Wall Street Journal
A steep price
Goldman Sachs, whose stock is down 11% since two of its former bankers were charged with helping a client steal money from Malaysia’s 1MDB government investment fund, could be looking at potential penalties of $1 billion to $2 billion, plus another $600 million in disgorged fees it earned in the deal. “Longer term, the
Growing losses
The Federal Housing Administration said it expects a $14.4 billion hit to its mortgage insurance fund in the coming years, much of it due to losses in its reverse mortgage portfolio. “But the agency’s chief, Brian Montgomery, says he fears inflated appraisals may also be lurking in its much-larger portfolio of traditional mortgage insurance. If the FHA’s insurance fund losses grow significantly, that
Lurking in the shadows
The paper takes issue with the Justice Department’s “farcical claims” in its lawsuit accusing UBS of misleading investors about the risks of mortgage-backed securities the bank sold before the 2008 financial crisis. “The case rests on an avant-garde legal interpretation [of the 1989 Financial Institutions Reform, Recovery and Enforcement Act] from the Obama administration, and UBS, to its credit,
White wash?
Arbitrators for the Financial Industry Regulatory Authority have approved requests by thousands of stock brokers to “scrub their records clean of complaints by customers and employers, allowing them to hide information from potential investors, according to a new study. Expungement is meant to be a rare event, regulators say. But the study found that arbitrators
Financial Times
Ready to testify
Howard Wilkinson, the Danske Bank whistleblower, has been given approval by the bank to speak to “a multitude” of American regulators and law enforcement agencies about the
Meanwhile, Deutsche Bank, Bank of America and JPMorgan Chase, which
Simpler is better
What took Warren Buffett’s Berkshire Hathaway so long to invest in JPMorgan Chase when he had big investments in several other large American banks? It could be because the bank is no longer as complicated as it used to be. “For years, JPMorgan was mind-bogglingly complex and stuffed full of derivatives that Mr. Buffett has called ‘financial weapons of mass destruction.’ It is now closer to the banks that Mr. Buffett has favored since the 1950s when he was extolling the virtues of Commonwealth Bank in New Jersey — ‘a very well managed bank with
Off the list
The International Financial Stability Board has
Bad timing?
Switzerland’s main stock exchange has approved what the paper says is “the world’s first exchange traded product
Challenger
Israel-based Bank Leumi is preparing to launch its “acclaimed” online-only bank Pepper in the U.S. “in what would mark the latest challenge to the high fees that America’s main street lenders have enjoyed for decades.” American banks “are very advanced in some areas but in some aspects they’re so
Quotable
“The DoJ will be interested in whether the correspondent banks