Posted on 04/25/2014 9:53:13 AM PDT by Oldeconomybuyer
U.S. prosecutors could make Bank of America Corp. pay more than $13 billion to resolve probes into the lender's sale of bonds backed by home loans in the run-up to the 2008 financial crisis, Bloomberg reported on Friday.
Last month, the bank agreed to pay $9.5 billion to resolve Federal Housing Finance Agency claims, and the new settlement would come on top of that, according to Bloomberg.
(Excerpt) Read more at marketwatch.com ...
two peas in a pod
The unanswered question is whether the money will go to the government, or to community activist organizations.
Most definitely a shakedown. That’s the ONLY thing the Obama Regime has any ability to do successfully.
So it amounts to a claw-back?
IIRC,Lewis wanted absolutely no part of the bailout and now BOA is being hounded to the tune of 22 billion? BOA was forced to take over Countrywide and now this???
Damned if I wouldn’t tell then to shove it....
You know, how many of these TBTF banks have had to pay these huge penalties to the Feds? I’ve read of numerous cases in the last few years. I have to wonder where all of these millions/billions of dollars are going to? Whose budget are they being added to? Is this something that is able to be tracked in order for the public to be able to see how the Federal government accounts for these penalty fees?
If I had to take a guess, the penalty fees are really being treated as campaign contributions for the democrats.
“The unanswered question is whether the money will go to the government, or to community activist organizations.”
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They are becoming the same in large measure.
Money laundering out in the open.
Meanwhile, the banks charge huge fees to their customers to make up for their “losses”.
BOA self-destructed when it bailed out the mortgage collapse (for awhile anyway) by buying out Hometown Mortgage and absorbing that financial mess.
Correction...it was Countrywide they bought out
Extortion...............legal extortion.................
They “bailed out” the subprime mess with a gun at their head, and largely with taxpayer dollars.
I have two problems with these ‘settlements’. If someone broke the law, file criminal charges and put them in jail. These DOJ actions represent a transfer of wealth from shareholders to ericholder. Second, BoA operated in one of the most regulated industries in America. Their actions pre and post-bubble were under the direction of Barney Fwanks and Chris Dodd. They should be paying fines or behind bars.
Hillary 2016 campaign!
“Because of OUR DEMANDS that you provide loans to financially unqualified people, “YOU” caused FEDERAL institutions to lose money, by buying your risky loans....that WE MADE YOU WRITE....”
Exactly. These settlements are not a form of government persecution against business, quite the opposite. These settlements are legalized post-facto bribes that allow politically connected banks to break the law repeatedly as long as they give back some of the loot when they are caught. Imagine applying this system of law enforcement to property crime, or even to low level white collar crime.
I originally had a loan under one company, then it was sold to Countrywide who sold to BOA and it is now with a company called Gree Tree. Same thing happened to three of my neighbors who bought homes at the same time.
It is just a total mess for all of us.
I have no love for B of A, none, zero. But just once, I would like to see for their $13 billion the most vicious legal assault on the DOJ possible, demanding triple damages, including clawback of all amounts previously paid for being forced to buy Countrywide.
bfl
Fines mean nothing to these bastards. Throw their asses in jail. When the upper management of BOA is in prison, the other banking bastards will sit up and pay attention.
Fining them is worthless. It’s just money to them.
For what it’s worth, I’ve heard Green Tree mortgagees complain about that company on the Dave Ramsey show and other financial advice programs, including Clark Howard.
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