Bank of America Settles Record $16.7 Billion Mortgage Settlement
- US banking institute, Bank of America, has settled a fine issued by US regulators. The bank will pay a record $16.7 billion for misleading investors during the 2008 crisis for mortgage related investments.
The second largest bank in the US has agreed to a settlement with authorities in the USA for misleading investors in mortgage backed investments. Bank of America has agreed to the largest settlement paid by a financial institution in the world’s largest economy. The case relates to two entities owned by the bank, Countrywide Financial and Merrill Lynch. The settlement highlights the strong stance authorities are taking in dealing with factors that led to the 2008 recession.
In details issued about the bank’s case, the US banking institute will pay a total of $9.65bn in cash and provide consumer relief worth about $7bn, the funds will be allocated to homeowners who are facing difficulties in making Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. Commenting about the case, the US Associate Attorney General Tony West said, "No institution is either too big or too powerful to escape," punishment.
The case relates to one of the country's largest mortgage lenders, Countrywide Financial and Merrill Lynch, both institutions were found guilty of selling mortgage loans to investors without disclosing the appropriate risks involved in the product.
Regulators and government officials across the developed world have been reviewing the systemic failures made by institutions that resulted in the 2008 global recession. Authorities found that investors were being sold complex products without being informed about the risks and dynamics of the product.
Mr. West, summarized the dilemma in his speech: "It's kind of like going to your neighbourhood grocery store to buy milk advertised as fresh, only to discover that store employees knew the milk you were buying had been left out on the loading dock, unrefrigerated, the entire day before, yet they never told you.”
The settlement amount was the largest issued to a single entity, previously, fellow banking giant, JP Morgan, faced the regulators for a similar case.
Global financial markets have been scarred by ongoing mishaps since the 2008 crisis, in the latest round of events banks have been facing the brunt of rate manipulation linked to Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term and FX fixing.
The second largest bank in the US has agreed to a settlement with authorities in the USA for misleading investors in mortgage backed investments. Bank of America has agreed to the largest settlement paid by a financial institution in the world’s largest economy. The case relates to two entities owned by the bank, Countrywide Financial and Merrill Lynch. The settlement highlights the strong stance authorities are taking in dealing with factors that led to the 2008 recession.
In details issued about the bank’s case, the US banking institute will pay a total of $9.65bn in cash and provide consumer relief worth about $7bn, the funds will be allocated to homeowners who are facing difficulties in making Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. Commenting about the case, the US Associate Attorney General Tony West said, "No institution is either too big or too powerful to escape," punishment.
The case relates to one of the country's largest mortgage lenders, Countrywide Financial and Merrill Lynch, both institutions were found guilty of selling mortgage loans to investors without disclosing the appropriate risks involved in the product.
Regulators and government officials across the developed world have been reviewing the systemic failures made by institutions that resulted in the 2008 global recession. Authorities found that investors were being sold complex products without being informed about the risks and dynamics of the product.
Mr. West, summarized the dilemma in his speech: "It's kind of like going to your neighbourhood grocery store to buy milk advertised as fresh, only to discover that store employees knew the milk you were buying had been left out on the loading dock, unrefrigerated, the entire day before, yet they never told you.”
The settlement amount was the largest issued to a single entity, previously, fellow banking giant, JP Morgan, faced the regulators for a similar case.
Global financial markets have been scarred by ongoing mishaps since the 2008 crisis, in the latest round of events banks have been facing the brunt of rate manipulation linked to Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term and FX fixing.