From Seeking Alfa…. “BofA agreed to pay the federal government $1 billion to settle claims made before April 2009 that it’s home loan subsidiary, Countrywide Financial Corp, made mortgages insured by the FHA to unqualified borrowers. Bank of America bought Countrywide Financial Corp in 2008.
Others Banks Embroiled
Already, U.S. Attorney Preet Bharara has brought several cases against banks that violated FHA program requirements. While the case against Wells Fargo & Co is still pending, in 2012, Deutsche Bank AG has settled for $202.3 million, Citigroup (C) for $158.3 million, and JP Morgan Chase (JPM) for $164 million.
All of these federal fraud lawsuits have one thing in common: in recent years, the big lenders have been using the program for “reckless” lending practices. Since the financial crisis, BofA has paid well over $50 billion in litigation costs–much of which has been related to the mortgage lending practices of its subsidiary, Countrywide Financial Corp.”
This is not a good sign, caution would be advised if you are an invester in BAC or other banks under investigation. -Jack
I think we can all agree that any individuals who actually broke laws should be severely punished.
I hope our readers have been following the reports I have posted about the ways government, under several administrations and by enacting incredibly stupid regulations, have manipulated, threatened, and bullied bankers and lenders to do their bidding. I know its difficult to feel sorry for them since they make big salaries and all that but it should matter when authority in government uses power to force bankers to make bad loans, buy failing banks and then hold them responsible for the harm those banks did to their customers. This looks more like a witch hunt to me than an serious attempt to find culpability. And if you don’t think government can make it had on bankers think again. They can mess with your credit rating, they can keep you entangled in expensive litigation for years on end. And as Jack pointed out this can really hurt your bottom line with investors bailing left and right. Ca’t blame investors it’s impossible to know the truth.
Stupid regulations? Cause the wall street types never do anything wrong?
The crash was because of regulation cause why? the rules say rip off Americans?
The banks need to be regulated more!
LOL the next crash will be big! They are even trading rents! lol
I can not wait for the crash!