The US Justice Department has sued Deutsche Bank for more than $1bn (£600m) for defrauding the government. The complaint says Deutsche's MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans. FHA rules say lenders must make sure the borrower will be able to repay the loan, but the Justice Department claims Deutsche did not do so. A Deutsche spokesperson described the claims as "unreasonable and unfair". "We intend to defend against the action vigorously," she added. The lawsuit is one of the first targeting mortgage lenders under the federal False Claims Act.
Tag Archives | Bankers
What a shocker. Matthew Lynn writes in Bloomberg:
There is something surprising about a private banker warning his colleagues about the rich. It would be like a director of Volkswagen AG casting doubt on motorists, or the boss of McDonald’s Corp. distancing himself from people who eat fast food. Rather like valets, the main aim of the private banker is to court the wealthy.
At a conference in Zurich last week, the head of Barclays Wealth Management’s private-banking unit, Gerard Aquilina, appeared to issue a red alert about the richest of clients.
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“Beware of the complexities of dealing with ultra high net worths,” Aquilina told his audience. “Demanding and often unreasonable” requests from them may create “impossible demands on the organization.”
Such as? Help with getting children into the right school, securing credit to buy property, or obtaining last-minute concert tickets, for example. Even worse, the richest of the rich turn out to be pretty stingy as well.
Yet another instance in which the United States could learn something from our Scandinavian brethren: In Iceland, bank executives who helped bring about the nation’s financial meltdown are being rounded up and jailed, issued international arrest warrants, and sued for billions of dollars. AFP reports:
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More than a year and a half after Iceland’s major banks failed, all but sinking the country’s economy, police have begun rounding up a number of top bankers while other former executives and owners face a two-billion-dollar lawsuit.
On Wednesday, the administrators of Glitnir’s liquidation announced they had filed a two-billion-dollar (1.6-billion-euro) lawsuit in a New York court against former large shareholders and executives for alleged fraud.
Four former Kaupthing executives, who all live in Luxembourg, have meanwhile been arrested in Iceland in the past week and Interpol has issued an international arrest warrant for that bank’s ex-chairman, Sigurdur Einarsson.
Former head of the bank’s domestic operations, Ingolfur Helgason, and former chief risk officer Steingrimur Karason were arrested late Monday on arrival from Luxembourg, just days after former Kaupthing boss Hreidar Mar Sigurdsson, along with Magnus Gudmunsson, who headed the bank’s unit in Luxembourg, were taken into custody.
An employee of Sydney's Macquarie Bank probably isn't in line for a fat payrise after he was caught on live TV closely analysing something a bit more scintillating than the Lucky Country's interest rates: According to net experts, at least one of the photos in question is Orlando Bloom's squeeze Miranda Kerr. The Victoria's Secret Angel is a local lass made good, and is rarely seen dressed in more than her underwear, which makes her the pin-up of choice among Sydney's hardened bankers.
“We get a lot of finance guys,” said Max McGarr, the gym’s program director and a professional fighter. “It’s a good release from their job. If you lost hundreds of thousands of dollars, it’s good to come here and get it out.” “It’s a great stress reliever,” said Richard Byrne, chief executive officer of Deutsche Bank Securities, who practices jiu-jitsu and sparring at Renzo with Cholish and other professional fighters. “Talk about a great way to get aggression out, and it’s an unbelievable workout.” Cholish and his roommate, Erik Owings, also a professional fighter, converted the top level of their duplex apartment on the Upper East Side into a gym, where Byrne sometimes brings Wall Street colleagues to work out. “It’s the dungeon of pain,” said Brian Peganoff, an assistant vice president in corporate cash management at Deutsche Bank. Peganoff, 27, learned tae kwon do as a child and started boxing as a workout while attending Pennsylvania State University in University Park. He began jiu-jitsu about two years ago. “People on Wall Street are pretty competitive and I think that carries over,” Peganoff said. “That’s the ultimate competition, putting two people in a cage and seeing who is the better guy.”