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.
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.
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...
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."
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.
***
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.
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.
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.