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.
November
29, 2021
IMF Answered Inner City Press on Bitcoin in El Salvador Now Alleges Risks In Article IV Report
By
Matthew Russell Lee, Patreon Video Podcast
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Nov 22 – When the
International Monetary Fund held its biweekly
embargoed press briefing on September 16, Inner
City Press asked about crypto-currency
legislation in Ukraine and again El Salvador,
about the coup in Guinea and the role of the
Venezuela talks in Mexico on release of the
SDRs. IMF video and transcript
forthcoming. Spokesperson Gerry Rice
responded on each. Podcast here.
Short video of Qs on Twitter here.
Now longer YouTube of IMF video here.
Full transcript here.
Inner
City Press asked, " what is the
IMF's view of Ukraine's move to regulate
crypto-currency? Also, the new legislation
proposed in Panama, and the implementation of
the El Salvador Bitcoin as legal tender bill?"
When called on, Inner City Press added that
Ukraine would use nuclear reactors' output for
mining.
Rice cited an upcoming virtual mission to
Ukraine later this month, and said that on El
Salvador, the talks are under Article 4, not for
a program, as least at this point.
On
November 22, the IMF issued its Article IV
report on El Salvador, including that "[e]fforts
to improve financial inclusion and raise growth
are welcome, but risks arising from Bitcoin as a
legal tender, the new payments ecosystem and
trading in Bitcoin should be addressed.
Crypto-technologies and digital payment systems
like Chivo have the potential to make payments
more efficient, thereby enhancing financial
inclusion and supporting growth. Given Bitcoin’s
high price volatility, its use as a legal tender
entails significant risks to consumer
protection, financial integrity, and financial
stability. Its use also gives rise to fiscal
contingent liabilities. Because of those risks,
Bitcoin should not be used as a legal tender.
Staff recommends narrowing the scope of the
Bitcoin law and urges strengthening the
regulation and supervision of the new payment
ecosystem. Like for other e-wallets, Chivo
should be required to fully safeguard customers'
funds, both in U.S. dollars and Bitcoin, by
segregating and ring-fencing reserve assets.
Stronger regulation and oversight of the new
payment ecosystem should be immediately
implemented for consumer protection, anti-money
laundering and counter financing of terrorism
(AML/CFT), and risk management. Banking
regulation should incorporate prudential
safeguards such as conservative capital and
liquidity requirements related to Bitcoin
exposure. Measures to limit fiscal contingent
liabilities, such as winding down the trust fund
or withdrawing public subsidies to Chivo, should
also be promptly considered. Recently announced
plans to use the proceeds of new sovereign bond
issuances to invest in Bitcoin, and the
implications of trading more broadly in Bitcoin,
will require a very careful analysis of
implications for, and potential risks to,
financial stability."
November
22, 2021
To PPP Bank Fraud Muge Ma Pled Guilty Now Seeks To Seal Motion on Expert But Press Opposes
By
Matthew Russell Lee, Patreon Podcast
BBC
- Guardian
UK - Honduras
- The
Source
SDNY
COURTHOUSE, Nov 16 – Amid mounting fraud in the
U.S. Paycheck Protection Program, including
banks and non-bank fintech lenders refusing to
report the most basic data about what they done
with the money, an investigative project of
Inner City Press, on May 21, 2020 there was the
arrest of Muge Ma, as known as "Hummer Mars," a
Chinese national residing in Manhattan.
At 7
pm he was remanded to custody in jail as a risk
of flight, see below.
On
September 11, 2020 after various other attempts,
Ma tried again before Judge Richard M. Berman.
He continued remand but agreed to hear Ma's
Constitutional / Sixth Amendment right to
counsel arguments, on September 30. Inner City
Press live tweeted September 11, here
and below.
On
November 16, 2021 after Ma pleaded guilty to
Counts 2 and 8 and several times delayed his
sentencing, his lawyer sought to seal the
entirety of his motion about an expert for
sentencing. One the first and last line were
left in; four paragraph were redacted.
Inner City Press immediately filed opposition,
seeking unsealing. Watch this site.
On June 15, 2021 Ma was brought into the
courtroom of Judge Berman by two Marshals, for
his change of plea proceeding. But it did not go
smoothly. When asked to allocute to his crimes,
Ma did not want to say that he had intended to
defraud the banks.
Then why was he pleading guilty? And why should
he get "acceptance of responsibility" reduction
in offense level at sentencing?
Next, Ma resisted describing his aggravated
identity theft. He kept saying that he applied
in his own name, but possessed the email of
another, with the name in it. Really?
November
15, 2021
UN
Briber Patrick
Ho Used
Mashreqbank
Which Is
Disciplined by
FRB As
Guterres Bans
Press
By
Matthew Russell Lee, Video,
Q&A,
HK here
UN
GATE, Nov 9 – Four months after the arrest for UN
bribery of former Senegalese foreign
minister Cheik Gadio and Patrick Ho, the head of
China Energy Fund Committee full funded by CEFC
China Energy, his ultimate boss at CEFC Ye
Jianming was brought in for questioning in
China. Among the hooks for the prosecution was
payments of alleged bribes not only through HSBC
but also Mashreqbank based in Dubai. And on
October 10, 2018 Mashreqbank was hit with and
settled money laundering charges
by the New York State Financial Services
Department.
November
8, 2021
Turkey
Halkbank Not
Immune 2d Cir
Panel Decided
So Halkbank
Asks Rehearing
En Banc
By
Matthew Russell Lee,
Patreon, Thread
Video
Honduras
- The
Source - The
Root - Podcast
SDNY
COURTHOUSE, Nov 5 – Turkey's Halkbank has
officially given up its strategy of refusing to
official appear in the US criminal case against
it, and on February 25, 2020 appeared and agreed
to be indicted. Inner City Press live tweeted it
here
and below.
On
April 12, 2021 with the case stayed pending
appeal, a three-judge panel of the Second
Circuit heard the arguments. Inner City Press
live tweeted it, here: [& fast podcast here]
On
October 22, 2021, the Second Circuit ruled that
Halkbank is NOT immune, and the criminal
prosecution will proceed: "This case
presents two questions. First, whether a denial
of a motion to dismiss a criminal indictment
based on the Foreign Sovereign Immunities Act
(“FSIA”) is immediately appealable under the
collateral order doctrine. Second, whether FSIA
confers immunity on foreign sovereigns from
criminal prosecutions. We answer the first
question in the affirmative. As to the second,
we hold that even if we were to assume that FSIA
confers immunity in the criminal context, the
offense conduct with which Defendant-Appellant
Turkiye Halk Bankasi A.S. is charged would fall
under the commercial activity exception to FSIA.
Accordingly, we DENY the Government’s motion to
dismiss this appeal, and we AFFIRM the Decision
and Order of the United States District Court
for the Southern District of New York (Richard
M. Berman, Judge)." Full order on Inner City
Press' DocumentCloud here.
November
1, 2021
HSBC Is Sued By Stryker But Money Laundering For Chapo Excluded for Nov 9 Trial
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 28 – Richard
Stryker sued HSBC and wanted to get into
evidence the bank's range of wrongdoing, from
money laundering for El Chapo to sanctions
violations and, one would have hoped, redlining
and predatory lending. But these will not come
in.
On October 28 U.S. District Court for the
Southern District of New York Judge John G.
Koeltl held a proceeding. Inner City Press
covered it.
The
trial is set to begin on November 9, and among
expected witnesses are Andrew Ireland and Peter
Foglio. But the amended complaint, Docket Number
23, is still sealed.
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 26 – Gerald Green, as a victim
of identity theft, sued Capital One and Square
under the federal Electronic Fund Transfer
Act.
On October 26 U.S. District Court for the
Southern District of New York Judge
Edgardo Ramos held a proceeding. Inner City
Press covered it.
Judge
Ramos said amended pleading are due by December
15 - then discovery not until November 2, 2022
"to accommodate for the busy holiday calendar in
September 2022).
The case is Green v. Capital One, N.A. et al., 20-cv-4655 (Ramos)
***
October
25, 2021
National Bank of Pakistan Was Sued For Attack on CIA Base in Khost But Says McLintock Late
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 20 – National
Bank of Pakistan has been sued for its role in
supporting or enabling a deadly attack by
al-Qaeda and the Pakistani Taliban on CIA
Forward Operating Base Chapman in Khost province
of Afghanistan on December 30,
2009.
On October 20 U.S. District Court for the
Southern District of New York Judge Alvin K.
Hellerstein held a proceeding. Inner City Press
covered it.
Judge
Hellerstein grilled plaintiffs' counsel on the
lack of specificity in the complaint about the
National Bank of Pakistan's knowledge.
National
Bank of Pakistan's counsel from White & Case
called the plaintiffs opportunists from bringing
in a designee of US sanctions, James Alexander
McLintock, after they filed their complaint.
They have moved to dismiss the complaint.
The
oral argument was to have been held on October
14 but was pushed back due to "the scarcity of
court reporting services in the Court."
The
case is Brown et al v. National Bank of
Pakistan, 19-cv-11876 (Hellerstein)
***
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 21 – Two employees sued
State State Bank for discrimination. Then their
lawyer had some problems - and now the lead
plaintiff, too.
On
September 15, 2020 U.S. District Court for the
Southern District of New York Judge Gregory H.
Woods held a status conference. Inner City Press
covered it.
State
Street's lawyer complained about the plaintiff
getting double standards, while purporting to
sympathize for their problems. The plaintiffs
cite State Street's "notorious male-dominated
'Boston club' culture."
On October 14, Judge Woods held another
conference, and Inner City Press again covered
it. Now the lead plaintiff Ksenia Shnyra has
asked for more time to complete discovery,
citing "my own recent exposure to COVID-19 and
the need to quarantine."
State Street's lawyer countered that the
quarantine time could have been used to search
through emails and produce discovery.
On October 21, 2021 Judge Woods held another
proceeding. The parties now have submitted a
plan under which all fact discovery is to be
completed by May 17, 2022.
October
18, 2021
In SDNY Arrest of Nigerians For Bank Fraud One Works For NY Health Dept So No GPS
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 13, Exclusive – Ten
arrests for money laundering and bank fraud were
announced on October 13 by the US Attorney's
Office for the Southern District of New York.
Inner City Press went to the SDNY Magistrates
Court to report on the presentments and live
tweeted here:
...
Magistrates Court at 5:33 pm it's jumping. At
least four defense lawyers, cops in
windbreakers, US Marshals ready to bring
defendants in from holding cell.
This
case is a triple. Three defendants, three
lawyers (one a white shoe firm money laundering
lawyer Inner City Press knows from another
case), around tables set up in an L shape.
All
rise!
This
is a multi-state multi-defendant bank fraud and
money laundering case, announced today by new US
Attorney Damian Williams. Inner City Press is
alone in the courtroom gallery. US is agreeing
to pre-trial release with GPS (for 2 from
Nigeria)
One
defendant works for New York Department of
Health, is described as having a student visa.
(He's said to be Lateef Galoba, whose
co-defendant Samsondeen Goloba has yet to be
presented).
Judge
Sarah Netburn says no GPS, then. The other also
contests GPS, white shoe lawyer says the
domestic violence charge is bogus but triggered
violations proceeding.
Lawyer adds that defendant studies physical
therapy at Essex College, GPS would set off
alarms.
Judge
agrees. He will be released tonight.
Earlier
it was said, "Damian Williams, the United States
Attorney for the Southern District of New York,
and Patrick J. Freaney, the Special
Agent-in-Charge of the New York Field Office of
the United States Secret Service , announced
today the unsealing of an Indictment charging 11
defendants with conspiracy to commit money
laundering, conspiracy to commit bank fraud, and
aggravated identity theft, in connection with
their involvement in laundering millions of
dollars in proceeds derived from business email
compromises and romance fraud schemes.
Nine
defendants were arrested today in the District
of New Jersey and the Eastern District of New
York, and will be presented this afternoon
before United States Magistrate Judge Sarah
Netburn in the Southern District of New
York."
The case is US v. John, et al., 21-cr-609 (Preska / Netburn).
***
October
11, 2021
Citibank Sold Hang Lee's Loans Then Buyer Didn't Want to Pay for Deposition So SJ Motion
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 7 – Citibank sold its loan to
Hangsoon Lee to Absolute Resolution Investments
LCC. Soon at her Flushing, Queens apartment
Hangsoon Lee got a single spaced debt
collections letter she says violated the Fair
Debt Collection Practices Act.
On August 11, U.S. District Court for the
Southern District of New York Judge Gregory H.
Woods held a proceeding. Inner City Press
covered it.
There
is a discovery dispute - the defendants want to
depose Hangsoon Lee but do not want to pay for a
Korean interpreter.
Judge
Woods noted the Second Circuit practice of
payments, and emphasized that when in doubt, an
interpreter should be used.
Now
on October 7, another conference was held and
Inner City Press again covered it. Judge Woods
granted permission for the defendants to file a
motion for summary judgment, by November 29.
The case is Lee v. Pressler, Felt & Warshaw, LLP, 21-cv-1348 (Woods)
***
October
4, 2021
Former CEO Of Iconix Wanted To Exclude Size of Stock Sales But SDNY Jury Will Hear $28M
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- The
Source
SDNY
COURTHOUSE, Sept 30 – Neil Cole, the brand
manager charged with financial chicanery was
freed on $1 million bond on December 5, 2019 and
allowed to travel throughout the United States
by agreement of the US Attorney's Office,
contrary to the "SDNY and EDNY only"
restrictions they routinely place on less
affluent defendants.
SDNY
Magistrate Judge Barbara Moses accepted the
agreed bail conditions, and said that they can
be appealed or asked to be modified before SDNY
Judge Edgardo Ramos to whom the case is
assigned.
On
December 29, the US Attorney's Office opposed
Cole's subpoena served on Baked by Melissa,
where Seth Horowitz, a Government cooperating
witness, was the CEO. The US Attorney's Office
says the information sought is not relevant, but
rather a fishing expedition.
September
27, 2021
On Saturday Before North Korea Trial Virgil Griffith Dockets Motion About Ethereum GC
By
Matthew Russell Lee, Pod
Exclusive Patreon
BBC
- Guardian
UK - </