WASHINGTON: ‘ Obama says Wall Street Reform is working – as he looks at himself in the Mirror ‘

#AceFinanceNews – WASHINGTON:July.25: I do not post these very often but just reading the headline of this weekly address, made me stop and wonder! Does the President of American ever read the news, before making these types of statements?

Anyway you the readers can have the last say – news and views please!!

In this week’s address, the President spoke to the progress we have made in making our financial system stronger, safer, and more fair in the years since financial crisis.

Statement:  

Five years ago this week, our country enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act — rules that have substantially reduced recklessness and abuse in our financial system that predated the crisis. As a result of Wall Street reform, our banks are less reliant on unstable funding and less likely to engage in risky behavior, the independent Consumer Financial Protection Bureau works to protect American consumers, and our financial system is significantly better-regulated.

Dodd-Frank is working, and the President emphasized that he will continue to fight any challenges to the law and veto any effort to unravel the new rules governing Wall Street.

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Watch the President’s Weekly Address here.

Watch the Weekly Address.

#consumer-financial-protection-bureau, #dodd-frank-wall-street-reform, #financial-system, #wall-street, #wall-street-reform

‘ Bank of America Offers to pay £13 Billion to Settle Investigation into its Sales of Mortgage-Backed Securities ‘

#AceFinanceNewsUNITED STATES (Wall Street) – July 16 – Bank of America has offered to pay $13 billion to settle an investigation into its sales of mortgage-backed securities (MPA) 

060614bank

060614bank


Citing people familiar with the matter, the Wall Street Journal reported that the bank met with the Justice Department Tuesday. The meeting did not yield any progress toward a final deal, however.
Bank of America had previously offered $12 billion to settle the probe. The DOJ countered with a $17 billion settlement, according to Reuters.Talks between the bank and the government have been acrimonious. Bank of America CEO Brian Moynihan requested to meet with Attorney General Eric Holder last month to hash out a deal, but Holder refused, saying the parties were too far apart for the talks to be productive.

At $13 billion, the bank’s offer would equal the payoutagreed to last year by JPMorgan. That settlement was the largest with a single entity in US history.
JP Morgan

(IBTimes October 20 2013) Reported that JPMorgan has agreed to pay one of the largest financial penalties in history after sealing a tentative $13bn deal with the US Department of Justice to put an end to a raft of government mortgage product related probes.According to sources cited by Reuters, although JPM has reached a bumper deal with authorities, the investment banking giant is not free of criminal liability and will have to continue to cooperate in criminal inquiries into individuals involved in the conduct at issue.At the beginning of the month, JPM’s  chief executive Jamie Dimon met US Attorney General Eric Holder to thrash out an original $11bn (£6.8bn, €8bn) deal to end the raft of mortgage-securities investigations in the investment bank.The bank already stumped up nearly $1bn in fines related to the London Whale trading scandal, which has cost the bank billions of dollars in legal losses.

On the same day JPM was ordered to refund $300m to customers after US regulators ruled that two million clients were harmed by the bank’s debt collection and other credit card practices.

Regulators also said that there were errors in the way the investment bank pursued customers through the court. However the refund order is not a fine, so regulators and prosecutors can still slap JPM with financial penalties in the future.

Only a few days ago, JPM revealed being hit by $9.2bn worth of legal expenses which resulted in the US banking giant posting its first ever quarterly loss under chief executive Dimon.

The legal expenses, which worked out as $7.2bn after taxes, include money JPM is setting aside for future settlements with authorities.

“While we expect our litigation costs should abate and normalise over time, they may continue to be volatile over the next several quarters,” said Dimon in a statement.

JPM was not ready to avail for comment at the time of publication. 
 

#bank-of-america, #brian-moynihan, #eric-holder, #jamie-dimon, #jpm, #jpmorgan-chase, #wall-street, #wall-street-journal

#US : `Federal Reserve Tightens Rules’ on `Foreign Banks’ to make them hold `Higher Reserves’

#AceFinanceNews says that `United States Federal Reserve‘  has tightened its rules for `Foreign Banks’ operating in the `US’ to `Hold Higher Reserves’ and prevent another 2008 Financial Crisis

In 1935, Cret designed the Seal of the Board o...

In 1935, Cret designed the Seal of the Board of Governors of the Federal Reserve System. (Photo credit: Wikipedia)

The Federal Reserve has tightened the rules for foreign banks operating in the US, forcing them to hold higher reserves to make them responsible for losses and provide extra solvency in case of another crisis.

Foreign lenders holding $50 billion in US assets will have to establish a subsidiary that will also need to follow the same risk management and liquidity standards as the biggest national banks do.

The Federal Reserve extended the deadline by which foreign banks must comply and meet all the requirements, until July 2016, one year later than originally proposed.

The Fed board approved the decision by a 5 – 0 vote.

The move should “help address the sources of vulnerability” revealed by the crisis, the new chair of the Fed Janet Yellen said.

Before the financial crisis broke in 2008, foreign banks moved from a traditional lending to broker-dealing, where they borrowed dollars in short–term money markets and sold it abroad.

However, the crisis made vulnerable all the lenders equally regardless of the operations they had been involved in, which made foreign players“disproportionate users” of the emergency lending facilities established by the Fed, as USA Today quotes Fed Governor Daniel Tarullo.

Major foreign players on Wall Street like Deutsche Bank and Barclay’s, had pushed back against the Fed’s decision. The new law will squeeze their lending, and raise costs of doing business as lenders will need to transfer costly capital from Europe.

However Sally Miller, the CEO of the Institute of International Bankers in New York, who considers the new Fed rules beneficial to the economy, still thinks that the restrictions were too onerous.

“We continue to have a fundamental disagreement with the Fed about the appropriateness and necessity of applying an extra layer of US bank capital requirements,” as USA today quotes Mrs Miller.

The Fed was ordered to toughen its regulations for large banks that could threaten the entire financial system under the Dodd-Frank Act that Congress passed in 2010 in response to the financial crisis.

RT 

 

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#acefinancenews, #daniel-tarullo, #deutsche-bank, #economic, #federal-reserve-system, #sally-miller, #wall-street

Elizabeth Warren: “What She Had to Say About JP Morgan’s CEO Jamie Dimon”

#AceFinanceNews says on Saturday night at 9:00 PM/EST Bloomberg aired an extra special episode of “Political Capital with Al Hunt,” his guest is none other than Senator Elizabeth Warren (D-MA), and she had some fairly blunt things to say about JP Morgan‘s CEO, Jamie Dimon.

English: Wall Street sign on Wall Street

English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

Warren was elected on crusading against Wall Street malfeasance, and JP Morgan is Wall Street’s bad boy right now. The bank has paid $20 billion in legal fees to the government over the last year —that’s enough to pay the New York Yankees for 2o years — and just this week paid out $1.7 billion for failing to alert authorities of  their former client, Bernie Madoff‘s infamous decades long Ponzi scheme.

What’s more, knowing that Madoff was a fraud, JPM got rid of their $275 million exposure to Madoff shortly before he was arrested in December 2008.

When asked whether Jamie Dimon should be replaced as a result of these issues, Warren said: “Look, the real question is, do you have somebody who has shown they understand there were problems in the past and that they have a different plan going forward? What JPMorgan Chase and the other large financial institutions have done is they have continued to get bigger and bigger and load up more and more on risk…I’m waiting for him to demonstrate that understanding… And he’s had a long, long time.”

One thing Dimon can understand, however, is the health of his bank. JPM’s shares are up 28 percent over the last 12 months, and analysts expect the bank to have pulled in $23.4 billion in revenues when it reports Q4 earnings next week — a small improvement from Q3, and more than any other big bank.

Official portrait of United States Senator (R-OK).

Official portrait of United States Senator (R-OK). (Photo credit: Wikipedia)

So JPM can handle the lawsuits in stride, but Warren cannot. Just this week, after JP Morgan’s settlement, she teamed up with Senator Tom Coburn (R-OK) to introduce a new bill called the Truth In Settlements Act.

Basically, it would require the Justice Department and other agencies handling settlements against corporations to be transparent about their negotiations, and make agreements easy to find online (you can watch a video of her speech on the floor of the house below).

Under this new law, regulators and law enforcement agencies would still be able to use confidential settlements, but companies would have to disclose how often they are used and why.

Now, since the Justice Department has said that it’s going to continue going after not just JP Morgan, but also other Wall Street banks for issues dating back to the financial crisis, it’s easy to see where Warren’s coming from with this bill. The New York Times reported this week that Wall Street banks could pay up to $50 billion to “buy peace” with the government.

“When you dig below the surface, settlements that seem tough and fair can look like sweetheart deals,” said Warren. “If we expect government agencies to hold companies accountable for breaking the law. Then we the public must be able to keep agencies accountable for enforcing the law. We can’t do that if we’re kept in the dark.”

 

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#acefinancenews, #bernard-madoff, #elizabeth-warren, #j-p-morgan, #jamie-dimon, #jp-morgan, #jpmorgan-chase, #new-york-times, #new-york-yankees, #tom-coburn, #wall-street

Why the Wall Street Banks Cannot Fail as they Designed Products to Suit themselves Not their Investors

Q. These two notes look the same but one is credit and one is debt, which one is which?

Q. These two notes look the same but one is credit and one is debt, which one is which?

The reason is that all money that is printed for the purpose of the lending market, has but one purpose from a lenders point of view ,to create a way to hold people accountable, should they not pay!

That is the fist rule of lending.

The second is to minimise the risk in favour of themselves, so as in the case of the wall street bankers they created a way to maximise profits and minimise risk, simply by creating a portfolio of hedge funds, these were of course situated offshore, thus no taxation payable! They were then utilised to buy corporate bonds and using the hedge funds, they created products to sell to their investors! So when an investor came to them looking for good investment opportunities, they were  as with all products, advised of the  risk, asking whether they would prefer a low, medium or high risk investment ,not realising the products they were being offered, had been designed and honed by the investment bankers!

In fact they were so well designed that the bankers made money, whether the client made money or not! As the products were designed with one simply plus, that of capitalizing on the “Investors Greed” so the more the client made, utilising their highest risk investments, the more the bankers made, but add to that the additional plus {For them not the Investor} the more the client lost, they still made money!

Now with all that accumulated wealth funds offshore they do not need people to invest ,they have all the capital they need, and can sit in their ivory towers and move money on a computer screen, making a billion a second!  One final bonus for them is that using all the hedge funds they then convert them into Wealth Funds and as an investment vehicle buy shares in corporations when the 2008 crisis hit! Also as  a lot of investors went to the wall around that time, they picked up dirt cheap assets, purchased with their own clients money!! Well now their is a bonus for the bankers! 

English: The corner of Wall Street and Broadwa...

English: The corner of Wall Street and Broadway, showing the limestone facade of One Wall Street in the background. (Photo credit: Wikipedia)

Now these Wall Street Bankers have become to big too fail, the reason well their clients provided the wealth for them to grow to a size, to buy anything and provide funding through “Dark Money” Investment Vehicles” to make it possible to manipulate the governments of the world! They started by backing certain politicians in the senate and of course their own future leader ,they may have failed this last time, but mark my words they will succeed eventually! So now these bankers – who people have aptly called bankster’s ,who trousered the wealth can watch people fail, or lose their livelihood as they did in 2008!

You see these bankers are too big to fail for one reason and one reason only, while they can manipulate people with their billions, they control the world by the simple action of “Money” and as everyone should know “The Love of Money is the Root of all Evil” and it is the bankers that are the snakes ,and we are those that by following their words eat of the tree of knowledge of good and evil, everyday of our lives!

Eventually and sooner than you think these people will close their doors and banks will not be open to the likes of us ,who do not have the billions and they will sit in their newly created ivory towers, looking down upon those that put them in this seat, of so-called power! Then like a massive monopoly board they will move their money on the screen of their computers ,buying and selling assets, they partly own or control!

So when people keep saying to me that we can control these banksters, we can implement “Rules and Regulations” through the FCA or the like, really they have no chance, of success! As the bankers are the ones who hold all the cards and are one step ahead, as they know all the right people, as they buy their power with the almighty dollar.

So they will for the time being sit in the shadows and manipulate the markets.

There is however one saving grace, that one day someone much bigger waiting in the wings will come to the fore and will like them, have already moved all the pieces on the board of life into place, with the whole intention of not controlling money, using power but eventually controlling people’s minds!

They know who they are, and so do l! They may think they can hide in the lies in their words and avoid detection, but the time is coming when their final days will be over for ever! Always remember as in the story of little boy who slew the giant Goliath with little more than a sling and a stone. The meek will inherit the Earth and the strong will wither on the vine!

Related Articles from my Fellow Bloggers:

http://jhaines6.wordpress.com/2013/10/22/why-jp-morgan-is-laughing-all-the-way-to-the-bank/

 

#acedebtnews, #aceworldnews, #business, #funds, #hedge-fund, #hedge-funds, #investing, #investment-banking, #investment-banks, #new-york-stock-exchange, #sovereign-wealth-fund, #wall-street, #wall-street-bankers

Euro Zone Market News

German Logo of the ECB.

German Logo of the ECB. (Photo credit: Wikipedia)

Fiscal policy

Fiscal policy (Photo credit: Wikipedia)

Market News and Views

The FTSE 100 is called to open higher this morning after the performances on Wall Street and in Asia overnight after supportive comments from German Chancellor Angela Merkel on the European Central Bank‘s plans to help the euro zone debt situation. She also called for swift integration of fiscal policy in Europe adding that time was running short. There is no important UK economic data due out today so attention will focus on the release of the preliminary reading of the University of Michigan Consumer Sentiment Index this afternoon in the US. Commodity prices are mixed in trading and on the foreign exchanges, the major currencies are range bound with the dollar edging slightly higher.

So on the face of it we are going to get this mess finally sorted! Even though this belies one truth that is hidden, any fiscal policy will only work with growth! The sheer fact that for the last 4 years in real terms growth has eluded the world, apart from parts of Asia and especially China! Even though they are starting to feel the draft of their economy starting to chill!

My personal view is that very soon the European Central Bank will have to act to shore things up but this only puts of the fateful day, when a reckoning will be needed! This is closer than we think but further from our minds than we care to admit!

#angela-merkel, #asia, #chancellor-of-germany, #european-central-bank, #fiscal-policy, #ftse-100-index, #university-of-michigan-consumer-sentiment-index, #wall-street

Michael Marin, Ex-Wall Street Trader, Dies In Courtroom After Conviction

The Truth

The Truth (Photo credit: Tom Verre)


Staying honest is harder than lying, stealing and covering up their spoils! These people who end up taking their own lives are more to be pitied than judged. It is easier to judge a thief than to feel admiration for an honest man/woman.As to have pity in our hearts,we have to take one step closer towards forgiveness. So l say spare a though for how he got here and what made him decide that he could not live with,his shame!

Maybe at the last second of his life he found the truth!
Read the Article at HuffingtonPost

#courtroom, #wall-street