Banking

June 17, 2009 -- WASHINGTON – In an effort to protect the interests of taxpayers, U.S. Senators Bob Corker (R-TN) and Mark Warner (D-VA), both members of the Senate Banking Committee, today introduced legislation with the ultimate goal of removing the federal government’s control of TARP (Troubled Asset Relief Program) assisted institutions. The bill provides for a responsible exit strategy from government ownership of TARP-recipient companies, which by this fall, will include AIG, Citigroup, and General Motors.    » read more »

New York, June 17, 2009 -- JPMorgan Chase & Co. (NYSE: JPM) announced today that it repaid in full the $25 billion preferred stock investment it accepted through the Troubled Asset Relief Program (TARP).

In addition to this principal amount, JPMorgan Chase has paid the U. S. Treasury an aggregate of $795,138,889 in dividends on the preferred stock, including dividends that had accrued through the redemption date.

The company will also notify the U.S. Treasury today of its intent to repurchase the 10-year warrant issued to the Treasury in connection with the preferred investment.

Source: JPMorgan Chase

Merrill Lynch Fund Manager Survey Finds Economic Recovery Remains on Track Despite Bond Market Sell-Off; Investors ruling out “double-dip” recession as they embrace equities

NEW YORK AND LONDON – The upturn in global investor sentiment has withstood the recent large sell-off in bonds, according to the Merrill Lynch Survey of Fund Managers for June. Investors have expressed confidence in global economic recovery and, broadly, in the equity markets, in spite of their fears the sell-off would damage sentiment. The yield on 10-year U.S. Treasuries rose to 3.85 percent from 3.09 percent between the May and June surveys.    » read more »

Number of Consumers in the U.S. and U.K. Using Online Banking Continues to Grow Across Income and Ages

STAMFORD, CT, June 15, 2009 -- Online banking is no longer a niche channel. By understanding who is and who is not using online access, banks can work to increase adoption, better serve their clients and reduce the costs of routine customer service, according to Gartner, Inc. (NYSE: IT).

In December 2008 and January 2009, Gartner surveyed 3,988 consumers ages 18 or older in the U.S. and the U.K. on attitudes and behaviors related to retail payments, banking and investment services. A total of 47 percent of U.S. adults and 30 percent of adults in the U.K. reported using online banking in the previous month.    » read more »

Gregg: Repayment Of Tarp Funds Show Program Worked; Money Will Now Pay Down Debt

June 10, 2009 --
Washington -- U.S. Senator Judd Gregg (R-NH) today commented on the announcement by the U.S. Department of Treasury that 10 banks would soon be repaying $68 billion in Troubled Asset Relief Program (TARP) funds, assistance that was allocated under the Emergency Economic Stabilization Act (EESA) of 2008 to help stabilize the troubled financial markets and banking system

Senator Gregg, one of the key negotiators EESA, stated, “The announcement by Treasury that certain banks will soon be repaying $68 billion in TARP funds is a positive sign that the program worked exactly as intended, and that recovery has been faster than expected.    » read more »

Citi Announces Public Share Exchange Launch, Definitive Agreement with U.S. Government

June 10, 2009 -- New York – Citi has finalized a definitive agreement with the U.S. Government and will now launch its exchange offers for publicly held convertible and non-convertible preferred and trust preferred securities. Under the agreement, the Government will exchange a portion of its preferred securities with an aggregate liquidation value of up to $25 billion for interim securities and warrants and its remaining preferred securities for trust preferred securities. The public exchange offers are currently scheduled to expire on July 24, 2009, subject to extension by Citi.    » read more »

Less than half of financial services risk professionals believe the principles of risk management remain sound, Economist Intelligence Unit report finds

09 Jun 2009 -- The global financial crisis has exposed fault lines in the management of risk across many sectors of the financial services industry. Faced with a massive erosion of confidence among key stakeholders, and the prospects of difficult times ahead as the industry seeks to rebuild itself, risk professionals are now questioning the very foundations of risk management.    » read more »

Jenkens & Gilchrist Attorneys, BDO Seidman Accountants, and Bankers Charged in Criminal Tax Fraud Related to Tax Shelters Generating Over Seven Billion Dollars of Fraudulent Tax Losses

June 9, 2009 --
An indictment was filed today charging seven individuals -- three former shareholders of the Jenkens & Gilchrist law firm (J&G), the former Chief Executive Officer and a former tax partner from the BDO Seidman accounting firm (BDO), and two former bankers from a foreign bank with headquarters in New York (Bank A) -- with tax fraud conspiracy and related crimes arising out of tax shelters promoted by J&G, BDO, and the bank.    » read more »

In Letter, Udall, Bennet Urge Increase in FY2010 Loan Aid to Farmers; Funding for Agricultural Loans Would Help Colorado Farmers Struggling to Get Loans After New Frontier Bank Closure

June 9, 2009 -- Washington, D.C. – Today, as part of their ongoing effort to help Colorado farmers and ranchers struggling to get loans as a result of the economic crisis, U.S. Senators Mark Udall and Michael Bennet wrote to Senate appropriators, urging them to increase funding for direct farm operating loans in Fiscal Year 2010, which begins on Oct. 1.    » read more »

June 9, 2009 -- WASHINGTON, DC – As foreclosure rates around the country continue to rise, it has become increasingly difficult for many homeowners seeking to modify their mortgages to get a hold of their loan servicers. In an effort to help struggling homeowners and ensure that banks and loan servicers are held accountable to requests for help, U.S. Senator Jack Reed (D-RI) and 14 of his Senate colleagues sent a letter to Housing and Urban Development (HUD) Secretary Shaun Donovan urging HUD to develop and implement a strategy requiring banks and loan servicers, particularly those that have agreed to participate in the Obama Administration’s foreclosure prevention initiatives, to respond to homeowners in a timely fashion.    » read more »

Proposes that Fed Adopt "Opt-In" Approach to Overdraft Fees, Preventing Companies from Charging Consumers Without Their Permission

June 9, 2009 -- Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, urged the Federal Reserve to act as soon as possible to protect consumers from abusive overdraft fees. In a letter to Fed Chairman Ben Bernanke, Dodd called on the Fed to finalize a proposed rule that would curb the use of excessive and unfair fees when consumers overdraw their bank accounts.

Dodd further pressed the Fed to implement an “opt-in” approach to overdraft fees, which would ensure that banks would be prohibited from charging consumers an overdraft fee without their consent.    » read more »

Says first round of TARP worked to stabilize the financial system

June 9, 2009 -- WASHINGTON, D.C. - Senator Bob Bennett (R-Utah) today applauded the announcement that 10 major financial institutions have met all of the requirements to fully repay the U.S. Treasury $68 billion, including five percent interest or $6.2 billion, which was borrowed from the taxpayers through the first part of the Emergency Economic Stabilization Act.    » read more »

Receives 2008 Corporate Diversity Award from the National Minority Business Council

NEW YORK, June 9, 2009 — The Bank of New York Mellon (NYSE: BK) will be honored by the National Minority Business Council, Inc. (NMBC) for its commitment to diversity and social responsibility during the Council's 37th Anniversary Celebration event to be held on June 11, 2009.

"With leaders like The Bank of New York Mellon, the National Minority Business Council has been helping small, minority- and women-owned businesses succeed for over a quarter century," said John F. Robinson, NMBC President and CEO. "To us, their commitment to diversity means expanded opportunities for small, minority and women business owners. This recognition is well deserved."    » read more »

New York, NY June 9, 2009 - The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has received permission to repurchase from the United States Department of the Treasury the 10,000,000 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series H that were issued to the U.S. Treasury pursuant to the U.S. Treasury’s Troubled Asset Relief Program (TARP) Capital Purchase Plan.

The repurchase amount, together with accrued dividends, will be paid at a time determined by the U.S. Treasury.

Lloyd C. Blankfein, Chairman and Chief Executive Officer of The Goldman Sachs Group, Inc. said, “We are grateful for the government’s extraordinary efforts and are pleased to be able to return to the U.S. Treasury the funds that were invested in Goldman Sachs.”    » read more »

Chicago, June 9, 2009 – Northern Trust Corporation (Nasdaq: NTRS) announced today that it received authority from the federal government to redeem $1.576 billion in preferred shares issued to the U.S. Department of the Treasury under the TARP Capital Purchase Program. Northern Trust also plans to give notice to the U.S. Department of the Treasury of its intention to purchase a related warrant in accordance with standardized terms of the preferred share issuance agreement.    » read more »