Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Market
News of the Competition (07/15/2014)
  • WASHINGTON (7/15/14)--After a lengthy and heated negotiation period, Citigroup and the U.S. Justice Department have come to an agreement that will require the big bank to pay $7 billion to resolve accusations that it deceived investors about the quality of mortgage securities it was shopping around in the months leading up to the economic downturn in 2008--misdeeds Citibank has admitted to, according to the Justice Department ( The Wall Street Journal July 14). According to Attorney General Eric Holder, Citibank sold mortgage-backed securities rampant with defective loans, and concealed that information from investors. Before the recession, Citigroup employees knew that the loans they were offering contained "material defects," but sold them anyway, according to The Wall Street Journal . One Citigroup trader wrote an email, circulated internally, that said the bank "should start praying" because they knew the loans were going disintegrate. Of the total $7 billion settlement, $4 billion as a civil penalty will go to the Justice Department, $500 million will go to the Federal Deposit Insurance Corp. and several states, and $2.5 billion will be used for consumer relief ...
  • CHICAGO (7/15/14)-- Illinois Attorney General Lisa Madigan filed lawsuits Monday targeting two companies she believes have been defrauding people with phony student loan consolidation or forgiveness programs ( The Associated Press July 14). The lawsuits allege the two companies have taken part in "deceptive practices," such as charging upfront fees for fake services or charging for services that under state law must be free. One company allegedly asks for an initial payment of $1,200 for phony services, while another has promoted a fictional "Obama forgiveness program" to attract people with student loan debt. Madigan said she will target other companies that employ similar practices aggressively ...


RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 day ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
1 hour ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
1 hour ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
1 hour ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
3 hours ago