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Morning Scan: Lawsky Deepens Ocwen Probe; Should Firms Stay Mum on Data Breaches?

08/05/14

Receiving Wide Coverage ...

Ocwen Under Fire: New York financial watchdog Benjamin Lawsky is turning up the heat against mortgage servicer Ocwen Financial. The superintendent of New York's Department of Financial Services is accusing Ocwen of routing as much as $65 million worth of fees each year to an affiliated insurance company, Altisource. In a letter to Ocwen's general counsel Lawsky also highlights "serious concerns about the apparently conflicted role played by Ocwen executive chairman William...

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Morning Scan: HSBC Says Workers Play It Too Safe; CFPB Targets Debt Collectors

08/04/14

Receiving Wide Coverage ...

HSBC Earnings Fall: HSBC's first-half profit dipped 5% from the same period a year ago because of sluggish performance in its investment banking, wealth management and retail businesses. Its net profit was $9.46 billion, compared to $10 billion. HSBC chairman Douglas Finch cited employees' fear of regulatory punishment as a mounting concern. "There is Â... an observable and growing danger of disproportionate risk aversion creeping into decision-making in our businesses as individuals,...

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Morning Scan: Who's Calling Who TBTF?; Overdraft Fees Under a Microscope

08/01/14

Receiving Wide Coverage ...

GAO No Help on TBTF: So are certain banks "too big to fail"? The release of the Government Accountability Office's report on Thursday did little to answer that question, with both sides claiming victory, as an American Banker article noted Thursday. The Financial Times quoted Paul Saltzman of the Clearing House (the group representing JPMorgan Chase, Citi and other big Wall Street firms) saying, too big to fail "perceptions have substantially diminished."...

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Morning Scan: Judge Fines B of A in 'Hustle' Case; Fed Sees Good Signs

07/31/14

Receiving Wide Coverage ...

B of A to Pay for 'Hustle': Federal Judge Jed Rakoff ordered Bank of America to pay $1.3 billion for selling toxic mortgages to Fannie Mae and Freddie Mac, as part of its so-called "Hustle" program. The $1.3 billion penalty was less than the $2.1 billion the government sought, but "greatly in excess of what the bank hoped to pay," the Financial Times reported. Rakoff, who called the scheme "brazen fraud," also...

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Morning Scan: DOJ Extends Barclays Probe; Lawsky Wants Internal Monitors

07/30/14

Receiving Wide Coverage ...

Forex Probe Update: U.S. prosecutors have stepped up their probe into Barclays' alleged foreign exchange manipulation, the Wall Street Journal, New York Times and Financial Times all report. The London bank said the U.S. extended a pact known as a "nonprosecution agreement" in the investigation. The new pact gives the Justice Department more time to decide if Barclays breached the 2012 nonprosecution agreement it had previously signed not to commit crimes in...

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Morning Scan: UBS, Deutsche Bank Fall in the Dark Pool; Zillow and Trulia Merge

07/29/14

Receiving Wide Coverage ...

UBS Dark Pool Probed: Swiss bank UBS disclosed on Monday the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the New York attorney general are investigating its dark pool operation, the Wall Street Journal reported. Meanwhile, Deutsche Bank got an inquiry about high-speed trading, the Financial Times said. Barclays is already the focus of an Eric Schneiderman probe into whether it has deceived electronic trading investors. Dark pool trades are...

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Morning Scan: JPM Unloading $1.3B; OCC Questions Chase Wealth Ops

07/28/14

Receiving Wide Coverage ...

JPMorgan Unloads: JPMorgan Chase agreed to sell a $1.3 billion debt and securities portfolio to Bain Capital's Sankaty Advisors, both the Wall Street Journal and Bloomberg reported. Chase's Hong Kong-based portfolio group, called the Global Special Opportunities Group, invests mainly in high-yield debt. Chase's sale of the unit is part of the wider trend of big banks unloading assets to comply with rules that they improve capital ratios and comply with the...

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Morning Scan: New Rule for Foreign Banks' Bad Loans

07/25/14

Receiving Wide Coverage ...

Foreign Banks to Face the Music: Banks outside the U.S. will have to deal with loan losses sooner under a new accounting rule issued by the International Accounting Standards Board. "Under the new standard, non-U.S. banks will have to book loan losses based on their expectation that future losses will occur, beginning in 2018," the Wall Street Journal reports. "That is expected to speed up the booking of losses and require greater...

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Morning Scan: Trouble at Deutsche Bank; Choke Point Sore Spot

07/24/14

Receiving Wide Coverage ... Deutsche Bank's Troubles: The news of the New York Fed's stern rebuke to Deutsche Bank over its questionable financial data has industry observers making bets on the fallout. Deutsche Bank's chief financial officer, Stefan Krause, is now in the hot seat, according to the Wall Street Journal. Krause launched an effort to whip the bank's financial data into shape in 2010, but progress has been slow. Krause is far from the bank'sÂ...

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Morning Scan: Fed Up with Deutsche Bank; CIT's Big Deal

07/23/14

Receiving Wide Coverage ...

CIT Goes Big: CIT Group's plan to buy OneWest Bank for $3.4 billion is a big deal in more ways than one. Not only is it the industry's biggest purchase since 2012, CIT would become "the world's first intentionally created SIFI" with $67 billion in assets, as noted by the Journal's John Carney. Investors are cheering CIT chief John Thain's decision to leap over the $50 billion asset threshold because the deal...

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