Title















Site Registration | Find a Copy | Event Calendar | Site Map
The Voice of the Black Community
CPF Inaugural Golf Tournament
My business story

We’re in the business of telling the Queen City story with an African-American perspective.www.thecharlottepost.com

Posted by The Charlotte Post on Monday, March 7, 2016

State & National

BofA, Justice reach $17B settlement
Record deal requires payouts for mortgage relief
 
Published Thursday, August 21, 2014 8:15 am
by Pete Yost and Marcy Gordon, Associated Press

WASHINGTON – The government has reached a $16.65 billion settlement with Bank of America over its role in the sale of mortgage-backed securities in the run-up to the financial crisis, the Justice Department announced Thursday.


The deal calls for the Charlotte-based bank, the second-largest in the U.S., to pay a $5 billion cash penalty and provide billions of dollars of relief to struggling homeowners. Bank of America said its cash payouts will total $9.65 billion.


The settlement is by far the largest deal the Justice Department has reached with a bank over the 2008 mortgage meltdown. In the last year, JPMorgan Chase & Co. agreed to a $13 billion settlement while Citigroup reached a separate $7 billion deal.


"This historic resolution - the largest such settlement on record - goes far beyond the cost of doing business," Attorney General Eric Holder told a news conference. "Under the terms of this settlement, the bank has agreed to pay $7 billion in relief to struggling homeowners, borrowers and communities affected by the bank's conduct. This is appropriate given the size and scope of the wrongdoing at issue."


Associate Attorney General Tony West said the settlement of nearly $17 billion is the largest the Justice Department has ever reached with a single entity in American history.


At a news conference, Justice Department officials said the settlement does not release individuals from civil charges, nor does it absolve Bank of America, its current or former subsidiaries and affiliates or any individuals from potential criminal prosecution.


Of the $16.65 billion, almost $10 billion will be paid to settle federal and state civil claims by entities related to residential mortgage-backed securities, collateralized debt obligations and other types of fraud.


An independent monitor will determine whether Bank of America is satisfying its obligations under the settlement.

Comments

Leave a Comment


Send this page to a friend

Upcoming Events

read all
26

STEM Summer Camps

This summer we are hosting our STEM Summer Camps

27

STEM Summer Camps

This summer we are hosting our STEM Summer Camps

28

Collection of Meteorites

The meteorite collection is on display throughout

Latest News

read all

South End neighbors bid good-bye to eclectic Camden Road block

Common Market, artists move out July 30

Michael Jordan on violence, social unrest: 'I grieve with the families'

Donates $2 million to community engagement

Charlotte Independence needs points on the road

Road swing starts at Pittsburgh Riverhounds