Bank of America Sucks

Comment from  Well, well, well… let’s have a look at who is involved here – ‘Bank of America will pay the most to borrowers as part of the deal — nearly $8.6 billion. Wells Fargo will pay about $4.3 billion, JPMorgan Chase roughly $4.2 billion. Citigroup will pay about $1.8 billion and Ally Financial will pay $200 million. Those totals do not include $5.5 billion that the banks will reimburse federal and state governments for money spent on improper foreclosures.’

Article from the Associated Press:

WASHINGTON (AP) — U.S. states reached a landmark $25 billion deal Thursday with the nation’s biggest mortgage lenders overforeclosure abuses that occurred after the housing bubble burst.

The deal requires five of the largest banks to reduce loans for about 1 million households at risk of foreclosure. The lenders will also send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal.

It’s the biggest settlement involving a single industry since a 1998 multistate tobacco deal.

Federal and state officials announced at a news conference that 49 states had joined the settlement. Oklahoma announced a separate deal with the five banks.

The settlement ends a painful chapter that emerged from the financial crisis, when home values sank and millions edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn’t read or used fake signatures to speed foreclosures — an action known as robo-signing.

Under the deal, the states said they won’t pursue civil charges related to these types of abuses. Homeowners can still sue lenders in civil court on their own, and federal and state authorities can pursue criminal charges.

“There were many small wrongs that were done here,” said U.S. Housing and Urban Development Secretary Shaun Donovan. “This does not resolve everything. We will be aggressive about going after claims elsewhere.”

Reducing loan principal will help some homeowners who are current on their payments but are “underwater,” meaning they owe more than their homes are worth.

But consumer advocates and housing activists said the deal is flawed because it covers only a fraction of at-risk homeowners. Critics note that the settlement will apply only to privately held mortgages issued from 2008 through 2011.

Banks own about half of all U.S. mortgages — roughly 30 million loans. Those owned by mortgage giants Fannie Mae and Freddie Mac are not covered by the deal.

“The deal announced today is too small,” said Pico National Network, a faith-based group that is active on housing issues. “It falls far short of providing real justice for homeowners and American families.”

Economists also cited the size of the deal: Some said it was hardly enough to have much impact on the troubled housing market.

The settlement will be overseen by Joseph A. Smith Jr., North Carolina’s banking commissioner. Lenders that violate the deal could face $1 million penalties per violation and up to $5 million for repeat violators.

About $10 billion of the settlement total will be used to reduce mortgage payments for underwater homeowners. Paul Diggle, an economist at Capital Economics, said that’s a “drop in the ocean,” considering that 11 million borrowers are underwater “to the tune of $700 billion.”

Mark Vitner, a senior economist at Wells Fargo Securities, said the settlement helps the housing market in the long run because it allows banks to proceed with millions of foreclosures that have been stalled. Many lenders have refrained from foreclosing on homes as they awaited the settlement.

“We’ve got a lot of issues to work our way through in the housing market,” Vitner said. “What thissettlement does is allow that process to get started.”

Bank of America will pay the most to borrowers as part of the deal — nearly $8.6 billion. Wells Fargo will pay about $4.3 billion, JPMorgan Chase roughly $4.2 billion. Citigroup will pay about $1.8 billion and Ally Financial will pay $200 million. Those totals do not include $5.5 billion that the banks will reimburse federal and state governments for money spent on improper foreclosures.

The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America acquired Countrywide in 2008.

“The settlement includes far reaching relief that will help many of our customers and complement our already extensive efforts to improve our borrower assistance efforts and servicing processes,” JPMorgan Chase said in a statement.

Under the deal, banks must make foreclosure their last resort. They are also barred from foreclosing on a homeowner who is being considered for a loan modification.

The banks and U.S. state attorneys general agreed to the deal late Wednesday after 16 months of contentious negotiations.

New York and California came on board late Wednesday. California has more than 2 million “underwater” borrowers, whose homes are worth less than their mortgages. New York has some 118,000 homeowners who are underwater.

In addition to the payments and mortgage reductions, the deal promises to reshape long-standing mortgage lending guidelines. It will make it easier for those at risk of foreclosure to make their payments and keep their homes.

Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement.

Some critics say the proposed deal doesn’t go far enough. They have argued for a thorough investigation of potentially illegal foreclosure practices before a settlement is hammered out.

Under the deal:

— Roughly $1.5 billion for direct payouts, in the form of $2,000 checks, for about 750,000 Americans who were unfairly or improperly foreclosed upon; another $3.5 billion will go directly to states.

— At least $10 billion for reducing mortgage amounts.

— Up to $7 billion for other state homeowner programs.

— At least $3 billion for refinancing loans for homeowners who are current on their mortgage payments but who are underwater.

The deal is subject to final approval by a federal judge.


Associated Press Writers Michael Virtanen in Albany, N.Y., Pallavi Gogoi in New York and Christopher S. Rugaber and Marcy Gordon in Washington contributed to this report.


Comment from  May the extent of the douch-baggery be fully exposed.  Is the banking industry all bad?  Seriously, help me out here because I don’t see how these institutions can ever be out for their customers and, god forbid, the greater good.  So, just some fun facts – among the banks subpoenaed are Bank of America (surprise, surprise), Credit Suisse (sounds about right), and Royal Bank of Canada .

Article below from the

Nine more banks have received subpoenas in connection with a probe into alleged widespread interest-rate manipulation by banks, a person familiar with the investigation said.

The probe, a joint effort by the offices of New York Attorney General Eric Schneiderman and Connecticut Attorney General George Jepsen, could lead to civil enforcement action related to breaches of antitrust and fraud laws.

The subpoenas, which were issued in August and September but haven’t been previously reported, bring the total number of subpoenas in the case to 16. The banks involved in the probe include most members of the panel that helps set the dollar London interbank offered rate.

The investigation by the state prosecutors is part of a global probe, in which more than a dozen federal and other regulators across three continents are looking into allegations that several banks rigged Libor.

Representatives for Bank of America, Credit Suisse, Bank of Tokyo and Norinchukin Bank declined to comment. The other five banks subpoenaed in August and September that hadn’t previously been disclosed couldn’t be reached for comment. Two of the banks disclosed the subpeonas in financial filings.

The joint probe of the two attorneys general was reported by The Wall Street Journal earlier this year.

The New York-Connecticut Libor investigation focus on the ways Libor rates could have affected investors, state agencies and municipalities that invested in interest-rate swaps tied to the rate to help manage their debt costs. The losses that may have occurred because of rate manipulation could have a direct impact on state finances. Interest-rate investigations are also occurring in other states, including Massachusetts and Florida, the Journal previously reported.

Barclays PLC paid about $450 million to U.S. and U.K. regulators as part of a settlement in which the British bank admitted that executives and traders had manipulated Libor. The deal led to the resignation of the firm’s CEO and chairman.



So folks, the U.S. government is suing Wells Fargo Bank in New York, blaming the nation’s largest originator of home mortgages for thousands of loan defaults over the last decade.   Check this out – Wells Fargo was pushing employees to and rewarding them to approve as many loans as possible regardless of financial soundness.  

Also, just a reminder that Bank of America was aggressively employing the same tactics and BofA will pay $1 Billion to resolve allegations.

Now, would you be okay working with these institutions for any reason whatsoever?  I guarantee they will continue to look for ways to essentially steal your money.

Below from NBC NewsWire Services:

A civil mortgage fraud lawsuit filed in U.S. District Court in Manhattan on Tuesday seeks to recover hundreds of millions of dollars that the Federal Housing Administration, which insured the loans, had to pay out after borrowers defaulted.

The lawsuit charges San Francisco-based Wells Fargo with falsely certifying that its loans met the standards necessary to be eligible for government insurance. U.S. Attorney Preet Bharara says the bank’s plan to reward employees for the number of loans they approved “was an accelerant to a fire already burning.”

Bharara’s office has brought similar cases in the past year, including one against Citigroup Inc unit CitiMortgage Inc, which settled the case for $158.3 million in February, and against Deutsche Bank, which paid $202.3 million in May to resolve its case.

The U.S. Attorney’s office in Brooklyn brought the biggest such case, against Bank of America Corp’s Countrywide unit, which agreed in February to pay $1 billion to resolve the allegations.

Wells Fargo & Co. has denied the allegations and is promising a vigorous defense.

How corrupt is Bank of America you ask?  Well, even Mexican drug traffickers were using BofA on a regular basis and ran roughly $1 million per month for two years through Bank of America accounts.  And not to be outdone, Wells Fargo has also banked with Mexican drug lords.

From Fox News:  “A notoriously violent cocaine-trafficking cartel funneled drug money through accounts at Bank of America to purchase race horses in the United States, according to the Federal Bureau of Investigation.

Los Zetas routed roughly $1 million per month for two years through Bank of America accounts, FBI Special Agent Jason Preece said in an affidavit filed June 11. The money allegedly flowed through a personal and business account owned by José Trevino Morales, the brother of two of the drug gang’s top leaders—Miguel Angel Trevino Morales and Omar Trevino Morales.

José Trevino Morales has pled not guilty to money laundering charges.

Bank of America is not accused of wrongdoing. The second-largest U.S. bank is cooperating with the authorities, the Wall Street Journal reports, citing unnamed sources with knowledge of the investigation.

The Los Zetas leaders set up José Trevino as the front man for the alleged money laundering operation, according to the filing, sending him to Texas to establish Tremor Enterprises, LLC. The company bought quarter horses, a type of horse known for its skill at sprinting, according to the Journal.

One of the horses allegedly financed with the Zetas’ cocaine profits, Mr. Piloto, won the $1 million first-place prize at the All American Futurity race at Ruidoso Downs, New Mexico—one of the sport’s most important races, according to the Journal.

The FBI bases its case against the Trevino brothers on bank records, state racing commission records, surveillance, border crossing records and other sources, the affidavit says.

Preece filed the affidavit to a request a warrant to search José Trevino’s property for records documenting the suspected laundering of drug money through purchases of horses.

It wouldn’t be the first time a major U.S. bank has been put under scrutiny over its relations with Mexico’s drug cartels. In 2010, Wells Fargo settled a case brought by the Justice Department alleging its bank controls failed to detect money laundering. The settlement cost the bank $160 million.

Bank of America defended the safeguards it has set up against money launderers.  “We have strong anti-money-laundering procedures and work closely with the authorities when suspicious activity is discovered,” Larry Di Rita, a Bank of America spokesman, told Bloomberg News.”

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