Tag Archive for ‘Citigroup’
As the Federal Reserve Bank of New York moved to beef up its oversight of Wall Street two years ago, the team charged with supervising the nation’s largest bank, JPMorgan Chase, was in turmoil. Fed examiners embedded at JPMorgan complained about being blocked from doing their jobs. In frustration, some requested transfers.
Controversy continues over the British bank Barclays, which has been slapped with $450 million in fines and penalties for manipulating information used to set a critical interest rate. Here’s some background on the scandal, and how we’ll likely see government action on other banks besides Barclays.
In March 2011, the Federal Reserve made a controversial decision to permit 19 leading U.S. financial institutions to pay out $33 billion to shareholders, including many of their own top executives. Pulitzer Prize winner Jesse Eisinger’s in-depth account of the Fed’s momentous decision sheds light on the inner workings of one of the most powerful but secretive economic institutions in the world.
Corporate governance activist Robert AG Monks argues that American corporations today are like the great European monarchies of long ago. “Corporations have effectively captured the United States: its judiciary, its political system, and its national wealth, without assuming any of the responsibilities of dominion,” he writes. “Evidence is everywhere.”
Years after the financial crisis, there have still been no prosecutions of top executives at the major players in the financial crisis. Why’s that? Well, according to a now-departed Justice Department official who used to be in charge of investigating such matters, the Justice Department has decided that holding top Wall Street executives criminally accountable is too difficult a task.
A study by analysts at J.P. Morgan concludes that impact investing – which is intended to generate social good as well as financial return – could represent a highly-profitable trillion dollar market over the next decade. “In fact, we believe that impact investing will reveal itself to be one of the most powerful changes within the asset management industry in the years to come,” the study says.
A federal judge in Manhattan rejected a proposed settlement between Citigroup and the U.S. Securities and Exchange Commission over a failed security that the bank sold to investors. “If the allegations of the Complaint are true, this is a very good deal for Citigroup,” said U.S. District Judge Jed Rakoff as he refused to sign off on the $285 million proposed settlement agreement.
Widespread demonstrations in support of Occupy Wall Street have put the financial crisis back into the national spotlight lately. So here’s a quick refresher on what’s happened to some of the main players, whose behavior, whether merely reckless or downright deliberate, helped cause or worsen the meltdown.
The UN’s endorsement of the Guiding Principles on Business and Human Rights marks not just a successful end to the mandate of UN Special Representative John Ruggie. It also signals a new beginning for business and human rights as companies around the world begin to implement the principles to ensure respect for human rights in all their operations.
Almost a year ago, President Barack Obama signed the Dodd-Frank Wall Street Reform Act into law. Now, some emerging roadblocks reinforce a fear that Dodd-Frank, which was intended to touch on almost every aspect of the American financial system, may never provide the sweeping reform it promised.