Banking

Statement of David Arkush, Director, Public Citizen’s Congress Watch Division

June 30, 2009 -- For too long, financial regulators have been too cozy with the financial services industry that they were supposed to be overseeing. Moreover, not a single federal agency focuses primarily on consumer protection for credit products. Lenders have run amok, writing their own rules and creating a maze of unfair and predatory products that have harmed consumers and destabilized the economy.

The lack of oversight and regulation, along with Wall Street’s unchecked greed, drove this country into its current financial crisis. Americans deserve an agency that will put their financial well-being ahead of the short-term profits of a few Wall Street banks.    » read more »

155,000 more modification requests in process or under review Has prevented 565,000 foreclosures since 2007

NEW YORK, June 30, 2009 -- Chase announced today that it has approved 138,000 trial mortgage modifications for struggling homeowners since April 6, when it began processing trial modifications through President Obama's Making Home Affordable program.

Since 2007, Chase has continued to expand its comprehensive plan to keep families in their homes, helping prevent 565,000 foreclosures - including the 138,000 trial modifications -- for Chase, WaMu and EMC customers. Another 155,000 applications are in the review process.    » read more »

Relative value strategies achieving strong performance as fundamentals return to markets, according to Mellon Capital Management

SAN FRANCISCO, June 23, 2009 — Relative value investment strategies, including those employed by quantitative funds, have produced strong returns since the end of December 2008, when the movements of various asset classes became much more correlated with key fundamental indicators such as corporate earnings and corporate credit spreads, according to an analysis by Mellon Capital Management Corporation, part of BNY Mellon Asset Management.    » read more »

Warner, Corker introduce bipartisan bill to maximize taxpayer returns of TARP investments; Bill creates private market trust for TARP investments

June 22, 2009 -- WASHINGTON, D.C. – U.S. Senator Mark R. Warner (D-VA) spoke on the Senate floor today about bipartisan legislation he has introduced with Senator Bob Corker (R-TN) that will maximize returns of taxpayer investments into TARP(Troubled Asset Relief Program)assisted institutions. The bill provides for a responsible exitstrategy from government ownership of TARP-recipient companies, such as AIG, Citigroup, and General Motors.    » read more »

CHARLOTTE, N.C., June 23 -- Bank of America Corporation today announced the common stock average price of $12.7048 for its offers to exchange up to 200 million shares of common stock for outstanding depositary shares for each series of preferred stock listed below. The exchange offer consists of separate offers for depositary shares representing each series of the preferred stock listed below.    » read more »

Citi Employees to Participate in More Than 80 Community Service Events Nationwide This Summer

June 22, 2009 -- New York – As the Obama Administration unveils its "United We Serve" campaign today, Citi is proud to answer the President's call to service and pledge its support to communities throughout the country. Citi volunteer employees of all ranks will participate in more than 80 events nationwide, and this number is expected to grow throughout the summer.

Service areas on which Citi is focused include community renewal, clean energy, education and health care reform.    » read more »

James H. Hance Jr. to Join Board in July

June 22 2009 -- New York -- Morgan Stanley (NYSE:MS) announced today that James H. Hance, Jr. has been elected to the company's Board of Directors, effective July 1. This will bring the total size of the Board to 13 members.

Mr. Hance, 64, is a Senior Advisor at The Carlyle Group and was formerly Chairman of Carlyle Capital Corp. Previously, Mr. Hance was with Bank of America and its predecessor companies for 18 years as a Vice Chairman and Chief Financial Officer and a member of the board. He was also a Partner at Price Waterhouse in the 1980s.    » read more »

June 20, 2009 -- WASHINGTON – In his weekly address, President Barack Obama explained the necessity of his proposed Consumer Financial Protection Agency. It is clear that one of the major causes of the current economic crisis was a breakdown of oversight leading to widespread abuses in the financial world.

The Consumer Financial Protection Agency will have the sole job of looking out for the financial interests of ordinary Americans by banning unfair practices and enforcing the rules. This is the type of reform that will attack the causes of the current crisis and prevent further crises from taking place.

The audio and video will be available at 6:00am Saturday, June 20, 2009 at www.whitehouse.gov.

Prepared Remarks of President Barack Obama
Weekly Address    » read more »

Washington, D.C., June 19, 2009 — The Securities and Exchange Commission today charged two accountants who produced bogus financial statements and an Antiguan regulator who took bribes to look the other way as Robert Allen Stanford conducted an alleged $8 billion Ponzi scheme.

The SEC previously charged Stanford and his companies — Antiguan-based Stanford International Bank (SIB), Houston-based broker-dealer and investment adviser Stanford Group Company (SGC), and investment adviser Stanford Capital Management — as well as SIB chief financial officer James Davis and Stanford Financial Group chief investment officer Laura Pendergest-Holt with securities fraud in an enforcement action filed in federal court in Dallas on February 17.    » read more »

Stanford Financial Group Executives and Former Chairman of Antiguan Bank Regulator Indicted for Fraud and Obstruction; Charges Related to $7 Billion Dollar Scheme to Defraud Investors

June 19, 2009 -- Robert Allen Stanford, 59, chairman of the Houston-based Stanford Financial Group (SFG), three SFG executives and the former chief executive officer of the Antiguan bank regulatory agency have been indicted on fraud and obstruction charges related to a $7 billion scheme to defraud investors.    » read more »

LONDON, June 22 -- The Bank of New York Mellon has introduced Derivatives360, an integrated investment servicing lifecycle solution to help clients efficiently execute and manage derivatives transactions.

Derivatives360's flexible modular design allows clients to select some or all of the components offered by the new platform, allowing them to focus resources and management time on their core activities.

Clients are today looking to outsource derivative functions historically handled in-house for a number of reasons, including credit considerations, product complexity, the high investment costs associated with specialist systems, a shortage of high-calibre staff, stronger regulation and the wider industry drive towards standardisation.    » read more »

"A Step Forward for Rhode Islanders Caught in Credit Traps"

June 19, 2009 -- Washington, D.C. - President Obama's new plan to toughen federal regulation of financial products like mortgages, credit cards, and retirement accounts will help level the playing field for Rhode Islanders like Ryan Kamphuis, who saw his interest rate skyrocket when he paid one bill late after having been hospitalized for weeks, U.S. Senator Sheldon Whitehouse (D-RI) said today.    » read more »

Senators Advocate for an effective system of financial oversight

June 19, 2009 -- WASHINGTON -- Senate Homeland Security and Governmental Affairs Chairman Joe Lieberman, ID-Conn., and Ranking Member Susan Collins, R-Me., Friday sent a letter to Treasury Secretary Timothy Geithner expressing their support for a more effective system of financial oversight that will eliminate overlap, duplication, and increase accountability.

The Committee has held a series of hearings examining what led to last year's financial crisis and how to prevent a similar crisis from occurring in the future. The Senators expressed their support for restructuring the fragmented financial regulatory system, in addition to strengthening financial regulations, as the Administration has proposed.    » read more »

June 18, 2009 -- Citing a story in this morning’s Washington Post, Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today slammed financial industry groups who have expressed opposition to the Obama Administration’s proposal to create an independent consumer financial protection agency.

Dodd is an outspoken advocate for the creation of such an agency, and reiterated his strong support for the idea at today’s Banking Committee hearing where Treasury Secretary Timothy Geithner testified about the Administration’s proposal to modernize the framework of American financial regulation and supervision.    » read more »

June 18, 2009 -- WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH) today attended a U.S. Senate Banking Hearing entitled “The Administration's Proposal to Modernize the Financial Regulatory System." In response, Brown issued the following statement:

Let me say at the outset that I agree with the president that we must reform our nation’s financial regulatory system. Why? All you have to do is pick up a paper or turn on the television to learn about homes being lost, Americans losing their jobs because businesses can’t get access to credit, and banks being shuttered.

I believe that one of our nation’s forefathers, James Madison, said it best when he wrote that “If men were angels, no government would be necessary.”    » read more »