Finance Watch -- WSJ
August 26 2016 - 3:02AM
Dow Jones News
PUTNAM INVESTMENTS
Morgan Stanley Veteran Joins Board
Putnam Investments, the $151 billion money manager, added
veteran investment-bank executive Gregory Fleming to its board of
directors, people familiar with the matter said.
The appointment marks Mr. Fleming's reappearance in the
financial-services industry after his January departure from a
senior leadership role at Morgan Stanley. He currently is serving
as a senior research scholar at Yale Law School, where he is
teaching this year.
Mr. Fleming was an investment banker to money managers before
ascending to senior roles at Merrill Lynch and Morgan Stanley. He
stepped down as head of the latter's wealth-management business
earlier this year amid signs he wasn't in position to succeed James
Gorman as Morgan Stanley's chairman and chief executive.
Putnam is owned by Great-West Lifeco Inc., a unit of Power
Financial Corp. Boston-based Putnam manages more than 80 mutual
funds.
--Justin Baer
REGULATION
High-Speed Trader Scrutinized in China
A Dutch high-frequency trader is facing scrutiny from China's
securities regulator over its futures-trading activities,
reflecting sustained efforts to crack down on irregularities
following the stock-market meltdown last year.
The Shanghai-based affiliate of IMC BV,aDutch financial and
asset-management firm known for its high-frequency-trading
strategy, has received inquiries from the China Securities
Regulatory Commission related to its futures trading, the firm said
in an emailed statement.
"All discussions between IMC and the regulator have been
constructive and positive," IMC said, adding that it had confirmed
with external counsel that its futures-trading activity in China
complied with all regulations and exchange rules.
The company said it was cooperating with the regulator,
including explaining the unit's trading strategies. The statement
didn't provide details on the kinds of futures that were the
subject of the Chinese regulator's inquiry.
Regulatory officials couldn't be reached for comment.
Yifan Xie
WELLS FARGO
Delayed Mortgage Letters Costs Bank
Mortgage lender Wells Fargo Bank NA has agreed to pay $3.45
million over a processing error that delayed letters to nearly
8,000 homeowners in bankruptcy, shortening the notice time they got
about changes to their monthly mortgage-payment amounts.
In a letter filed to the U.S. Bankruptcy Court in Greenbelt,
Md., officials at the Wells Fargo & Co. unit said they have
worked out a deal with a Justice Department watchdog agency to fix
the mailing error and credit homeowners who received delayed
notifications in the mail.
The processing delay meant that some homeowners weren't getting
21 days' worth of notice before a change in their mortgage-payment
amount -- a period required under U.S. bankruptcy law, according to
the letter.
The Justice Department division, the U.S. Trustee Program, said
the error was discovered by an independent reviewer who was
installed as part of an $81.6 million settlement with bank
officials in November.
Under that settlement, bank officials admitted that they had
failed to notify thousands of bankrupt homeowners that it was
increasing their mortgage payments.
Specifically, the Justice Department said Wells Fargo
acknowledged that it failed to file more than 100,000 notices
involving homeowners in bankruptcy between Dec. 1, 2011, and March
31 of this year, according to earlier court papers. A Wells Fargo
spokesman declined to comment on the latest $3.4 million
settlement.
--Katy Stech
(END) Dow Jones Newswires
August 26, 2016 02:47 ET (06:47 GMT)
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