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Goldman Sachs (NYSE: GS) Ordered To Pay $20.6 Million Related To Bayou Hedge Fund Fraud
Posted by: | CommentsThe Financial Industry Regulatory Authority has ordered Goldman Sachs (NYSE: GS) to pay $20.6 billion to victimized investors of a Ponzi scheme run by Bayou Hedge Funds. The three-person arbitration panel for the financial regulatory agency ruled that Goldman Sachs should have been aware of the Ponzi scheme being run at the hedge fund.
Goldman Sachs’ clearing unit is being held directly liable in the complaint. The $20.6 million is the amount that Bayou Hedge Funds deposited into its accounts at Goldman, which handled the funds trading between 1999 and 2004.
According to recent reports, the majority of victims invested anywhere from $300,000 to $500,000, with the total amount of fraud being estimated at about $250 million.
Bayou investors claimed in their suit that Goldman showed have known that there was some form of fraud or deception going on as they had marketing materials from the firm that claimed consistent returns, while the firms accounts showed losses.
Goldman argued that all it did was process transactions for Bayou Hedge Funds and was not aware of the fraud and by law is not required to investigate those holding accounts.
The ruling against Goldman Sachs will likely stand as arbitration cases are not overturned very often.
This article (Goldman Sachs (NYSE: GS) Ordered To Pay $20.6 Million Related To Bayou Hedge Fund Fraud) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Discover Financial (NYSE: DFS) Swings Q2 Profit On Increased Volumes
Posted by: | CommentsDiscover Financial Service (NYSE: DFS) announced Thursday that it returned to profitability in second quarter as volumes increased with customers using their card more often. A continued decline in delinquent accounts also helped drive results.
The credit card company said it had net income of $184.6 million, or 33 cents per share. That compares with a net loss of $148.9 million, or 31 cents per share in the same period a year ago.
“Our very strong results this quarter were driven by a significant improvement in the credit performance of our loyal customer base along with continued solid growth in cardmember spending,” said David Nelms, chairman and chief executive officer of Discover.
“We were also pleased with the performance of our payments business, driven by solid growth in key volume measures,” Nelms added.
Discover card sales volume was $23 billion, a record for a second quarter and an increase of 6% from the quarter a year ago.
Discover said net charge-offs continued to decline, hitting $81 million in the second quarter, a 7.97 percent charge-off rate, less than the 8 to 8.5 percent expected.
The company also said during the quarter it redeemed $1.2 billion of preferred stock issued to the U.S. Treasury under the TARP Capital Purchase Program.
This article (Discover Financial (NYSE: DFS) Swings Q2 Profit On Increased Volumes) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Apple Sells 3 Million iPads In Less Than 3 Months
Posted by: | CommentsApple (NSDQ: APPL) announced Tuesday that it has sold 3 million iPads as of June 21, just 80 days after the product was introduced in the United States. The iPad allows users to browse the web, watch videos, listen to music, read and send emails, read e-books, along with many other features.
The company rolled the product out in several other countries earlier this month, including Canada, Australia, Germany and France. Apple plans to unveil the product in nine more countries during July.
“People are loving iPad as it becomes a part of their daily lives,” said Steve Jobs, Apple’s CEO. “We’re working hard to get this magical product into the hands of even more people around the world, including those in nine more countries next month.”
iPad is 0.5 inches thin and weighs just 1.5 pound, thinner and lighter than any laptop or netbook, while delivering up to 10 hours of battery life.* according to Apple’s statement.
This article (Apple Sells 3 Million iPads In Less Than 3 Months) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.