Title















Site Registration | Find a Copy | Event Calendar | Site Map
The Voice of the Black Community
Delhaize Food Lion

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
25

Community Blood Drive

Students Saving Summer Scholarship Opportunities:

26

Denali Moose Tracks 10,000 Scoops Challenge Benefiting The Salvation Army

THIS SUMMER, DENALI MOOSE TRACKS ICE CREAM

26

Party in the Park

Latest News

read all

Hospice care aims for best quality of life on holistic level

Early consideration, decision recommended

Plaintiffs expand federal lawuit against NC's 'bathroom law'

Opponents push back against HB142

Prepare for PGA Championship week at Quail Hollow Club

Tips to get ready for golf major