Items Tagged with 'mortgage bond traders'

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  • Merrill Lynch ordered to pay $15.7M for cheating customers in mortgage bond trades

    SEC orders company to pay up for misleading customers
    Merrill Lynch will pay $15.7 million to settle allegations that its employees misled mortgage bond customers and overcharged those customers residential mortgage-backed securities trades during a three-year period from 2009 through 2012, the Securities and Exchange Commission announced this week.
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  • Former Cantor Fitzgerald mortgage bond trader found not guilty of securities fraud

    Feds rebuked twice in one week in pursuit of RMBS traders
    It has not been a good week in court for the federal government and its pursuit of fraud charges against mortgage bond traders. On Thursday, the Court of Appeals for the Second Circuit tossed the fraud conviction of former Jefferies mortgage-backed securities trader Jesse Litvak, marking the second time the government has failed in its five-year pursuit of Litvak. But that wasn’t the only defeat the government took in court on Thursday.
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  • Jesse Litvak freed: Court overturns mortgage bond trader’s fraud conviction, again

    Court of Appeals reverses Litvak’s conviction for second time
    The government’s five-year push to see former Jefferies managing director and mortgage-backed securities trader Jesse Litvak jailed for mortgage bond fraud is about to fail again, as the Court of Appeals has again sided with Litvak, overturning a lower court’s conviction and ordering Litvak released from jail.
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  • RBS will pay $44 million for cheating customers in mortgage bond trading

    Will pay $35 million penalty, $9 million in restitution to victim customers
    RBS Securities agreed to pay $44 million as part of a non-prosecution agreement covering allegations that the company’s mortgage-backed securities trading group defrauded its customers out of millions of dollars by lying about mortgage bond trades, the Department of Justice and the Special Inspector General for the Troubled Asset Relief Program announced Thursday.
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  • Former Deutsche Bank head subprime mortgage bond trader fires back at U.S. fraud charges

    Denies all charges, accuses government of ‘concocting a baseless theory of fraud’
    Paul Mangione, the former head of subprime mortgage trading at Deutsche Bank who stands accused over overseeing systemic mortgage bond fraud during the run-up to the financial crisis, says that the government kowtowed to public pressure to see individuals held responsible for the financial crisis by filing lawsuit against him that is wrong, unfair, and without merit.
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  • Shocker: U.S. sues former Deutsche Bank head subprime mortgage bond trader for crisis-era fraud

    Paul Mangione accused of ‘systematically, intentionally’ lying about subprime mortgages
    In what can only be regarded as a shocking development, the United States is suing the former head of subprime mortgage trading at Deutsche Bank over “systematically and intentionally” lying about the quality of subprime mortgages that backed nearly $1.5 billion in mortgage-backed securities in the run-up to the crisis.
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  • Wells Fargo withholds $90 million for legal costs, shakes up mortgage bond market

    RMBS deals originated in 2004 and 2005
    Wells Fargo held $90 million back from residential mortgage-backed securities investors recently, saying that it needed the money to cover legal expenses. The legal expenses stem from lawsuits brought by BlackRock and PIMCO. Analysts suggest that the unexpected move could have an impact on the mortgage bond market. Here are the details.
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  • Former Nomura RMBS trader found guilty of securities, wire fraud conspiracy

    But found not guilty on six other counts
    Nearly two years ago, the SEC and the U.S. Attorney’s Office charged three former Nomura Securities residential mortgage-backed securities traders with fraud, alleging that they “repeatedly lied” to customers about the pricing information of mortgage bonds and defrauded customers out of millions of dollars. The three traders went on trial last month, and a jury handed down a verdict this week. All in all, only one was found guilty – and only on one charge.
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  • SEC: Barclays Capital to pay $16.5 million to settle RMBS fraud charges

    Two mortgage bond traders suspended for lying to clients
    Barclays Capital will fork over more than $16.5 million as part of a settlement stemming from allegations that the company did not properly supervise two of its former mortgage bond traders who allegedly lied to and overcharged clients, the Securities and Exchange Commission announced this week.
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