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☆ Wells Fargo agrees to $3.7 billion settlement with CFPB over consumer abuses
▼ + stars: | 2022-12-20 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Charles Scharf, chief executive officer of Wells Fargo & Co., listens during a House Financial Services Committee hearing in Washington, D.C., U.S., on Tuesday, March 10, 2020. Wells Fargo has agreed to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to bank accounts, mortgages and auto loans, the regulator said Tuesday. The bank was ordered to pay a $1.7 billion civil penalty and "more than $2 billion in redress to consumers," the CFPB said in a statement. In October, the bank set aside $2 billion for legal, regulatory and customer remediation matters, igniting speculation that a settlement was nearing. But others remain: Wells Fargo is still operating under a series of consent orders tied to its 2016 fake accounts scandal, including one from the Fed that caps its asset growth.

☆ Sam Bankman-Fried's story keeps getting wilder and weirder as details emerge from his past and more people speak out.
▼ + stars: | 2022-12-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

The more details that emerge, the more I feel like this is going to make a great Michael Lewis book (and movie) one day. Among the highlights from his testimony include his assertion that the crypto market is "the largest Ponzi scheme in history." In other news:Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market Committee meeting, Wednesday, Nov. 2, 2022, in Washington. A top FTX exec blew the whistle on Sam Bankman-Fried's moves just two days before the crypto exchange collapsed. Morgan Stanley's Mike Wilson said the stock market could fall further in 2023.

☆ Read the full text of Sam Bankman-Fried's planned testimony, which a congressional panelist called 'absolutely insulting'
▼ + stars: | 2022-12-15 | by ( Matthew Loh | ) www.businessinsider.com time to read: +2 min

FTX founder Sam Bankman-Fried was arrested before he could testify about his exchange's collapse. He did prepare a testimony, which a member of the House Financial Services Committee called "absolutely insulting." It wasn't read out in full at the hearing, but congressional leaders had a copy of the draft on hand. Bankman-Fried's spokesperson, Mark Botnick, told Insider he had no comment on the planned testimony. Copies of the planned testimony were first obtained by Forbes and Bloomberg.

☆ The Fed just made its last rate hike of the year. Here's what it means and what happens next.
▼ + stars: | 2022-12-15 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Fed Chair Powell took an aggressive stance at the podium Wednesday, effectively saying the central bank isn't done hiking rates. The Fed signaled it won't be taking its foot off the gas anytime soon with policy, but markets of late have been acting like a so-called Fed pivot is all but guaranteed. "Powell's very hawkish comments didn't get a very hawkish reaction from the market," Wright maintained. But the more the market ignores the Fed, the longer the Fed will have to keep monetary policy restrictive, which ultimately raises the odds of a recession. "We're likely to see head-fakes like this where the market looks for a Fed pivot," one strategist said.

☆ Sam Bankman-Fried's FTX had the corporate governance of a college fraternity, congressman says
▼ + stars: | 2022-12-15 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

A congressman likened collapsed exchange FTX's corporate governance to a college fraternity. "It would be laughable were it not so serious," congressman Ritchie Torres said. In reality, the company was more like a college fraternity, congressman Ritchie Torres says, with haphazard and reckless bookkeeping practices. "FTX had the corporate governance of a fraternity," Torres, a member of the House Financial Services Committee, told Coindesk TV on Wednesday. The now-bankrupt exchange used QuickBooks, an accounting software generally used by smaller businesses, not multi-billion dollar companies.

☆ FTX's massive $256 million real-estate empire is up for grabs as Bahamian and US lawyers squabble over who should control it
▼ + stars: | 2022-12-15 | by ( Robert Davis | ) www.businessinsider.com time to read: +5 min

Lawyers representing the US and the Bahamas disagree on who should control FTX's massive real estate portfolio. A lawyer monitoring the case told Insider that the timing of the assets' disposal is more important than venue. According to a court filing from December 12, Bahamian lawyers asserted that Bankman-Fried spent more than $256 million to acquire 35 properties on the island. But, that total payout could change if regulators in one country or the other wait too long to liquidate the real estate assets, Pintarelli added. According to market data from brokerage BE Luxury Real Estate, the median sales price of Bahamian real estate grew from about $360,000 in 2020 to more than $630,000 through the first six months of 2021.

☆ FTX's new CEO accused the collapsed crypto exchange of 'old school' embezzlement that was 'not sophisticated at all'
▼ + stars: | 2022-12-14 | by ( Matthew Loh | ) www.businessinsider.com time to read: +3 min

FTX's new CEO has accused the collapsed crypto exchange of "old school" embezzlement. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyFTX's new CEO has accused the crypto exchange of "old school" embezzlement in scathing congressional testimony. "This is really just old-fashioned embezzlement," Ray said. This is just plain old embezzlement. Old school, old school."

John J. Ray, chief executive officer of FTX Cryptocurrency Derivatives Exchange, arrives to a House Financial Services Committee hearing investigating the collapse of FTX in Washington, DC, on Tuesday, Dec. 13, 2022. Instead, like bankers and lawyers who are working on the bankruptcy proceedings, the new leadership team is professional independent contractors. That means, among other things, that they get paid immediately, before any FTX investors receive recompense for their losses. According to court filings, the new FTX CEO will collect $1,300 hourly plus "reasonable expenses" for his work untangling what U.S. Attorney Damian Williams called "one of the biggest frauds in American history" in a news conference Tuesday. In one bankruptcy case Ray worked on, he billed around 156 hours in a two-month period, netting him $120,582, so his billings for FTX may run higher or lower.

☆ Jim Cramer's top 10 things to watch in the market Wednesday: Fed day, crypto hearings, Nvidia boost
▼ + stars: | 2022-12-14 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Deutsche Bank raises its price target on Club holding Nvidia (NVDA) to $170 per share from $150; keeps hold rating. Deutsche Bank initiates coverage of Club holding Danaher (DHR) with a buy rating and a $310-per-share price target. Goldman Sachs cuts its price target on Tesla (TSLA) to $235 per share from $305, but keeps a buy rating. Wells Fargo raises its price target on Goldman Sachs (GS) to $400 per share from $380; keeps an overweight (buy) rating. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

The Senate Banking Committee on Wednesday is holding a second day of hearings this week on the downfall of cryptocurrency exchange FTX, examining how the company's implosion could impact the nascent industry. Old school, old school." Bankman-Fried was charged by federal prosecutors in the Southern District of New York for a wide variety of crimes including wire fraud, securities fraud and violating campaign finance regulations. Though Ray and Bankman-Fried won't be part of the Senate Banking hearing on Wednesday, four cryptocurrency experts will be testifying instead, including Kevin O'Leary, a longtime paid FTX spokesman. "In my opinion, it is the largest Ponzi scheme in history by an order of magnitude."

☆ A market downturn hasn't made activist investing any easier. Here's why.
▼ + stars: | 2022-12-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +4 min

But even with a market downturn, activist investors' campaigns haven't been the cakewalk some might expect. Insider's Daniel Geiger, Rebecca Ungarino, and Casey Sullivan spoke to industry insiders — including famed activist investor Carl Icahn — about why the current landscape isn't as accepting as some might think to activist campaigns. But when the going gets tough, the tough get going, and a difficult market environment doesn't mean we'll see the number of campaigns decrease. Click here to read more about why top activist investors like Carl Icahn say this line of work is riskier than ever. Here's a five-step plan to help you decide when that side gig you have should be the only gig you have.

☆ Premarket stocks: Investors are hoping for the economic tide to turn. The wait may soon be over
▼ + stars: | 2022-12-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

What’s happening: Price increases in the United States cooled more than economists expected last month, recording the lowest level of growth since last December. This is the second consecutive month of moderating price pressures and could mean the underlying trend of inflation is finally decelerating. That’s a welcome and hopeful sign for consumers, policymakers and investors, said Jim Baird, chief investment officer at Plante Moran Financial Advisors. The bill specifically names TikTok and its parent, ByteDance, as social media companies for the purposes of the legislation. In the past two weeks, at least seven states have introduced such measures, including Maryland, South Dakota and Utah.

☆ Disgraced FTX CEO Sam Bankman-Fried 'orchestrated yearslong fraud' on investors and customers, SEC and criminal charges say
▼ + stars: | 2022-12-13 | by ( Marlene Lenthang | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | ) www.nbcnews.com time to read: +8 min

Sam Bankman-Fried, the former CEO of cryptocurrency giant FTX, defrauded investors by funneling money into his private hedge fund and conspired to commit wire fraud against customers and lenders, federal authorities said Tuesday. The Manhattan panel indicted Bankman-Fried on eight counts: conspiracy to commit wire fraud on customers, wire fraud on customers, conspiracy to commit wire fraud on lenders, wire fraud on lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to defraud the United States and violate the campaign finance laws. $8 billion loss to customersThe wire fraud on lenders and customers started in or about 2019 and lasted through November, according to the filing. Separately, in a filing Tuesday also in the Southern District of New York, the SEC charged him with defrauding investors and enriching Alameda. FTX CEO pledges continued cooperationAlso Tuesday, the company’s new CEO, John J. Ray III, testified at a congressional hearing on FTX’s collapse and missteps.

☆ Sam Bankman-Fried criminal charges unsealed: Conspiracy to defraud the U.S., wire fraud, securities fraud, and money laundering
▼ + stars: | 2022-12-13 | by ( Rohan Goswami Mackenzie Sigalos | Rohan Goswami | Mackenzie Sigalos | ) www.cnbc.com time to read: +1 min

A federal indictment was unsealed Tuesday alleging widespread fraud by FTX co-founder Sam Bankman-Fried, a day after the fallen crypto exchange operator was arrested in the Bahamas in connection with the charges. The indictment in U.S. District Court in Manhattan charges Bankman-Fried with eight criminal counts: conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering, and conspiracy to avoid campaign finance regulations. Follow CNBC's live blog covering Tuesday's hearing on the collapse of cryptocurrency exchange FTX before the House Financial Services Committee. It also accuses Bankman-Fried of conspiring with others to defraud FTX's lenders "by providing false and misleading information to those lenders regarding Alameda Research's financial condition." Prosecutors also allege he conspired with others to make illegal donations to political candidates, using the names of other persons to mask and augment political giving.

Attorneys Office for the Southern District of New York charged the disgraced crypto executive with eight criminal counts: conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations. "This is really just old fashioned embezzlement. Old school, old school." The Senate Banking Committee had also asked Bankman-Fried to testify at a Wednesday hearing that he previously refused to attend. Ryan Salame, the co-CEO of FTX Digital Markets, donated another $23 million, with the majority of his contributions heading toward Republicans.

☆ SEC Chair Gary Gensler tees up changes to how the stock market operates
▼ + stars: | 2022-12-13 | by ( Bob Pisani | ) www.cnbc.com time to read: +8 min

These wholesalers may send the orders to exchanges, but often match the orders against their own internal order flow. However, Gensler has claimed that pension funds and other institutional investors are not able to interact with that retail order flow. Execution quality disclosure Market participants are required to submit monthly reports indicating how well they are executing client orders. Gensler has said investors today need a better understanding of how well their trading orders are being executed. Gensler's broad agenda The proposals on market structure are part of a broad agenda Gensler has undertaken this year.

☆ Everything you need to know about the FTX saga that unfolded today
▼ + stars: | 2022-12-13 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

On Tuesday, Ray testified before the House Financial Services Committee, relaying what he could about the company he took over just four weeks ago. FTX, on the other hand, was “not sophisticated at all.”“This is really old-fashioned embezzlement,” Ray continued. They say he misappropriated FTX customers’ deposits by using those funds to pay expenses and debts of Alameda, his crypto hedge fund. (The SDNY are an aggressive people, but they are not sloppy, and they don’t indict without a solid case.) Several lawyers not involved in the case have told me that the speed of Bankman-Fried’s arrest signals that former FTX employees may be aiding prosecutors.

Federal authorities on Tuesday charged FTX co-founder Sam Bankman-Fried with using what they said was tens of millions of dollars of misappropriated customer funds to make illegal political donations to both Democratic and Republican candidates. He then used those funds to make "large political donations," to make investments and buy "lavish real estate," the SEC complaint alleged. The campaign finance allegations come days after a private watchdog group asked the Federal Election Commission to investigate Bankman-Fried's political contributions. Most of Bankman-Fried's publicly disclosed campaign contributions, which totaled nearly $40 million in the 20222 election cycle, went toward Democrats, FEC records show. "The question is whether regulators, including the SEC, backed off from aggressive investigation of FTX because of this political influence," Painter said.

Companies Ledgerx LLC FollowDec 12 (Reuters) - Sam Bankman-Fried, the founder and former CEO of now-bankrupt crypto exchange FTX, said on Monday he would testify remotely at Tuesday's U.S. House Financial Services Committee hearing to examine the collapse of the company. Tuesday's hearing will be the first time Bankman-Fried appears publicly before U.S. lawmakers. In a Twitter Spaces event on Monday with Twitter account Unusual Whales, Bankman-Fried said he would be "calling in" to the hearing from the Bahamas. A spokesperson for Bankman-Fried confirmed that he would not be testifying at the hearing in person. The Senate Banking Committee will also hold a hearing on FTX's collapse on Wednesday, Dec. 14, in which Bankman-Fried says he is not scheduled to appear.

☆ Sam Bankman-Fried is set to testify before Congress on Tuesday. He could be grilled on his past statements — and expose himself to more legal risks.
▼ + stars: | 2022-12-12 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +5 min

Sam Bankman-Fried plans to appear remotely before the House Financial Services Committee on Tuesday. The House Financial Services committee has its own investigative mandate, outlined by its role in inquiring into financial failures, and in helping to craft legislation to prevent similar episodes in the future. Participating could expose Bankman-Fried to more legal risksTestimony provided to House lawmakers would usually be under oath, thought not necessarily so. The House Financial Services committee, chaired by Democratic Representative Maxine Waters of California, comprises progressive political stars like Alexandria Ocasio-Cortez of New York and Rashida Tlaib of Michigan. The House Financial Services committee hearing is scheduled to kick off at 10 a.m. Eastern on Tuesday.

CNBC's Andrew Ross Sorkin reported that the charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. Bahamas Attorney General Ryan Pinder said the United States was "likely to request his extradition." "While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere," the statement said. The Bahamas and the United States have had an extradition treaty in place since the early 20th century, when the Bahamas was still under British control. Legal experts told CNBC that if the federal government pursues wire or bank fraud charges, Bankman-Fried could face life in prison without the possibility of supervised release.

☆ It’s not the most wonderful time of the year for markets. Here’s why
▼ + stars: | 2022-12-12 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +4 min

New York CNN —The holidays are meant to be the most wonderful time of the year. But for investors, this week just might be the most stressful time of the year. Then there’s the anticipated central bank meeting. “Most central banks will be reluctant to cut rates in 2023 given the need to cool wage growth.”It has all given the equity and fixed markets a jolt. Maybe investors will be able to relax and take a deep breath before the Fed announcement and press conference later that day.

☆ US lawmakers want answers on FTX's collapse. Sam Bankman-Fried may not have them.
▼ + stars: | 2022-12-12 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +4 min

But first, we are going to hear more from Sam Bankman-Fried this week, even if you think we've already heard quite enough from him. Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee on December 8, 2021 in Washington, DC. Disgraced FTX founder Sam Bankman-Fried, who said he once considered himself a "model CEO," tweeted last week that he would testify before tomorrow's House Financial Services committee hearing focused on his firm's blowup. FTX's new CEO, John J. Ray III, who oversaw the bankruptcy of Enron, will testify in the first part of the hearing. A private lunch with the billionaire is on the table if you're willing to pony up the cash.

CNBC's Andrew Ross Sorkin reported that the charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. Neither the Attorney General of the Bahamas nor the Royal Bahamas Police Force would confirm the nature of the charges against Bankman-Fried. "I didn't ever try to commit fraud," Bankman-Fried said. The CFTC and lawmakers have begun their probes into FTX and Bankman-Fried, who told Sorkin he was down to his last $100,000. Failed lender BlockFi sued Bankman-Fried in November, seeking unnamed collateral that the FTX founder provided for the crypto lending firm.

☆ Former FTX CEO Sam Bankman-Fried refuses to testify before Senate, committee says
▼ + stars: | 2022-12-12 | by ( Brian Schwartz | ) www.cnbc.com time to read: +1 min

Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, speaks during a Senate Agriculture, Nutrition and Forestry Committee hearing in Washington, D.C., on Wednesday, Feb. 9, 2022. Former FTX CEO Sam Bankman-Fried is refusing to testify at a hearing this week about his company's implosion, the Senate Banking Committee said Monday. Attorneys for the crypto platform's founder have also said Bankman-Fried, who is based in the Bahamas, will not accept service of a subpoena to compel his testimony before the panel, senators said. Bankman-Fried is scheduled to appear at a House Financial Services Committee hearing on Tuesday that will focus on his company's collapse. In a joint statement, Senate Banking Chair Sen. Sherrod Brown, D-Ohio and ranking member Pat Toomey, R-Pa., said they have "offered Sam Bankman-Fried two different dates for providing testimony before the Senate Banking, Housing, and Urban Affairs Committee, and are willing to accommodate virtual testimony."

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