Ex-Park Avenue Bank Chief Antonucci Accused of Fraud

March 15, 2010 by · Leave a Comment
Filed under: Legal News 

Glad to see we are hearing about fraud in the TARP program.  We put a massive amount of money go into many financial institutions and if history proves to repeat itself, fraud always happens in large government programs.  The alleged transaction sounds very fishy and should be investigated.

Business Week – Charles Antonucci, the ex-president of the Park Avenue Bank in Manhattan, closed by regulators last week, was arrested and charged with lying in an application for federal bailout funds and scheming to gain control of the bank.

Read more

Former Bank of America CEO Ken Lewis Sued by NY AG for Fraud

February 4, 2010 by · Leave a Comment
Filed under: Legal News 

Good to see proper investigations are to taking place after this massive financial fraud that was bought to bear on people across the globe.   In this case they are looking into the $16 billion dollars in losses that Merrill allegedly knew about when it was being acquired by BofA after the failure of Lehman Brothers.  Being that the losses were that large and the amount of bonuses (in the billions) that were paid as part of the deal, rightfully there are serious questions that need to asked and accounted for.   There are more skeletons buried on this so we need to keep looking until the daylight shines on them all.

Bloomberg – Former Bank of America Corp. Chief Executive Officer Kenneth Lewis was sued by New York Attorney General Andrew Cuomo for defrauding investors and the government when buying Merrill Lynch & Co. The bank agreed to pay $150 million to settle a related lawsuit by U.S. regulators.

Read more

Goldman Sachs Blankfein Says He Wasn’t Asked to Take AIG Discount on Swaps

January 13, 2010 by · Leave a Comment
Filed under: Legal News 

What a bombshell!  Now we know the fix was in, Treasury did not even bother to offer a discount to AIG’s counter-parties.  So it was a de facto bailout of Goldman Sachs among other firms and foreign banks visa-vi the U.S. taxpayer.   What is even better about this bailout is that is didn’t fall under TARP restrictions, didn’t need to be paid back and Goldman will be paying huge bonuses this year with the taxpayers money.

Also, unlike the commercial banks, I doubt we would of went over the edge if they failed.  Yes, investment banks are important and they make markets but we would of been able to survive without bailing them out.  That’s capitalism, winner succeed and losers fail.  I think Mr.  Geithner will have some explaining to do if not having to resign over the fallout.

Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein testified that he was never asked by U.S. regulators to accept a discount on investment contracts his firm had with American International Group Inc.

Read more

Abu Dhabi fund seeks Citigroup deal scrapped or pay up $4 billion in damages

December 15, 2009 by · Leave a Comment
Filed under: Legal News 

I think many were wondering when this was going to be addressed.  If you remembered back when this deal was made was when we still had investment banks and people thought this crisis was just a mild recession and all these banks were buys and were temporarily impaired because of these pesky real estate decline.  Abu Dhabi paid a handsome sum at the time to come help Citigroup out when they were in a pinch and since that investment or speculation depending on how you look at this, were burned pretty bad with Citi’s shares trading at $3.78 per share.

My thinking is that Citi will rework the terms of the deal to make sure that credit-line is their for them in the future if they need it in the future.  It will be interesting to see how this turns out and I have been thinking about this for over a year now, glad to see its in the media and getting some traction.

Citigroup Inc said on Tuesday the Abu Dhabi Investment Authority filed an arbitration claim against it, accusing the U.S. lender of misrepresentation over a $7.5 billion investment by the sovereign wealth fund.  The sovereign wealth fund, considered by some the largest in the world, bought securities from the U.S. bank in 2007. In the original deal, the Citigroup bonds must be converted into common stock at a price between $31.83 and $37.24 a share between March 2010 and September 2011.

Read more

House votes against effort to kill consumer financial protection agency

December 11, 2009 by · Leave a Comment
Filed under: Legal News 

Surprising that after the $38.7 billion dollars in overdraft fees and other programs to generate revenues for the banks other than their normal services such as lending and wealth management.

The industry did not self-regulate and the regulators did not see this practices as a problem so we need to have someone out their that is looking at these “innovations” and see if they are actually beneficial and honest or are they created to be predatory with no use to the public except as a extractive force to generate profits.  Banks should really go back to the history books and read about what banks public utility is and go back to those prudent practices which are still highly profitable.

House lawmakers on Friday narrowly defeated an effort to destroy a proposed Consumer Financial Protection Agency and replace it with a weaker council. The council would have kept existing bank regulators in place but coordinated between them to write consumer protection and safety and soundness rules.

The measure to create a council was introduced by Rep. Walt Minnick, D-Idaho. It would have also give the council the authority to write rules for bank capital, but it would keep power over consumer protection at the Federal Reserve and other bank regulators, who have been charged with failing to identify problem mortgages in the build up to the financial crisis. The proposed consumer agency will regulate mortgage and credit card products for consumers. The vote was 208-223.

Source:  Market Watch

« Previous PageNext Page »