Fannie & Freddie Urged To Sue Over Libor, BofA Rejects Broker Pay Cut: Financial Business Review
Barclays (NYSE:BCS) and UBS (NYSE:UBS) could soon see their legal travails intensify if Fannie Mae and Freddie Mac follow the advice of an internal report by a federal watchdog that was sent to the mortgage companies’ regulator and reviewed by The Wall Street Journal. The report said that Fannie and Freddie could have lost in excess of $3 billion resulting from the banks’ alleged manipulation of a key interest rate. The unpublished report urges the two to consider suing the banks involved in setting the Libor, adding to the mounting legal problems they already face from insurers, cities, investors and lenders over claims linked to the benchmark rate.
Prospect Capital Corporation (NASDAQ:PSEC) on Thursday increased total commitments to its five year, $650 million revolving credit facility by $35.0 million to an aggregate of $552.5 million. The facility includes an accordion feature allowing Prospect to accept a total amount of $650 million of revolving commitments which the firm anticipates reaching with additional and existing lenders. The new $35 million commitment is from a new lender, bringing the total number of lenders to seventeen. Prospect Capital holds an investment grade Moody’s rating of Aa3.
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According to a knowledgeable source, Chief Executive Brian T. Moynihan of Bank of America Corporation (NYSE:BAC) blocked a proposal to reduce the main component of pay for most brokers for next year. The defeated plan would have shrank the so-called grid payout for Merrill Lynch financial advisers by two percent.
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