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Jul 24, 2014

Bank of America to pay $16.6 million to resolve U.S. sanctions violations

WASHINGTON (Reuters) – Bank of America Corp’s banking unit (BAC.N: Quote, Profile, Research, Stock Buzz) agreed to pay $16.6 million to resolve allegations that it processed several hundred transactions for drug traffickers who are subject to U.S. sanctions, the U.S. Treasury Department said on Thursday.

The bank processed around $91,000 in transactions for six designated narcotics traffickers between 2005 and 2009, and failed to file timely reports on accounts owned by four others, the department’s Office of Foreign Assets Control (OFAC) said.

Jul 22, 2014

U.S. court rulings create new uncertainty over Obamacare

WASHINGTON (Reuters) – Two U.S. judicial panels on Tuesday injected new uncertainty into the future of President Barack Obama’s healthcare law, with conflicting rulings over whether the federal government can subsidize health insurance for millions of Americans.

The appeals court rulings, handed down by three-judge panels in Washington, D.C., and Richmond, Virginia, augured a possible rematch before the U.S. Supreme Court, which in June 2012 narrowly upheld the Democratic president’s 2010 healthcare overhaul.

Jul 22, 2014

Court deals blow to Obama health law by limiting subsidies

WASHINGTON (Reuters) – A U.S. federal judicial panel on Tuesday dealt a potentially devastating blow to President Barack Obama’s healthcare law, throwing out a provision that provides millions of Americans with subsidies for private health insurance.

The 2-1 decision, which could lead to a new showdown over Obamacare before the U.S. Supreme Court, would prevent the administration from offering premium tax credits to people who purchase insurance through the federal insurance marketplace that serves most of the 8 million consumers who have signed up for private coverage for 2014.

Jul 22, 2014

JPMorgan begins to provide consumer help under $13 billion settlement

WASHINGTON (Reuters) – JPMorgan Chase & Co has begun to provide the debt forgiveness and other help to struggling homeowners under last year’s $13 billion accord with federal and state authorities, though it has only turned over a handful of details, a monitor of the deal said in a report released on Tuesday.

Joseph Smith, who was appointed by the bank and governments to monitor a settlement over mortgage securities, said he determined that the largest U.S. bank had so far earned $6.3 million in so-called “credits” from either cutting borrowers’ principal or agreeing to defer some payments on 100 loans in a test pool.

Jul 17, 2014

Ex-Alstom exec pleads guilty to bribery over Indonesia power contract

WASHINGTON, July 17 (Reuters) – A former vice president of
Alstom SA’s U.S. unit pleaded guilty on Thursday over
his role in a scheme to bribe Indonesian government officials to
win a $118 million power project there, the U.S. Department of
Justice said.

William Pomponi, a former vice president of sales for the
French company’s Connecticut-based power subsidiary, pleaded
guilty to conspiring to violate the Foreign Corrupt Practices
Act.

Jul 16, 2014

US official warns of lawsuit as BofA mortgage talks stall

WASHINGTON, July 16 (Reuters) – A U.S. Department of Justice
official on Wednesday issued a thinly veiled threat to Bank of
America Corp, saying that banks under investigation for shoddy
mortgage securities they sold before the financial crisis must
admit to misconduct and pay substantial penalties or face
lawsuits from the agency.

The warning from No. 3 Justice official Tony West comes
after a $7 billion settlement with Citigroup Inc earlier
this week and as talks with Bank of America Corp have
stalled over similar claims.

Jul 16, 2014

U.S. official warns banks of lawsuits over mortgage misconduct

WASHINGTON, July 16 (Reuters) – A U.S. Department of Justice
official on Wednesday told banks under investigation in
connection with mortgage securities sold before the financial
crisis to admit to misconduct and pay substantial penalties or
face lawsuits from the agency.

The warning from No. 3 Justice official Tony West comes
after a $7 billion settlement with Citigroup Inc and amid
talks with Bank of America Corp over similar claims.

Jul 15, 2014

U.S. court sides with Chinese firm in dispute with Obama

WASHINGTON (Reuters) – A federal appeals court on Tuesday issued a surprising rebuke to U.S. President Barack Obama and said he deprived a small Chinese-owned firm of its right to due process when he squashed its bid to build wind farms close to a U.S. naval training site.

The U.S. Court of Appeals for the District of Columbia Circuit reversed a lower court ruling and ordered that the firm, Ralls Corp, be provided the evidence on which Obama had rejected the bid.

Jul 9, 2014

Holder won’t meet with BofA CEO as mortgage talks stall-sources

NEW YORK/WASHINGTON, July 9 (Reuters) – U.S. Attorney
General Eric Holder has formally refused to meet with Bank of
America Corp Chief Executive Brian Moynihan to hammer
out a multibillion-dollar deal, as talks to resolve probes into
shoddy mortgage securities sold by the bank and its units remain
at a standstill, according to people familiar with the matter.

In a letter sent in the second half of June, Holder told
Moynihan that the parties remained too far apart for a meeting
to be productive, one source said.

Jul 9, 2014

Citigroup may pay $7 bln to resolve U.S. mortgage probes -source

NEW YORK/WASHINGTON, July 8 (Reuters) – Citigroup Inc
is close to paying about $7 billion to resolve a U.S. probe into
whether it defrauded investors on billions of dollars worth of
mortgage securities in the run-up to the financial crisis, a
source familiar with the matter said on Tuesday.

A majority of the settlement is expected to be in cash, but
the figure also includes several billion dollars in help to
struggling borrowers, the source said.