Month: September 2018

ICE makes its move in $15tn US mortgage market

Banking News – ICE makes its go in $15tn US finance market
&nbspExchange group bets on modernisation as it takes full control of home loan registry MERS
Fiscal Times – Fiscal Air force – https://www.ft.com/content/b55df5ca-b6d6-11e8-b3ef-799c8613f4a1

City minister vows to defend London

Banking News – City minister vows to defend London
&nbspJon Glen is intent on keeping the UK as a global hub for fiscal air force
Fiscal Times – Fiscal Air force – https://www.ft.com/content/1406f1e0-c33d-11e8-95b1-d36dfef1b89a

Movers and shakers: October 1

Banking News – Movers and shakers: October 1
&nbspPGIM appoints Kathy Sayko as chief inclusion and diversity officer
Fiscal Times – Fiscal Air force – https://www.ft.com/content/3b47aff3-718b-366d-92d0-425e4fb02646

Sberbank: the bank trying to shape Russia’s future

Banking News – Sberbank: the bank trying to shape Russia’s future
&nbspThe Kremlin’s largest lender is diversifying under Putin ally Herman Gref, but the threat of more sanctions makes investors nervous
FT.com – Banks – https://www.ft.com/content/3450c840-c0a4-11e8-95b1-d36dfef1b89a

Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge

Banking News – Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge
&nbsp

The Securities and Chat Fee announced today that Elon Musk, CEO and Chairman of Silicon Valley-based Tesla, Inc., has agreed to settle the securities fraud charge brought by the SEC against him last week.  The SEC also today charged Tesla with failing to have vital leak reins and procedures concerning to Musk’s tweets, a charge that Tesla has agreed to settle.  The settlements, which are subject to court praise, will result in wide-ranging corporate power and other reforms at Tesla—counting Musk’s removal as Chairman of the Tesla board—and the payment by Musk and Tesla of fiscal penalties.

According to the SEC’s protest against him, Musk tweeted on August 7, 2018 that he could take Tesla private at $420 per share — a significant premium to its trading price at the time — that funding for the transaction had been secured, and that the only left over uncertainty was a shareholder vote.  The SEC’s protest alleged that, in truth, Musk knew that the the makings transaction was undefined and subject to copious contingencies.  Musk had not discussed point deal terms, counting price, with any the makings financing partners, and his statements about the doable transaction lacked an travelable basis in fact.  According to the SEC’s protest, Musk’s ambiguous tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to noteworthy market disruption.

According to the SEC’s protest against Tesla, despite notifying the market in 2013 that it projected to use Musk’s Twitter account as a means of announcing notes in rank about Tesla and cheering investors to review Musk’s tweets, Tesla had no leak reins or procedures in place to set up whether Musk’s tweets top secret in rank vital to be told in Tesla’s SEC filings.  Nor did it have ample processes in place to that Musk’s tweets were right or perfect.

Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations.  Among other relief, the settlements require that:

  • Musk will step down as Tesla’s Chairman and be replaced by an self-determining Chairman.  Musk will be disallowed to be re-elected Chairman for three years;
  • Tesla will appoint a total of two new self-determining directors to its board;
  • Tesla will set up a new group of self-determining directors and place in place bonus reins and procedures to oversee Musk’s exchanges;
  • Musk and Tesla will each pay a break $20 million penalty.  The $40 million in penalties will be spread to harmed investors under a court-ordinary process. 

“The total package of remedies and relief announced today are particularly calculated to address the terrible behavior at issue by increase Tesla’s corporate power and administration in order to protect investors,” said Stephanie Avakian, Co-Boss of the SEC’s Enforcement Rift. 

“As a result of the agreement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt vital reforms —counting an obligation to oversee Musk’s exchanges with investors—and both will pay fiscal penalties,” added Steven Peikin, Co-Boss of the SEC’s Enforcement Rift.  “The pledge is projected to prevent further market disruption and harm to Tesla’s shareholders.”

The SEC’s investigation was conducted by Walker Newell, Brent Smyth, and Barrett Atwood and supervised by Steven Buchholz, Erin Schneider, and Jina Choi in the San Francisco Regional Office and Cheryl Crumpton in the SEC’s Home Office.

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2018-226

Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge

Banking News – Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge
&nbsp

The Securities and Chat Fee announced today that Elon Musk, CEO and Chairman of Silicon Valley-based Tesla, Inc., has agreed to settle the securities fraud charge brought by the SEC against him last week.  The SEC also today charged Tesla with failing to have vital leak reins and procedures concerning to Musk’s tweets, a charge that Tesla has agreed to settle.  The settlements, which are subject to court praise, will result in wide-ranging corporate power and other reforms at Tesla—counting Musk’s removal as Chairman of the Tesla board—and the payment by Musk and Tesla of fiscal penalties.

According to the SEC’s protest against him, Musk tweeted on August 7, 2018 that he could take Tesla private at $420 per share — a significant premium to its trading price at the time — that funding for the transaction had been secured, and that the only left over uncertainty was a shareholder vote.  The SEC’s protest alleged that, in truth, Musk knew that the the makings transaction was undefined and subject to copious contingencies.  Musk had not discussed point deal terms, counting price, with any the makings financing partners, and his statements about the doable transaction lacked an travelable basis in fact.  According to the SEC’s protest, Musk’s ambiguous tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to noteworthy market disruption.

According to the SEC’s protest against Tesla, despite notifying the market in 2013 that it projected to use Musk’s Twitter account as a means of announcing notes in rank about Tesla and cheering investors to review Musk’s tweets, Tesla had no leak reins or procedures in place to set up whether Musk’s tweets top secret in rank vital to be told in Tesla’s SEC filings.  Nor did it have ample processes in place to that Musk’s tweets were right or perfect.

Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations.  Among other relief, the settlements require that:

  • Musk will step down as Tesla’s Chairman and be replaced by an self-determining Chairman.  Musk will be disallowed to be re-elected Chairman for three years;
  • Tesla will appoint a total of two new self-determining directors to its board;
  • Tesla will set up a new group of self-determining directors and place in place bonus reins and procedures to oversee Musk’s exchanges;
  • Musk and Tesla will each pay a break $20 million penalty.  The $40 million in penalties will be spread to harmed investors under a court-ordinary process. 

“The total package of remedies and relief announced today are particularly calculated to address the terrible behavior at issue by increase Tesla’s corporate power and administration in order to protect investors,” said Stephanie Avakian, Co-Boss of the SEC’s Enforcement Rift. 

“As a result of the agreement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt vital reforms —counting an obligation to oversee Musk’s exchanges with investors—and both will pay fiscal penalties,” added Steven Peikin, Co-Boss of the SEC’s Enforcement Rift.  “The pledge is projected to prevent further market disruption and harm to Tesla’s shareholders.”

The SEC’s investigation was conducted by Walker Newell, Brent Smyth, and Barrett Atwood and supervised by Steven Buchholz, Erin Schneider, and Jina Choi in the San Francisco Regional Office and Cheryl Crumpton in the SEC’s Home Office.

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2018-226

Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge

Banking News – Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge
&nbsp

The Securities and Chat Fee announced today that Elon Musk, CEO and Chairman of Silicon Valley-based Tesla, Inc., has agreed to settle the securities fraud charge brought by the SEC against him last week.  The SEC also today charged Tesla with failing to have vital leak reins and procedures concerning to Musk’s tweets, a charge that Tesla has agreed to settle.  The settlements, which are subject to court praise, will result in wide-ranging corporate power and other reforms at Tesla—counting Musk’s removal as Chairman of the Tesla board—and the payment by Musk and Tesla of fiscal penalties.

According to the SEC’s protest against him, Musk tweeted on August 7, 2018 that he could take Tesla private at $420 per share — a significant premium to its trading price at the time — that funding for the transaction had been secured, and that the only left over uncertainty was a shareholder vote.  The SEC’s protest alleged that, in truth, Musk knew that the the makings transaction was undefined and subject to copious contingencies.  Musk had not discussed point deal terms, counting price, with any the makings financing partners, and his statements about the doable transaction lacked an travelable basis in fact.  According to the SEC’s protest, Musk’s ambiguous tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to noteworthy market disruption.

According to the SEC’s protest against Tesla, despite notifying the market in 2013 that it projected to use Musk’s Twitter account as a means of announcing notes in rank about Tesla and cheering investors to review Musk’s tweets, Tesla had no leak reins or procedures in place to set up whether Musk’s tweets top secret in rank vital to be told in Tesla’s SEC filings.  Nor did it have ample processes in place to that Musk’s tweets were right or perfect.

Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations.  Among other relief, the settlements require that:

  • Musk will step down as Tesla’s Chairman and be replaced by an self-determining Chairman.  Musk will be disallowed to be re-elected Chairman for three years;
  • Tesla will appoint a total of two new self-determining directors to its board;
  • Tesla will set up a new group of self-determining directors and place in place bonus reins and procedures to oversee Musk’s exchanges;
  • Musk and Tesla will each pay a break $20 million penalty.  The $40 million in penalties will be spread to harmed investors under a court-ordinary process. 

“The total package of remedies and relief announced today are particularly calculated to address the terrible behavior at issue by increase Tesla’s corporate power and administration in order to protect investors,” said Stephanie Avakian, Co-Boss of the SEC’s Enforcement Rift. 

“As a result of the agreement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt vital reforms —counting an obligation to oversee Musk’s exchanges with investors—and both will pay fiscal penalties,” added Steven Peikin, Co-Boss of the SEC’s Enforcement Rift.  “The pledge is projected to prevent further market disruption and harm to Tesla’s shareholders.”

The SEC’s investigation was conducted by Walker Newell, Brent Smyth, and Barrett Atwood and supervised by Steven Buchholz, Erin Schneider, and Jina Choi in the San Francisco Regional Office and Cheryl Crumpton in the SEC’s Home Office.

SEC.gov Updates: Press Releases – https://www.sec.gov/news/press-release/2018-226

LendingClub resolves two federal probes involving its former CEO

Banking News – LendingClub resolves two federal probes concerning its former CEO
&nbspThe Sphere of Justice and the Securities and Chat Fee announced settlements Friday related to alleged terrible behavior that occurred during Renaud Laplanche’s tenure atop the online lender.
Union Banking – http://www.americanbanker.com/news/lendingclub-resolves-two-federal-probes-concerning-its-former-ceo

SEC fines former Ocwen exec for insider trading before CFPB, PHH news

Banking News – SEC fines former Ocwen exec for insider trading before CFPB, PHH news
&nbspA former Ocwen Fiscal executive is settling Securities and Chat Fee charges that he engaged in insider trading related to his company’s contact with Altisource Choice Solutions later a CFPB enforcement action and its imminent merger with PHH Corp.
Union Banking – http://www.americanbanker.com/news/sec-fines-ocwen-exec-for-insider-trading-before-cfpb-phh-finance-news

Top CFPB official yanks support for political appointee over past writings

Banking News – Top CFPB authoritative yanks support for biased appointee over past writings
&nbspThe head of the agency’s honest-lending office cast doubt on a projected sort-out of her office and raised concerns about blog posts written years ago by the biased appointee overseeing the project.
Union Banking – http://www.americanbanker.com/news/top-cfpb-authoritative-yanks-support-for-biased-appointee-over-past-writings

Smaller banks, robo-advisers join forces against brokerages

Banking News – Smaller banks, robo-advisers join forces against brokerages
&nbspCopying huge banks, smaller institutions are pairing with robos to meet varying mass-affluent preferences in long-term investment harvest.
Union Banking – http://www.americanbanker.com/news/robo-advisors-seek-smaller-banks-as-a-base-to-challenge-broker-dealers

Most Powerful Women in Banking, tellers reimagined, growing deposits: Top stories of the week

Banking News – Most Commanding Women in Banking, tellers reimagined, growing deposits: Top tales of the week
&nbspOur 16th annual Most Commanding Women in Banking rankings; why Regions did away with teller jobs; small banks lagging in deposit share; and more from this week’s most-read tales.
Union Banking – http://www.americanbanker.com/list/most-commanding-women-in-banking-tellers-reimagined-growing-deposits-top-tales-of-the-week

Former LendingClub CEO fined for misusing investor funds

Banking News – Former LendingClub CEO fined for misusing shareholder funds
&nbspRenaud Laplanche agreed to pay $200,000 and accept a ban from the securities diligence to settle a long-running SEC probe. A LendingClub subsidiary and the firm’s former CFO, Carrie Dolan, were also fined.
Union Banking – http://www.americanbanker.com/news/former-lendingclub-ceo-fined-for-misusing-shareholder-funds

Are banks trying hard enough to diversify leadership?

Banking News – Are banks trying hard enough to branch out leadership?
&nbspPerseverance and stanchness are two equipment to get more underground bankers into senior leadership positions.
Union Banking – http://www.americanbanker.com/news/are-banks-trying-hard-enough-to-branch out-leadership

The challenge for virtual banking: Getting bots to care

Banking News – The challenge for virtual banking: Getting bots to care
&nbspAI-powered assistants will change the consumer encounter for the better, but first they must achieve a more human level of service, executives said during a conversation at Finovate.
Union Banking – http://www.americanbanker.com/news/the-challenge-for-virtual-banking-getting-bots-to-care