Bank of America Settles Fraud Claims for Record $16 Billion


I’ve never been anti-big bank or anti-Wall Street. I do, however, have a few words from the realty trenches that need to preface this article. It’s been painful to see, firsthand, the untold voiceless suffering and damage done to too many responsible homeowners victimized by others who have gone astray – the greedy and the powerful who pull the levers.

The below article explains that another bank “relieved” (negotiated?) itself of a Department of Justice fraud suit. In doing so it leaves little doubt, once again, that these big banks and their Wall Street cohorts concocted and caused the greatest collapse of the world’s economy since the Great Depression . Is that not criminal? (see CDOs). Yes, settlements are legal but what does it say to pay away a fraud suit? And, why would anyone agree to hand over gobs of money if not guilty?

The Great Recession’s fallout caused incalculable life altering harm to millions of innocent hard-working people who never before missed a mortgage payment, people with pride, with ethics. Too-Big-To-Fail wheels a deal, cuts a check, and all is well; though not so well for their fellow citizens (and the “settlement” is a small portion of their tainted, ill-gotten profits). Then these companies make sure their CPAs enter the amount into their Accounts Payable column – noting it’s tax deductible, and an operating cost of doing business (sic).

So, the big banks caused the collapse, got bailed out, and foreclosed on their customers – making lots more money doing so (note quarterly reports).

As you can see, my firsthand witnessing of the collateral damage done since 2007 by some of these entities has, indeed, altered my perspective. Article below:

Bank of America announced Thursday morning it has agreed to pay a record $16.65 billion to resolve claims of financial fraud in the sale of toxic mortgage-backed securities during the years leading up the financial crisis.The settlement, which comes after months of reportedly heated negotiations, is the largest civil settlement with a single entity in the history of the United States, eclipsing last year’s record-setting $13 billion agreement between the U.S. Department of Justice and JPMorgan Chase. That settlement was over similar matters.According to the announcement, Bank of America has agreed to pay a total of $9.65 billion in cash to the Justice Department, various federal regulators, and the states of California, Delaware, Illinois, Kentucky, Maryland, and New York.The remaining $7.0 billion will come in the form of consumer relief, including mortgage modifications, community stabilization efforts, and enhanced efforts to lend to low- and moderate-income communities.