US - The SEC has approved a request by the New York City Pension Funds to hold a shareholder vote asking Bank of America and Citigroup to review their foreclosure and mortgage practices.
New York City asked for reviews of these practices as far back as July and in November filed proposals with the banks to review their procedures. (Global Pensions; 17 November 2010) However, the banks said they had already conducted an independent review of their practices.
"Despite banks' claims that foreclosure problems are merely technical glitches, regulators have found that robo-signing of foreclosures, missing mortgage documents, and other problems have caused widespread economic damage," read a release from Comptroller John Liu.
The SEC's ruling puts the request on the ballot at the firms' meetings this spring, said Liu. The SEC allowed JPMorgan Chase to remove the proposal from its ballot because another group of investors had already filed a similar proposal.
In January, the NYC funds teamed up with seven others and wrote an open letter to the directors of Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, the coalition called for the banks' audit committees to launch independent examinations of their loan modification, foreclosure, and securitisation policies and procedures.(Global Pensions; 10 January 2011)
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
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