Bank of America was ordered by a U.S. judge to return $500 million of deposits it seized from Lehman Brothers Holdings shortly after Lehman’s bankruptcy. Get the full story »
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Citi to put $3 billion to $4 billion in consumer bank
Citigroup Inc. plans to spend $3 billion to $4 billion on its consumer bank to attract more business from its wealthy, urban customers, the head of its North American consumer bank said on Wednesday. Get the full story »
Report: Aggressive lending doomed Broadway Bank
Signage gets changed in the window at Broadway Bank at 5960 N. Broadway. The bank was seized by the FDIC on Friday, Apr. 21, 2010. (Phil Velasquez/Chicago Tribune)
A regulatory autopsy into the April failure of Chicago’s Broadway Bank, which was owned by the family of failed U.S. Senate candidate Alexi Giannoulias, faulted management for pursuing an aggressive growth strategy in commercial real estate.
A heavy emphasis on such lending was “exacerbated by the bank’s significant emphasis on out-of-territory lending and large borrower relationships,” according to a report released Tuesday by the Federal Deposit Insurance Corp.’s Office of Inspector General.
Although not a primary reason for its failure, the FDIC also cited Broadway’s investments in higher-risk collateralized debt obligations. Get the full story »
Wealthy open to wooing from rival banks
Just because people are affluent doesn’t mean they’re impressed with their financial institution.
In its seventh annual survey of affluent investors who do business with various banks and financial firms, PNC found that most wealthy investors are receptive to pitches from other service providers. Get the full story »
BofA in ‘hand-to-hand combat’ over mortgages
A quick settlement of the 50-state probe of the U.S. mortgage foreclosure crisis would be the best solution for all involved, the chief executive of Bank of America said on Tuesday.
The call for a settlement by Bank of America CEO Brian Moynihan was followed by comments from Iowa Attorney General Tom Miller, who told a Senate hearing that a settlement with lenders was still months off.
“We’re thinking in terms of months rather than a year or longer but it depends really on how far we get,” said Miller, who is heading up a probe by all 50 state attorneys general. Get the full story »
Herencia back in banking with SKBHC Holdings
Roberto Herencia, the longtime president of Banco Popular North America who went on to head Midwest Banc Holdings Inc., is back in the banking industry.
Herencia has joined the board of SKBHC Holdings, which on Oct. 26 got Federal Reserve approval to become a bank holding company. Its investors include an Illinois pension plan. Get the full story »
Oak Park River Forest bank ordered to raise money
Crain’s Chicago Business | State and federal bank regulators have issued an order, requiring the Community Bank of Oak Park River Forest to raise capital though the amount is unclear.
N.C. banking chief to oversee Fannie, Freddie
North Carolina Banking Commissioner Joseph A. Smith Jr. is being tapped by the White House to head the regulatory agency that oversees mortgage giants Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency has been without a permanent director since August 2009. A new director would preside over the mortgage-finance titans just as an intense political battle begins over what should happen to the companies. Get the full story »
BofA seeks dismissal of robo-signer suit
Bank of America Corp. has urged a federal judge to throw out a racketeering lawsuit over its alleged use of “robo-signers” in foreclosures.
The largest U.S. bank said Indiana plaintiffs who lost their home to foreclosure in 2009 failed to show they were harmed by its alleged practice of routinely submitting perjured affidavits, given they might have lost their home anyway. Get the full story »
Report: Wall Street firms find Volcker loophole
U.S. banks have found a way to continue betting their own money on some investments, despite a new law’s restrictions on proprietary trading, the Financial Times reported on Thursday, citing Wall Street executives. Get the full story »
E-mail leak cost UBS a slice of GM IPO, SEC told
Swiss bank UBS is no longer working on General Motors’ initial public stock offering because a bank employee leaked information about the sale in an unauthorized e-mail, a person briefed on the matter said Wednesday.
GM disclosed the e-mail in a filing with the Securities and Exchange Commission. UBS had been listed as a proposed underwriter in GM’s IPO until Nov. 3, when it was dropped without explanation. Get the full story »
Integra unit may not meet required capital levels
Integra Bank Corp. said its banking unit may not be able to meet regulatory capital directives within the stipulated 90-day period and reported its tenth straight quarterly loss.
The Evansville, Indiana-based company, which has been selling assets and branches in a bid to improve its capital levels, said it continues to seek buyers for its Chicago-area branches. Get the full story »
Goldman fined $650K for failing to disclose SEC probe
Industry regulators have fined Goldman Sachs $650,000 for failing to disclose that two of its brokers, including the executive accused of leading the mortgage securities deal that brought civil fraud charges against the firm, were under investigation by the government.
The Financial Industry Regulatory Authority announced the fine Tuesday, saying Goldman lacked adequate procedures to ensure that the required disclosure was made for Fabrice Tourre, a Goldman vice president. Goldman made that report in May, more than seven months after Tourre received a notice from the Securities and Exchange Commission that it was considering filing charges against him, FINRA said. Get the full story »
JPMorgan faces foreclosure fraud suits
JPMorgan Chase & Co. faces two possible class action lawsuits alleging common law fraud and misrepresentation, as well as violations of state consumer fraud statutes, the U.S. bank said in a regulatory filing Tuesday.
In September, JPMorgan temporarily halted home seizures after finding glitches in foreclosure documents. Last week, it said it planned to start refiling the foreclosure documents within weeks.
