Inner City
        Press' Bank Beat Reporter

  

     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.

June 5, 2023

In Epstein Case JPM Chase Opposed Class Cert Amid Jamie Dimon Deposition Transcript HereIn Epstein Case JPM Chase Opposed Class Cert Amid Jamie Dimon Deposition Transcript Here

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, May 31 – J.P. Morgan Chase and Deutsche Bank were sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  Late on May 17, 2023, plaintiffs' lawyer David Boies selectively announced a $75 million settlement with Deutsche Bank. Nothing was filed in the docket. But the pressure on JPM Chase, and its CEO Dimon, grew.

More including class analysis on Substack here

On May 26, Judge Rakoff held oral arguments on class certification, noting that Dimon's deposition was taking place at that time. Inner City Press was there, thread here and below.

Here on May 31, Inner City Press is publishing the Dimon deposition, on Patreon here.

May 29, 2023

I
n Epstein Case JPM Chase Argues against Class Certification Amid Jamie Dimon Deposition

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, May 26 – J.P. Morgan Chase and Deutsche Bank were sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  Late on May 17, 2023, plaintiffs' lawyer David Boies selectively announced a $75 million settlement with Deutsche Bank. Nothing was filed in the docket. But the pressure on JPM Chase, and its CEO Dimon, grew.

More including class analysis on Substack here

On May 26, Judge Rakoff held oral arguments on class certification. Inner City Press was there, thread here:

All rise!

Judge Rakoff: We're here on the question of class certification... I just got off the phone about a deposition taking place in the same case. You're missing all the fun, folks. (Laughs). Let's first consider Jane Doe's expert...

 Judge Rakoff: The expert writes, "Class certification is appropriate here" - but isn't that a legal conclusion?

Counsel to Jane Doe: Maybe it's a matter of drafting...

Judge Rakoff: I strike that first opinion.

 Counsel to Jane Doe: She is saying that Epstein could only run his sex trafficking conspiracy by having access to influential people. Judge: Duh. What's her expertise? Counsel to Jane Doe: She was at DOJ and interviewed a number of victims

Counsel to Jane Doe: Her experience does not have to be into JPMorgan Chase Bank -- Judge Rakoff: So what is it were Signature Bank?  Counsel to Jane Doe: She looked into banks while at DOJ. [Note: the expert at issue is Jane Khodarkovsky formerly of DOJ]

 JPMC's lawyer: She was 3 1/2 years at DOJ, not in sex trafficking, only money laundering. So she's not an expert.

Judge Rakoff: After 3 1/2 years at DOJ, maybe an expert in bureaucracy... JPMC's lawyer: We say, the issue of sex trafficking is not for class action

Judge Rakoff: The allegations is that Jeffrey Epstein enticed them into sexual acts by getting massages... I don't see why you need to be an expert to see that if the allegations are true, they may will violate the sex trafficking statute

Judge Rakoff: And that if the money to carry it out came from or through a bank that should have known, it may be liable - why is an expert needed on this?

JPM Chase lawyer: The question is, what are the indices of sex trafficking?

Judge: This is not a clean slate

 Judge Rakoff: The grand jury that issued the 2019 indictment found Jeffrey Epstein sexually exploited and abused dozens of minor girls at his various homes. I don't know what the expert's opinion adds to this. Chase lawyer: It's not susceptible to class treatment

 Judge Rakoff: We could have used a psychological expert, as was included in the case before Judge Nathan

JPMC lawyer: Their expert just parrots others' info.  Judge: To your adversary: If you had a frozen pipe, a plumber could opine... But aren't money laundering regulations laws, & the Court the expert? Doe's lawyer: She is an expert on how trafficking is financed

 Doe's lawyer: She example, she has expertise in the filing or not filing of Suspicious Activities Reports. Judge Rakoff: Are you saying an expert is needed because I have been asleep for the 99 cases on the topic of SARs? Let's turn to class certification...

Judge Rakoff: JPM Chase does not dispute that Mr. Epstein was involved in a longstanding sex trafficking venture that impacted dozens that required money to make it work.  JPMC's lawyer: We're not sure it's dozens- Judge Rakoff: Dozens is what the indictment says

 Doe's lawyer: This class should be certified - it was sexual exploitation and the commonality here is the bank. Epstein needed these obscene amounts of money from JPM Chase to continue with this. I may need a sidebar on this. Judge: About the SARs?

 [Sidebar is held; transcript to be sealed, Judge says]

Judge Rakoff: I have taught the class action seminar at NYU Law School, so I think I know the elements. Thank you, I will get you an order afterword. I'll get called at 5 on the Dimon deposition...

More on Substack here.

May 22, 2023

For Enabling Epstein Deutsche Bank to Pay $75M Blood Money, June 1 Fairness Hearing

By Matthew Russell Lee,
Patreon Maxwell book

SDNY COURTHOUSE, May 18 – J.P. Morgan Chase and Deutsche Bank were sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  Late on May 17, 2023, plaintiffs' lawyer David Boies selectively announced a $75 million settlement with Deutsche Bank.

Nothing was filed in the docket until May 18: "Minute Entry for proceedings held before Judge Jed S. Rakoff: Telephone Conference held on 5/17/2023,without transcription or recording. Plaintiffs motion for preliminary approval of proposed class settlement is due by 5/26/2023. A preliminary fairness hearing will be held at 4:00 PM on 6/1/2023 in Courtroom 14B, the Daniel Patrick Moynihan U.S. Courthouse, 500 Pearl St., New York, NY."

But the pressure on JPM Chase, and its CEO Dimon, grows.

More including class analysis on Substack here

  On May 15, U.S. Virgin Islands in its lawsuit against JPM Chase told SDNY Judge Jed S. Rakoff they have been unable to serve Elon Musk a subpoena asking, among other things, whether Epstein referred him to Chase.

  Musk returned fire: "This is idiotic on so many levels:  1. That cretin never advised me on anything whatsoever.   2. The notion that I would need or listen to financial advice from a dumb crook is absurd.  3. JPM let Tesla down ten years ago, despite having Tesla’s global commercial banking business, which we then withdrew. I have never forgiven them." And there is a case in SDNY, including Chase's London Branch, that Inner City Press is also covering. Watch this site.

  The separate lawsuits allege that "without exorbitantly large amounts of cash, Epstein's operations could not run, as newly recruited victims were each paid hundreds of dollars in cash immediately after Epstein sexually abused them, as hush money."

   The JPM Chase complaint is on Patreon, here.

May 15, 2023

IMF Opposes Crypto as Legal Tender Inner City Press Is Told But Not As Investment, Arg & CIV

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, May 11 –   When the International Monetary Fund held its media briefing on May 11, 2023, Inner City Press posed questions including "on Argentina, crypto and the IMF, what is the IMF's response to those who say the country's recent ban on digital assets is an effect of / condition imposed by the IMF?"

It asked about El Salvador and other IMF country program negotiations. 

  Spokesperson Julie Kozack explained that the IMF opposes cryptocurrency as a legal tender - as in El Salvador - it view digital assets as investments differently. Informal video here.

Inner City Press has submitted a follow up question, and later in the day received this from IMF spokesperson: "Can be attributed to IMF spokesperson.     On crypto assets, although they have some purported benefits, they can pose macro-financial risks. To strike a balance between reaping the benefits of innovation and guarding against risks, a globally consistent, coordinated, and comprehensive regulatory framework is vital. However, crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability."

   As to the US, the IMF was asked about the regional bank failures, the debt ceiling, the 14th Amendment and even the trillion dollar coin. Watch this site. 

***

Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

May 8, 2023

Toronto Dominion Bragged 1st Horizon Deal Was On Track Now Collapses Amid Protest

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SDNY / SOUTH BRONX, May 4 – Seemingly oblivious to US regulators stated desire to tighten up their merger review rules, specifically on fair lending, Toronto Dominion on February 28 announced a $13.4 billion proposal to buy First Horizon.

 Fair Finance Watch has been concerned by TD Bank's lending disparities for some time. Nationwide in 2020, TD Bank denied almost as many applications from African Americans (833) as it made in mortgage loans to African Americans (853). It was far more generous with white borrowers: 23,469 loans made, with only 9009 denials. 

 Fair Finance Watch immediately online noted that in New York State in 2020, TD Bank was even worse. It denied more mortgage applications from African Americans (255) that it made loans to African Americans in NYC (198). Again, TD Bank was far more generous with white borrowers in NYS: 3,558 loans made, with only 1714 denials. 

And now on May 4, 2023, TD Bank and First Horizon Bank announced the termination of their merger agreement, citing uncertainty about the timetable to obtain regulatory approvals

 Fair Finance Watch noted when TD bragged that the deal is "on track" and it is already integrating with First Horizon - without required regulatory approvals: "TD Bank Group said in a statement Wednesday [Nov 2], 'Teams at both TD and First Horizon are working together to ensure a seamless integration experience for our customers as we prepare to introduce First Horizon customers to TD Bank. We will provide more details on that when full regulatory approval is received.'"

  Shouldn't that have been IF approval is received? And how was it legal to be working together without merger approvals? Watch this site.

Earlier arrogance (and testimony) here.

Inner City Press will be inquiring under the Freedom of Information Act. Watch this site. 

May 1, 2023

As Goldman Sachs Indicted Insider Trader Goel Nears Trial Barclays Resignation Letter Sought

By Matthew Russell Lee, Patreon Maxwell Book

SDNY COURTHOUSE, April 27 – Former Goldman Sachs investment banker Brijesh Goel was arraigned on insider trading charges on the morning of July 28, 2022. Inner City Press there - although the arraignment had not be listed in the docket, nor announced by prosecutors.

 Goel's case is assigned to U.S. District Court for the Southern District of New York Judge P. Kevin Castel, who held the arraignment.  

 Even afterward, the docket did not contain any notice of the arraignment - in contrast to the July 27 arraignment for insider trading of former Indian Congressman Steve Buyer, Inner City Press story here, video here.

  Goel, represented by defense lawyer Reed Brodsky who was still not listed on the docket - no notice of appearance? - after the proceeding, pleaded not guilty.

Assistant US Attorney Joshua Naftalis said his office agreed to release on $1 million bond, and no contact with "CC-1."

   Brodsky, too, was concerned about CC-1. He specifically asked that all information about debriefing sessions with CC-1 be provided in two or three weeks, so that he or successor counsel can decide by the September 14 next conference whether to file motion.

This was incorporated into Judge Castel's Rule 5(f) order.

  Goel is accused of feeding inside information to his graduate school friend and squash partner Akshay Niranjan, at Barclays. 

 Brodsky said Goel "could not consent" to excluding time under the Speedy Trial Act. But then after conferring, he did not oppose. Time was excluded. 

On November 17, another conference was held, and Inner City Press was there. Brodsky said that the audio in the case is inaudible. Judge Castel said this came up before him recently - yes, in US versus former Honduras president Juan Orlando Hernandez, as Inner City Press reported. Brodsky said he might make a motion, unlike JOH's counsel Raymond Colon.

Brodsky had other motions, some of which Judge Castel asked why he had "sat on" until this conference. When the time came to set the trial date, Brodsky asked for October, but Judge Castel put it at June 12 with motions due before that.

On January 4, 2023 Goel filed a motion against the US Attorney's Office subpoenas before a trial date was set, citing US v. Tuzman, 15-cr-536. It includes an email from AUSA Joshua Naftalis, including that "trial subpoenas issued before the trial date was set... all these subpoenas have been withdrawn."

On March 16, 2023, in turnabout, the US Attorney's Office moved to quash Goel's subpoenas to Akshay Niranjan and Barclays - except, perhaps, Request 8 which "seemingly attempts to uncover evidence that Niranjan learned of the potential M&A transactions through his employment at Barclays, rather than from the defendant." But the US still calls that overbroad.

On April 27, Judge Castel held another proceeding in the case. Inner City Press was there. The defense did not want to provide its list of witnesses until closer to their use; the AUSA said fine, they too would delay. A resignation letter will be sought from Barclays. Trial is approaching.

Inner City Press will continue to cover the case - watch this site.

 The case is US v. Goel, 22-cr-396 (Castel)

April 24, 2023

For Enabling Epstein Trial vs JPMC Dimon To Be Deposed 7 Hours Including by StaleyFor Enabling Epstein Trial vs JPMC Dimon To Be Deposed 7 Hours Including by Staley

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, April 18 – J.P. Morgan Chase and Deutsche Bank were sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  The separate lawsuits allege that "without exorbitantly large amounts of cash, Epstein's operations could not run, as newly recruited victims were each paid hundreds of dollars in cash immediately after Epstein sexually abused them, as hush money."

   The JPM Chase complaint is on Patreon, here.

On March 20, 2023 Judge Jed S. Rakoff in a bottom line order dismissed some but not all claims, in the Epstein-related cases against JPMC and Deutsche Bank.

Inner City Press put the order on its DocumentCloud here.

  On April 18, after a telephone conference without transcription, Judge Rakoff ordered: " proceedings held before Judge Jed S. Rakoff: Telephone Conference held on 4/18/2023, without transcription or recording. Counsel for Jane Doe, the Government of the United States Virgin Islands, JP Morgan, and Jes Staley were present. Jamie Dimon should be set aside two days for his deposition. On the first day, plaintiffs will have the opportunity to depose Mr. Dimon for a combined total of five hours. Mr. Staley will have the opportunity to depose Mr. Dimon for two hours. If, at the end of the first day, any party believes that it needs more time to depose Mr. Dimon, it must convene a joint call to Chambers by no later than 5:00 PM to explain why. The Court will then rule as to whether Mr. Dimons deposition should continue for a second day and, if so, for how long." Will that call be open to the press and public?

More on Substack here.

April 17, 2023

For Enabling Epstein Trial vs  JPMC Now USVI Says Bank Long Flagged His Large Withdrawals<