market utilities, and regulators around the world on issues arising from the rapidly changing regulatory environment, including the Dodd-Frank Wall Street Reform and Consumer Protection Act. Mr. Neiman will also lead the firm’s foreign bank regulatory practice and will focus on advising foreign banks on governance, compliance and business issues with respect to their operations in the US. Former New York Banking Superintendent Richard Neiman Named to Key Leadership Role… — NEW YORK, June 7, 2011 /PRNewswire/ – .
Posted in Banking Department News , Richard H. Neiman  | Comments Off
Foreclosure settlement divides state attorneys general
Posted on June 8, 2011  by admin  
Even within the 14-member “executive committee” of attorneys general who are leading the 50-state coalition, some have very different visions of what exactly a settlement should look like. Florida’s Pam Bondi, for instance, has joined a handful of other Republican attorneys general in arguing against forcing banks to lower loan balances for troubled homeowners, a controversial practice known as principal reduction. New York’s Democratic attorney general, Eric Schneiderman, meanwhile, has joined other states in pushing for stiff penalties for the firms involved, which include Bank of America and Wells Fargo. He also has insisted that any settlement should not let banks off the hook from the threat of future lawsuits. The disparate views from some of the country’s largest, most influential and most foreclosure-plagued states means that Iowa Attorney General Tom Miller, a Democrat leading the negotiations alongside federal officials, must walk a delicate line if he hopes to arrive at a settlement that his peers can support, that banks cans live with and that struggling homeowners (and voters) view as meaningful.  Foreclosure settlement divides state attorneys general – The Washington Post .
Posted in Bank Regulation (domestic) , Foreclosure , Mortgage Industry , Mortgage Loan Servicers , Mortgage Modifications  | Comments Off
Four Indicted in $1.5M ATM Skimming Operation
Posted on June 8, 2011  by admin  
Prosecutors said the gang targeted accounts at Citibank and JP Morgan Chase and Co. between March 2010 and May 2011 in cities including New York, Miami and Chicago.The case stands out in particular for its boldness. Many criminals try to fit skimming devices on ATM machines outside, often late at night wearing a hood that can obscure them from being identified by security cameras…But the four men charged in this case are alleged to have actually entered bank branches and modified card readers near the tellers. The men allegedly replaced the PIN pads with ones that could record the secret number along with the card’s account information and then remotely transmit it. They also allegedly harvested card information from card readers outside ATM vestibules. Four Indicted in $1.5M ATM Skimming Operation | PCWorld Business Center .
Posted in ATM Safety , Consumer Protection  | Comments Off
Mr. Frank Goes to Wall Street
Posted on June 8, 2011  by admin  
Representative Barney Frank, the Massachusetts Democrat, held a Wall Street fundraiser on Tuesday, less than a year after he authored a sweeping crackdown on the financial industry The fundraiser’s attendees were a who’s-who of Wall Street’s legal and lobbying community. JPMorgan Chase, Goldman Sachs and Morgan Stanley all dispatched officials to the event, hosted by the Securities Industry and Financial Markets Association, one of Wall Street’s most vocal advocates on the Dodd-Frank financial regulatory law. http://dealbook.nytimes.com/2011/06/08/mr-frank-goes-to-wall-street/?nl=business&emc=dlbka8
Posted in Bank Regulation (domestic) , Dodd-Frank , Financial Regulation , Lobbying  | Comments Off
Osborne seeks rethink on Lloyds
Posted on June 8, 2011  by admin  
The UK government is urging the Independent Commission on Banking to adopt a pragmatic stand on its recommendation that Lloyds Banking Group sell “substantially” more than the 600 branches ordered by European authorities. George Osborne, chancellor, has pressed the commission to come up with an “acceptable and feasible” solution to a standoff with Lloyds, according to people familiar with the situation. FT.com / Companies / Banks – Osborne seeks rethink on Lloyds .
Posted in Bank Regulation (Foreign)  | Comments Off
GE Capital eyes subprime loans
Posted on June 8, 2011  by admin  
General Electric…is gearing up for the first time to start selling what are essentially subprime corporate loans…The company’s huge finance arm, GE Capital, is asking private-equity firms to invest $600 million in a new venture that will work alongside GE when it makes corporate loans, mostly to midsize companies. GE Capital currently offers less risky “senior” loans. Through a new fund, it would offer the same clients riskier “junior” loans as part of a package, sources said. GE plans to collect a fee from the junior loans but not take a share of the returns….While GE has said it aims to shrink the overall size of GE Capital, the move, along with a potentially bigger deal to buy ING Direct’s bank deposits, suggests the company is aggressively trying to grow parts of the finance business. GE Capital eyes subprime loans – NYPOST.com .
Posted in Bank Regulation (domestic) , Risk Retention , Subprime  | Comments Off
Dimon Asks If Bernanke Shares ‘Fear’ of Rules Slowing Recovery
Posted on June 8, 2011  by admin  
Dimon asked whether the central banker has measured the cumulative effects of new capital requirements, mortgage standards and other rules imposed on the system in the wake of the U.S. financial crisis. Dimon spoke yesterday in a question-and-answer session after Bernanke addressed a conference of bankers in Atlanta. Dimon asked Bernanke if he “has a fear like I do” that overzealous regulation “will be the reason it took so long that our banks, our credit, our businesses and most importantly job creation to start going again. Is this holding us back at this point?” Dimon Asks If Bernanke Shares ‘Fear’ of Rules Slowing Economic Recovery – Bloomberg .
Posted in Bank Regulation (domestic) , Federal Reserve Board/The Fed , Financial Education , Financial Regulation  | Comments Off
State & Political News | June 8, 2011
Posted on June 8, 2011  by admin  
Public Integrity Reform Act of 2011: A Summary
Perhaps the two biggest pieces of what is known as the Public Integrity Reform Act of 2011 are the independent Joint Commission on Public Ethics and enhanced disclosure requirements requiring state employees to disclose income from outside sources and names of clients, which also includes a requirement to disclose whether or not an employee’s clients have business with the state. This is what’s in the Public Integrity Reform Act of 2011 as outlined in the Governor’s press release issued late Friday. (Governor Cuomo apologized to reporters Monday for the late release.) The only part of the legislation not included here is the joint commission: http://auburnpub.com/news/opinion/blogs/eye_on_albany/article_ff387520-90b5-11e0-8a21-001cc4c03286.html
Ethics bill expands disclosure rule Outside pay under public scrutiny
State officials would be required to disclose their outside income within $100,000…The increased disclosure would begin for earnings in 2012, and become available in 2013. The time frame spares the current 212 members of the Legislature from providing information about their outside earnings until after the 2012 elections. http://www.timesunion.com/local/article/Ethics-bill-expands-disclosure-rule-1414262.php
Ethics passage would stop the clock for O’Connor case
Ousted SUNY executive John J. O’Connor would win at least a four-month reprieve from potential discipline if not a total pass on ethics charges if the bill Gov. Andrew Cuomo introduced Tuesday becomes law. The state Public Integrity Commission, which has charged O’Connor with violating the public officers’ law for providing a no-show job to former Senate Majority Leader Joseph L. Bruno’s daughter, would cease to exist immediately upon passage of the Public Integrity Reform Act of 2011. http://blog.timesunion.com/capitol/archives/69884/ethics-passage-would-stop-the-clock-for-oconnor-case/
Hurdles ahead for property tax cap
Despite a tentative agreement on a property tax cap, education and civic groups continued to rail against it Tuesday and contend it would exacerbate existing school-funding inequities. And Senate Republicans, who are in the majority, oppose a key part of the deal that would place an expiration date on the tax cap. But Senate Majority Leader Dean Skelos, R-Nassau County, said this week he doesn’t think the sunset issue would prevent the deal from going forward. Cuomo and legislative leaders have said they are confident the bill will become law before the legislative session ends June 20. http://www.pressconnects.com/article/20110608/NEWS10/110608001/Hurdles-ahead-property-tax-cap?odyssey=mod|newswell|text|FRONTPAGE|s
A Twitter Group Warned About Weiner
Three months before Representative Anthony D. Weiner sent a photo from his Twitter account to a 21-year-old Washington State college student named Gennette Cordova, a small group of determined, self-described conservatives were warning young women on Twitter, including Ms. Cordova, to be wary of him. [M]embers of the group closely monitored those whom Mr. Weiner was following, taking it upon themselves to contact young women they believed to be “schoolgirls,” and urging them publicly to stay away from him…By early May, members of the group were also speculating that Mr. Weiner would be caught in a sex scandal.   http://www.nytimes.com/pages/nyregion/index.html
Empire State Plaza Falling water restored
After being silenced by budget cuts in 2007, the twin waterfalls on the eastern escarpment of the Empire State Plaza are in regular operation again. The state Office of General Services says the $4.50-per-hour estimated cost of running the attraction is worth the enhancement of the visitor experience at the capital complex. The falls, with water piped up from the Hudson River on a loop system, will run from 8 a.m. to 1 p.m. Monday through Friday, April through October. http://www.timesunion.com/local/article/Falling-water-restored-1414260.php
Democratic Rule Remakes Connecticut’s Legislature
The session provides a glimpse into the politics of a state that largely avoided the Republican tide that swept the country last year. And the way that voters respond could say a lot, not just about Connecticut’s future, but also about national politics as the fevers of the 2010 elections begin to cool. The Senate president, Donald E. Williams Jr., a Democrat from Brooklyn, Conn., said the legislation passed on social issues was forward-looking and relatively modest, and he insisted Connecticut had made difficult but smart economic choices that would benefit the state over the long run…But Republicans, for the most part, have been sharply critical…The session has run on two parallel tracks — social and economic — with the end result still unclear. http://www.nytimes.com/2011/06/08/nyregion/democratic-rule-remakes-connecticuts-legislative-face.html?ref=nyregion
Posted in State & Political News Round-Up  | Comments Off
The S.E.C.’s Advice For White-Collar Lawyers
Posted on June 7, 2011  by admin  
Note to defense counsel: Do not tap your clients under the table if they say something you don’t like. Robert Khuzami, the Securities and Exchange Commission’s enforcement chief, gave a sternly worded speech to the criminal law group of the UJA-Federation of New York last week, voicing concerns about how the lawyers conduct themselves. The transcript of the speech was just released. “None of you, I’m sure, would engage in the types of questionable conduct that I’ll describe tonight,” he told the crowd. “But, as knowledgeable and experienced members of the white-collar bar, I’d like to suggest that you carefully consider these issues so that you can, in the words of the immortal Obi Wan Kenobi, ‘use your powers for good, not evil.’” Mr. Khuzami said, “Too frequently we see defense counsel behavior that is questionable, or worse,” and it needs to stop.  The S.E.C.’s Advice For White-Collar Lawyers – NYTimes.com .
Posted in Lawsuit , SEC  | Comments Off
Lloyd’s New York Application in Final Stages | Mentions Ins (Subscription)
Posted on June 7, 2011  by admin  
Lloyd’s of London remains committed to gaining admitted status as a qualifying alien reinsurer in New York State despite withdrawing its application for the same status in Florida. Lloyd’s has confirmed that discussions with the New York State Insurance Department are “in the final stages”. Gaining approval would mean the Society is able to post reduced levels of collateral for business sourced from New York cedants. This comes after it emerged Lloyd’s had “temporarily” withdrawn its application for qualifying status… Lloyd’s New York application in final stages | The Insurance Insider .
Posted in Insurance Industry  | Comments Off
Overhaul of Financial Regulations Is Mired in Details and Dissent
Posted on June 7, 2011  by admin  
Nearly one year after Congress passed financial changes to rein in the banking sector, more than two dozen of the legislation’s rules are behind schedule, and no end to the wrangling over details is in sight. U.S. Treasury Secretary Timothy Geithner speaking at the International Monetary Conference in Atlanta, Georgia, on Monday. The delays come as regulators extend public comment periods on the rules, and as some on Wall Street and in Congress resist the changes. One result may be that many new safeguards do not take hold in earnest before the next election, an outcome that could open the door for newly elected officials to back away from the overhaul. Overhaul of Financial Regulations Is Mired in Details and Dissent – NYTimes.com .
Posted in Bank Regulation (domestic) , Dodd-Frank , Financial Crisis , Financial Regulation  | Comments Off
Fed Said to Back Three Percentage-Point Capital Surcharge for Big Banks
Posted on June 7, 2011  by admin  
The Federal Reserve supports a proposal at the Basel Committee on Banking Supervision that calls for a maximum capital surcharge of three percentage points on the largest global banks, according to a person familiar with the discussions. International central bankers and supervisors meeting in Basel, Switzerland, have decided that banks need to hold more capital to avoid future taxpayer-funded bailouts. Financial stock indexes fell in Europe and the U.S. yesterday as traders interpreted June 3 remarks by Fed Governor Daniel Tarullo as leaving the door open to surcharges of as much as seven percentage points. “A seven percentage-point surcharge for the largest banks would be a disaster,” said Jason Goldberg, senior analyst at Barclays Capital Inc. in New York. “It will certainly restrict lending and curb economic growth if true.” Fed Is Said to Back Three Percentage-Point Capital Surcharge for Big Banks – Bloomberg .
Posted in Bank Bail-Outs , Bank Regulation (domestic) , Bank Regulation (Foreign) , Basel II | Basel III , Capital Requirements , Too Big To Fail  | Comments Off
Lawmakers Seek to Remove Medical Bills from Mortgage Originations
Posted on June 7, 2011  by admin  
Three U.S. congressmen are offering an novel concept when it comes to kick-starting home sales. A new bill proposed by Reps. Don Manzullo (R-Ill.), Ralph Hall (R-Texas) and Heath Shuler (D-N.C.) will prevent institutions from keeping resolved medical debts on credit reports, where they end up serving as barriers to obtaining a mortgage. “Medical debt is not a reliable indicator of credit risk, yet nearly a quarter of Americans have seen their credit scores plummet because of small, routine medical bills,” said H.R. 2086 cosponsor Rep. Nydia Velazquez (D-N.Y.), Ranking Member of the House Small Business Committee. “This bill provides a common-sense, simple solution to address this problem now and protect consumers in the future.” The lawmakers behind the legislation, called the Medical Debt Responsibility Act, want paid medical debts removed 45 days after a full repayment is made. Current practices allow keeping paid medical debts — some as small as a few dollars — on consumer credit reports for a period of seven years.  Lawmakers seek to remove paid medical bills from mortgage originations « HousingWire .
Posted in Consumer Protection , Credit Rating , Mortgage Industry  | Comments Off
Fannie releases new rules for calculating servicing fees on modified loans
Posted on June 7, 2011  by admin  
Fannie Mae is asking servicers to review the GSE’s updated servicing guidelines to ensure they are following a new formula for calculating servicing fees on mortgage loan modifications. The government-sponsored enterprise stipulated in its revised servicing guide  that all modified loans closed in Fannie’s HomeSave Solutions Network on or after June 18 will be subject to a new servicing fee structure in which the cost will either be the fee the servicer received before the loan modification or 0.25%.  Fannie releases new rules for calculating servicing fees on modified loans « HousingWire .
Posted in Fannie Mae/Freddy Mac , Foreclosure , Mortgage Industry , Mortgage Loan Servicers , Mortgage Modifications  | Comments Off
Regulators delay risk-retention rule to August
Posted on June 7, 2011  by admin  
Federal regulators extended the comment period on the proposed risk-retention rule from June 10 to Aug. 1…regulators proposed the rule in April, requiring lenders to retain 5% of the credit risk on mortgages pooled in securities. The exception is the qualified residential mortgage. Lenders do not have to maintain the risk on these loans if they meet a variety of requirements…In May, a group of 15 housing trade groups wrote a letter  to regulators formally asking for an extension…Sheila Bair long argued the risk-retention rule was designed to govern much of the market, and the QRM was meant to be a narrow slice…But HUD Acting Commissioner Bob Ryan said the 20% down payment may be too restrictive…Regulators did not immediately give a specific reason for the delay. Regulators delay risk-retention rule to August « HousingWire .
Posted in Mortgage Backed Securities , Mortgage Industry , Risk Retention  | Comments Off
Geithner Urges Rules on Swaps to Avoid ‘Race to the Bottom’
Posted on June 7, 2011  by admin  
U.S. Treasury Secretary Timothy F. Geithner said he wants global minimum standards on derivatives trading and urged regulators to avoid a “race to the bottom” in which financial risk moves to the least-supervised economies. “We need global minimum standards for margins on uncleared derivatives trades,” Geithner said today in a speech in Atlanta. “Without international consensus, the broader cause of central clearing will be undermined. Risk in derivatives will become concentrated in those jurisdictions with the least oversight. This is a recipe for another crisis.” The U.S. Commodity Futures Trading Commission and Securities and Exchange Commission are writing new regulations required by the Dodd-Frank Act, the financial overhaul enacted last July, after largely unregulated derivatives helped fuel the 2008 credit crisis. Dodd-Frank seeks to reduce risk and boost transparency in the $601 trillion global swaps market by having most swaps guaranteed by central clearinghouses and traded on exchanges or other venues. Geithner Urges Rules on Swaps to Avoid ‘Race to the Bottom’ – Bloomberg .
Posted in CFTC , Derivatives , Dodd-Frank , Swaps  | Comments Off
Facebook Becomes Tool to Serve Legal Papers on Those Who Exist Only Online
Posted on June 7, 2011  by admin  
Two years after an Australian lawyer caused a stir by sending a foreclosure notice via Facebook, the practice of online legal service is spreading as a means for courts to keep their dockets moving. Courts in New Zealand, Canada and the U.K. have adopted the Australian example to avoid having cases stall when people can’t be located and served in person. Lawyers said the U.S. may not be far behind in using the world’s most popular social- networking service. “There are people who exist only online,” said Joseph DeMarco, co-chair of the American Bar Association’s criminal justice cyber crime committee, and a lawyer at New York-based DeVore & DeMarco LLP. Being able to serve documents by social- media networks would be a useful tool, he said. …advocates said that serving court notices by mail or in person often already provokes privacy complaints. Therefore using Facebook doesn’t raise any new issues. Facebook Becomes Tool to Serve Legal Papers on Those Who Exist Only Online – Bloomberg .
Posted in Cyber Security , Foreclosure  | Comments Off
HSBC Agrees to Pay $62.5 Million to Settle Madoff Civil Case in New York – Bloomberg
Posted on June 7, 2011  by admin  
HSBC Holdings Plc , Europe’s biggest bank, agreed to pay $62.5 million to settle a group lawsuit in New York filed by investors in a fund that lost money in Bernard Madoff’s fraud. The accord applies to a class-action case against several HSBC companies and other defendants by investors in the Thema International Fund Plc, an Ireland-based fund whose assets were invested with Bernard L. Madoff Securities LLC, HSBC said in a statement today. The settlement “shall in no way be construed” as an admission or fault, London-based HSBC said in the statement.  HSBC Agrees to Pay $62.5 Million to Settle Madoff Civil Case in New York – Bloomberg .
Posted in Bank Fraud , Lawsuit , Scams, Schemes & Frauds  | Comments Off
Lehman Brokerage Gets $2 Billion From Barclays – Bloomberg
Posted on June 7, 2011  by admin  
Barclays Plc, which bought Lehman Brothers Holdings Inc.’s North American business, must return $2 billion in margin assets to the trustee liquidating the remains of Lehman’s brokerage and pay about $270 million in interest, a bankruptcy judge ruled…Barclays will appeal, the bank said in an e-mailed statement. The amount Barclays must return will be offset by $1.1 billion in assets that the two parties previously agreed should go to the U.K. bank, which bought Lehman’s businesses in the 2008 credit crisis. That cuts its cost to about $1.2 billion, including interest. However, Barclays lost its bid for $1.9 billion in margin to offset liabilities it took on with some of the brokerage’s trading positions. Lehman Brokerage Gets $2 Billion From Barclays – Bloomberg .
Posted in Bank Regulation (domestic) , Bank Regulation (Foreign) , Bankruptcy , Financial Crisis  | Comments Off