W3C Valid XHTML 1.0
Jessica Silver-Greenberg
The New York Times|nytimes.com

JPMorgan Chase and the Justice Department have reached a tentative $13 billion settlement over the bank’s questionable mortgage practices leading up to the financial crisis, a record penalty that would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes, people briefed on the talks said Oct. 19.

To resolve an array of federal and state investigations into the bank’s sale of troubled mortgage securities to investors, the bank would be expected to pay about $9 billion in fines, according to one of the people.

JPMorgan, the nation’s largest bank, also very likely will provide about $4 billion in relief for struggling homeowners, another person briefed on the talks said. read more »

 

More than a year after a group of traders at JPMorgan Chase caused a multibillion-dollar loss, government authorities imposed a $920 million fine on the bank Thursday and shifted scrutiny to its senior management.

Extracting the fines and a rare admission of wrongdoing from the nation’s largest bank, regulators in Washington and London took aim at a pervasive breakdown in controls and leadership at the bank.

The deal resolves investigations from four regulators: the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency, the Federal Reserve and the Financial Conduct Authority in London. read more »

 

On a recent shopping trip to Costco, Lilly Neubauer picked up paper towels, lentils, carrots — and a home mortgage.

While Ms. Neubauer, 27, said she was surprised to find the warehouse club selling financial products, she and her husband saved about $200 a month by refinancing there this year. She also bought home insurance from Costco, she said, again because it was cheaper there.

“It opened us up to the fact that Costco is more than toilet paper,” said Ms. Neubauer, who lives in Dallas.

As the nation’s largest banks stay stingy with credit and a growing portion of the population has no bank at all, major retailers are stepping into the void. Customers can now withdraw cash at an A.T.M. with a prepaid card from Walmart, take out a loan at Home Depot for a kitchen renovation or kick-start a new venture with a small-business loan from Sam’s Club. This year, Walmart even started to test selling a life insurance policy. read more »

 

The same problems that plagued the home foreclosure process — and prompted a multibillion-dollar settlement with big banks — are emerging in the debt-collection practices of credit card companies.

As they work through a glut of bad loans, companies like American Express, Citigroup and Discover Financial are going to court to recoup their money. But many of the lawsuits rely on erroneous documents, incomplete records and generic testimony from witnesses, according to judges who oversee the cases.

Lenders, the judges said, are churning out lawsuits without regard for accuracy and improperly collecting debts from consumers.

The concerns echo a recent abuse in the foreclosure system, a practice known as robo-signing in which banks produced similar documents for different homeowners and did not review them. read more »

 
Syndicate content