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BofA slips amid leak of massive global mortgage settlement

  • Bank of America (BAC) is 1.1% lower in premarket action after last night's leak of the DOJ seeking more than another $13B out of the hide of shareholders over legacy mortgage issues, according to Bloomberg. The settlement would come on top of the $9.5B agreed to by the bank to resolve FHFA claims, and a deal could come within the next two months, according to sources.
  • Most of the loans in question became BofA's problem after it purchased Countrywide and Merrill Lynch - one made the punk loans and the other packaged them into MBS.
  • This deal - which would also resolve state AG charges - would tower over JPMorgan's eye-popper of a $13B settlement from last year, which included $4B for the FHFA.
  • They're coming for your banks next: There are another eight lenders under investigation by the DOJ and state attorneys general over similar charges.
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Comments (45)
  • rambler1
    , contributor
    Comments (400) | Send Message
     
    How much has Countrywide cost BAC? Mozzillo & Lewis should both be in jail for life.
    25 Apr, 07:48 AM Reply Like
  • Nettligent
    , contributor
    Comments (1345) | Send Message
     
    Mozzillo and Lewis are laughing in their mansions with their former directors of BoA Board of Directors.
    BAC shareholders holding emptied bags. BAC customers sharing the pains. The worst has yet to come.
    25 Apr, 01:46 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    Ya and it's our government at the helm of the ship of destruction saying full steam ahead....?? Who are the crooks??? Our government makes these guys look like school kids...They hide under the veil of "Justice"
    25 Apr, 03:23 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    Six years after the crisis and subsequent bailout and here we are, the repercussions for the economy are worse than the crimes themselves... BAC should be paying dividends out to the country, instead of to these crooks of "Justice" its sickening...

     

    They keep prolonging the suffering, like it hasn't gone on enough... People should not vote for this type of government.....

     

    And if our government thinks BAC suffering is good for the country.....I will do everything I can to fight, obstruct, and block their actions...

     

    If the lawsuit goes through, not only will my government have ripped me off as a taxpayer, who paid for the bailout,.... but also one who was ripped off for being invested in the bank...They are trying to rob my investment period! This DOJ is scum!

     

    As far as Im concerned they are not on very sound legal ground for suing a company they recently bailed out??

     

    normal legal jargon would consider this a simple "conflict of interest"
    25 Apr, 03:29 PM Reply Like
  • jackooo
    , contributor
    Comments (1490) | Send Message
     
    Forget Mozzilo and Lewis. Go after the Nevada rancher in the desert trying to earn a living. Go Obama......
    25 Apr, 03:47 PM Reply Like
  • jackooo
    , contributor
    Comments (1490) | Send Message
     
    I consider it double jeopardy. First my money for the bailout and then my money in lost value in my shares.
    25 Apr, 03:49 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    Also tell me of all the loan defaults how many do you think were "bad" loans and how many do you think were caused by peoples jobs being shipped overseas with loans still attached to them? Think it has an impact?

     

    Basically they are taking whatever they want, making the law up as they go... and have no regard for consequences....They are absent restraint...
    25 Apr, 03:52 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    jackooo

     

    No Kidding.... Im still looking for a place where I can signup for one of those private militias that helped so much in that incident, because thats about what it takes to get protection from this DOJ these days... AND no exaggeration....

     

    What the government doesn't get, it wasn't about whether the guy was right or not, it was the fact they were in his face with weapons...Pushing him off property he had been on for awhile....The people have had enough of that...The old man was working..... These boys may need a trip to the nearest hemp fest and calm down a bit...
    25 Apr, 04:19 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    You have to admit this DOJ has been one of the best advocates for gun sales probably in history.... If we gave up our guns what do we do when the DOJ shows up at our door with theirs trying to boot us off our land??

     

    Our Forefathers had a little foresight...
    25 Apr, 04:47 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    Obama! what a joke...
    26 Apr, 07:20 AM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    Another "Free" Trade agreement with Malaysia quietly announced this morning.....Going to bring more jobs to the "US"....Like we haven't heard that before...More cheap labor available, hooray! We all saw how that worked out for Flint and Detroit Michigan....and the rest of the Country...Time to add a few more prisons to keep up with demand..

     

    And again time for a change...
    26 Apr, 07:30 AM Reply Like
  • Tack
    , contributor
    Comments (12865) | Send Message
     
    Raising taxes isn't popular; extorting money from banks is, feeding the bottomless maw of Government.
    25 Apr, 08:00 AM Reply Like
  • Garthilk
    , contributor
    Comments (588) | Send Message
     
    Extorting money from companies is very popular. PGE, BP, BAC. There is nothing the government loves more than an open wallet. Once a companies the wallet is open, don't expect the government to let it close anytime soon.
    25 Apr, 02:11 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5231) | Send Message
     
    Someday Brian Moynihan, or more likely his successor, will get up and confess to errors of commission and omission, and swear to behave more ethically in the future, stuff like not lying and cheating, stuff like honoring contractual obligations, little things like that. When that happens, BAC will be a buy.

     

    Don't hold your breath.
    25 Apr, 08:03 AM Reply Like
  • phxcrane
    , contributor
    Comments (415) | Send Message
     
    Two More years of this nonsense. I just hope the country can hold up until then.
    25 Apr, 08:53 AM Reply Like
  • tonyv1
    , contributor
    Comments (145) | Send Message
     
    I've never seen it put quite this way before, one acquisition made the punk loans while the other packaged them. Holy double dip Batman!
    25 Apr, 09:06 AM Reply Like
  • TEX1961
    , contributor
    Comments (44) | Send Message
     
    And don't forget Tony this was all at the encouragement of the Govt of the time. Clinton encouraged the "everybody gets a loan" and banks went along now they want to take a pound of flesh out of each of the banks that went along. Also, BAC was encouraged to take over Countrywide to prevent it from totally defaulting, the govt needed someone to extort billions from in the future. Fear the govt, because when the easy pickings money is gone they will come for us little guys.
    25 Apr, 09:55 AM Reply Like
  • RipCrackle
    , contributor
    Comments (112) | Send Message
     
    I support the DOJ in this endeavor.
    25 Apr, 09:07 AM Reply Like
  • lcrupp
    , contributor
    Comments (29) | Send Message
     
    After they have finished with the banks they will be coming for your money. Don't look to the rest of us for help.
    25 Apr, 12:33 PM Reply Like
  • jackooo
    , contributor
    Comments (1490) | Send Message
     
    They are doing that now. We are attached to the banks. Remember your shares?
    25 Apr, 12:50 PM Reply Like
  • RipCrackle
    , contributor
    Comments (112) | Send Message
     
    You would have nothing had the government not bailed out the banks, and it was the greedy tragicomical practices of these same banks that contributed to the greatest loss of capital for any investor alive today.

     

    The real question is how can you NOT support the DOJ in ensuring that your future investments are not susceptible subject to similar criminal practices?!
    25 Apr, 01:40 PM Reply Like
  • jackooo
    , contributor
    Comments (1490) | Send Message
     
    The DOJ is supporting future screw ups. It is all fake.
    The problems of the banks could not of happened without the agencies dedicated to oversight ignoring their jobs. Even today the Todd-Frank or ANY laws we have on the books will not suffice. There can still be another blackmail for bailouts.
    One or two sentences can stop this in the future but no one is willing to put those sentences into law.
    1. All personal assets will be forfeited if any abuse of funds is deemed to be inconsistent with the objectives of the institution goals. They will include, but not be limited to, cars, boats, houses, pensions, savings accounts, airplanes, etc.

     

    2. All misappropriations of funds will carry a felony criminal indictment with jail time. There will no longer be a FINE without admitting guilt.

     

    Pretty simple, huh???
    25 Apr, 02:26 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    RipCrackle
    If our government was competent at the time we wouldn't have needed a bailout...It was our government with Tax Payer money who bailed the banks out... This DOJ bent the law and now they talk about how the details mater less than the outcome.. but if anyone cares to look I don't think the banks were as bad as this DOJ made them out to be... I dont think they are totally innocent either...I think "free" trade shipped jobs out of the country that where used on loan applications to apply for loans... Thus causing an unusually large amount of defaults from those jobs being randomly shipped out of the country... Making our government much more responsible for economic problems than BAC.. Now what happens when the DOJ uses sound legal practice, people aren't punished for "things" they didn't do....In my opinion whatever the Department of Justice is telling us, is different from the truth or reality....

     

    Ya they bailed them out and now they are suing? Makes perfect sense? All I can picture is a cartoon where the government hands BAC bailout money with one hand and takes it back and pounds them over the head with the other..Whats the point? Other than malice
    26 Apr, 08:30 AM Reply Like
  • tomcorey
    , contributor
    Comments (8) | Send Message
     
    It's just money. Nobody is going to jail and the Fed still lends(sic) to the banks at 0%.
    25 Apr, 09:14 AM Reply Like
  • GlueBall
    , contributor
    Comments (7) | Send Message
     
    Next year around this time, when BAC's at $24/share, you'll look back and say: Gee, what was that all about?
    25 Apr, 09:35 AM Reply Like
  • j1/8
    , contributor
    Comment (1) | Send Message
     
    Mozilla in a deep dark hole!
    25 Apr, 09:48 AM Reply Like
  • mdvilla
    , contributor
    Comments (2) | Send Message
     
    don't you think the govt would know this was coming and still allowed the buyback and dividend? It doesn't make sense that this is a complete surprise
    25 Apr, 09:53 AM Reply Like
  • mdvilla
    , contributor
    Comments (2) | Send Message
     
    It doesn't make sense that this is that big of a surprise....if they were allowed to increase stock buyback and increase a dividend.
    25 Apr, 09:53 AM Reply Like
  • jackooo
    , contributor
    Comments (1490) | Send Message
     
    You have to know what Obama is thinking! Until he destroys this country and you realize what his aim is, nothing will makes sense to you.
    25 Apr, 12:53 PM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    The Gomvt of Mr Obama thru its DOJ is absolutely rapacious

     

    Had BofA not bought ML and C .-Wide, these bankrupt companies would have gone straight to the TReasury in DC and ultimately the tax payer NOT to the shareholders of BAC

     

    and the DoJ claims, will be paid for , as always, by small shareholders, pensioners, savers and the employees of BofA

     

    and the billions paid to DC by BofA shareholders will be wasted in the public trough

     

    an absolute disgrace !! - Frankfurt, Germany
    25 Apr, 10:28 AM Reply Like
  • lcrupp
    , contributor
    Comments (29) | Send Message
     
    Ralph: Best post of the day ! Thank you !
    25 Apr, 12:34 PM Reply Like
  • JohnAndersson
    , contributor
    Comments (2) | Send Message
     
    I second Ralph here...right on target
    25 Apr, 01:50 PM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    36 years in executive positios in international banking
    25 Apr, 10:29 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (435) | Send Message
     
    Banks are not lending as it is holding the economy back. Now this makes the economy even more unstable cause now banks stop lending even more. The government lines its pockets at the expense of the countries economy. Very risky move. Bite the hand that feeds the economy.
    25 Apr, 10:43 AM Reply Like
  • bill coker
    , contributor
    Comments (9) | Send Message
     
    Why aren't Angelo Mozillo and Stanford Kurland in jail? Simple question. Can anyone answer this?
    25 Apr, 12:13 PM Reply Like
  • lcrupp
    , contributor
    Comments (29) | Send Message
     
    Mozillo was a huge contributor to Barney Franks re-election. Does that tell you anything?
    25 Apr, 12:36 PM Reply Like
  • jackooo
    , contributor
    Comments (1490) | Send Message
     
    Lift up the phone and ask Obama. Don't have to dial even.
    25 Apr, 12:55 PM Reply Like
  • kzfisch
    , contributor
    Comments (5) | Send Message
     
    This serves to hurt ONLY investors in BAC and the retirement accounts of American citizens. THIS DOES NOTHING TO PUNISH THE REAL CRIMINALS that carried out the fraud.
    25 Apr, 03:06 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    Our government officials are the real crooks we need to be rid of...
    25 Apr, 03:17 PM Reply Like
  • tonyv1
    , contributor
    Comments (145) | Send Message
     
    I have to agree, they should put the people behind bars that perpetrated this nonsense. The problem is that it would probably cost us millions if not billions of $$ in legal fees.
    25 Apr, 03:22 PM Reply Like
  • rik1445
    , contributor
    Comments (5) | Send Message
     
    The fed provides the banks with pretty much zero cost of money so that the banks would make billions and then give it back as punishment so that us dopes will think justice is done. Forget the fines, put the guilty on jail and leave the investors, u,me,pension funds,etc. alone. No on in the government looses their jobs and no one goes to jail except for the poor who everyone pretends to care about. We are in deep trouble!
    25 Apr, 04:39 PM Reply Like
  • bill coker
    , contributor
    Comments (9) | Send Message
     
    "Mozillo was a hugh contributor to Barney Franks re-election"

     

    If the true facts were known, Mozillo donated to both parties re-elections. Although he is a registered Republican he certainly helped many top Democrats with favorable mortgage financing. It did not stop with the Democrats.. What about Alfonso Jackson ( Texas neighbor of President Bush) and head of HUD and his his $ million loans for he and his daughter?
    There is a long list of people receiving very favorable VIP loans from Country Wide. Jackson, Raines, Pelosi, and Senator Dodd all escaped prosecution and they should probably all be serving time.

     

    Mozillos compensation was over $500 million He was fined $67.5 million by the SEC of which
    Country Wide paid $ 20 million. The Obama administration have turned a blind eye to all of this. Where is the justice?
    25 Apr, 04:39 PM Reply Like
  • Wow72
    , contributor
    Comments (426) | Send Message
     
    There is no Justice at all in the country, Its way easier to rip shareholders off...
    25 Apr, 05:26 PM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    Angela Mozillo( $ 400 MM), Stan O'Neil( over $ 200MM ), Richard Fuld of Lehman ( over $ 300MM), - all numbers were reported in the WSJ, FT etc,- and other real culprits are sittiing on their golden Haciendas with hundredrs of millions $, Rolls Royce cars ( AM, white color) and
    were never dealt the justice the deserve and BofA under Ken Lewis was even so stupid to agree to pay all his legal expenses over USD 5 Million in the case of legal proceedings

     

    why did Mario Cuomo, Eric Schneidermann and fellow Da's, who all for sure are not shy people, never go after them - something big does not work in US justice
    26 Apr, 09:23 AM Reply Like
  • jyabc888
    , contributor
    Comments (36) | Send Message
     
    I thought BAC made $25B 'available' to fight this law suite.
    If we get a fine of $14B plus the $9.5B before, it will be $23.5B.
    Can you please check my data and math and see what left?
    27 Apr, 10:39 PM Reply Like
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