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Government reportedly wants more than $13B from BofA over mortgages

  • Bank of America (BAC) in Q1 salted away another $2.4B in legal reserves without saying why, but the WSJ last week reported talks between the bank and the government over a settlement had intensified following last year's massive JPMorgan deal (also $13B).
  • Today, it's Bloomberg reporting the U.S. as seeking more than $13B from BofA.
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Comments (57)
  • hkbk2011@gmail.com
    , contributor
    Comments (15) | Send Message
     
    not good...
    24 Apr, 04:31 PM Reply Like
  • sethmcs
    , contributor
    Comments (3280) | Send Message
     
    Don't steal the government hates competition.
    24 Apr, 11:34 PM Reply Like
  • bill coker
    , contributor
    Comments (11) | Send Message
     
    Instead of punishing the shareholders, when is someone going to be held accountable for all of this mortgage mess? Where are the criminal charges? Mozilo and Lewis should not be living their lavish lifestyles while some of us that were living off dividends and trusting BAC cannot make ends meet. Where is the justice?
    24 Apr, 04:31 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6173) | Send Message
     
    have to agree... $13B in damages signals criminal activities and not merely bad decisions. Don't understand the point in these damages that hurt shareholders.
    24 Apr, 04:33 PM Reply Like
  • joyer1
    , contributor
    Comments (15) | Send Message
     
    The juastice would be for the government to leave BAC alone. They have no proof that BAC did anything illegal.
    24 Apr, 08:04 PM Reply Like
  • joyer1
    , contributor
    Comments (15) | Send Message
     
    Justice would be for the government to leave BAC alone. They have no proof thsat BAC did anything illegal. They are greedy lawyers trying to get money from the so called wealthy.
    24 Apr, 08:04 PM Reply Like
  • runtravrun1
    , contributor
    Comments (167) | Send Message
     
    If our government would concentrate on our economy as much as they concentrate on how to get more money from big banks, we would be growing more then 1 to 2% every year. I am sure this money will go toward funding the Post Office and Health Care.
    24 Apr, 04:32 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    Couldn't have said it better... What about one person dies every 19 minutes from prescription drugs, if the DOJ is about justice maybe they should try tackling a real problem...

     

    Maybe they should try figuring out why the incarceration rate is so high?

     

    Oh ya that would be because they make more money when the incarceration rate is high. duh?

     

    Just like the banks! Monkey see, Monkey doo!
    24 Apr, 06:12 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    Ill never vote for this type of DOJ ever again, no mater what... This is not progress six years later... They steal worse than the banks.....

     

    The way they have bent the law to do these suits... its really hard to tell who the criminals are... I would lean way more toward our government being worse thieves ... I hate these A-holes...

     

    Its a conflict of interest for our government to sue a company, they(we) bailed out... scum bags!!!! Bigtime... they want people to follow the law, maybe they should start by doing it themselves

     

    They will understand exactly who they screwed at election time!

     

    As a taxpaying citizen this is wrong of our government... very wrong....

     

    Obama's DOJ needs to go this year!!! Today wouldnt be soon enough!

     

    Anyone who wants help to tear this DOJ a new A-hole I'M IN!

     

    They want to promote discontent well lets show em what it is!
    24 Apr, 04:33 PM Reply Like
  • DeadlyClear
    , contributor
    Comments (55) | Send Message
     
    I hate to be the one to tell you this - but both parties are connected to the Wall Street debacle. It didn't just start with Bush or Obama. Deregulation goes back to Reagan and Clinton. Neither party has handled the corruption very well. And if you look at financial disclosure statements of Congress and the federal judiciary going back to 2006 they were loading up their portfolios with bank stocks and mutual funds ...just a bit of conflict, appearance of improprieties and the inability to properly protect investors for fear of losing their own portfolio investments.

     

    Add the Wall Street lobbyists to the mix - and you create a complete mess and no guts to fix it. BTW - the whole mess is patented and if you study the links in the software process you can see that, yes... it's all linked so maybe they all are criminals of sorts - they've just made it legalized corruption.
    24 Apr, 04:58 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    No kidding but to keep the balance we have to go back to the other side... neither of them get it... and if either of them win the tug of war, the American people are screwed!!! There is no balance what so ever...
    24 Apr, 05:06 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    This DOJ manipulated the law by making it legal to sue a bail-out company and just stole from me and my family? I dont know about you but I was brought up that 2 wrongs dont make a right. This as an example of our Country's "Justice" at work and its pathetic!...
    24 Apr, 05:19 PM Reply Like
  • geodan85
    , contributor
    Comments (165) | Send Message
     
    Eric Holder should be in jail. He is the worst AG in recent history. Instead of enforcing laws, he believes he is above the law and his primary job is to protect the other incompetent office holder, Obama, who also believes he is above the law and does what he wants by executive orders. Both of these losers can't leave office fast enough. I only hope there is justice in the world and these two are disgraced when they both no longer enjoy executive privilege.
    24 Apr, 05:19 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    I wouldn't be so Angry but I think there is a very high probability that on top of it all the banks had more loan defaults because of job loss then bad loans, free trade shipped millions of jobs out of the country that had loans attached to them and created defaults, much more so than bad loans... This is all my opinion, but believe it to be true... I think our government is scum bags... I would love to see the truth...
    24 Apr, 05:30 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    And for me this would be the second time now Ive been screwed by my government, once as a taxpayer, once as a investor... Should I sit by and not say a word?
    24 Apr, 05:32 PM Reply Like
  • puertoescondidan
    , contributor
    Comments (51) | Send Message
     
    Partly true. The real mess started with Clinton and his Community Reinvestment Act amendments (1993-1999), forcing banks to lend to uncreditworthy borrowers. The original Act, signed by Carter in 1977 was the actual beginning of the end. Of course, the repeal of Glass-Steagall in 1999 under Clinton was probably even worse than his CRA amendments. Bush should have put a halt to it, but 20/20 is perfect hindsight. The Obamanation and his gang of thiefs is making Clinton look like a Sunday School boy.

     

    Here is one man who foresaw the impact of Clinton's CRA amendments: "During one of the Congressional hearings addressing the proposed changes in 1995, William A. Niskanen, chair of the Cato Institute, criticized both the 1993 and 1994 sets of proposals for political favoritism in allocating credit, for micromanagement by regulators and for the lack of assurances that banks would not be expected to operate at a loss to achieve CRA compliance. He predicted the proposed changes would be very costly to the economy and the banking system in general". HOW TRUE!
    24 Apr, 05:49 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    As a citizen I believe if this company was bailed-out then it should have adhere to the bail-out laws at the time it was bailed out... And we as shareholders should be protected by the bail-out laws... It's nothing other than "Unjust" to change laws midway through the process... Its not fair and Its not "right" or "just".... Where I come from its called "moving the goal posts" or cheating..

     

    Someone should be looking into suing the DOJ for unjust practice to shareholders...
    24 Apr, 06:33 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    Does anyone think that it seems strange to sue a company for 13 billion dollars that you just bailed out? Is it me?

     

    "Houston, I think we have a problem?"
    24 Apr, 06:54 PM Reply Like
  • thomas j. flaherty
    , contributor
    Comments (118) | Send Message
     
    Yes geodon lets elect another Bush, the last one worked out so well?!! We all love depression and war, Bring it on!
    24 Apr, 06:56 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    Better than this DOJ! At least the money would flow into my hands where it belongs, not to get sucked into the ever larger black hole we call our government...

     

    Reason and Restraint have left the room...
    24 Apr, 06:58 PM Reply Like
  • Bernard Benson
    , contributor
    Comments (2) | Send Message
     
    Just like your name this is all to deadly clear...
    24 Apr, 08:26 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    That was my first thought a few years ago was Wow this DOJ is dirty!
    24 Apr, 08:32 PM Reply Like
  • aeroguy48
    , contributor
    Comments (654) | Send Message
     
    @ puerto.., it should be noted Bush tried to reign in the banks from sub-prime lending but the Democrat congress stopped him.
    24 Apr, 09:14 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    I never would have imagined it? Hypocrisy is the U.S. Government.... No...
    24 Apr, 09:43 PM Reply Like
  • FMS01
    , contributor
    Comments (11) | Send Message
     
    No Wow72, we shouldn't sit by idly as stockholders and not let our voice be heard. It's six years post since the defaults, and at this rate it could go on for another six. Which will have a continuous rolling effect on our economy, dividends and potential shareholder gains. If anyone wants to get a petition started I'm on board.
    25 Apr, 08:38 AM Reply Like
  • puertoescondidan
    , contributor
    Comments (51) | Send Message
     
    Thanks for the correction.
    25 Apr, 09:58 AM Reply Like
  • geodan85
    , contributor
    Comments (165) | Send Message
     
    Flaherty,

     

    I guess you were responding to my comment (geodan, not geodon), although not sure why Bush is the main point of your comment. Of course, it makes sense if you are just another democrat that refuses to accept failure of any policy they enact and when and if failure does occur, it must be Bush's fault. The inability of this administration and their supporters to accept criticism or that they may be wrong is a major part of the problem.

     

    I don't believe any president and/or AG has the right to selectively enforce laws in part and/or against select segments of the population or use the IRS as a political tool. I believe that is unconstitutional and seems to be commonplace with the current administration.

     

    The old saying "one lie leads to ten thousand lies" has never been more relevant when looking at the past five plus years. If you have buyers remorse with Obama, don't blame others and please don't shoot the messenger.
    25 Apr, 10:22 AM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    FMS01

     

    I totally agree the original intent of the bailout laws is to get things rolling again... Exactly whats not happening...
    25 Apr, 12:58 PM Reply Like
  • jackooo
    , contributor
    Comments (1520) | Send Message
     
    Really doesn't matter when it started. It is when will it stop UNDER OBAMA & HOLDER.
    25 Apr, 03:57 PM Reply Like
  • jackooo
    , contributor
    Comments (1520) | Send Message
     
    Obama was elected to right the wrongs of Bush. 5 years and counting....
    25 Apr, 04:00 PM Reply Like
  • thomas j. flaherty
    , contributor
    Comments (118) | Send Message
     
    Let me explain my view Geodan. I think we can agree that our choices in elections are not between perfection and candidate X but between two imperfect candidates, both likely to disappoint at least half the public. Do you disagree?
    All politicians lie about some thing eventually. I am sorry if you didn't know.

     

    The difference is in the severity and consequences of their lies, and actions or failure to act. The difference is the impact: how big, how nefarious,was the lie. How about the big one about weapons of mass destruction, mushroom clouds etc. etc. from Iraq . Do you remember that one? Get yourself to a V.A hospital and take a look. I have. Didnt hear anyone crying about the IRS scandal there. They got more pressing issues.

     

    I did not vote for Obama. I did not vote for Bush. My guess is you hate Obama (self evident) and you voted for Republican candidates. Like Bush. Please tell me I am wrong.
    The truth is that 911 happened on Bush's watch. Thats your guy. His war in Iraq was a fiasco and a failure based on lies, and he wasted tens of thousands of young American lives, and for what?
    So that you could be free to whine about the latest Fox news made up scandal that no one will remember two years from now because Hillary Clinton will be getting all of heat because of some lie. I hope its a small one. The big ones cost too much.
    25 Apr, 08:38 PM Reply Like
  • geodan85
    , contributor
    Comments (165) | Send Message
     
    TJF, I agree that choices for electing president are usually the lesser of two evils, but I do vote since that right has been paid for in blood throughout our history. I you don't vote, you should not complain about any president or elected official.

     

    The constant dishonestly by Obama and Holder is pathetic, but like you said most if not all politicians lie to varying degrees. I accept that, but it is the blatant disregard for the law and arrogant elitist attitude of we know better then you of the current administration and their seemingly ability to get away with it by a media (except fox as you stated) that refuses to report these abuses of power.

     

    Also, your statement "he has wasted tens of thousands of young American lives" seems excessive, you may want to check your numbers. You are quick to condemn the Iraq war under the now proven to be false pretense of weapons of mass destruction, but I believe that another geo-political reason of containing Iran was at play. Having the U.S. Military on their east and west borders should have provided the leverage to achieve the goal of keeping a fanatical religious country that supports terrorism nuclear weapon free. Of course if this was a goal, it has been abandoned by Obama with all the sacrifices made by the young Americans you speak of meaningless. By the way, I know some marines that fought in Fallujah and they didn't believe their effort was wasted at the time.

     

    Finally, I worked across the street from the twin towers when they were attacked and personally knew someone who was killed, as well as coaching (in pee wee football) the son of a father who was also killed in the attack. The war was brought to us and I believe the United States had no option other then to respond militarily. If you are one of those proponents who said/say it was a crime (9/11) and we should have responded with law enforcement and trials in OUR courts of law giving these murderers OUR due process of law, I recommend you go speak to the widow of my friend and the now high school student of the boy I used to coach who grew up without his father.
    26 Apr, 11:14 AM Reply Like
  • DeadlyClear
    , contributor
    Comments (55) | Send Message
     
    It was a totally patented (in the USPTO) scheme. Defaults were designed to occur because pension funds needed to be liquid (and Triple A rated - which was also scammed). The loans never made it to the bonds that the pension funds invested trillion$ in and the loans were not timely assigned to the trusts. Some loans were allegedly sold to more than one trust at the same time (like The Producers). Fabricated assignments came years after the REMIC investment trusts had closed and courts have ruled the assignment transactions fraudulent and void.

     

    Patents show how the banks targeted homeowners just like penny stock salesmen for refinancing and over leveraging the property with high pressure sales tactics and intentionally inflated appraisals. Using "pretender lenders" the banks wrote more loans than they could legally hold, inflated the appraisals, rigged the LIBOR interest rates to induce the homeowners, over-rated the bonds and systematically (through patented software) relaxed the underwriting so they could abuse both homeowners and investors. Then failed to assign the mortgage loans to the trusts. That's why the Fed keeps pouring in money down a bottomless pit.

     

    Not only have there been a massive loss of jobs due to outsourcing - but because corporations also invested their pension and retirement funds in these phony unregulated securities (MBS, ARS, ABS) - the companies had to layoff workers in order to meet their current retirement obligations. Outsourcing is a product of bad investment behavior - just like over leveraging the corporations as they merge and remake themselves every few years to meet, manipulate (or disguise) their loan structures.
    26 Apr, 03:15 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    DeadlyClear thanks,
    The thing is everything was hanging on.. until "free" trade really kicked in, people starting losing jobs and could no longer replace their old job with the same income, their came a point where people could no longer replace the job they lost, thus the domino stack collapses...Loan defaults occurred, unemployment spiked almost to 10% in 2009.... Everything you mention starts to cave in....... In other words it was a group effort that brought the economy down.... Government and Banks...and here we are government beating up bank, slowing the economy?? Is there any way to break this destructive cycle?
    26 Apr, 03:39 PM Reply Like
  • John/Jack
    , contributor
    Comments (99) | Send Message
     
    Bloomberg has been dead wrong on BofA's troubles for three years -- always overstating the threat. Remember how BofA was going to owe the whole $85 billion when the settlement got tossed by the AIG lawsuit? I do. BS -- always from Bloomberg.
    24 Apr, 04:55 PM Reply Like
  • XPuR3
    , contributor
    Comments (42) | Send Message
     
    The govt. is just using BAC as its piggy bank, going to them whenever they need some extra spending money
    24 Apr, 04:55 PM Reply Like
  • graham downunder
    , contributor
    Comments (150) | Send Message
     
    Yes in a way but if they went after them for everything all at once a few years ago they would have no big banks and depression worse than the 1930's . IMO the Government need the banks and vis versa , this will go on and on and on
    24 Apr, 05:26 PM Reply Like
  • 25540633
    , contributor
    Comments (52) | Send Message
     
    Isn't that the government suppose to be working at the unemployment issue? Instead he is working the other way around--driving big banks and big corporations into bankruptcies.
    24 Apr, 08:24 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    Well its really kind of job security, if they sue them enough, they may have to bail them out again.... Great strategy isn't it.... Plenty of tax payer benefit...Bend over and we will take care of you....
    25 Apr, 05:53 AM Reply Like
  • markhog
    , contributor
    Comments (4) | Send Message
     
    Will it ever end?
    24 Apr, 05:11 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    YES!
    24 Apr, 08:22 PM Reply Like
  • DoowopDave
    , contributor
    Comments (221) | Send Message
     
    This isn't over. There will be even more huge settlements in the next few years. Clean earnings still elusive. BAC best take the DOJ to court.
    24 Apr, 05:13 PM Reply Like
  • jamesgammons@yahoo.com
    , contributor
    Comments (2) | Send Message
     
    Can someone tell me when the hell the Federal Government is going to get off the big banks back. Everyone seems to forget that people like Jamie Diamond never asked for the money. All other banks were forced/encouraged by the Government to take over/buy the brokage houses such as Merrill Lynch. How much longer are they going to try to balance their budgets on the backs of the big banks. Lewis should of let Country Wide fail, then we could of heard the big government cry for help. When are we as people and business going to keep taking the garbage from this government. The business people don't have much choice if they want to keep the Federal Government off their Backs.
    When are we going to get tired of people claiming they didn't know what they were buying ,so now they don't want to pay? Sounds pretty stupid to me, and if they are that stupid then let them pay for it.???????????????????...
    24 Apr, 05:29 PM Reply Like
  • conley
    , contributor
    Comments (27) | Send Message
     
    I think it may be time to sell this stock. I really don't think its going up.
    24 Apr, 06:01 PM Reply Like
  • duggard
    , contributor
    Comments (106) | Send Message
     
    Does anyone know how much BAC has in reverse to cover litigation cost?
    24 Apr, 06:36 PM Reply Like
  • dacama1
    , contributor
    Comments (217) | Send Message
     
    Extortion by the DOJ. Pure and simple.
    24 Apr, 06:59 PM Reply Like
  • ggerry
    , contributor
    Comments (4) | Send Message
     
    The truth of the matter are the citizens of the country both dems and republicans are damaged the most by this DOJ activity. The ones that can afford it the least, the 401k crowd, do not realize how much these prosecutions hurt the market, damage the trust in the financial system and destroy value in thier 401k's. The gov't has been absolutely hypocritical about this approach. Talking about how they want to help the middle class, with friends like these who needs enemies!
    24 Apr, 08:03 PM Reply Like
  • meede8
    , contributor
    Comments (5) | Send Message
     
    in Iceland bank employees went to jail. In Pakistan several were hanged.

     

    24 Apr, 08:05 PM Reply Like
  • lgilham
    , contributor
    Comments (9) | Send Message
     
    If we want to avoid these types of disasters in the future, stop sending lawyers to DC. They don't know how the economy or any specific piece of it works and are happy to let the K street crowd come in and do their jobs for them. Try sending a couple of engineers and a banker or maybe even a doctor in 2016.
    24 Apr, 08:08 PM Reply Like
  • KJP712
    , contributor
    Comments (449) | Send Message
     
    I will take my cut from this fine in gold.Thanks guys!
    24 Apr, 08:36 PM Reply Like
  • aeroguy48
    , contributor
    Comments (654) | Send Message
     
    Congress created this mess now the government is punishing business for following their rules.
    24 Apr, 09:18 PM Reply Like
  • TBV
    , contributor
    Comments (115) | Send Message
     
    Here is what JPM paid for with $13B settlement ...

     

    $5B for DOJ/State penalties/fines
    $4B for FHFA
    $4B for Relief for unspecified consumers - over a period

     

    Now BAC ...
    FHFA = done
    Relief = doing something similar already - LAS
    DOJ/State penalties/fines = To be determined

     

    How the hell Bloomberg did come up with $13B?
    24 Apr, 09:32 PM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    TBV,

     

    Bloomberg got the 13 billion number from a corrupt government DOJ....That's why it doesn't add up....
    26 Apr, 05:26 AM Reply Like
  • Vipertom
    , contributor
    Comments (169) | Send Message
     
    To add to the list of corrupt practices by this government, lets not forget how the stockholders, bondholders and creditors of GM were treated. They all got the shaft so the unions could be protected, and the 20 billion pension liability due the unions was left intact. Would not touch Government Motors with a ten foot pole.
    24 Apr, 11:31 PM Reply Like
  • wblockcpa
    , contributor
    Comments (12) | Send Message
     
    Anyone know if (and how much) of this potential payment was reserved for?
    24 Apr, 11:55 PM Reply Like
  • hkbk2011@gmail.com
    , contributor
    Comments (15) | Send Message
     
    I wonder how badly the market will react tomorrow morning....
    25 Apr, 12:09 AM Reply Like
  • Wow72
    , contributor
    Comments (466) | Send Message
     
    Eric T. Schneiderman is no less a thief than these bankers....
    25 Apr, 05:50 AM Reply Like
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