The Resolution Law Group: Fannie Mae Sues UBS, Bank of America, Credit Suisse, JPMorgan Chase, Citigroup, & Deutsche Bank, & Others for $800M Over Libor

Fannie Mae is suing nine banks over their alleged collusion in manipulating interest rates involving the London Interbank Offered Rate. The defendants are Bank of America (BAC), JPMorgan Chase (JPM), Credit Suisse, UBS (UBS), Deutsche Bank (DB), Citigroup (C), Royal Bank of Scotland, Barclays, & Rabobank. The US government controlled-mortgage company wants over $800M in damages.

Regulators here and in Europe have been looking into claims that a lot of banks manipulated Libor and other rate benchmarks to up their profits or seem more financially fit than they actually were. In its securities fraud lawsuit, Fannie Mae contends that the defendants made representations and promises regarding Libor’s legitimacy that were “false” and that this caused the mortgage company to suffer losses in mortgages, swaps, mortgage securities, and other transactions. Fannie May believes that its losses in interest-rate swaps alone were about $332 million.

UBS, Barclays, Rabobank, and Royal Bank of Scotland have already paid over $3.6 billion in fines to settle with regulators and the US Department of Justice to settle similar allegations. The banks admitted that they lowballed their Libor quotes during the 2008 economic crisis so they would come off as more creditworthy and healthier. Individual traders and brokers have also been charged.

Libor
Libor is used to establish interest rates on student loans, derivatives, mortgages, credit card, car loans, and other matters and underpins hundreds of trillions of dollars in transactions. The rates are determined through a process involving banks being polled on borrowing costs in different currencies over different timeframes. Responses are then averaged to determine the rates that become the benchmark for financial products.

Also a defendant in Fannie Mae’s securities case is the British Bankers’ Association, which oversees the process of Libor rate creation.

Earlier this year, government-backed Freddie Mac (FMCC) sued over a dozen large banks and the British Bankers’ Association also for allegedly manipulating interest rates and causing it to lose money on interest-rates swaps. Defendants named by the government-backed home loan mortgage corporation included Bank of America, JP Morgan Chase, Citigroup, Credit Suisse, and UBS.

The Resolution Law Group represents investors with securities claims against financial firms, investment advisers, brokerage firms, brokers, and others. Contact our securities fraud law firm today.

The Resolution Law Group: Groupon Loses Dismissal Bid Over IPO Securities Fraud Case

A district court judge has ordered Groupon Inc. to face a securities lawsuit filed against it accusing the deal-of-the-day coupon company of misleading investors regarding its financial state right before its IPO in 2011. The Illinois-based company had sought to have the securities fraud case brought by investor Michael Carter Cohn, dismissed. Cohn wants his claim to get class action securities status.

The investor claims that Groupon committed securities lawsuit and used refund accounting that was not allowed to spike revenues in a prospectus related to its initial public offerings, as well as in filings with the Securities and Exchange Commission. According to U.S. District Judge Charles Norgle in Chicago, the claims “present plausible violations.” Norgle also turned down requests by Morgan Stanley (MS) and Goldman Sachs (GS), and Credit Suisse (CS) to throw out the claims against them. These banks arranged the public offering.

On March 30, 2012—not long after opening at $28 in Nasdaq stock exchange trading on November 4, 2011—Groupon reported a “material weakness” in its financial controls, as well as first reported quarterly sales as a company that was now publicly traded were not as high as stated earlier because of high refunds received by merchants. This lowered revenue during 2011’s last quarter to $492 million—that’s a $14.3 million difference. The company’s shares by November 13, 2012 hit $2.63 dollars.

Judge Norgle has yet to decide on whether Cohn can pursue his securities case for a class. Cohn did not purchase his shares straight from the IPO.

At The Resolution Law Group, our securities fraud lawyers represent institutional investors and individual investors wishing to pursue their investment losses from negligent parties. You can call us today to ask for your free case assessment.

Bank of America, JPMorgan Chase Among Banks Sued by Danish Pension Funds in Credit Default Swaps Lawsuit

In U.S. District Court for the Northern District of Illinois, Danish pension funds (and their investment manager) Unipension Fondsmaeglerselskab, MP Pension-Pensionskassen for Magistre & Psykologer, Arkitekternes Pensionskasse, and Pensionskassen for Jordbrugsakademikere & Dyrlaeger are suing 12 banks accusing them of conspiring to take charge of access and pricing in the credit derivatives markets. They are claiming antitrust violations while contending that the defendants acted unreasonably to hold back competitors in the credit default swapsmarket.

The funds believe that the harm suffered by investors as a result was “tens of billions of dollars” worth. They want monetary damages and injunctive relief.

According to the Danish pension funds’ credit default swapscase, the defendants inflated profits by taking control of intellectual property rights in the CDS market, blocking would-be exchanges’ entry, and limiting client access to credit-default-swaps prices, and

This securities case comes four years after the US Justice Department acknowledged that it had begun an investigation into possible anticompetitive activities involving credit derivatives clearing, and trading (a probe that is ongoing) and just a few months after the Sheet Metal Workers Local No. 33 Cleveland District Pension Plan sued the banks, Markit, and ISDA also for allegedly taking control of the CDS market, which it says resulted in customers being overcharged some $7 billion annually. The plaintiff contends that there may be billions of dollars in damages and it wants treble damages. Last month, it was the European Commission’s turn to claim that 13 banks, ISDA, and Markit worked together to stop CDSs from being able to trade on open exchanges.

If you think you may have been the victim of securities fraud involving credit default swaps, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

There are over a dozen defendants in the Danish pension funds’ CDS fraud case including:

J.P. Morgan Chase & Co. (JPM)
Citigroup Inc. (C)
Morgan Stanley (MS)
Bank of America Corp. (BAC)
Credit Suisse Group AG (CS)
Deutsche Bank AG (DB)
UBS AG (UBS)
• Royal Bank of Scotland Group PLC (RBS)
Goldman Sachs Group Inc. (GS)
Markit Group Ltd, a financial data provider
• International Swaps and Derivatives Association (ISDA)

The Resolution Law Group: Highland Capital Sues Credit Suisse For $350M Over Resort Loans

Entities of Highland Capital Management LLP are suing Credit Suisse Group AG (CS) for over $350M. The plaintiffs are Haygood LLC and Allenby LLC. They claim that the financial firm marketed loans for high-end residential communities using appraisals that were deceptive and not reasonable. The disagreement is related to dividend capitalization loans for the Turtle Bay Resort, the Yellowstone Club, Ginn Clubs & Resorts and Rhodes Homes and the Park Highlands Master Planned Community. The securities case was filed in New York State Supreme Court.

According to the financial fraud lawsuit, managed investment funds that served as the loans’ lenders assigned the plaintiffs the claims. The latter are accusing Credit Suisse of working with “compliant stooges” in global appraisal firms to overvalue the communities that secured the loans so that lenders would invest in under-collateralized loans that would go on to fail.

A spokesperson for Credit Suisse says that Texas-based debt manager Highland Capital Management and entities related to it are behind this securities case and that this is one sophisticated investor’s “unfounded” effort to wrongly use the legal system to get back losses. The investment bank says it will fight the case.

The very same day that the securities complaint was filed, Credit Suisse sued the Highland Capital entities, contending that they did not meet they commitments to pay for and buy commercial loan interests. The bank said this cost Credit Suisse Loan Funding LLC and its bank in the Cayman Islands tens of millions of dollars in damages.

According to Credit Suisse’s securities lawsuit, a number of trades were made in 2008 between May and July that involved the bank consenting to purchase portions of commercial loans with a $78 million or greater face value. Credit Suisse says that Highland has yet to pay what is owed on the interest or loans.

Just one day before, and in Dallas state court, Claymore Holdings LLC sued Credit Suisse, Credit Suisse Securities USA LLC, and the Cayman Islands branch contending that in 2007, the bank’s brokers employed an inflated and unreasonable appraisal of a Nevada-based residential and resort master-planned community to market a refinancing loan of $540 million.

Claymore Holdings is the assignee of investment funds that behaved as the real estate deal’s lenders. Credit Suisse says that Highland owns Claymore, which contends that it would never have closed on the refinancing deal had it received an accurate appraisal of the resort, and not only did Credit Suisse use an appraiser to market the loan that was biased but the bank earned $11 million for helping to make the loan happen.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Freddie Mac recently filed a massive lawsuit against big banks for damages sustained due to alleged manipulation of interest rates.

Freddie Mac recently filed a massive lawsuit against big banks for damages sustained due to alleged manipulation of interest rates.

The LIBOR scandal of last summer confirmed that Bank of America, JPMorgan, Chase, UBS, Credit Suisse Group, and many other banks worked together to artificially control the interest rates charged for mortgage loans and credit cards.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “ Freddie Mac, as the government-controlled mortgage finance company,  has a major investment in mortgage-related securities, and the rigging of the LIBOR rates may have cost Freddie Mac as much as $3 Billion.”

Many banks have already been fined hundreds of millions of dollars: Barclays paid the British and U.S. governments $453 Million, UBS paid $1.5 Billion, and the Royal Bank of Scotland paid $612 Million.

Mr. Broderick adds that “Homeowners rely on Freddie Mac.  A weakened Freddie Mac makes it harder for Americans to purchase or refinance homes.  The housing market will continue to suffer until it is fixed by the Courts or the Legislature.   Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners.  Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit.  For further information, visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Freddie Mac Sues Big Banks Over Rate Rigging

It’s the government-controlled mortgage finance company versus Bank of America, JPMorgan Chase, UBS, Credit Suisse Group, and many others. Freddie Mac says they all worked together to rig LIBOR – the benchmark rate used to establish interest rates on everything from mortgage loans to credit cards.

If you need some background on LIBOR or the scandal surrounding it, check out our story from last summer. But all you really need to know is that big banks were caught manipulating the rate to their advantage, in many cases for years, forcing millions to pay inflated interest on all kinds of loans, all over the world.

Many banks have already been fined hundreds of millions of dollars: Barclays paid the British and U.S. governments $453 million; UBS paid $1.5 billion; the Royal Bank of Scotland, $612 million.

And now Freddie Mac, which has major investments in mortgage-related securities affected by LIBOR, wants some payback too. A week ago, the mortgage company sued more than a dozen banks for unspecified damages. Reuters reports the bank shenanigans may have cost the company more than $3 billion.

If you, your family, friends, neighbors or associates have been subjected to Mortgage Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud