Posts Tagged ‘Morgan Stanley’
Nuns sue banks for $5 million fraud
No banker is likely to risk describing what they do as “God’s work”, but they might hope at least not to get on the wrong side of His earthly followers. Unlucky then for Germany’s Deutsche Bank and US investment bank Morgan Stanley, who are facing a $5m lawsuit led by a group of Irish nuns.
The Sisters of Charity of Jesus and Mary, the Holy Faith Sisters and the Irish Veterinary Benevolent Fund are among a group of 88 Irish individuals suing the two banks.
The nuns allege the two banks profited at their expense by failing to redeem an investment linked to the debt of German financial group Dresdner Bank and in so doing cost them millions of pounds.
In 2005 the nuns and other Irish investors bought euro-denominated notes worth €5.88m linked to Dresdner Bank bonds, but accuse Morgan Stanley of failing to deliver on a contractual pledge to redeem the debt after the German bank’s credit rating was cut below an agreed point.
Instead, Morgan Stanley is alleged to have postponed redeeming the notes until the value of Dresdner Bank debt had recovered to a level whereby the US bank would incur no losses, but which the nuns say ended up costing them $4.7m, as well as $718,734.80 in lost interest payments.
Morgan Stanley is alleged to have made an estimated $11.2m gain by delaying the redemption of the notes.
Here comes that really big bolt of lightning. Hardly anyone deserves it more than Morgan Stanley.
TARP funds stuffed into biggest banks repaid – with interest
Daylife/AP Photo used by permission
JPMorgan Chase and nine other big banks said Wednesday have repaid the federal assistance money that they received in the fall during the height of the financial crisis.
JPMorgan said it had returned $25 billion, with interest, to the government — money that the bank’s chief executive, Jamie Dimon, has said it never needed in the first place.
Like the others in this article, JPMorgan Chase was told by Bernanke and Bush they would not be listed as a secure banking source if they refused the money. Literally, it was reverse extortion – with our money.
Morgan Stanley and Goldman Sachs said in separate announcements that they had each repaid their $10 billion in federal aid, joining a parade of financial institutions making their exit from the government rescue program.
By late Wednesday afternoon, all 10 banks allowed to exit the government’s Troubled Asset Relief Program had said they had repaid the TARP money. Among them, American Express returned $3.39 billion, Bank of New York Mellon $3 billion, Capital One Financial $3.57 billion, State Street $2 billion and Northern Trust $1.58 billion.
Earlier in the day, BB&T and U.S. Bancorp said they had repaid $3.1 billion and $6.6 billion, respectively, in government bailout money.
These 10 banks were informed by regulators last week that they were considered financially stable enough to return the government’s money…
Morgan Stanley executive guilty of fraud and conspiracy
A former executive director and head of domestic securities lending for Morgan Stanley has been convicted of securities fraud conspiracy.
Darin Demizio, who also was convicted of wire fraud and making a false statement to the FBI after a weeklong trial, faces up to 25 years on the fraud counts and five years on the false statement count.
The conviction is the 29th stemming from an ongoing industry-wide investigation into allegations of bribery and kickbacks in the securities lending industry, also called the “stock-loan” industry, the U.S. Justice Department said.
The department said 28 defendants previously pleaded guilty in Brooklyn, including former lending traders at A.G. Edwards and Sons Inc.; Janney Montgomery Scott LLC; JP Morgan Chase; Kellner Dileo & Co. Inc.; Oppenheimer & Co. Inc.; Morgan Stanley; National Investors Services, also known as TD Waterhouse; Nomura Securities International Inc.; Pax Clearing Corp.; PFPC Worldwide; Schonfeld Securities and Van der Moolen Specialists.
What was that about “birds of a feather”?
