TheCountOfNowhere Posted August 21, 2014 Share Posted August 21, 2014 (edited) http://www.bbc.co.uk/news/business-28880307 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. Edited August 21, 2014 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 21, 2014 Share Posted August 21, 2014 ........ For misselling mortgage backed securities. Breaking news on BBC. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted August 21, 2014 Share Posted August 21, 2014 I guess its a stupid question if I ask will the money be going to those missold or to the government? Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted August 21, 2014 Share Posted August 21, 2014 oh, no, a whole $4.63 bn goes as compensation. The rest disappear's into 'consumer protection' (ie some bureaucratic govt scam) Quote Link to comment Share on other sites More sharing options...
Bossybabe Posted August 21, 2014 Share Posted August 21, 2014 Is that all? I thought you wrote misspelling! Quote Link to comment Share on other sites More sharing options...
GloomMonger Posted August 21, 2014 Share Posted August 21, 2014 Does this money go to the Fed who then loan it back at a cheap rate for new mortgages? Quote Link to comment Share on other sites More sharing options...
katchytitle Posted August 21, 2014 Share Posted August 21, 2014 To be fair the scams were at Merrill Lynch and Countrywide not BoA. But they have the ultimate responsibility to pay. TBH this will be seen as the cost of doing business and no doubt BoA's share price will be up on the news as it presents certainly on the financials. The only way to punish a bank is to prevent them making loans to break up their business. The rest is irrelevant. Think about it, if you get a guaranteed income every month and then one day someone take a few months of income away, you can just keep going and borrow against your future income if you need to. Just humans playing the system... Quote Link to comment Share on other sites More sharing options...
Quicken Posted August 21, 2014 Share Posted August 21, 2014 Slap on the wrist for their part in the spectacularly fraudulent financial alchemy of mortgage-backed securities. The claim to have converted subprime lead into AAA gold is something only charlatans could have come up with; ratings agencies and regulators should have been very, very sceptical. Criminal action and inaction all round. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted August 21, 2014 Share Posted August 21, 2014 misselling Is this the same as a benefit fraudster 'misclaiming' some benefits? Or what about a bank robber' misacquiring' some bags of cash? Funny how it's ok for the banks to rob the people, but if the people rob the banks they get jail time. Quote Link to comment Share on other sites More sharing options...
Thomas Hearns Posted August 21, 2014 Share Posted August 21, 2014 To powerful to prosecute Quote Link to comment Share on other sites More sharing options...
billybong Posted August 21, 2014 Share Posted August 21, 2014 (edited) In the UK it used to go towards reducing the fees the banks paid to the regulator as apparently the banks fund their own regulation. So the fines indirectly went back to the banking system. However since April 2012 it's apparently changed and fines now go to the Treasury/government who give it to armed forces charities and the military community plus the police, ambulance and fire service (although it might also go to government general expenditure). Apparently in 2012 there were fines of about £341 million and in 2013 upto about December there were fines of about £500 million - and the BBC accounts for about £135 million of that going to the armed forces charities etc. 11 December 2013 http:// www.bbc.co.uk/news/business-25214567 It would be interesting to have the remainder accounted for - about £706 million by December 2013? and probably a remainder of more than £1 billion by now. If it was for government general expenditure what was it spent on. Help To Sell? some other property related bailout scheme? not to those who suffered due to the financial sector's malpractices? Edited August 21, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.