BofA Could Pay at Least $12 Billion to Settle Probes
Matt Rourke/AP
By Sudarshan Varadhan

Bank of America (BAC) could pay more than $12 billion to settle probes by the U.S. Justice Department and a number of states into the bank's alleged handling of shoddy mortgages, The Wall Street Journal said Thursday, citing people familiar with the negotiations.

At least $5 billion of that amount is expected to go toward consumer relief consisting of help for homeowners in reducing principal amounts and monthly payments, and paying for blight removal in struggling neighborhoods, the paper said, citing people with knowledge about the issue.

A BofA spokesman declined to comment on the issue. The Department of Justice also declined to comment on the matter.

The second-largest U.S. bank faces multiple government probes over the underwriting, sale and securitization of residential mortgage bonds before the financial crisis.


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alfredschrader

Not how it works. They sign a mortgage to a borrower that is sure to default and then insure that mortgage for 110% . On a $100,000.00 mortgage that's an instant $10,000 profit less insurance fees, around $8,000 instant profit. Then, the FDIC bails out the bank to the penny for zero expenses - for the bank a win-win-win. For you and me and the homeowner - we lose.

June 17 2014 at 7:44 AM Report abuse rate up rate down Reply
pipetsa

TOO LATE FOR MANY AND HOW DUMB WE WERE WITH BAILOUTS.

June 09 2014 at 2:21 PM Report abuse rate up rate down Reply
jjychicagoorganizeusanow

You and I are fools for wasting your precious life here while you could be organizing people to change our crazy country. Anonymous statements have no real value anywhere and anytime.
We have to work together no matter what your particular political views are. We all have far more in common than any of us realize!
Thinking that any particular president, democrat or republican is good or bad is naive. Our whole country is in a continuous state of STUPID! And we fall into Stupid when we do not take political action ourselves. All the citizens of the USA have unlimited power to bring healthy change to our country, but only if we work together! In spite of the knowledge that we are all different in ways, we must remind ourselves that we have millions of issues in common.
As long as we are divided politically, we are weak and powerless. Do not get bogged down in the stupid of democrat vs republican vs independent.
Life is far more complex than any party can define. Whenever we vote anyone into office, we must demand that they bring healthy change for all of us and keep doing so, or we will have to vote them out of office, even midterm if necessary.
Via all the change petitions forms online, we can keep voting for things that are better than the current disaster we are living.
Write to me if you really want to change our crazy world. jjyChicagoOrganizeUSANow@aol.com

June 09 2014 at 10:46 AM Report abuse rate up rate down Reply
MICHAEL

BofA sold millions of mortgage loan packages to 'wanna be' mortgage Companys (MORTGAGE SERVICERS) that knew they could make millions doing things they knew 'NOTHING' about !! These 'PSEUDO' servicers bought these packages for 50 cents on the $. One of those phony lawbreaking servicers is called OCWEN FINANCIAL,and is CURRENTLY ILLEGALY BILLING thousands of Mortgage customers.' OCWEN' is simply NEW CO. spelled backwards Backwards is an aptly selected style identity for them! Shows thier level of intelligence !! Watcch out for them. !!!

June 07 2014 at 1:14 AM Report abuse +3 rate up rate down Reply
Stephen

A mere pittance for Bank of (Screw) America which they will wasily make up by charging the average depoiter a whole lot of money and agravation and have the Republican House just delay the payments for 50 years.

June 06 2014 at 11:40 PM Report abuse +1 rate up rate down Reply
chemconst

when will bankers who break laws & do illegal things go to jail like anyone else that breaks the law.

All they do mis take some of their profits, pay a fine and then it's business as usual

Our attorney generals are aiding & abetting those who break the law and should be tried themselvbes, for this non-sense.

June 06 2014 at 11:26 PM Report abuse +5 rate up rate down Reply
dmcreynolds

This is a simple extortion plot by the US Justice Dept. to redistribute the equity/ wealth of shareholders of Bank of America to someone the Justice Dept. thinks is more deserving. Indirect and expanded welfare program, all American's jump on and run this country further down the drain.

June 06 2014 at 10:24 PM Report abuse -3 rate up rate down Reply
1 reply to dmcreynolds's comment
mac2jr

MBNA was 30,000 strong, then along came Bank of America, and now MBNA no longer exist.. Many of the 30,000 are now on Welfare and Food Stamps... America is going down the drain, and Corporate America is causing it to happen..

And that is the Truth....

June 07 2014 at 12:29 AM Report abuse +2 rate up rate down Reply
ricringer2

They always state bilions in fines and penalties, yet no one I know ever gets a penny, the government either takes all the money or they are just crooks and never pay a dime. Bank Of America should be out of business as far as I am concerned.

June 06 2014 at 9:48 PM Report abuse +4 rate up rate down Reply
1 reply to ricringer2's comment
mac2jr

B of A closed in Benson, AZ....

And that is the Truth....

June 07 2014 at 12:31 AM Report abuse rate up rate down Reply
gwalt0771

Sad to say that B of A won't close or even suffer from this, our gobvernment won't let them fail. But, the B of A is led by crooked mismanaging incompetents. Every time you turn around they're getting fined for abuses from the last decade.

June 06 2014 at 9:33 PM Report abuse +5 rate up rate down Reply
vsmith7682

You mean the mortgages they were MANDATED BY CONGRESS to approve to people who didn't have a chance in hades of ever paying back? Those shoddy mortgages?

June 06 2014 at 9:03 PM Report abuse -2 rate up rate down Reply
1 reply to vsmith7682's comment
mac2jr

The were no mandates to give anyone 'shoddy' mortgages, there were 'shoddy' managers and loan officers...

And that is the Truth....

June 07 2014 at 12:32 AM Report abuse +3 rate up rate down Reply