Justice Dept. may seek $13B from Bank of America

Market Watch ^ | April 25, 2014 | By Barbara Kollmeyer

[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.

[sauron]

The banks have probably calculated it's easier to cave to Obama's demands rather than fight. Less costly, in terms of dollar payout.

Still...if I were in charge, I'd spend $22B on commercials beating Obama and the Democrats over the head on the attacks on banks dating back to the late 1980's by the Dems--so-called "redlining" and the threats to regulate the banks unless they made more (bad) loans to minorities to increase home ownership, as well as raising public awareness about the effect of the Community Reinvestment Act and various congre$$ional threats were made to induce more (bad) bank lending to those who could never hope to repay their loans.

Spend the money in a fruitless, in-yer-face, stick-it-in-your-eye show of force--yes, banks have money, and we have corporate free speech rights (thanks to Citizen's United) and we're gonna do some muscle flexing.

So back off, Barry!

[Graewoulf]

Note to US House Speaker John Boehner:
This is part of the Documentation File for the upcoming 2014 Impeachment of B. Hussein Obama to be used by the House Special Prosecutor on “Bolshevik-stylle Campaign against Capitalist Bankers” that has not yet been appointed by you, Speaker Boehner, as Speaker of the US House of Representatives, for reasons known only to yourself and Obama.

_____________________________________

* Personal comment footnote:
With each passing day that the US House Members does not replace Speaker Boehner, Speaker (?) Johnny Boehner continues to be THE Poster Boy for what is rotten in the formerly GREAT Republican Party, and the current US House of Representatives.

[Cementjungle]

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.

Same deal here... then I eventually refinanced with Quicken, and a month later they sold the new loan back to GreenTree.

[Noob1999]

Shakedown??

For sure, but why were you all silent when JP Morgan/Chase was hit for multibillions because it was forced to take over the stinking fraud ridden portfolio from Washington Mutual???

[Grams A]

When I spoke with Quicken about a possible refinance to get away from BOA, they assured me they didn’t sell their loans! Really aggravating. No wonder lenders are laying off people. Doesn’t seem to be any honest ones out there any more.

[Oldeconomybuyer]

Hey, the whole subprime mess was a result of government making loan decisions for banks/lenders. A 25 year cluster. Red lining led to TARP.

If Eric Holder can prove criminal violations he should go to court. Otherwise, he’s doing a Jesse Jackson shakedown because he knows these banks will settle to appease shareholders rather than fight in court. And Holder is making it personal by threats to corporate officers. This is nothing less than a direct transfer of wealth from shareholders to government.