Bank of America in the news, again

[Angry Cat]

http://www.bbc.co.uk/news/business-24649063

Bank of America found liable in US mortgage fraud trial

Bank of America's Countrywide Financial unit has been found liable for defrauding two US government-backed mortgage companies by a federal jury.

Countrywide, which was acquired by Bank of America in 2008, was accused of selling thousands of defective loans to Fannie Mae and Freddie Mac.

The ruling is a major win for the US government, which launched the case in the wake of the financial crisis.

The Justice Department is seeking as much as $848m (£523m) in penalties.

[bluebottle]

Re: Bank of America in the news, again

Many thanks for that, Angry Cat. It would appear that the immortal phrase, "Greed is good," uttered by Michael Douglas in the movie 'Wall Street', is not good as the penalties handed down by the U.S. courts are showing. The $13bn fine being handed down to one bank is eye-watering.

Whilst it may not seem those responsible are being held to account, the shareholders of those banks caught and stung by the courts are the ones who lose and they can remove the directors they allowed to engage in the dishonesty that lead to the subprime crisis. Can you imagine a sacked director of one of those banks walking into a labour exchange and being asked the reason for leaving their last job and the answer they might give? "Yes, sir. I f****d-up and caused the sumbprime crisis." I would imagine the other claimants and the counter clerk would want to tear them limb from limb. What's that saying, "What goes around comes around." Karma will get you, whatever.

[Angry Cat]

Re: Bank of America in the news, again

Remember Guys, MBNA are owned by BoA!