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  • Former employees allege Bank of America (BAC) gave out cash bonuses and gift cards as rewards for denying loan applications and illegitimately modifying customers' files in order to make them "ineligible for loan modification," Bloomberg says. One "loss-mitigation specialist" claims staff were "regularly drilled … to maximize fees … by extending delay of the Home Affordable Modification Program process" by any available means. "At best, these attorneys are painting a false picture of the bank’s practices," a BAC spokesperson says dryly.  [View news story]
    I agree that it was Countrywide and not BAC that caused these problems. Also, I have not seen anyone discuss how many of these upside down loans on homes that people could not afford in the first place were loans that were purchased by Countrywide and BAC from Mortgage Brokers who were the ones filling out the paperwork for the borrowers and writing fairytale applications. Where is the condemnation for the Real Estate Un-Professionals who were telling buyers that they could pay more for a house they could not afford in the first place because they were going to make a boat load of money as the market value of the home would keep going up. As a retired Regional Chief Appraiser for BAC, I never was told or did I tell my staff to increase or decrease values to make loans fly or crash. In fact, our staff had to take "Fair Lending" classes every year to make sure that we were doing the right thing for the borrower. It is about time that the true dirt bags that caused this mess be put into the spotlight. Chris Dodd, Barney Frank and many other politicians made the banks loan money to people that could not afford it under the Community Reinvestment Act (CRA). Since its inception, (CRA) banks have loaned billions of dollars to borrowers who did not have a chance in hell of ever being able to pay back the money they borrowed for the homes they could not afford. O.k. guys - Lets blame the guys that we forced to throw money down a rat hole. Government in action.
    Jun 17, 2013. 02:26 PM | 1 Like Like |Link to Comment
  • AIG drops its lawsuit against the FRBNY over who may sue over losses suffered by the company on MBS. The Fed's Maiden Lane II took over the securities as part of the bailout, and the issue was whether AIG gave up its right to sue when it unloaded the paper. The move comes even as a judge earlier this month said AIG did not relinquish its right to sue Bank of America (BAC) over mortgages issued by Countrywide.  [View news story]
    As a former BAC officer, I think that it is about time that everyone stops trying to make up for their mistakes on the backs of the banks. They chose to take the deals that were offered in the bailout rather than take their chances on lawsuits. Now they want it both ways. Sorry Charlie - Only The Best Tuna Gets Pickd By Starkist. Your lawsuits smell like old CARP that has set in the sun for a week. Yes, the Countrywide purchase was a bad move, but at the time, before the bad loan practices were discovered, two billion dollars for a company with the Countrywide Platform and eighteen billion dollars in assets looked good. Who knew that friends of Angelo in congress were making sweet deals for themselves and screwing the public. Kind of like the FED forcing BAC to buy ML when they tried t back out of the deal when their auditors discovered all of the bad paper. It was extortion plain and simple. But, that is the way the Government works.
    May 30, 2013. 11:46 PM | 3 Likes Like |Link to Comment
  • Bank of America (BAC) has won federal judge's approval for a $2.43B settlement with investors who said the lender hid crucial information when it bought Merrill Lynch in a $50B all-stock deal in September 2008. The settlement, which is among the largest stemming from the global financial crisis, culminated from what the judge referred to as "extraordinarily hard-fought litigation."  [View news story]
    As a former BofA employee, I beg to differ with some of the comments. The FED forced BofA to purchase ML when they tried to back out of the deal. They were told that "We Will Bury You In The Media On Monday Morning If You Do Not Take The Deal." On a side note, Ken Lewis did lose his job over the purchase of ML and Countrywide.
    Apr 8, 2013. 03:12 AM | Likes Like |Link to Comment
  • A bipartisan Senate bill would force all banks to hold capital of 10% and those with over $400B in assets an extra 5%. The strictest provisions would hit six banks: JPMorgan (JPM), BofA (BAC), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS). Analysts reckon the bill has little chance of becoming law, although its authors reckon support for the measures are growing.  [View news story]
    I was an associate for over twenty two years with Bank of America and watched CEO's come and go. The current CEO is very good at his job and will grow the bank in a positive way. I plan on keeping my stock and will be very happy in four or five years when I see that my investment grew six to seven hundered percent. Like any other businss, it runs cycles and Bank of America will do the same.
    Apr 7, 2013. 11:28 PM | Likes Like |Link to Comment
  • The Bank of England and FDIC unveil the first cross-border plan to deal with too-big-to-fail banks that start...failing. Senior management would be sacked, shareholders would be wiped out, and unsecured bondholders "can expect that their claims would be written down to reflect any losses that shareholders cannot cover," which didn't happen in the financial-crisis bailouts. (PR[View news story]
    Good call Getzeman! If it were not for the likes of Barney Frank and Chris Dodd we never would have had the Community Reinvestment Act (CRA) which forced the lenders to loan money to people who could not afford to pay it back so they could own their own home. Lets sell cars to everyone that cannot afford one so all of us will have cars, and maybe cell phones and computers to those who cannot afford them so they can go on the net and text their friends. It is just a bunch of CRAP by the politicians to get votes. We should vote them all out and start fresh.
    Dec 10, 2012. 01:52 PM | 1 Like Like |Link to Comment
  • After Ex-CFO, Board Member Leave, Bank Of America Finds New Controversial Directors  [View article]
    As a retired twenty two year associate with Bank of America, I dispute the inference that Bank of America discriminated against the disabled and facilitated money laundering. Every year all associates including board members are required to take classes that addressed these areas and pass a test to show that they understood the Banks policies regarding discrimination and money laundering. Any associate that violated these policies or failed to report any violation were subject to termination and possible jail time. Such charges are unwarranted and not correct.
    Sep 24, 2012. 06:22 PM | 1 Like Like |Link to Comment