Bank of America in Record $16.7 Billion Mortgage Settlement
August 21st, 2014If you think that sounds like a big number, notice the part in bold below.
Anyway, what’s the U.S. government going to do with its cut?
Send more tanks to collapsing American cities?
Via: BBC:
Bank of America has agreed to pay a record $16.7bn (£10bn) to US authorities for misleading investors about the quality of loans it sold.
The loans were sold by Countrywide Financial and Merrill Lynch before Bank of America bought them in 2008, at the height of the financial crisis.
The associate attorney general said “no institution is either too big or too powerful to escape” punishment.
The settlement will cut the bank’s third-quarter profits by $5.3bn.
Bank of America will pay a total of $9.65bn in cash and provide consumer relief worth about $7bn, much of which will go towards homeowners struggling with their mortgages.
The cash component consists of a $5bn civil penalty and $4.63 billion in compensation payments.
