In the meantime Capital One has agreed in a settlement with the Consumer Financial; Protection Bureau (by the way that is the agency created under Dodd Frank that some in Congress are starving for resources so that they will not be able to do their job), to pay $150 million to reimburse more than 2 million customers who bought aggressively marketed payment protection and credit monitoring services. They have also agreed to pay an additional $460 million in penalties. The president of Capital One said that the bank was "accountable for the actions that vendors take on our behalf." Such a candid admission of responsibility is indeed refreshing.
The trial of a former Citigroup executive, who managed a $1 billion securities deal that was sold to investors even though they knew the mortgage-backed securities package was toxic, began this week in New York. "This was legal gambling" the executive's lawyer told the jury and the investors knew the risks they were taking.
Officials from the venerable Asian Bank HSBC have now joined the drama as they try to explain to a U.S. Senate Permanent Subcommittee on investigations how they failed to put in place measures to prevent the laundering of money by drug cartels and terrorists both in the U.S. and in other parts of the world. The record of enforcement by one of the bank's regulators, the OCC, was described by a senator as resembling "a lap dog rather [than] a watchdog that we sorely need.
ReplyDeleteIn the meantime Capital One has agreed in a settlement with the Consumer Financial; Protection Bureau (by the way that is the agency created under Dodd Frank that some in Congress are starving for resources so that they will not be able to do their job), to pay $150 million to reimburse more than 2 million customers who bought aggressively marketed payment protection and credit monitoring services. They have also agreed to pay an additional $460 million in penalties. The president of Capital One said that the bank was "accountable for the actions that vendors take on our behalf." Such a candid admission of responsibility is indeed refreshing.
The trial of a former Citigroup executive, who managed a $1 billion securities deal that was sold to investors even though they knew the mortgage-backed securities package was toxic, began this week in New York. "This was legal gambling" the executive's lawyer told the jury and the investors knew the risks they were taking.