Receiving Wide Coverage ...
Mortgage Settlement Checks to Be Mailed: Regulators announced yesterday that the first round of checks related to their $8.5 billion settlement with banks over alleged foreclosure processing mistakes will soon be in the mail. Many news outlets led with the stats. The Fed and the OCC "are set to dole out roughly $1.2 billion in the first batch of payments," Dealbook reports. "By April 12, the regulators expect to mail 1.4 million checks." Others focused on just how little the borrowers are actually getting. As the opening paragraph of the Wall Street Journal article notes, "The vast majority of borrowers … will get $1,000 or less apiece, a sobering coda to a protracted attempt to help those who may have been placed into foreclosure as a result of banks' mistakes." Or, as the American Banker headline summarizes, "Foreclosure Review Amounts to Peanuts for Most Borrowers." Regulators' attempts to address this issue have long been on the receiving end of criticism. American Banker readers will recall that the settlement replaced a "bungled" foreclosure review process that appeared to benefit consultants more than the involved homeowners. More big picture coverage on the soon-to-be mailed settlement checks can be found here: Bloomberg, Reuters
Small Biz Aid Got TARP-ed: Some small banks may need to explain after a report found they used "$2.1 billion in government cash intended to boost small-business lending to repay" Troubled Asset Relief Program funds instead, the Journal says. The report, completed by the special inspector general for TARP Christy Romero, isn't likely to do much for regulators' reputations. Per a quote from Romero in the Washington Post, "Treasury and the banking regulators did not adequately assess the plans, each claiming it was the responsibility of the other."
KPMG Update: More details are emerging about KPMG's rogue auditor problem. Recall, the auditing firm recently terminated a senior partner after discovering he had provided confidential information to a third-party. This partner, per various news outlets, is Scott London, who was in charge of overseeing audits at Skechers and Herbalife, the two companies KPMG is no longer representing as a result of the scandal. According to the Journal, London admits to passing on stock tips in exchange for "cash and gifts" starting "a few years back." He has not named the third-party recipient of the tips. Investigations are currently underway at the Federal Bureau of Investigation, U.S. Justice Department and Securities and Exchange Commission. New York Times, Washington Post
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