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Wall Street 7 articles

Deutsche Bank Whistleblowers Eligible for CFTC Award

Whistleblowers who assisted the U.S. government in prosecuting a scheme within Deutsche Bank to manipulate the price of precious metals futures contracts are entitled to share in a $30 million penalty the German bank has agreed to pay. The Commodity Futures Trading Commission (CFTC) said that certain Deutsche Bank precious metals traders engaged in a scheme to manipulate the price of precious metals futures by spoofing—an illegal and deceptive trading practice of “bidding or offering with intent to cancel before execution,” according to the Dodd-Frank Act. According to the CFTC, the Deutsche Bank traders engaged in the spoofing scheme from at ... Read More

Record SEC and CFTC Whistleblower Awards Given In JPMorgan Case

Whistleblowers who provided tips to federal regulators about JPMorgan Chase & Co.’s failure to properly inform some wealthy investors about conflicts of interest are set to receive record monetary awards. The whistleblowers helped the Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) put the brakes on JPMorgan’s misconduct, resulting in a record $367 million asset-management agreement. According to Bloomberg, the record JPMorgan settlement included $100 million that went to the CFTC, “described as a $40 million monetary penalty and $60 million in disgorgement.” The bank also agreed to pay the SEC an additional $267 million. ... Read More

Whistleblower Warns Regulators of Stock Market Manipulation

The biggest index used by Wall Street to gauge stock market volatility, known as the Cboe Volatility Index or VIX, is being manipulated, causing wild market swings and costing investors hundreds of millions of dollars a month, an anonymous whistleblower has warned the Securities and Exchange Commission (SEC). The whistleblower, a senior executive who worked at many of the largest investment firms in the world, made the allegations in a letter to the SEC and the Commodity Futures Trading Commission (CFTC) sent by a Washington D.C. law firm. According to USA Today, the whistleblower alleges that the market manipulators are ... Read More

Wells Fargo Execs Address Whistleblower Complaints, Ethics Problems

The Chief Executive Officer of Wells Fargo & Co. told a gathering of employees earlier this month that the bank plans to change how it handles whistleblower complaints after several employees complained of facing retribution for reporting sales abuses to an ethics hotline. Speaking to about 2,000 Wells Fargo employees in Des Moines, Iowa, CEO Tim Sloan did not offer any details about the San Francisco-based bank will address whistleblower complaints in the future, but his talk was part of a nationwide “conversations tour” he and other executives have embarked on to boost employee morale and restore public trust. In ... Read More

The Dodd-Frank Wall Street Reform and Consumer Protection Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) of 2010 introduced the most sweeping financial regulatory reforms made by legislators since the Great Depression. Signed into federal law by President Barack Obama on July 21, 2010, Dodd-Frank’s comprehensive measures were designed, in part, to clean up loopholes and improve the oversight and transparency of financial institutions. The intention: to avert another giant recession like the one that hit the U.S. in 2007-2010. The stated purpose of Dodd-Frank is “To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘too ... Read More

Critical Wall Street reforms gutted in Republican-approved spending bill

The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 as a safeguard to help the U.S. economy avert another financial catastrophe like the Great Recession of 2007-2008. The Act’s provisions have since become one of the federal government’s most effective weapons in the fight against the type of high-level financial fraud that drove the economy to the brink of a depression and ruined the quality of life for millions of Americans. Despite all the progress it has made in restoring a level of integrity and trust in the U.S. banking and investment industry, the very same ... Read More

New SEC whistleblower office receiving better financial fraud tip-offs, Commissioner says

So far, so good was the message behind Securities and Exchange Commissioner Luis Aguilar’s assessment of the agency’s new whistleblower program, designed in response to the 2008 financial crisis to curb widespread financial fraud. Speaking to a panel of enforcement officials Thursday, Mr. Aguilar said that the SEC’s whistleblower office, established by the Dodd-Frank Act in 2010, has received nearly 3,000 tips from the U.S. and 45 foreign countries. But it’s not just the quantity of information pouring into the whistleblower office, it’s the quality as well. Mr. Aguilar said the incentives to report fraud and other wrongdoing have made ... Read More