Financial Services News

June 18, 2013

Lawsuit Tries Creative Approach Against Fannie and Freddie Bailout

New York Times | June 18, 2013

Shareholders of Fannie Mae and Freddie Mac, the two government-sponsored enterprises bailed out by the government, have some hubris.

Tags: Financial Services, Securities Litigation

Florida Paid $9.5 Million in Settlement Over Crisis-Era Deal

Wall Street Journal | Subscription Required | June 18, 2013

The two largest credit-rating firms and Morgan Stanley paid the state of Florida $9.5 million as part of a confidential settlement earlier this year, according to documents reviewed by The Wall Street Journal.

Tags: Financial Services, Florida

Former Trader Is Charged in U.K. Libor Probe

Wall Street Journal | Subscription Required | June 18, 2013

British prosecutors have filed criminal fraud charges against former UBS AG and Citigroup Inc. trader Tom Hayes for allegedly trying to manipulate benchmark interest rates, in the first effort by British authorities to seek criminal penalties against someone they allege was involved in manipulation of the London interbank offered rate, or Libor.

Tags: Financial Services

June 10, 2013

Lawsuits Against S.& P. Sent to One Court

New York Times | June 10, 2013

Standard & Poor’s won a ruling on Thursday that moves 15 lawsuits in which it and its parent company, McGraw-Hill Financial, were accused of fraudulently inflating credit ratings to one federal court.

Tags: Financial Services, State Attorneys General

Criminal Cases Loom in Rate Rigging

Wall Street Journal | Subscription Required | June 10, 2013

U.S. and British authorities are preparing to bring criminal charges against former employees of Barclays PLC for their alleged roles trying to manipulate benchmark interest rates, according to people familiar with the plans, marking an escalation of a global investigation now entering its sixth year.

Tags: Financial Services, International

Wells Fargo Pays $42 Million in Fair Housing Case

American Lawyer | Subscription Required | June 10, 2013

Wells Fargo Bank agreed to pay $42 million to settle a complaint that it failed to maintain foreclosed properties in minority neighborhoods, turning the vacant houses into dilapidated eyesores.

Tags: Financial Services

June 4, 2013

S&P Says Judge Should Dismiss Government's Case Against It

Wall Street Journal | June 4, 2013

Standard & Poor's Ratings Services Monday pressed a federal judge to throw out the federal government's lawsuit against the company.

Tags: Financial Services

Opt-Out Plaintiffs Clinch Deal in Citigroup Securities Case

American Lawyer | June 4, 2013

A coalition of about 20 institutional investors have wrested a settlement from Citigroup Inc. in a long-running suit over the banks' role in the financial crisis.

Tags: Financial Services

Investors take first steps to possible Manulife class action over annuities

Financial Post | June 4, 2013

Almost four years after irate investors launched a $500-million claim against Manulife Financial Corp. over its risk management policies and practices, an Ontario court is set to hear arguments this week as it determines whether the case can proceed as a class action.

Tags: Class Action, Financial Services, Canada

S&P Seeks to Throw Out California False-Claims Ratings Lawsuit

Bloomberg | June 4, 2013

Standard & Poor’s told a judge that California’s lawsuit over state pension fund losses from mortgage-backed securities should be thrown out because it doesn’t meet requirements for a false-claims case.

Tags: California, Financial Services, Government Contracts & Whistleblower Legislation