Seeking Alpha

BofA ups mortgage settlement ante

  • Bank of America (BAC -1.9%) yesterday offered $13B to the Justice Department to settle mortgage claims, reports the WSJ, but the government continues to hold out for billions more.
  • The Journal last month reported the bank was in talks for at least $12B.
  • Earlier today: BofA Q2 earnings coverage
  • Bank of America in Q2 set aside 4B in litigation expenses, up from $471M reserved for one year ago.
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Comments (20)
  • funfun
    , contributor
    Comments (2804) | Send Message
     
    Lead the industry in fraud, you must end up leading the industry in the settlement and fines!

     

    Given the massive illegal misconduct perpetrated by the corrupt executives of this disgraced Bank, the sum of $13 billion is not likely to swing the deal. We anticipate as much as $15 to $16 billion (or more) as the final figure.

     

    One thing for sure, the Bank's inside counsel as well as retained outside counsel will make sure this does not go to a full-blown trial, and Bank officials, active and erstwhile, have to trod up the courtroom steps to testify, cameras flashing for the nightly news.

     

    …funfun..
    16 Jul 2014, 01:34 PM Reply Like
  • John/Jack
    , contributor
    Comments (100) | Send Message
     
    If there were ANY SINGLE PIECE of evidence proving fraud or any criminal act, Political Hack Holder would have already marched the executives in front of a camera. All he can do is threaten prosecution, go to court, where a jury of the misinformed might think like you and ignore all facts.
    16 Jul 2014, 02:54 PM Reply Like
  • funfun
    , contributor
    Comments (2804) | Send Message
     
    It is unsophisticated, if not uninformed, to think that the Bank's Management and Counsel have not paid out $billions in BAC shareholder money in settlements and fines to dodge the prosecution of individual Bank executives and employees, active and erstwhile!

     

    …funfun..
    16 Jul 2014, 03:35 PM Reply Like
  • Seekinggreatwealth
    , contributor
    Comments (49) | Send Message
     
    Would like to know when the justice dept will go after the executives who were running the firms that are the cause of the fines they want paid, seems lots of executives are enjoying the ill gotten gains and life to the fullest.
    16 Jul 2014, 01:35 PM Reply Like
  • Dirty Capitalist
    , contributor
    Comments (157) | Send Message
     
    Many of us long on BAC would like to see this case tried. Just sayin....
    16 Jul 2014, 01:42 PM Reply Like
  • A Newell
    , contributor
    Comments (497) | Send Message
     
    The government will not go to court over this one, trust me. These guys have at least as much to lose when the camel rips up the tent.
    16 Jul 2014, 06:53 PM Reply Like
  • Econovan
    , contributor
    Comments (81) | Send Message
     
    Guns take gold.
    16 Jul 2014, 02:14 PM Reply Like
  • DoowopDave
    , contributor
    Comments (237) | Send Message
     
    BAC - if you read Seeking Alpha, stop offering to settle! Drop out of negotiations and tell the DOJ you'll see them in court. Hopefully after 2016.
    16 Jul 2014, 02:30 PM Reply Like
  • stoploss_is_your_friend
    , contributor
    Comments (58) | Send Message
     
    it's mostly countrywide, but served them right for not doing due diligence.
    16 Jul 2014, 03:10 PM Reply Like
  • Joseph Poma
    , contributor
    Comments (439) | Send Message
     
    Not doing due diligence? Are you serious? At a time of crisis when literally HOURS remained before financial crisis? The government breathed down the necks of bank executives to force their hands to avoid a complete financial meltdown, and then turns around suing those same banks when citizens claim fraud. Please. While these banks likely also committed the same transgressions, is it fair to ruthlessly punish them for the errs of others?

     

    IMHO gov't officials are acting as goons. The stories I've heard from some friends in the D.A.'s office... political figures have called in left and right making a claim for an additional Billion etc. At this point, I hope BAC goes to court because anything over $13B is just a shakedown by the gov't to make it look right in the eyes of the people.
    16 Jul 2014, 06:11 PM Reply Like
  • A Newell
    , contributor
    Comments (497) | Send Message
     
    You are so right!
    16 Jul 2014, 06:50 PM Reply Like
  • roychong199
    , contributor
    Comments (3) | Send Message
     
    I agree with your comment.
    In time of disaster Government asked for help, but in sunny days, acts like big goon and bully.
    17 Jul 2014, 08:50 AM Reply Like
  • Frank McWalters
    , contributor
    Comments (4) | Send Message
     
    Old dividend was in the sixty cent range! At 1500 shares, I'll take a $900 quarterly payout and hang in there!!
    16 Jul 2014, 08:12 PM Reply Like
  • CountryWide
    , contributor
    Comments (2) | Send Message
     
    Maybe time to put Countrywide into bankruptcy as the government appears to have no intention of stop making these huge billion dollar demands? Would that be good news for Obama? Keep litigating and put the whole banking system into chaos? or bankruptcy? Doubt that would be good for any Americans?
    16 Jul 2014, 08:21 PM Reply Like
  • MyNameisNobody
    , contributor
    Comments (6) | Send Message
     
    Testify? Again would love to see Hank Paulson, Tim Geithner et al .....and yes Barney Frank in front of the cameras re-hashing shotgun wedding(s) blah blah bla.

     

    TBV of 14.24 provides downside protection; buying stock after DOJ settlement would be something Captain Obvious would do..
    16 Jul 2014, 08:29 PM Reply Like
  • JBBanker
    , contributor
    Comments (112) | Send Message
     
    AG Holder and DOJ playing a bad hand. Banks settle to get this sort of extortion behind them and not because they think they will lose in court. BAC should take this to court.
    17 Jul 2014, 03:53 AM Reply Like
  • funfun
    , contributor
    Comments (2804) | Send Message
     
    The extortion going on here is the extortion against BAC's long-suffering shareholders, using $billions in BAC shareholder money to plead guilty to corporate charges and settle instead of having prosecutors haul individual Bank executives and employees, active and erstwhile, into the courts on criminal and civil charges.

     

    …funfun..
    17 Jul 2014, 06:34 AM Reply Like
  • DoowopDave
    , contributor
    Comments (237) | Send Message
     
    You should copy your comments and paste them into every article on BAC as they are all the same. Perhaps there is a day in the future when you will have something thoughtful to say. Of course I'm an optimist.
    18 Jul 2014, 09:15 AM Reply Like
  • funfun
    , contributor
    Comments (2804) | Send Message
     
    Obviously this feeble $13 billion offer to settle this massive scandal in mortgage rubbish along with the lackluster Q2 results did not excite investors and traders yesterday, with BAC dropping circa 2%, July 16, 2014.

     

    …funfun..
    17 Jul 2014, 06:39 AM Reply Like
  • Doctor Who
    , contributor
    Comments (308) | Send Message
     
    funfun--my theory is you are Bernie Sanders or Elizabeth Warren.
    17 Jul 2014, 07:31 AM Reply Like
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