BofA requests meeting with Eric Holder over lawsuit


Bank of America (BAC) representatives have requested U.S. Attorney General Eric Holder to meet with CEO Brian Moynihan to discuss a settlement over its lawsuit with the Justice Department. The DOJ has accused BofA of defrauding mortgage bond investors before the financial crisis.

The request comes after JPMorgan Chase CEO James Dimon negotiated a $13B deal with Holder, regarding the bank's involvement with shoddy mortgage selling.

In prior talks with the DOJ, BofA discussed paying $12B to end the lawsuit, although the Justice Department countered with a $17B settlement. Bank of America has already paid a separate $6.3B to the Federal Housing Finance Agency over similar claims.

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Comments (37)
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Our government needs to get this done! Period...It will be better for everyone, not just our DOJ!...Six years into this mess if they cant figure out time is up? Get it Done!
    They negotiate with terrorists maybe they could communicate with one of our largest banks that is having major negative financial effects on our economy? Maybe...
    I suppose if they want to help the economy they will, if they don't care about the economy and taxpaying shareholders they wont!
    20 Jun 2014, 05:28 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4394) | Send Message
     
    Mired in their self-created messes for years, maybe the bumbling bosses of Bank of America can come to middle ground, $14.5 to $15 billion, with the U. S. Justice Department.

     

    But wait, folks, there's much, much more. What about the investigations and prosecutions on the state level from states attorneys general? And overseas investigations? And private litigation from victims alleging cogently they have been burned and defrauded by this intractably corrupt Bank and its officious officials?

     

    Stay tuned, BAC shareholders, for continuing dreary news.

     

    Merely the straightforward observations of one individual retail investor…funfun..
    20 Jun 2014, 05:58 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Wrongwrong,

     

    Only people who aren't that bright think continuing down a road that includes years of lawsuits against a top American Bank is a good thing for the people of the United States and the economy....Very short sighted vision... This type of person should be no where near power... Its abuse, plain and simple and the people need to speak up!
    20 Jun 2014, 06:29 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4394) | Send Message
     
    Remarkably, folks, some BAC shareholders and proponents of Bank of America Management believe the U. S. Department of Justice and states attorneys general and private attorneys should move in court to dismiss their actions, enforcing the laws of the land dealing with fraud and contracts and investor and consumer protection under some vague notion that unpunished law-breaking is good for the "economy". We simply don't understand and cannot buy it.

     

    …funfun..
    20 Jun 2014, 06:34 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    There is a point where it becomes excessive and obviously we have some people who are hell bent at the helm...Absent Restraint... We have seen this DOJ in action...GUN SALES SKYROCKET....Einsteins at work! ALL OF THEM! I have to go be productive someone please help me fight this ignorance!
    20 Jun 2014, 07:01 AM Reply Like
  • Yteeld
    , contributor
    Comments (1145) | Send Message
     
    Straightforward, you are as biased as biased could be. Your agenda is worn on your dirty sleeve in full view with each and every post.
    20 Jun 2014, 07:48 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Yteeld,

     

    Are you directing your comment at me or wrongwrong? Because if it's me, I believed a while ago that the banks should be punished but this is insanity the government takes no responsibility for "its" part in this crisis..."Free" Trade is very destructive in transition and I challenge anyone to prove otherwise...It has an adverse effect when you take jobs that were used on loan applications and ship them overseas..

     

    And if it is towards me then you must work for the gov? No?

     

    The reason for a bailout is so companies that are "important" to our economy dont create a huge void...Not so the government can prop them up and use them for a piggy bank and hurt the economy... Its a taxpayer BAILOUT!
    20 Jun 2014, 08:00 AM Reply Like
  • Tom Sr
    , contributor
    Comments (432) | Send Message
     
    funfun

     

    That's the same BAC you say you trade profitably every time. Or is that claim a fraud?

     

    Ramble on.
    20 Jun 2014, 08:19 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Yteeld,

     

    Sorry, I was starting to wonder where all these wrongwrong clones were coming from...
    20 Jun 2014, 08:22 AM Reply Like
  • Woodcrafter60
    , contributor
    Comments (60) | Send Message
     
    Bum Bum!! It would appear that you along with Don Dion are either very short on BAC, or you may be disgruntled ex employees judging from the way you rant on this company. What I find difficult to understand is the fact that these problems all came from acquired companies that BAC took on, Yet, you trash the banks management so heavy-handedly as though they are the culprits. Can you explain this so the rest of us Seeking Alpha readers can understand your motives? BTW, I am very long this stock with several very nice entries below $6.00 and holding
    20 Jun 2014, 08:34 AM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    funfun, I thought "fraud" as you keep saying would be subject to criminal actions a la ENRON. This case is about business contract law and possible damages.
    I am not aware of anyone being charged as criminals here.
    The irony is simply this - the innocent shareholders are being sued for damages by the Government - not the management / BOD.
    How stupid is that.
    20 Jun 2014, 06:37 PM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    It's beyond reason...
    20 Jun 2014, 06:49 PM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Wrongwrong,
    "But wait, folks, there's much, much more. What about the investigations and prosecutions on the state level from states attorneys general?"

     

    If our Country thinks that suing major banks continuously for more than six years is good for our economy, productive and on the right path and this type of thinking is the new "Norm".. WE ARE IN SERIOUS TROUBLE!

     

    Wrongwrong,
    Im convinced your government! You sound like government, you act like government, therefore you must be government? Who do you work for?...You obviously don't know anything about how to produce or production... That would scream government to me...

     

    Wrongwrong,
    At some point after lots of pain and suffering do you realize the economy would have been better off by letting these banks fail?...We would have been able to heal that place in our economy, but this DOJ wants to keep a fresh, open wound.....The only thing that does is continue to hurt all of us!... DO YOU REALIZE WHEN MAJOR BANKS DONT FUNCTION IT HURTS EVERYONE? NO BECAUSE YOUR LIKE OUR GOVERNMENT, BRAIN DEAD!
    20 Jun 2014, 06:14 AM Reply Like
  • vman
    , contributor
    Comments (152) | Send Message
     
    You need to explain that to all your neighbors that lost their homes... who's credit card payments went to 23+%... who lost all they have... I'm sure they will agree with you. I'm sorry... your the one that supports all those actions and feel its OK...
    20 Jun 2014, 06:39 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    I think they should have let them fail and given everyone their homes and we would be much farther ahead today....But no here we sit mired in CRAP!
    Nothing has changed or been resolve or nothing productive has come out of this at all... Name something? A few small settlements... This is really hurting the general economy... The way forward is not more "Pain" for everyone, its ridculous

     

    Vman you gov too?

     

    Do you understand how many US citizens have BAC in their IRA?, one of the reasons for the bailout...

     

    There were unqualified borrowers on top of "Free" Trade, NAFTA...
    Do you think shipping million of jobs out of the Country had no effect on BANK LENDING????? SIMPLE PEOPLE CANT GET THIS?
    20 Jun 2014, 06:50 AM Reply Like
  • Yteeld
    , contributor
    Comments (1145) | Send Message
     
    Just because you and or your neighbors were delusional when you bought things that you eventually could not pay for, all the others that lived within their means should carry the ball for you. Learn to be responsible and accountable for your financial well being. It's always easier to point the finger at someone else when YOU fail.
    20 Jun 2014, 07:52 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4394) | Send Message
     
    Bank of America has been the outstanding leader in breaking laws and fraud-mongering in the 21st century in the United States. The U. S. federal agencies and states attorneys general and private attorneys are not bringing actions for legal redress of victims on some arbitrary basis, unfounded and subjective. The ethically broken-down Bank of America has earned its role as a leading defendant in cases of fraud, criminal, civil, common, consumer!

     

    We don't see the U. S. Department of Justice suing BB & T or Glacier Bancorp or scores of other superior-managed regional or community banks with ethical business practices, folks, do you?

     

    …funfun..
    20 Jun 2014, 06:22 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Wrongwrong,

     

    If our government doesn't even care about its VET's, how do you think they care about their population, THEY DON'T!
    20 Jun 2014, 06:49 AM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    funfun, I don't know where your brain is when you write this stuff but please do tell us exactly who is being prosecuted for "criminal fraud".
    20 Jun 2014, 06:43 PM Reply Like
  • Jason B
    , contributor
    Comments (532) | Send Message
     
    Hoping BAC takes this baby to court. They will end up paying ZERO. Any person with half a brain realizes this has less merit than the McDonalds lady suing because she was stupid enough to spill coffee on herself.
    20 Jun 2014, 07:26 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Right on! Thank you for a "common sense" comment..
    20 Jun 2014, 07:38 AM Reply Like
  • Yteeld
    , contributor
    Comments (1145) | Send Message
     
    funfun loves BB&T who he/she states is a good bank. Read it and weep......

     

    "New information in the lawsuit filed against banking giant BB&T by ... The problem was that there was no checks and balances at the bank.”

     

    More hypocrisy from the king himself who thinks BAC is the only offender.
    20 Jun 2014, 08:00 AM Reply Like
  • hub bell
    , contributor
    Comments (9) | Send Message
     
    Amazing,since Frank & Dodd were so happy to have so many homeowners in our country. Banks were forced to give mortgages to unqualified people. Both retire and write the law for banking. They should be ostracized for their actions.
    20 Jun 2014, 08:35 AM Reply Like
  • Ralph P
    , contributor
    Comments (14) | Send Message
     
    Funfun, you can always sue someone for any reason in the US. All banks can be caught everyday of the week for doing something people or Gov don't like . This is an unwarranted witch hunt seeing the Gov. Encouraged the mergers back during the crisis. It's all about getting as much as they can from BAC, just look at the fact that they rejected giving the people most of the money per BAC's request. They said no to this because they want the money.... Who's crooked?
    20 Jun 2014, 08:35 AM Reply Like
  • watermark302
    , contributor
    Comments (387) | Send Message
     
    Selling packaged "bad" loans to investors is one thing, and I am not saying it should go unpunished if there are violations of the law, but let's not lose sight of how those loans were "bad" from the outset. For the first, and I hope only, time in our nation's history, the lender's threshold was lowered to: No down payment, no income, no credit history. How did that shift happen and who is responsible? Who turned lending institutions into a hobo convention?
    20 Jun 2014, 08:40 AM Reply Like
  • Seekinggreatwealth
    , contributor
    Comments (87) | Send Message
     
    Here is my take on the Banks, yes they did some things that were wrong, have they paid for those wrongs, in my opinion well beyond reason, My question is when will those politicians and regulators who completely failed us be brought to justice, i include any Corp CEO who allowed the wrongs as well. Finally the moronic and greedy individuals who lied about their ability to buy the real estate they bot and blame Satan for allowing it to happen and accepting no blame. Yes i do not feel sorry for that group and equally for anyone that keeps pointing to the banks and never once the politicians and a government just as corrupt as some paint the banks alone. For the record i own BAC but that is not the basis for my comments it is simply the way they alone are portrayed as Satan.
    20 Jun 2014, 09:05 AM Reply Like
  • rovin
    , contributor
    Comments (17) | Send Message
     
    I had the opportunity to buy a home(s) back then. I recall the shock of reading the loan information and concluding that while I could afford the house for the first few years, the escalating cost of the payments and interest, balloon payments etc made it a surety that I would soon not be able to continue to make the payments.
    The realtor used lines like "you will be making more money in 5 years wont you?" and "The house will be worth much more by then and you can sell and upgrade!"
    Bottom line, While the government should not have turned the mortgage industry into a "hobo convention", and the banks and realtors were part of the problem to be sure, there must be blame assigned to those who knowingly bought homes FAR beyond their means. It is a salesmans job to sell. It is a consumers duty to buy within his/her ability to pay.
    20 Jun 2014, 11:43 AM Reply Like
  • banjo1224
    , contributor
    Comment (1) | Send Message
     
    My question: Where does the fine money go? Perhaps to pay Veterans Administration bonuses and fuel for AF 1??
    20 Jun 2014, 11:44 AM Reply Like
  • nap.jerry
    , contributor
    Comments (76) | Send Message
     
    Rovin: WELL said. You are spot on!
    20 Jun 2014, 02:00 PM Reply Like
  • dictionshunary
    , contributor
    Comments (693) | Send Message
     
    Finally someone who I agree with totally regarding g the funny one. BAC mgmt is solid, has done an outstanding job in steering the ship through the mess DOJ and BHO have caused. Once the empty suits who are so anti business and literally anti-American are sent packing we will see BAC soar. BAC is too solid an entity to not think it will grow and prosper once the hurtles are out of the way. Those folks that are disgruntled employees that were purged when mgmt saw their worth will continue to try to blame and bring BAC down.
    20 Jun 2014, 02:16 PM Reply Like
  • Nahila1
    , contributor
    Comments (26) | Send Message
     
    We should remember that BOA bought Countryside in January 2008 and Merrill Lynch in Sept. 2008 to prevent both of them from bankruptcy which would have been very troubling to the national financial markets. Many not all of course of BOA problems then were inherited from these acquisitions when their top management failed to see the deep recession that followed that caused the housing market and subsequent mortgage defaults that derailed the economy. There was also some US Government involvement putting some pressure on BOA to acquire these two companies not to mention that "Dodd-Frank Act" contributed heavily to this mortgage crisis by lowering the qualification standards for mortgage loans so more people could buy homes that their income could not afford, many of whom lost their jobs in construction related companies that were wiped out by the recession. It did not help that The two US Government mortgage guaranting agencies Fannie Mae and Freddie Mac were prodded by Congressional action to support the mortgage lending by the mortgage lenders which was also passed and not vetoed under the Bush Administration.
    20 Jun 2014, 05:09 PM Reply Like
  • watermark302
    , contributor
    Comments (387) | Send Message
     
    Ken Lewis salivated uncontrollably over possession of Merrill Lynch - or any Wall Street franchise - but Countrywide was the tub of pincer worms Hank Paulson made BAC swallow for the pleasure. Unfortunately Lewis was not around long enough to experience the full measure of yang.
    20 Jun 2014, 06:56 PM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    There was no pressure from Government on BAC for the CFC takeover. That was down to Lewis all by himself - he was CEO and Chairman - nobody to stop him. He had is eye on CFC for years prior but could not afford the price back then. As soon as CFC hit the brick wall he jumped right in with a share purchase and then followed with a full takeover at a "bargain" price. Little did he know - got to be the worst acquisition of a company in the history of USA commerce.
    ML was a different story. When Lewis tried to back out when he saw the mess he was in Paulson delivered the "persuasion".
    20 Jun 2014, 07:14 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4394) | Send Message
     
    Busted Bank!

     

    Investors, have you noticed in this thread of comments and comments to other excellent Seeking Alpha articles on Bank of America and its prospects, how protectors and shills for the Management of this corrupt Bank have been denying fraud has infected every nook and cranny of this foul financial supermarket like rotten fish and fruit in the 21st century?

     

    For information, if not for amusement, GOOGLE:

     

    "Bank of America commits criminal fraud"

     

    Over 9 million results pop up!

     

    This busted Bank has been investigated and prosecuted on a state and federal level for all manner of fraud, consumer fraud, investor fraud, civil fraud, common fraud, and yes, of course, criminal fraud since there have been a seemingly astronomical number of criminal and civil acts of fraud adduced in evidence!

     

    Don't let the PR operatives in Charlotte, North Carolina fool you! If there has been no fraud, would hapless BAC shareholders been forced to shell out $60 billion in settlements, fines, and penalties to date with a likely $17 billion about to be added to the tab? Forced to give up what might have been decent dividends for years?

     

    Fraud in all its foul forms has put this Bank under a threatening black cloud for years and has effectively destroyed a couple of hundred $billion in market value!

     

    ...funfun..
    20 Jun 2014, 10:49 PM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Bank of America may have committed the crimes but our Department of Justice and Government are the ones who decided to bail them out and the ones who continue to keep us here! What a waste of time and money thanks to our government.

     

    "Free" Trade is what caused most of the loan defaults during the 2008 crisis and I challenge anyone to prove that A bank is more likely to take the economy out mathematically, than "Free" Trade and NAFTA Policies, mathematically...."Free" Trade is far more encompassing to the economy than a single BANK... You have to look no further than the current crisis in Ukraine to see the discontent and destruction trade policies create...

     

    There is an old wise expression that goes... "The road to hell is paved with good intentions" that is exactly this situation...I think they mean well but what a joke!
    21 Jun 2014, 09:02 PM Reply Like
  • 205427
    , contributor
    Comments (946) | Send Message
     
    If criminal fraud was so obvious, the gov't would be taking the banks to court instead of blackmailing them into excessive payments.

     

    Why don't you explain how bad loans in an MBS has the slightest impact on a borrowers ability to pay. Even if the loans were not securitized, they would STILL have failed or are you claiming otherwise.

     

    How would the bank know the loan it was repackaging into an MBS was toxic, especially since many of those loans were bought from other lenders.

     

    How did the bank know the loan was toxic yet the lender who originated the loan and the borrower signed a legal and binding contract stating the terms of loan.
    22 Jun 2014, 03:50 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Your Comment,
    "If criminal fraud was so obvious, the gov't would be taking the banks to court instead of blackmailing them into excessive payments."

     

    Right on! We wouldn't still be sitting here six years later if it was so obvious...
    They continue to grasp at "Things"
    22 Jun 2014, 10:51 AM Reply Like
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