Welcome to Inner City Press’ Bank Beat.  We aim to scrutinize the industry, from high to low. Our other Reporters cover Community Reinvestment, the Federal Reserve, and other beats.   ICP has published a (double) book about the Bank Beat-relevant topic of predatory lending - click here for sample chapters, an interactive map, and ordering information. The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters." See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," by Matt Pacenza, City Limits, Sept.-Oct. 2004. The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site. Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere, which include bank-related topics.

Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER   BloggingHeads.tv  Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press.  Until next time, for or with more information, contact us.

September 23, 2019

For Bank Fraud Messiah Ortiz Gets A Year And A Day From SDNY Judge Broderick As Boricua College Cited

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Sept 16 – Messiah Ortiz pled guilty to bank fraud and on September 16 got a year and a year from U.S. District Court for the Southern District of New York Judge Vernon S. Broderick. This runs concurrent with a two year prison bid for New York State charges involving a gun. Judge Broderick at the September 16 sentencing in his temporary courtroom 905 was very concerned that the sentence and the supervision be concurrent. Messiah Ortiz's lawyer Dawn Florio, seen later in the day at the opening arguments in the trial involving Daniel Hernandez a/k/a Tekashi #6ix9ine whom she has also represented, ably argued that Messiah Ortiz has taken classes at Boricua College. His girlfriend / fiance was in the courtroom. Judge Broderick said he hopes he never sees him again.

  On his way in at 2:37 pm, Inner City Press commented, New digs. Judge Broderick amiably responded, It's temporary, and also, Takes some getting used it. Yes, it does.

September 16, 2019

In SDNY Iranian Banker Sadr Wants Ankle Bracelet Off and New Emails Excluded After Curio

By Matthew Russell Lee, Exclusive Patreon

SDNY COURTHOUSE, Sept 9 – Iranian banker Ali Sadr Hashemi Nejad, charged with money laundering and violating US sanctions including through a Venezuelan infrastructure project, wants his curfew extended to midnight and his GPS ankle bracelet removed.

The requests were made by Sadr's lawyer Reid Weingarten of Steptoe & Johnson after a scripted "Curcio hearing" on September 9 before U.S. District Court for the Southern District of New York Judge Alison J. Nathan. While adding prior Steptoe clients Citibank, UBS and Commerzbank to Steptoe's script, Nathan found the Sadr knowingly waived all conflicts of interest.

  Then a surprise: Assistant US Attorney Michael K. Krouse acknowledged that yet to be turned over are e-mails from seven custodian other than Sadr, somehow lost in the cracks of the case. Judge Nathan gave Krouse a week to provide a status update, with full production to be completed in two weeks and a response by Steptoe a week after that. They will be seeking to exclude these e-mails.

September 9, 2019

Reverse Mortgage Fraud Defendant Hild Given Nationwide Travel Pass Unlike Others in SDNY

By Matthew Russell Lee, Scoop Patreon, thread

SDNY COURTHOUSE, Sept 5 – Michael Hild was arraigned for fraud on Live Well Financial's reverse mortgages and home equipy conversion mortgages by U.S. District Court for the Southern District of New York Judge Ronnie Abrams on September 5. It was a routine proceeding except that this alleged white collar criminal was allowed to travel nationwide, seemingly automatically, while other defendants in the SDNY are restricted to the Southern and Eastern Districts of New York.

  The same "travel nationwide" pass was given, for example, the banking fraudster and Manafort lender Stephen Calk. Why this two tier system of justice?

September 2, 2019

Jammal Trust Bank of Lebanon Is Hit With US Sanctions And Pompeo Speaks After Earlier Lawsuit in EDNY

By Matthew Russell Lee, CJR PFT CEFC Video

SDNY & UN GATE, August 29 – Back on January 8 while reporting from the U.S. District Court for the Southern District of New York Inner City Press noted that  Riad Salameh, Governor of the Banque Centrale du Liban (BDL), said that a civil lawsuit by approximately 1,200 plaintiffs has been brought against 11 Lebanese banks for assisting Hezbollah. The plaintiffs, all US citizens, filed the lawsuit in court in New York. The defendants in the lawsuit include the following banks, including now sanctioned Jammal Trust Bank and Bank Audi 2. Bank of Beirut 3. Bank of Beirut And The Arab Countries (BBAC)  4. Banque Libano-Française (BLF)  5. BLOM Bank  6. Byblos Bank 7. Fransabank...  9. Lebanon And Gulf Bank (LGB) 10. Middle East Africa Bank (MEAB) 11. SGBL.

  Now on August 29 the US has hit Jammal Trust Bank with sanctions over alleged support of Hezbollah, senior administration official said on a White House conference call. One of the officials said that Jammal Trust Bank knowingly provided support to Hezbollah. "It's role as Hezbollah's bank of choice is prominent... Jammal Trust has knowingly provided financial services to Hezbollah's financial counsel and U.S. entities affiliated with Hezbollah." 

  After the call, US Secretary of State Mike Pompeo said, "The U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned today Lebanon-based Jammal Trust Bank SAL (Jammal Trust) for supporting Hizballah’s illicit financial and banking activities.  Jammal Trust has a longstanding relationship with a key Hizballah financial entity and provides financial services to the Martyrs Foundation and companies controlled by Hizballah’s Executive Council.  Jammal Trust’s misconduct undermines the integrity of the Lebanese financial system.  Today’s designation reflects our determination to counter Hizballah’s terrorist and illicit activities in Lebanon.  We will continue to target individuals and entities involved in financing and providing support to Hizballah while working closely with the Central Bank of Lebanon and other Lebanese institutions which work to preserve the integrity and stability of Lebanon’s banking system." We'll have more on this, including if and how it impacts the civil case.

August 26, 2019

Bank of China Asks To Appeal Being Accused Of Terrorism Finance With Iran and Hamas

By Matthew Russell Lee, Patreon

FEDERAL COURTHOUSE, August 19 – Bank of China is being sued for cooperating with and wiring money for Hamas and Iran, resulting in terrorist attack and death. The complaint states that the Chinese government was informed but the wiring continued. Now Bank of China has hired the Dorsey lawfirm which argued on July 19 that it is all OK, to US District Court for the Southern District of New York Judge Katherine Polk Failla.

   In a July 19 oral argument at which Inner City Press was the only media, Bank of China through counsel argued that there is no way they can control or be responsible for whom they move money for. Then they argued that the most they could do is file a Suspicious Activity Report or SAR. But did they do so, for the wiring of money by S.Z.R. Al-Shurafa through two accounts at its branch in Guangzhou? This was not answered.

  Now on August 19 Bank of China's lawyer Lanier Saperstein at the Dorsey firm has asked Judge Failla to extend its time to propose discovery structure, saying that it wants reconsideration or the right to appeal her earlier decision. Bank of China cites "bank confidentiality under PRC law, the AML privilege under PRC law, state secrets under PRC law" - but of course Chinese law would offer such a privilege, as for example CEFC China Energy, for the government, offered bribes at and through the UN. We'll have more on this.

  While China cites terrorist as the justification for locking up a million Uighurs in Xinjiang, its desire to put deals in the Middle East and Persia with oil producing states produces incongruous results. But will this case every get to trial? Not if the Dorsey firm, and China, have anything to say about it. More on Patreon here.

  Now in August, Judge Failla has denied Bank of China's motion and directed that discovery go forward: " Defendant’s motion for judgement on the pleadings is DENIED. The Clerk of Court is directed to terminate the motion at Docket Entry 36. On or before August 30, 2019, the parties shall submit separate letters outlining how Plaintiffs and Defendant respectively believe discovery should be structured." Watch this site.

The Bangladeshi Central Bank which was hacked for $81 million in February 2016, on January 31 sued in the SDNY. The first pre-trial conference in the case was held on May 21; now on July 19 Bangladesh Bank has opposed the defendant's motions to dismiss for forum non conveniens and lack of subject matter jurisdiction.

  Bangladesh Bank writes that "[t]he robbery was in New York City, not a foreign country, attacking a decades-old account in the New York. It involved the New York Fed, perhaps the most critically important bank in New York City. The conspirators also needed New York-based correspondence accounts to accomplish the theft." In its other brief it adds, "Since 1973, the Bank has held its foreign reserves at the New York Fed in order to conduct Bangladesh’s international transactions in U.S. dollars. Id. ¶¶ 37-40. Today, the Bank conducts 85% of its international transactions in the U.S. dollar, through its New York Fed account, that holds a daily average of $1.5 billion."

  Back in March Inner City Press submitted a request under the US Freedom of Information Act to the US Federal Reserve about its role in and action on the Bangladesh Bank heist. After four months of delay from the Fed, and an appeal by Inner City Press of their constructive denial, the Fed finally ruled on June 27 - releasing only one page, a two paragraph cover letter.

August 19, 2019

CIT Group Bid For Mutual of Omaha Echoes Its Fraudulently Promoted Deal For OneWest of Otting

By Matthew R. Lee, Video, FOIA fee denial

August 12, 2019

In SDNY Deutsche Bank and Wells Fargo Letters Flashed In Starship Snacks Trial Of Margulies

By Matthew Russell Lee, Periscope, Photos

SDNY COURTHOUSE, August 7 – In the criminal securities fraud trial of Joel Margulies on August 7 a series of letters from Deutsche Bank and Wells Fargo, account statements from Royal Bank of Canada, and contracts about caffeine infused chocolate by something called Starship Snacks were methodically introduced to a jury overseen by U.S. District Court for the Southern District of New York Judge Jed S. Rakoff.

   Assistant US Attorney Christine I. Magdo, who earlier this year convicted S&P's Sebastian Pinto-Thomaz of insider trader before Judge Rakoff, flashed exhibit after exhibit on the video monitor, focusing on the meta-data showing which were docx and which were pdf.

 Surely it will all be connected for the jury, some of whom appeared inundated, at least from where Inner City Press observed as the only media in the courtroom on the morning of August 7. (Later on August 7 it would be ousted from a criminal presentment of "John Doe" by SDNY Judge John G. Koeltl, without any notice or opportunity to be heard, in a process it is unclear Judge Rakoff would follow - perhaps we'll see).

August 5, 2019

Associated Bank Sues Merchant Lender Absent From Locked Courtroom of SDNY Judge Woods

By Matthew Russell Lee, Patreon, Periscope

SDNY COURTHOUSE, July 31 – Wisconsin's Associated Bank is suing a merchant lender Capcall in the U.S. District Court for the Southern District of New York. But on July 31, Capcall didn't show up and at first the courtroom of SDNY Judge Gregory H. Woods was locked.

  Inner City Press, which covers banks as well as the SDNY court, went Courtroom 12C at the appointed time, July 31 at 3:30 pm. But the door was locked. Soon Associated Bank's lawyer, Laurie Belony of Bryan Cave, showed up. She wanted to call Judge Woods' deputy or chamber but had been required to leave her phone downstairs, as Inner City Press was for months.

  Inner City Press lent her its phone, and soon Judge Woods' Deputy confirmed that the conference was on, it had been forgotten but that did not excuse the defendant for not showing up.

July 29, 2019

Banks Accused Of Fixing Bond Prices Jam Courtroom of Judge Rakoff In Race To The Bottom

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, July 23 – Plaintiffs including Pennsylvania Treasurer Joseph M. Torsella are suing more than a dozen banks for allegedly fixing the price of housing bonds.

On July 23 the courtroom of U.S. District Court for the Southern District of New York Judge Jed S. Rakoff was overflowing with bank lawyers and, in a corner by the window in a chair from the jury room, Inner City Press.   

Goldman Sachs' lawyer from Sullivan & Cromwell Richard C. Pepperman II urged Judge Rakoff to adopt the "rule of reason" standard, and repeatedly said that he would bet his daughter's college tuition on this or that proposition.    She's going to have to take out so many loans, Judge Rakoff parried back.    

"If the right candidate wins in 2020, the loans will all be forgiven," Pepperman as progressive, faux or not, replied.  

For the plaintiffs Amanda F. Lawrence of Scott & Scott said that beyond the four trader-chats made part of the complaint she had many more. In one, a Morgan Stanley trader urged avoiding a race to the bottom, seemingly meaning actual competition on price. The case is In re GSE Bonds Antitrust Litigation, 19-cv-01704 (JSR).

When Ms. Lawrence said, My colleague to speak to that," Judge Rakoff said, "I'll hear from him."  

"Or her," Ms. Lawrence replied, introducing her female co-counsel.   

Quick on his feet while on the bench, Jed Rakoff said I didn't know you'd brought your best. More on Patreon here.

Pepperman said he had cited three cases, one by SDNY Judge Engelmayer, another from the Eastern District and a third from the Eighth Circuit. Judge Rakoff said, I always pay attention to what Judge Engelmayer writes. The Eight Circuit? He rolled his eyes and the nervous bank lawyers laughed.   

SDNY Judge Berman was also cited, as having asked to be spaced 1,900 examples of price fixing. But he's a young kid, Judge Rakoff said, again to laughter.  

July 22, 2019

Bank of China Accused Of Terrorism Finance With Iran and Hamas After PRC Government Was Told

By Matthew Russell Lee, Patreon

FEDERAL COURTHOUSE, July 19 – Bank of China is being sued for cooperating with and wiring money for Hamas and Iran, resulting in terrorist attack and death. The complaint states that the Chinese government was informed but the wiring continued. Now Bank of China has hired the Dorsey lawfirm which argued on July 19 that it is all OK, to US District Court for the Southern District of New York Judge Katherine Polk Failla.

   In a July 19 oral argument at which Inner City Press was the only media, Bank of China through counsel argued that there is no way they can control or be responsible for whom they move money for. Then they argued that the most they could do is file a Suspicious Activity Report or SAR. But did they do so, for the wiring of money by S.Z.R. Al-Shurafa through two accounts at its branch in Guangzhou? This was not answered.

July 15, 2019

   The OCC under Joe Otting is lawless. On Fifth Third they said, no public comments on conversions - which is against the law. Now they are taking comments on another conversion, but not big 5/3 one, and not on changes in bank control. Lawless...

Details RECEIPT 6/27/2019 BRANCH ESTABLISHMENT 2019-SOBRANCHNEW309710 CADENCE BANK, NA PRESTON CENTER BRANCH 5950 SHERRY LANE DALLAS TX DALLAS 7/19/2019 Details RECEIPT 6/28/2019 BUSINESS COMBINATIONS 2019-CECOMBINATION309756 TIME FSB RIVER CITIES BANK 1601 LINCOLN ST. WISCONSIN RAPIDS WI WOOD 7/26/2019 17 ACTION DATE TYPE APPLICATION NUMBER BANK NAME BRANCH NAME TARGET BANK LOCATION CITY STATE COUNTY CMT PD END Details RECEIPT 6/24/2019 CHANGE IN BANK CONTROL 2019-SO-CBCA309665 INTERCREDIT BANK NA N/A 4725 SOUTHWEST 8TH ST. MIAMI FL DADE 7/14/2019 Details RECEIPT 6/28/2019 CONVERSIONS 2019-CECONVERSION309714 WINTRUST BK WINTRUST BANK, N.A. 231 SOUTH LASALLE ST. CHICAGO IL COOK Details RECEIPT 6/28/2019 CONVERSIONS 2019-CECONVERSION309724 WINTRUST BK WINTRUST BANK, N.A. 231 SOUTH LASALLE ST. CHICAGO IL COOK

July 8, 2019

On Argentina IMF Lipton Says Deal To Access $5.4B After Inner City Press Asked of Corruption

By Matthew Russell Lee, CJR PFT NY Post

NEW YORK CITY, July 5 – When the International Monetary Fund held its biweekly embargoed media briefing on June 27, Inner City Press submitted six questions including on Zimbabwe and Moldova which the IMF answered, see below. On July 5 on Argentina the IMF issued this: "Mr. David Lipton, the International Monetary Fund’s Acting Managing Director issued the following statement today on Argentina:     “I am pleased to announce that IMF staff and the Argentine authorities reached an agreement on the fourth review of the economic program supported by the Stand-By Arrangement. Subject to the approval of the Executive Board, Argentina would have access to about US$ 5.4 billion (SDR 3.9 billion).     “I commend the Argentine authorities on their continued efforts and steadfast implementation of their economic policy program. The authorities completed all their fiscal, monetary and the social expenditure targets under the IMF-backed program in the context of this review.     “Argentina’s economic policies are yielding results. Financial markets stabilized in May and June. Inflation – while still at high levels – is expected to continue to fall in the coming months. The fiscal and external positions continue to improve. There are also signs that the economy is improving in the second quarter.     “I fully support Argentina’s efforts to bolster confidence, lay the foundation for sustainable growth and protect the most vulnerable. Steadfast implementation of the commitments and policies underlying the authorities’ IMF-backed program will be critical for continued progress. I look forward to discussing this review with the IMF’s Executive Board on July 12." We'll have more on this.

July 1, 2019