settlements

The firm, which is accused of lacking the objectivity and integrity expected of consultants but not actually breaking the law, agreed to pay the fine and accept the two-year sidelining of its regulatory consulting unit. PricewaterhouseCoopers appeared to have had little choice: Mr. Lawsky’s office, which has the authority under a little-known New York law to censure erring consultants even without a legal violation, threatened to otherwise inflict a more sweeping and lengthy prohibition…The settlement involves the firm’s work for the Japanese banking giant, which regulators long suspected of routing money through its New York branches on behalf of nations blacklisted by the United States. The bank voluntarily hired PricewaterhouseCoopers in 2007 to quantify its improper transactions with Iran and other sanctioned countries. [Dealbook]

Judge Rakoff would feel a lot better about this if someone from Citi could be compelled to just admit they engaged in fraud; to have them say, “Guilty, your honor.” Sure, the $285 million they’ll be forking over sort of suggests as much on its own but just for fucking once, it’d be nice to hear someone say it. Read more »

Was this an act of a judge taking pity on BofA in light of the fact that it basically writes the government 9 figure checks on a weekly basis, and is probably going to write a ten figure one early next month? Unclear, but it calls for a round of celebratory drinks in Charlotte tonight. Read more »

  • 14 Jul 2014 at 12:34 PM
  • oh that

$7 Billion Settlements Aside, Citi’s Earnings Are Kick-Ass

Citigroup‘s profits tumbled 96 percent in the second quarter, dragged down by a huge charge related to its recently announced deal with the Justice Department to settle an investigation into its sale of mortgage securities in the run up to the financial crisis. The charge for the legal settlement totaled $3.8 billion, marring an otherwise relatively strong quarter for the bank that was helped by better than expected trading results. Not accounting for the legal charge, or other one-time items, Citigroup exceeded Wall Street expectations in the second quarter with adjusted earnings of $1.24 a share, On that basis, analysts had been expecting Citigroup would earn $1.05 a share, according to a survey by Thomson Reuters…Earlier on Monday, the bank announced a $7 billion deal with the Justice Department. The deal includes a $4 billion cash penalty, the largest yet by a large bank to settle federal investigations of mortgage misdeeds. [Dealbook]

  • 01 Jul 2014 at 12:59 PM

Some World Cup Games More Important Than Others

US-based BNP Paribas employees learned that the hard way. Read more »

  • 13 Jun 2014 at 2:10 PM

Settlement Watch ’14: Citigroup

The U.S. Justice Department has asked Citigroup Inc. (C) for more than $10 billion to settle a probe into the lender’s sale of mortgage-backed bonds in the run up to the 2008 financial crisis, according to a person familiar with the negotiations. Prosecutors broke off talks with Citigroup on June 9 and are preparing to sue the bank after the lender offered less than $4 billion to resolve the matter, said the person who asked not to be named because the negotiations are private. The Justice Department could file a lawsuit as early as next week, the person said. [Bloomberg]

  • 13 Jun 2014 at 1:00 PM

Settlement Watch ’14: UBS

The Swiss may be parting with $8 billion in the near term, approximately $6.5 billion more than it was aiming for. Read more »