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Bank Of America To Pay $9 Billion To Settle Mortgage Securities Suit

bank of americaHere’s a story that’s starting to sound weirdly familiar: Bank of America Corp. just agreed to pay $9.5 billion to settle U.S. claims linked to mortgages sold to Fannie Mae and Freddie Mac from 2005 to 2007. The deal, which roughly $6.3 billion in cash to end legal claims and an agreement to buy back $3.2 billion worth of mortgage-backed bonds, might seem like a landmark … if it was not so similar to multi-billion dollar agreements Bank of America signed in 2011 and 2013.

The 2013 deal, signed that January, also involved paying $3.6 billion in cash and buying back mortgages with billions of dollars in outstanding principal. At the time, Bank of America CEO Brian T. Moynihan called the 2013 agreements “a significant step in resolving our remaining legacy mortgage issues.” One analyst told Bloomberg that the deal would let Bank of America put its Fannie and Freddie issues behind it.


Walgreens to shutter 76 unprofitable locations

WalgreensWalgreen, the nation's largest drugstore chain, has decided to shutter 76 unprofitable stores by August but hasn't specified the locations.

The Deerfield, Ill.-based company announced Tuesday that the store closings were part of a plan to save between $40 million and $50 million. While no specific locations were targeted, it was specified that closings would be spread across the country. Walgreens said it would confirm the closings after notifying their employes.


Did Wells Fargo create bogus foreclosure document manual?

Wells FargoWells Fargo (WFC) is being accused of developing a 150-page manual for generating bogus mortgage documents to justify home foreclosures, according to a lawsuit filed in federal court in New York last week.

The manual is attorney Linda Tirelli’s “smoking gun” in a lawsuit she filed on behalf of a homeowner. The story was first reported in the New York Post, and Tirelli does have some past experience bringing these kinds of lawsuits to court.


New York official seeks curbs on high-frequency traders

high tech tradingNew York's attorney general urged U.S. stock exchanges and other venues on Tuesday to limit services that he said provided unfair advantages to high-frequency traders and undermined confidence in the markets.

The stock exchanges allow traders to locate their computer servers within trading venues, armed with extra network bandwidth and high-speed switches that give them access to pricing, volume and order information ahead of others, New York Attorney General Eric Schneiderman said.


16 banks sued by FDIC for rigging LIBOR rates

FDICBank of America Corp., Citigroup Inc. (C) and Credit Suisse Group AG (CSGN) were among 16 of the world’s biggest banks sued by the U.S. Federal Deposit Insurance Corp. for allegedly manipulating the London interbank offered rate from 2007 to 2011.

The FDIC, acting as receiver for 38 failed banks including Washington Mutual Bank, IndyMac Bank FSB and Colonial Bank, claimed that institutions sitting on the U.S. dollar Libor panel “fraudulently and collusively suppressed” the U.S. Libor rate. Also named in the suit, filed today in Manhattan federal court, is the British Bankers Association, an industry group.


Wall Street's average cash bonus was $164,530 in 2013

Wall StreetThe average cash bonus paid to financial services employees for 2013 was $164,530, a 15 percent rise, according to an annual report released by the New York State Comptroller.

This was the biggest average bonus since 2007, before the financial crisis struck in 2008. Overall, financial services employees earned a total of $26.7 billion in bonuses last year, which includes everybody from lowest-ranking employees to chief executives.


Ex-Goldman’s VP Tourre Ordered to Pay $825,000 in SEC Case

TourreEx-Goldman Sachs Group Inc. (GS) vice president Fabrice Tourre, found liable for his part in a failed $1 billion investment, was ordered to pay more than $825,000 in the U.S. Securities and Exchange Commission case.

U.S. District Judge Katherine Forrest in Manhattan ruled today that Tourre must pay $650,000 in civil penalties and give up $175,463 of his 2007 bonus, plus interest. He can’t seek reimbursement of the penalties from Goldman Sachs, the judge ruled.


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