Deutsche Bank to fight $14 billion demand from U.S. authorities

Deutsche Bank (DBKGn.DE) said it would fight a $14 billion demand from the U.S. Department of Justice to settle claims it missold mortgage-backed securities, a shock bill that raises questions about the future of Germany's largest lender.

The claim against Deutsche, which is likely to trigger several months of talks, far exceeds the bank's expectations that the DoJ would be looking for a figure of only up to 3 billion euros ($3.4 billion). read more »

RBS shares hit after U.S. demands hefty fine from Deutsche Bank

Royal Bank of Scotland (RBS.L) shares fell on Friday after U.S. authorities demanded $14 billion from Deutsche Bank (DBKGn.DE) to settle mis-selling claims, raising fears about how much RBS might have to pay for similar misconduct.

The British state-backed lender has waited many months to hear how U.S. authorities including the Department of Justice (DoJ) and Federal Housing Finance Agency intend to punish its alleged mis-selling of asset-backed securities in the run up to the financial crisis. read more »

New York AG investigating Exxon's accounting practices: source

New York Attorney General Eric Schneiderman is investigating Exxon Mobil Corp's (XOM.N) accounting practices and why the oil major hasn't written down the value of its assets in the wake of a slump in oil prices, a person familiar with the matter said.

A more than 60 percent drop in oil prices has forced many integrated oil producers around the world to write down the value of their assets. Exxon is the only major producer holding out so far.

The focus of Schneiderman's probe of Exxon has shifted over the past year.

After initially looking at whether the company misled investors about the risks of climate change, Schneiderman told the New York Times in August he was looking at the potential impact on the valuation of Exxon's assets from a global crack down on carbon pollution read more »

3rd Whistleblower Gets Cut From $18M False Claims Deal

Two whistleblowers who reached an $18 million False Claims Act settlement with UnitedHealth Group Inc. had a third relator, who filed a complaint two years after theirs, disqualified by a Colorado federal judge, who said on Thursday that the second complaint was factually similar to the original and the first-to-file rule applied. read more »

South Korea: Corruption clampdown

Since 2011, South Korea has been debating its new anti-corruption law, now set to take effect on Sept. 28 this year. Since it was promulgated by President Park Geun-hye in March, the law – officially called the Improper Solicitation and Graft Act – has already provoked a backlash and stirred a great deal of controversy, leaving those in sectors where gift-giving is customary particularly worried.

Yang adds that given this joint penal provision, a statutory sanction imposed against a corporation under the Kim Young-ran Law would generally be accompanied by significant damages to its corporate reputation, in addition to the actual penalties under the law. “Corporations subject to the Foreign Corrupt Practices Act (FCPA) in the United States or any other foreign anti-corruption regulations may face possible enforcement actions under the FCPA or other foreign anti-corruption regulations that may result in significant managerial risks involving a large amount of monetary fines, disgorgement of profits and/or other penalties,” he says. read more »