Archive for the ‘Credit Repair’ Category

.

February 02, 2012, 5:17 AM EST

By Patricia Hurtado and Bob Van Voris

Feb. 2 (Bloomberg) — Kareem Serageldin, Credit Suisse Group AG’s former global head of structured credit trading, was charged in a scheme to falsify prices tied to collateralized debt obligations to meet targets and boost year-end bonuses for his $5.35 billion trading book.

Serageldin, 38, who lives in the U.K. and led the securities department of Credit Suisse’s investment banking division, was named in an indictment unsealed yesterday in New York. Two of his former subordinates, David Higgs, 42, and Salmaan Siddiqui, 36, pleaded guilty in federal court in New York yesterday and said they’re cooperating with the U.S. in the probe.

Higgs and Siddiqui said during their guilty pleas that Serageldin told them to overstate the value of mortgage-backed assets in a Credit Suisse trading book known as ABN1 after the collapse of the U.S. housing market. Both said they did so to enhance their job performance and bonuses.

“While the residential housing market was in a freefall, these defendants decided they were above the rules of the market and above the law,” Manhattan U.S. Attorney Preet Bharara told reporters yesterday.

Switzerland’s second-largest bank said in 2008 it would take writedowns on asset-backed securities after finding “mismarkings” by a group of traders. The Zurich-based bank said it would write down $2.65 billion after a review found pricing errors on residential mortgage-backed bonds and CDOs made “by a small number” of traders who were subsequently fired or suspended.

‘Victims’

John C. Coffee Jr., a Columbia Law School professor, said the charges differ from the civil lawsuits in which banks are accused of lying about the risks of mortgage-backed securities sold to investors.

“Credit Suisse could say they were the victims of this crime,” Coffee said. “That’s fairly unusual.”

The U.S. Securities and Exchange Commission yesterday sued Serageldin, Higgs, Siddiqui and Faisal Siddiqui. The SEC identified Faisal Siddiqui, 36, of New York, as a vice president at Credit Suisse’s CDO trading group in New York. The SEC said that Salmaan Siddiqui and Faisal Siddiqui aren’t related.

“The defendants’ overvaluation of mortgage-backed securities benefitted them in the short run, and contributed to Credit Suisse incurring a two billion-dollar-plus write down when discovered,” Janice Fedarcyk, head of the FBI’s New York office, said yesterday at a press conference.

“While the housing market was collapsing, the defendants profited, not by correctly predicting the trend, but by cooking the books,” she said.

Rescinded Pay

Serageldin earned $7.27 million in salary and other compensation in 2007, the U.S. said. Once Credit Suisse learned of the scheme, they rescinded more than $5.2 million of the incentive pay he received, prosecutors said.

Serageldin, a U.S. citizen living in the U.K., isn’t in U.S. custody, Bharara said.

“We do not consider him a fugitive,” Bharara said. “We encourage him and his lawyer to come to the United States and answer the charges against him.”

If Serageldin doesn’t come to New York, Bharara said his office will seek to extradite him.

“As we do in every case, when we charge people who are not in the United States, we work with the relevant authorities in that country to make sure we bring them here to face trial,” Bharara said.

PL Objectives

Higgs and Salmaan Siddiqui said they participated in the manipulation scheme at Serageldin’s direction to meet targets and increase their compensation. The bank said yesterday that the three were fired in 2008.

“I, with the agreement and assistance of Kareem Serageldin and others, manipulated and inflated the cash bond position markings of a trading book referred to as ABN1, in order to hide losses in this book and to achieve specific daily and month-end profit and loss objectives,” Higgs told U.S. District Judge Alison Nathan.

“As a result of my actions, senior management of Credit Suisse was given the false impression that the ABN1 book was profitable and caused Credit Suisse to report false year-end numbers for 2007 in their books and records,” he said.

Higgs, who said in court that he worked as a managing director in the investment banking division at Credit Suisse in London, told the judge he participated in the scheme, “because I wanted to remain in good favor with my boss, Kareem Serageldin, and enhance my job performance.”

Year-End Bonus

Asked by the judge if he received any monetary benefits, he said, “Yes, a year-end bonus, your honor.”

Higgs and Siddiqui, who worked for Higgs and was based in Manhattan, signed cooperation agreements with U.S. authorities in the probe. Lawyers for both said in court that they are also cooperating with the SEC.

Siddiqui, a Dartmouth College graduate who now lives in McLean, Virginia, said that at the end of 2007 he was directed by Higgs and a person he said was “my boss’s boss at Credit Suisse” to mark down the ABN1 trading book.

“I knew that what I was directed to do, and did, was wrong,” Siddiqui said. “Specifically on or about Dec. 31, 2007, I had a telephone conversation with my supervisor during which he communicated this directive.”

After court, Ira Sorkin, Siddiqui’s lawyer, identified his client’s immediate supervisor who led the scheme as Higgs and said Serageldin was Higgs’s boss who had known about the manipulated assets.

‘Cooperating’

“He played a minor role in the conspiracy,” Sorkin said. “He has been cooperating both with the Securities and Exchange Commission and the U.S. Attorney.”

The evidence against the three men includes internal e-mails and telephone conversations recorded in keeping with Credit Suisse policy, said Assistant U.S. Attorney Virginia Chavez Romano in court. In addition to Higgs, a court document refers to four Credit Suisse employees without naming them.

In a phone call on Sept. 17, 2007, a data-entry employee in the ABN1 book who reported to both Higgs and Serageldin, asked Higgs: “What sort of PL do you need today?” according to the charges.

“Higgs responded that all books should end the day ‘up’ by $35 million,” according to the U.S. Later, one of the traders “artificially increased the prices of several ABN1 positions” to meet Higgs’s profit target, prosecutors said.

Beginning in late 2007, risk management officials at Credit Suisse began questioning the valuation of the AAA-rated bonds in the ABN1 book, according to the government.

‘Increasingly Illiquid’

“We should mark these down because someone is going to spot this,” Higgs was told on Jan. 4, 2008, by the Credit Suisse employee he identified as Serageldin.

“As the mortgage delinquencies increased, the value of the securities backed by the mortgages decreased and the market became increasingly illiquid,” Higgs said yesterday in court.

On March 20, 2008, Credit Suisse announced it was writing down the value of its asset-backed securities by $2.65 billion. About $540 million of that amount was attributed to the ABN1 trading book, according to the government.

“As a result of my actions, senior management of Credit Suisse was given the false impression that the ABN1 book was profitable and caused Credit Suisse to report false year-end numbers for 2007 in their books and records in their books and records,” Higgs said.

Possible Sentences

Both Higgs and Siddiqui pleaded guilty to one count each of conspiracy to falsify books and records and commit wire fraud, which carries a maximum five-year prison term and three years of supervised release.

Higgs and Siddiqui were released on $500,000 bond each and ordered to surrender their passports. Both agreed to pay unspecified restitution, the U.S. said.

Higgs, Siddiqui and Serageldin haven’t worked for Credit Suisse since their employment was terminated in 2008, said Steven Vames, a spokesman for the bank in New York.

Serageldin couldn’t be immediately reached for comment on the allegations.

A person familiar with the case said that fewer than five people will be charged as part of the CDO scheme. The person declined to be identified because the investigation wasn’t public at the time. Credit Suisse won’t be prosecuted, the person said.

CDOs are pools of assets such as mortgage bonds packaged into new securities. Interest payments on the underlying bonds or loans are used to pay investors.

Obama Mandate

In his State of the Union address to Congress last month, U.S. President Barack Obama said he would establish a financial crimes unit “to crack down on large-scale fraud and protect people’s investments.”

Robert Khuzami, the head of enforcement at the SEC, said the case wasn’t tied to that unit.

The prosecution is one of only a handful brought over charges tied to the subprime-mortgage market. The government failed in its biggest prosecution tied to the 2008 financial collapse when ex-Bear Stearns Cos. hedge-fund managers Ralph Cioffi and Matthew Tannin were acquitted in 2009 in federal court in Brooklyn, New York, of charges they misled investors who lost $1.6 billion after their fund collapsed in 2007.

2010 Convictions

Julian Tzolov, and Eric Butler, two former Credit Suisse brokers, were convicted in 2010 of a scheme to fraudulently sell subprime securities to corporate clients that cost investors $1.1 billion in losses.

The U.S. said Tzolov and Butler falsely told clients the products were backed by federally guaranteed student loans and were a safe alternative to bank deposits or money market funds. Butler was sentenced to five years in prison while Tzolov, who pleaded guilty and testified against Butler at trial, was sentenced to four years in prison.

U.S. prosecutors in Washington in 2010 decided not to bring charges against former American International Group Inc. executive Joseph Cassano after a probe into whether executives in the firm’s financial products division misrepresented the value of a portfolio of “super senior” credit-default swaps, which insured bond losses tied to the U.S. housing market.

Credit default swaps pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt.

The cases are U.S. v. Higgs, 12-cr-00088, and U.S. v. Siddiqui, 12-cr-00089, U.S. District Court, Southern District of New York (Manhattan). The SEC case is U.S. Securities and Exchange Commission v. Serageldin, 12-cv-00796, U.S. District Court, Southern District of New York (Manhattan).

–With assistance from Dakin Campbell in San Francisco, David Glovin and David Evans in New York, Joshua Gallu in Washington and Elena Logutenkova in Zurich. Editors: Michael Hytha, Peter Blumberg

To contact the reporters on this story: Patricia Hurtado in New York federal court at pathurtado@bloomberg.net; Bob Van Voris in New York at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Article source: http://www.businessweek.com/news/2012-02-01/former-credit-suisse-trader-pleads-guilty-to-cdo-conspiracy.html

Tags: credit report

Have you been tempted to get a new credit card just for the sign-up bonus or reward?

Credit card sign-up bonuses keep getting more attractive. What once was just a $100 cash-back reward for getting a new credit card has become $500 in some cases. Sign-up incentives for airline cards can take you even farther, literally, as issuers pile on the miles for new customers.

With deals this good, it’s tempting to sign up just for the introductory rewards and ditch the card once you’ve used up the bonus offer.

The pros of being a ‘bonus surfer’

Enter the “bonus surfer,” a term coined by Andrew Davidson, senior vice president at research firm Mintel Comperemedia, to describe customers who chase credit card sign-up incentives only to leave the card after cashing in the bonus.

“That customer is a savvy transactor who has maintained a good credit score, receives the best offers and likely has a renewed appreciation for a ‘good deal’ as a result of the ongoing economic crisis,” Davidson wrote in his blog in December.

You can hardly blame the bonus surfer. It’s hard to ignore the plethora of sign-up bonuses out there. In 2011, 2 out of every 3 credit card offers featured a little sign-on extra, according to market research firm Synovate. That’s up from 1 in 5 in 2008 and a little more than half in 2009 and 2010.

The sign-up bonuses are more lucrative, too.

“Cards that we saw offering standard sign-on bonuses of $100 to $200 just earlier (in 2011) are now toting bonuses of up to $500 in cash back,” says Roy Persson, director of competitive tracking services at Synovate.

He also noted that hotel rewards cards are giving away five to six free nights as a sign-up bonus, up from two to three free nights in years past. Airline cards, similarly, are going beyond the traditional 20,000- to 30,000-mile incentive by adding more miles and free companion tickets, he says.

Issuers aren’t stopping there. Introductory annual percentage rates, or teaser rates, are also turning heads. Synovate’s research shows 79 percent of offers in 2011 carried an intro purchase APR, compared with 55 percent just two years prior.

“Incentives go hand in hand with rewards cards attracting that really good customer with low risk, high usage and high end,” says Lisa Hronek, a senior analyst at Mintel Comperemedia. “It adds another layer of stickiness to an already attractive offer.”

Should you bite?

In your zeal for a good deal, should you bite at one of these offers and then spit it back out when you’ve earned the sign-up bonus?

“From a financial perspective, it seems like a clean thing to do,” says John Ulzheimer, president of consumer education at SmartCredit.com. “But from a credit-scoring perspective, it’s a very dangerous thing to do.”

Ulzheimer explains that each time you apply for a credit card offer the issuer will pull your credit report and score to determine if you qualify. That credit check will cause a hard inquiry on your credit report, and it will ding your credit score.

The damage doesn’t stop there.

When you close the card, it will reduce the amount of your unused credit and raise your utilization rate — how much credit you’re using versus the credit limits on your revolving accounts such as credit cards. Hint: The higher your rate, the worse the impact is on your score.

Additionally, your new credit card will lower your average age of accounts, which poses another dent to your score. It doesn’t matter if your newest account is closed, says Ulzheimer. It still counts against you.

The injury from these factors won’t heal in a few weeks or months, either. Your credit score could eventually fall below what issuers consider the accepted range for the best sign-up bonuses.

“Everyday people with average credit are getting offers,” says Mintel’s Hronek. “But we can make some broad-based generalizations that the more lucrative offers will be targeting people with better credit.”

Even worse, your lower credit score could mean higher interest rates if you apply for other types of credit such as a mortgage or auto loan. Paying those higher interest rates could offset any extra money you get from a sign-up bonus.

There are other pitfalls, too. If you open too many credit cards, you may face money management chaos as you juggle payments for multiple accounts, says Linda Sherry, director of national priorities at watchdog group Consumer Action.

She also notes these offers may be peppered with restrictions or conditions. For example, bonus airline miles may expire or come with blackout dates or other restrictions. Sherry recommends doing the math, too: Maybe 30,000 miles doesn’t get you as far as you think.

“Instead of chasing all these deals, find a card that works for you,” says Sherry. “And stick with it.”

More From Bankrate.com

• Bad to kill credit card?
• Card rates drag into 2014
• Interest rates

Article source: http://finance.yahoo.com/news/open-credit-card-sign-bonus-080048203.html

Tags: credit score

On the other hand be aware of your rights as a bad credit borrower. Always remember that the right to extend bad credit personal loans remains with the lender. There might be a situation where a lender may draw a line on how much risk he is ready to take. This means that a bad credit personal loan may not be offered to you if you are a case of serious debt.

As a borrower of a bad credit personal loan, you should know that though credit scores are fundamental to loan borrowing they are not the only deciding factor. Regular income, good job history, equity, savings and collateral will all play an important role in getting the bad credit personal loan approved. These factors would help you in enhancing your credibility as a borrower.

Article source: http://www.rediff.com/getahead/slide-show/slide-show-1-money-have-a-bad-credit-history-here-s-a-loan-just-for-you/20120202.htm

Tags: credit score

Marlene Partridge and her husband have a six-figure retirement income, no debt and pay off their credit cards each month.

Yet when the 62-year-old former teacher from Idaho saw her credit score a couple of years ago, she was disappointed that it wasn’t near perfect.

“Are the very best credit scores reserved only for the extremely wealthy?” she said recently in an email.

It’s a question that often crosses consumers’ minds, particularly the most careful users of credit. They make all the right moves, such as paying bills on time each month, yet their score is nowhere near 850, the top number in the widely used FICO score.

Many consumers are aware of the important role that credit scores now play in our financial lives. The three-digit number dictates whether we get a loan or credit card, and influences the terms. Yet there still is a lot of confusion, and some myths, about how scores are derived. And there are so many types of scores with different number ranges that consumers are only confounded further.

John Ulzheimer, president of consumer education for SmartCredit.com and a former manager with FICO, said that without a credit report in hand, he couldn’t say for sure what caused Partridge’s score to be less than stellar.

But he dispelled one myth: Income, or the amount of assets you own, has nothing to do with credit score. Income isn’t even listed on the credit reports that are used to calculate scores.

If income were a factor, Ulzheimer said, “professional athletes, doctors and lawyers would have fantastic scores and people working at McDonald’s would have the lowest scores. That isn’t true.”

Ulzheimer, though, suspects Partridge’s score might be affected by her rewards credit card. The Partridges have a Discover card that they use for as many purchases as possible to rack up rewards.

Even though the couple pays off the card each month, he said, the credit report will post the previous month’s statement showing the balance due. And if they are putting a large amount of purchases on the card, the big balance can ding their score.

But it’s easy to fix, he added. The next time Partridge wants to apply for a loan or other credit, all she has to do is pay the card off in full and stop using it for a month, he said. The zero balance will be reported on her credit report, he said, “and her score should shoot through the roof.”

Or, he added, Partridge can pay off the card before the statement is issued so that her balance will be reported as zero on her credit record.

A perfect credit score is possible.

Though some consumers have achieved a top score of 850, it’s not unusual for FICO to hear complaints from others who fall short of the mark, said Barry Paperno, consumer affairs manager for myFICO.

“A lot of these folks are used to being the best at what they do and getting the top scores at school,” he said.

Still, you don’t have to get a top score to receive the best credit terms.

“There is nothing an 850 can get you that a 780 won’t get you,” Paperno said.

Article source: http://www.ydr.com/rss/ci_19853753?source=rss

Tags: credit score

 

A lot of individuals nowadays have become more conscious that owning good credit rating can open lots of doors to them. Because of this, you’ll find lots of persons hunting to restore their credit but are not sure the way to do so. This article has some strategies that you just can use to set you in your way in the direction of repairing your credit rating. here

 

 

Cancel your “introductory” credit rating cards as your credit rating starts to boost. These cards serve a very beneficial intent in creating your credit score, nevertheless the rates of interest and phrases on them usually are awful. When you’ve got improved your score ample to qualify for a better credit card, go for it and obtain rid in the aged types.

 

When handling the topic of exclusive credit score restore, the top human being for your job is on your own. Never fall prey to scams being provided by organizations who say they are able to improve your credit score in your case, they can not and what they are really presenting is a rip-off. There’s no method to remove accurate but unfavorable information from a report and they’re only wanting your dollars.  BillEater.com

 

 

Look at repairing your credit score by obtaining all of your current bills paid off. Never get loans to pay out your expenditures and do the job with lenders given that they typically are inclined to just take partial payments in the event you can’t afford to create a payment that month. Never let the bills pile up and make sure to not get in over your head. There is certainly also credit rating counseling which can assistance.

 

To reestablish your credit ranking, you can setup an account having an online catalog/mail order corporation. Lots of of such businesses will prolong you a smaller credit history line that you can use to buy minor household items, content of clothes, exclusive care items and these types of. By making several tiny purchases and preserving your account in order, you can rebuild your credit history.

 

Even if you’ve got a due date with your credit score card statements, pay out all those payments extended just before that because of date is in the vicinity of. If it is attainable that you should shell out the credit history card off each month, it really is likely to avoid wasting you a huge amount of dollars in fascination and enhance your credit score score. website

 

 

Will not reside a bleak life any more, repair your credit history utilizing these tips. You may not see outcomes right away, however, if you stick with the suggestions previously mentioned. you might shortly get started to check out a mild with the end in the tunnel. Resolve your credit and obtain all set for fiscal independence.

Tags: credit score, finance, fix your credit, how to improve credit

AUSTIN, Texas, Feb. 1, 2012 /PRNewswire/ — Interest rates on new credit card offers fell to their lowest levels in more than five months, according to the CreditCards.com Weekly Credit Card Rate Report.

(Logo: http://photos.prnewswire.com/prnh/20090210/CCLOGO)

­The average is composed of 100 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category. Introductory (teaser) rates are not included in the calculation.

Rates for card categories tracked by CreditCards.com are listed below:

Credit Card Averages

The average annual percentage rate (APR) dropped to 14.91 percent — its lowest level since it hit 14.9 percent in August 2011. Rates have decreased four times since late December when the national average hit its record high of 15.22 percent. 

Pentagon Federal Credit Union (PenFed) caused the decline, lowering the interest rate for its Visa Platinum Cash Rewards card from 13.99 percent to 9.99 percent. PenFed spokeswoman Amy Doane confirmed the change. 

As a result of PenFed’s move, the average rates for balance transfer, cash back and rewards cards fell. For example, the average APR for a balance transfer card dropped to 12.60 percent, the lowest level seen since early 2010.

The CreditCards.com credit card rate survey (permalink: http://www.creditcards.com/rate-report) is conducted weekly, using offer data from the leading U.S. card issuers’ websites. Introductory offer periods and regular interest rates will vary with applicants’ credit quality and issuer risk-based pricing policies.

About CreditCards.com

CreditCards.com is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including a majority of the 10 largest in the United States, based on credit card transaction volume. CreditCards.com, http://www.creditcards.com, enables consumers to search for, compare and apply for credit cards and offers credit card issuers an online channel to acquire qualified applicants.  

Article source: http://finance.yahoo.com/news/creditcards-com-weekly-rate-report-220900325.html

Tags: credit report

To: BOOK AND NATIONAL EDITORS

WASHINGTON, Feb. 1, 2012 /PRNewswire-USNewswire/ — In a new report released at the World Economic Forum in Davos last week, Credit Suisse highlighted First Book‘s ground-breaking work as a prime example of a successful social enterprise.

The report, “Investing for Impact: How social entrepreneurship is redefining the meaning of return”, from Credit Suisse Research in collaboration with the Schwab Foundation for Social Entrepreneurship, provides the global financial community with insight into the major trends shaping impact investing around the world. First Book is included as one of five organizations providing “innovative yet pragmatic approaches to solving social problems”.

First Book is a nonprofit that provides new books to schools and local programs serving children from low-income families. Founded twenty years ago, First Book reaches a network of 27,000 schools and programs in the United States, plus 500 more in Canada, and has distributed over 85 million books to kids in need.

“We’re pleased that the global investment community is paying attention to First Book and our impact,” said Kyle Zimmer, First Book’s president and CEO. “Along with other organizations around the world, we’re charting the way to civil societies, and the support from these institutions will ensure that we have the resources to scale upwards to meet the considerable need.”

The report highlights First Book’s history of “transforming conventional practice” in the publishing industry to ensure better results for everyone: quality books at affordable prices for children in need and access to a new, untapped market for publishers.

Over its 20-year history, First Book has continued to develop new models, including the First Book Marketplace, where members of the First Book network can get new, award-winning books at affordable prices, and the National Book Bank, where they can receive donated books from publishers free of charge.

The report also features First Book’s plans for international expansion – a two-year pilot project bringing books to tens of thousands of children living in poverty in Mumbai. First Book is currently seeking funding for its pilot project in India.

About First Book

First Book has distributed more than 90 million books and educational resources to programs and schools serving children from low-income families throughout the United States and Canada. By making new, high-quality books available on an ongoing basis, First Book is transforming the lives of children in need and the elevating the quality of education. For more information, please visit us online or follow our latest news on Facebook and Twitter.

SOURCE First Book

-0-

Article source: http://news.yahoo.com/credit-suisse-hails-first-books-innovative-report-released-164437286.html

Tags: credit report

NEW YORK (Reuters) – In a rare criminal prosecution to emerge from the financial crisis, two former Credit Suisse traders admitted on Wednesday to conspiring to manipulate the value of about $3 billion in subprime mortgage-backed securities in order to hide losses as the U.S. real estate market began to collapse in 2007.

The men, London-based David Higgs, 42, and Salmaan Siddiqui, 36, of McLean, Virginia, pleaded guilty in U.S. district court in New York to a criminal charge of conspiracy to falsify books and records and commit wire fraud.

Their one-time boss, Kareem Serageldin, 38, a U.S. citizen who lives in Britain, faces the same conspiracy charge and additional charges of falsifying books and records and wire fraud. Federal prosecutors said they do not consider Serageldin a fugitive even though he has yet to appear in the United States to answer to the charges.

There have been few prosecutions of individuals at high-profile banks for conduct that contributed to the financial crisis, but the Obama administration says it is stepping up investigations over the collapse of the subprime housing market.

Beginning in the fall of 2007, the three men and others began to manipulate the bond markets to alter Profit and Loss (PL) numbers, according to phone calls recorded under Credit Suisse policy, the indictment of Serageldin said.

“If you want (PL) to be a big number let me know what you want, then I’ll just go through it with (Higgs) because obviously I can move things back to where they were … if you’re looking for a big number today…” one of the traders said in a September 13, 2007 phone call with Seragaldin, the indictment said.

The investigation stems from $2.85 billion in writedowns that Credit Suisse took on collateralized debt obligations in 2008. Credit Suisse revealed those CDO losses in early 2008 and blamed them on a group of rogue traders who deliberately mispriced securities and on a failure of internal controls.

Credit Suisse was not charged in the case. A spokesman for the bank declined to comment on Wednesday. The company has cooperated with the government’s investigations.

Separately, the U.S. Securities and Exchange Commission filed civil charges against Serageldin, Higgs, Salmaan Siddiqui and a fourth trader, Faisal Siddiqui. The Siddiquis are not related.

Serageldin’s lawyer, James McGuire, said his client “believes he has done nothing wrong and nothing illegal.” McGuire said that over a four-year-long investigation, Serageldin had fully cooperated with authorities in Britain and the United States, including five or six interviews.

“The indictment comes as some surprise to us.”

A lawyer for Faisal Siddiqui could not immediately be reached to comment. Higgs’ lawyer declined comment after his court appearance and Salmaan Siddiqui’s lawyer said his client had been cooperating with the probes for some time.

Robert Khuzami, head of the SEC’s enforcement division, said in a statement that “the senior bankers falsely and selfishly inflated the value of more than $3 billion in asset-backed securities in order to protect their bonuses and, in one case, protect a highly coveted promotion.”

In the case of Higgs and Salmaan Siddiqui, federal prosecutors brought a single conspiracy charge carrying a maximum prison term of up to five years, but not a charge of securities fraud, which carries a prison term of up to 20 years.

The additional substantive charge brought against Serageldin does carry a maximum possible prison term of 20 years. Serageldin had been managing director/global head of structured credit at Credit Suisse in charge of Higgs and other traders.

“While the housing market was collapsing, the defendants profited, not by correctly predicting the trend, but by cooking the books,” FBI Assistant Director in Charge Janice K. Fedarcyk said in a statement.

Higgs told a federal judge that while he was a managing director in the investment banking division of Credit Suisse in London in 2007 and 2008, he and others manipulated and inflated the cash bond position markings of a trading book, called ABN1, to hide losses.

“As a result of my actions, senior management of Credit Suisse was given the false impression that the ABN1 book was profitable and caused Credit Suisse to report false year-end numbers for 2007 in their books and records,” Higgs said in court.

He said he altered the records because he wanted to remain in good favor with Serageldin and “enhance” his job performance. He said he stood to receive a year-end bonus. Salmaan Siddiqui, at a separate plea proceeding, told a similar story about the way the traders falsified records.

The indictment said that Serageldin directed the scheme to improve his job performance and make him eligible for bonuses and promotion. His 2007 bonus was more than $1.7 million and his Incentive Share Unit Award was more than $5.2 million, the office of Manhattan U.S. Attorney Preet Bharara said. The $5.2 million was rescinded by Credit Suisse.

Bharara said on a conference call with reporters that Serageldin is not considered a fugitive, but the government would extradite him if necessary to face the charges.

“It is a tale of greed run amok, piggybacking on one of the worst economic dislocations our nation has ever experienced,” Bharara said.

Officials said the victims in this case were really the shareholders of Credit Suisse because Credit Suisse’s proprietary positions had been manipulated.

Higgs, who apologized for his conduct, said in court that his boss and others had known about the manipulation and assisted in it. He looked dejected and spoke quietly in describing his conduct to U.S. District Judge Alison Nathan.

Higgs and Salmaan Siddiqui were released on $500,000 bond each. Higgs will be allowed to return to his home in Britain while the investigation continues.

In court, Higgs said traders were required to price securities that they held on a mark-to-market basis of the current market price of the asset or liability or similar assets or liabilities, according to accounting standards and the bank’s policy.

Beginning in 2007 when the U.S. real estate market slumped and mortgage delinquencies increased, the value of securities backed by mortgages decreased and the market lost its liquidity.

Higgs told the judge that he and others manipulated the records “rather than mark these securities down to market as we were required to do.”

(Reporting by Grant McCool and Basil Katz in New York, Sarah N. Lynch in Washington DC; Editing by Lisa Von Ahn, Andre Grenon, Steve Orlofsky and Dale Hudson)

Article source: http://news.yahoo.com/u-charge-ex-suisse-traders-subprimes-sources-010811053.html

Tags: credit report

MCLEAN, Va.–(BUSINESS WIRE)–

Capital One Financial Corporation (NYSE: COF – News) announced today the launch
of Journey Credit Tracker (www.journeycredittracker.com),
a new interactive online credit education tool* available exclusively
for Journey^SM Student Rewards Credit Card customers. The
customized tool powered by Credit Karma offers Journey cardholders
access to their monthly TransUnion®** credit score and profile in
addition to a variety of tools to help them learn about credit – all at
no cost.

“The Journey card was custom designed for students to help them
familiarize themselves with how credit works and build a strong credit
history responsibly,” said Mike Wassmer, EVP, US Card at Capital One.
“We want to equip our student cardholders with information and tools to
help them make good financial choices, and the Journey Credit Tracker
will allow students to understand the impact of their financial choices
and track their progress on the path to building a strong credit
foundation and a bright financial future.”

While all consumers are entitled to free credit reports under the law,
the Journey Credit Tracker web site goes much further, providing
students with interactive tools that allow them to quickly and easily
monitor their credit score and keep tabs on different credit factors
impacting their score. Users can also compare their credit score to that
of their peers by age or location, and the “Credit Simulator” lets users
virtually simulate how certain financial choices will impact their
credit score. In addition, users can access relevant credit education
information, including credit facts, tips and quizzes.

Launched in December 2010, the Journey Student Rewards Card has been
recognized as one of the top cards for students by experts such as Smart
Money Magazine, Kiplinger Personal Finance, CBSMoneyWatch.com and
NerdWallet.com. Journey is designed to help college students build their
credit with confidence and reward them for responsible credit use. The
card offers straightforward cash rewards with 1% cash back on all
purchases and an additional 25% bonus on the cash earned each month that
cardholders pay their bill on time. The card comes with a low initial
limit, plus tools such as free customizable text/email alerts to help
students manage credit by keeping track of their spending and due dates.

To learn more about Journey Credit Tracker, visit www.journeycredittracker.com.
For more information on the Journey card, visit www.capitalonejourney.com

*Depending upon the length of their credit history, customers should
be able to take advantage of this tool within 6 months

**The provided credit score is based on TransUnion’s credit file and
is calculated by TransUnion’s New Account Model. While this credit score
is indicative of one’s overall credit risk, it is only one of many
scores available in the marketplace and may not be used by all lenders.”

About Capital One

Capital One Financial Corporation (www.capitalone.com)
is a financial holding company whose subsidiaries, which include Capital
One, N.A. and Capital One Bank (USA), N. A., had $128.2 billion in
deposits and $206.0 billion in total assets outstanding as of December
31, 2011. Headquartered in McLean, Virginia, Capital One offers a broad
spectrum of financial products and services to consumers, small
businesses and commercial clients. Capital One, N.A. has approximately
1,000 branch locations primarily in New York, New Jersey, Texas,
Louisiana, Maryland, Virginia and the District of Columbia. A Fortune
500 company, Capital One trades on the New York Stock Exchange under the
symbol “COF” and is included in the SP 100 index.

About Credit Karma

Credit Karma is a completely free credit management service that
provides free credit scores, personalized savings recommendations, and
financial education. Credit Karma believes free access to one’s credit
score is a fundamental consumer right. Credit Karma helps more than 3
million consumers realize the everyday cost savings of having a good
credit score. For more information, visit www.creditkarma.com.

Capital One Financial Corporation
Sukhi Sahni, 703-720-2390
sukhi.sahni@capitalone.com

Article source: http://finance.yahoo.com/news/capital-one-offers-credit-score-140000986.html

Tags: credit score

NEW YORK (MainStreet) — Premium rewards cards and low annual percentage rates are typically reserved for the credit elite, but growing competition has led many issuers to widen their target market.

That means credit card holders with so-so credit — scores between 650 and 699 — don’t need to resort to using a subprime product to improve their score. We talked to experts to find out which cards offer the best terms for these cardholders.

There are good credit cards available even to people with a so-so credit score.

Capital One No Hassles Cash Rewards Card

This Capital One(COF) card is notable for its rewards program, which offers 2% cash back on gas and groceries and 1% cash back on all purchases made by cardholders. The card does carry a 17.9% to 22.9% variable APR and a $39 annual fee, but Beverly Harzog, a credit card expert with Credit.com, says that’s reasonable for a rewards card in this category.

Orchard Bank Secured Card

If it’s a low-interest card you’re after, you might want to sign up for Orchard Bank‘s secured card, which features a low APR of 7.99%. (As we have reported, secured cards require customers to put down money upfront to cover the line of credit and thereby minimize the risk of default.)

“That’s pretty low among all credit cards,” says Anisha Sekar, vice president of credit and debit products with credit card ranking site NerdWallet. The card carries a $35 annual fee, but it is waived for the first year.

Resolutions 2012: Destroy Debt

Visa Platinum Preferred Credit Card From Associated Credit Union

Another option for people not interested in paying a sky-high interest rate is this Visa(V) card from Atlanta-based Associated Credit Union, which allows new members to apply online. According to Sekar, those with a FICO score higher than 680 can qualify for a variable 9.9% APR offered by the credit union, while those with a score of 600 will qualify for a 12% variable APR.

Additionally, the card carries no annual fee and there is also no charge for balance transfers.

Journey Student Rewards Card From Capital One

“This is a good card for students working on their credit,” Harzog says, since it allows cardholders to earn extra rewards when they use the card wisely. Students get 1% cash back on all purchases and a 25% bonus on their cash-back rewards each month they pay their bills on time. The card also carries no annual fee, but does feature a high APR at 19.8%.

Not all credit cards marketed to the credit elite live up to their hype. Find out which cards you aren’t missing out on in our roundup of the most overrated cards of 2011.

To submit a news tip, email: tips@thestreet.com.

Follow TheStreet on Twitter and become a fan on Facebook.

To order reprints of this article, click here: Reprints

Article source: http://www.thestreet.com/story/11394384/1/best-cards-you-can-get-with-a-mediocre-credit-score.html?cm_ven=RSSFeed

Tags: credit score