Economy-LI

"regulators are too slow to catch them"
9:47 pm
Wed September 17, 2014

SEC penalizes first high-frequency trader

May 7, 2010, file photo. Traders work on the floor of the New York Stock Exchange the day after the "Flash Crash" and The Dow Jones industrials dropped 1,000 points. The crash brought scrutiny to high-frequency trading and other computerized strategies that move buy and sell orders at blinding speeds.
Credit AP Photo/Richard Drew

The Securities and Exchange Commission (SEC) charged a New York trading firm with the largest fine ever for breaking rules designed to keep risky trades from unraveling the financial system.

It is also the first time the SEC penalized a high-frequency trader.

High-frequency traders, or flash traders, make millions of trades a minute. They are the focus of an ongoing debate over whether those trades make the market function better or exploit slower, traditional traders.

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Cracking down on lenders and debt agencies
5:55 pm
Tue September 16, 2014

New York moves to protect troubled borrowers

Chief Judge Jonathan Lippman proposes reforms to consumer debt cases in state courts with new filing requirements for collectors of so-called "zombie" debts.
Credit AP Photo

In separate actions, New York officials are cracking down on companies taking advantage of troubled borrowers. 

The Department of Financial Services issued subpoenas to nine lending companies in the state Tuesday. The state's bank regulator is investigating them for what are called "loan-to-own" schemes.

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“We’ve all got one hand tied behind our back"
5:46 am
Wed September 10, 2014

Apple Pay, another unregulated business with your data

Reserve System member Daniel Tarullo testifies on Capitol Hill, in Washington Wednesday, June 6, 2012, before the Senate Banking Committee hearing.
Credit AP Photo/Manuel Balce Ceneta

On the same day Apple unveiled a new mobile payment system, regulators warned Capitol Hill about the hazards of non-bank companies having access to financial data.

"Ironically," regulators said Tuesday, Home Depot also confirmed the theft of banking data from millions of customers.

Apple says their payment system is designed to be more secure than the one Home Depot uses, but it is also one more company with access to your financial data that’s not subject to government oversight. 

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The story of the 'Working Group'
4:45 am
Fri August 22, 2014

Why NY gets $800 million, Conn. gets nothing in Bank of America settlement

New York Attorney General Eric Schneiderman, accompanied by Attorney General Eric Holder, speaks at the Justice Department in Washington, Friday, Jan. 27, 2012, after Holder announced the formation of the Residential Mortgage-Backed Securities Working Group.
Credit AP/Cliff Owen

Bank of America, the second largest U.S. bank, reached a record-breaking settlement totaling more than $16 billion dollars with federal and state prosecutors over alleged fraud that led to the financial collapse in 2008. The settlement was the work of the Residential Mortgage-Backed Securities Working Group.

Back in 2012, President Obama said the State of the Union was getting stronger, the country was getting a foothold in the economic recovery, and he announced what would later be called the Residential Mortgage-backed Securities Working Group.

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$65M in "kickbacks" annually
4:53 pm
Mon August 4, 2014

NY regulators investigate mortgage empire

Benjamin Lawsky, superintendent of New York State Department of Financial Services.
Credit AP/Mike Groll

New York banking regulators are investigating one of the nation's largest non-bank mortgage servicing companies, Ocwen Financial, over worries the company is bilking $65 million a year in kickbacks from both struggling homeowners and investors.

Watchdogs are scrutinizing the controversial, but common, practice of forcing homeowners to buy overpriced property insurance once they fall behind in their mortgage payments.

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