New York State is getting $182 million as part of a $7 billion settlement against Citigroup.
The long awaited deal between federal prosecutors and Citigroup settles allegations that Citi knew it was selling mortgage-backed securities that were about to go bad, but said nothing about it to investors.
Citi is the second bank to settle with the government to avoid a lawsuit. In 2008 Citigroup received $45 billion in federal bailouts. They did not plead guilty in today's settlement. Citi shares jumped today with news of the settlement and a strong earnings report.
New York Attorney General Eric Schneiderman file a suit alleging Barclays told investors that it had set up safeguards to protect them from predatory high-frequency traders. But it says Barclays actually catered to those traders.
Large institutional investors have long been at the mercy of flash traders who use computers to make thousands of trades a second, skimming off tiny bits of profit from pension and retirement accounts.
For protection fund managers sought out private stock exchanges called dark pools where only certain investors were allowed in.
Think of them like a fish tank for guppies.
"What Barclays is accused of is making promises that they would keep sharks out of the pool but were actually sort of inviting the sharks into the pool."
An online payday lender will begin refunding borrowers in New York up to $20 million in what regulators call "illegally high interest" rates.
Western Sky Financial was a prominent online lender that offered short-term loans at triple digits interest rates. New York sued along with several other states with strict usury laws that cap interest rates. In New York the interest rate cap is 16%.
Officials say the users of the site who register with settlement manager will get refunds based on the difference between the legal interest rate and the rate charged.
New York Attorney General Eric Schneiderman announced Wednesday that he’s reached a deal with a newswire to prevent high frequency stock traders from having early access to financial news. The agreement with PR Newswire is the third such deal Schneiderman has reached with a news service.