FDIC sues Bank of America, JPMorgan Chase, others over mortgage debt losses
Orlando Business Journal
Date: Tuesday, May 22, 2012, 6:36am EDT - Last Modified: Tuesday, May 22, 2012, 6:41am EDTThe lawsuits accuse the banks of misrepresenting the risks of residential mortgages, which caused losses for investors once the poor quality and defective underwriting became evident, according to Reuters.
Two of the lawsuits were filed in Manhattan federal court and seek $72 million. The third suit was filed in Los Angeles federal court and seeks $15 million.
Bank of America and JPMorgan Chase are the second- and sixth-largest banks in Central Florida, respectively.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Is anyone keeping track of the lawsuits?? I'm having trouble...there are now sooooo many! Gosh.
I do find it very interesting that the FDIC is suing them....(ironic, my lawyer and I were talking about them just the other day) So thought I would share a little bit of information about the "FDIC"
 |
Who is the FDIC? (This is from their site directly and can be found at http://www.fdic.gov/about/learn/symbol/index.html |
|
|
The Federal Deposit Insurance Corporation (FDIC) preserves and promotes
public confidence in the U.S. financial system by insuring deposits
in banks and thrift institutions for at least $250,000; by identifying,
monitoring and addressing risks to the deposit insurance funds;
and by limiting the effect on the economy and the financial system when
a bank or thrift institution fails. An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure. The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. The FDIC insures more than $7 trillion of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC's Electronic Deposit Insurance Estimator can help you determine if you have adequate deposit insurance for your accounts. The FDIC insures deposits only. It does not insure securities, mutual funds or similar types of investments that banks and thrift institutions may offer. (Insured and Uninsured Investments distinguishes between what is and is not protected by FDIC insurance.) The FDIC directly examines and supervises more than 4,900 banks and savings banks for operational safety and soundness, more than half of the institutions in the banking system. Banks can be chartered by the states or by the federal government. Banks chartered by states also have the choice of whether to join the Federal Reserve System. The FDIC is the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System. In addition, the FDIC is the back-up supervisor for the remaining insured banks and thrift institutions. The FDIC also examines banks for compliance with consumer protection laws, including the Fair Credit Billing Act, the Fair Credit Reporting Act, the Truth-In-Lending Act, and the Fair Debt Collection Practices Act, to name a few. Finally, the FDIC examines banks for compliance with the Community Reinvestment Act (CRA) which requires banks to help meet the credit needs of the communities they were chartered to serve. To protect insured depositors, the FDIC responds immediately when a bank or thrift institution fails. Institutions generally are closed by their chartering authority – the state regulator, the Office of the Comptroller of the Currency, or the Office of Thrift Supervision. The FDIC has several options for resolving institution failures, but the one most used is to sell deposits and loans of the failed institution to another institution. Customers of the failed institution automatically become customers of the assuming institution. Most of the time, the transition is seamless from the customer's point of view. The FDIC employs more than 7,000 people. It is headquartered in Washington, D.C., but conducts much of its business in six regional offices, three temporary satellite offices and in field offices around the country. The FDIC is managed by a five-person Board of Directors, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party.
FDIC Mission, Vision, and Values (http://www.fdic.gov/about/mission/index.html
Mission
The Federal Deposit Insurance Corporation (FDIC) is an independent
agency created by the Congress to maintain stability and public confidence
in the nation's financial system by:
Vision
The FDIC is a recognized leader in promoting sound public policies, addressing
risks in the nation's financial system, and carrying out its insurance,
supervisory, consumer protection, and receivership management responsibilities.
Values
The FDIC and its employees have a tradition of distinguished public service.
Six core values guide us in accomplishing our mission:
Integrity
We adhere to the highest ethical and professional standards.
Competence
We are a highly skilled, dedicated, and diverse workforce that is empowered
to achieve outstanding results.
Teamwork
We communicate and collaborate effectively with one another and with other regulatory agencies.
Effectiveness
We respond quickly and successfully to risks in insured depository institutions and the financial system.
Accountability
We are accountable to each other and to our stakeholders to
operate in a financially responsible and operationally effective manner.
Fairness
We respect individual viewpoints and treat one another and our stakeholders with impartiality, dignity, and trust. |
No comments:
Post a Comment