Banking

Big Bank “Reforms” Fail to Protect Customers, Consumer Financial Protection Agency (CFPA) Needed

October 5, 2009 -- Washington, DC --- Announced changes to overdraft programs at the nation’s largest banks will not protect American consumers from exorbitantly expensive short-term loans or extend federal consumer protections to the most expensive loans banks make.    » read more »

Lewis Departure Follows Year-Long SEIU-Sponsored Taxpayer, Bank Worker, Shareholder Revolt and Campaign to Reveal Failed Policies

October 1, 2009 -- WASHINGTON, DC--Following the news of Bank of America CEO Ken Lewis' planned retirement, the Service Employees International Union (SEIU) continued its efforts to bring change to the banking industry by releasing a detailed record of Lewis' failed leadership.

"Ken Lewis is the poster boy for a financial industry fueled by reckless lending practices, platinum bonuses, and a disregard for workers and our economy," said SEIU Secretary-Treasurer Anna Burger. "The Ken Lewis banking model continues drive up big bank profits while causing millions of Americans to lose their jobs, their homes, and their retirement savings."    » read more »

October 1, 2009 -- WASHINGTON, D.C. - Senator Bob Bennett (R-Utah), a member of the Senate Banking Committee, issued the following statement today regarding the passage of the Emergency Stabilization Act, which created the Troubled Asset Relief Program one year ago:

"Today is the anniversary of one of the most difficult votes I've ever had to cast as a senator: the vote to authorize TARP to stabilize the financial system, not only here, but around the world.    » read more »

CHARLOTTE, N.C., Oct. 2 -- Bank of America Corporation today said the Board of Directors has authorized approximately $713 million in dividend payments to the U.S. government under the Troubled Asset Relief Program (TARP). The company this year has paid the government $1.83 billion in TARP dividends through September 30.

Dividends related to the government's investment in the company under TARP include the following:    » read more »

Groups call for enactment of a Consumer Financial Protection Agency (CFPA) to oversee shifting credit card practices

September 28, 2009 -- Washington, DC – A Consumer Action and Consumer Federation of America analysis of recent credit card industry practices found that card issuers are using a variety of costly, unfair tactics that will not be eliminated under an impending new law. These expensive and exploitive practices demonstrate the need for ongoing oversight of the credit card industry by a new consumer agency.

Card issuers are also hitting consumers with charges that will be forbidden under the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, which takes effect in February, 2010.    » read more »

September 30, 2009 -- WASHINGTON, DC – In an effort to curb record-high foreclosure rates across the country and stabilize the housing market, U.S. Senator Jack Reed today introduced legislation that will help keep families in their homes and prevent communities from deteriorating as a result of skyrocketing mortgage defaults.    » read more »

Steve Black named Executive Chairman of the Investment Bank; Jes Staley to become CEO of the Investment Bank; Mary Callahan Erdoes Appointed CEO of Asset Management

NEW YORK--(BUSINESS WIRE)--JPMorgan Chase & Co. (NYSE: JPM - News) today announced senior leadership changes in its Investment Bank and Asset Management businesses.

Steve Black, co-CEO of the Investment Bank, will become Executive Chairman of the Investment Bank. Jes Staley, currently head of Asset Management, has been named CEO of the Investment Bank, reporting to Steve. Jes will continue to serve on the firm's Operating Committee. Mary Callahan Erdoes, CEO of the Private Bank, will succeed Jes as the CEO of Asset Management and will join the firm's Operating Committee.    » read more »

To Conclude Forty Years with Bank of America December 31, 2009

CHARLOTTE, N.C., Sept. 30 -- Ken Lewis, chief executive officer and president, announced today that he has notified the Board of Directors of his decision to retire, effective December 31, 2009. The Board will continue ongoing planning to ensure his successor is selected by that date. Lewis will retire as CEO and as a director.

"Bank of America is well positioned to meet the continuing challenges of the economy and markets," said Lewis. "I am particularly heartened by the results that are emerging from the decisions and initiatives of the difficult past year-and-a-half."    » read more »

Washington, D.C., Sept. 17, 2009 — The Securities and Exchange Commission today voted unanimously to take several rulemaking actions to bolster oversight of credit ratings agencies by enhancing disclosure and improving the quality of credit ratings.

Credit rating agencies are organizations that rate the creditworthiness of a company or a financial product, such as a debt security or money market instrument. In particular, the Commission voted to adopt or propose measures intended to improve the quality of credit ratings by requiring greater disclosure, fostering competition, helping to address conflicts of interest, shedding light on rating shopping, and promoting accountability.    » read more »

New AARP Survey Shows Support For Increased Consumer Protections in Financial Industry

September 14, 2009 -- Washington, DC – AARP Executive Vice President, Nancy LeaMond released the following statement in response to President Obama’s speech today on Wall Street:

“Older Americans saw their retirement savings decimated by the economic crisis. AARP has long maintained that consumers must be armed with as much information as possible so that they can make sound financial decisions. In a world where individuals must plan for their own financial futures, information is imperative and greater protections are needed in the marketplace.    » read more »

In response to Kaufman’s letter, SEC Chairman says agency will undertake broader review

September 14, 2009 -- WASHINGTON, DC - On the eve of the one-year anniversary of the bankruptcy that sent shock waves down Wall Street and throughout the country, Senator Ted Kaufman (D-DE) will deliver a speech highlighting the failure to enact comprehensive financial regulatory reform in the 365 days since the collapse of Lehman Brothers.

He will also detail the critical need for the nation's financial regulatory agencies to adopt a forward-looking approach to regulation - one that recognizes manipulation and wrongdoing before it metastasizes and leads to systemic failures or seriously undermines market credibility, fairness and investor confidence.    » read more »

CHARLOTTE, N.C., Sept. 15 -- Bank of America Chief Executive Officer Ken Lewis issued the following comments regarding President Barack Obama's September 14 speech regarding financial regulatory reform.

"A year ago this week, the U.S. economy was on the brink of disaster. Large and important financial institutions were failing, as was confidence in our financial system. Clearly, the actions taken by the federal government, in the previous and current administrations, effectively stabilized our financial system.    » read more »

August 25, 2009 -- Preet Bharara, the U.S. Attorney for the Southern District of New York, and Joseph M. Demarest, Jr., the Assistant Director-in-Charge of the New York Office of the FBI, announced the arrest this morning of Hassan Nemazee, the Chairman and Chief Executive Officer of Nemazee Capital Corporation, in connection with a scheme to defraud Citibank, N.A. (Citibank).    » read more »

Cannot Be Sold Until U.S. Capital Purchase Program Investment Re-Paid

SAN FRANCISCO — August 6, 2009 -- Wells Fargo & Company’s (NYSE: WFC) Board of Directors approved increases in the 2009 annual base salaries of President and CEO John G. Stumpf and three other executive officers. These increases will result in total annual compensation close to the average pay for similar executive roles at peer group companies and are payable, after taxes and other withholding, entirely in Company stock which the executives cannot sell until Wells Fargo repays the U.S. Treasury’s Capital Purchase Program (CPP) investment in the Company.    » read more »

Enhance investor confidence

Washington, D.C., July 1, 2009 — The Securities and Exchange Commission today voted on three measures that are intended to better inform and empower investors to improve corporate governance and help restore investor confidence.

The Commission proposed requiring public companies receiving money from the Troubled Asset Relief Program (TARP) to provide a shareholder vote on executive pay in their proxy solicitations The Commission also voted to propose better disclosure of executive compensation at public companies in their proxy statements, and approved a New York Stock Exchange rule change to prohibit brokers from voting proxies in corporate elections without instructions from their customers.    » read more »