▲ Up
 
23:24 27-05-2017
MAIN АКИpress CA-News
ADVERTISE WITH US SUBSCRIBE
KazakhstanKyrgyzstanMongoliaTajikistanTurkmenistanUzbekistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
Bank of America expected to pay a record $16.65 billion fine
16:25, 21 August 2014, 636

AKIPRESS.COM - bank-of-america U.S. Federal authorities are on the verge of imposing a $16.65 billion fine on Bank of America to settle allegations that it knowingly sold toxic mortgages to investors, the New York Times reports.

The sum would be the largest settlement between the government and a private corporation in the United States’ history, coming at the end of a long controversy surrounding the bank’s role in the recent financial crisis. In issuing bad subprime loans, many say, the bank helped fuel a housing bubble that would ultimately burst in late 2007, devastating the national and global economy, the Time said Thursday.

Since the end of the financial crisis, the bank has been instructed to pay more than $60 billion in fines and other claims.

Of the latest settlement, $7 billion will go to consumers faced with financial hardship. In turn, the bank largely exonerates itself from further federal scrutiny.

However, not all is forgotten. The Times also reports that federal prosecutors are preparing a new case against Angelo Mozilo, the former chairman and chief executive officer of Countrywide Financial, which Bank of America acquired in mid-2008.

As the country’s largest lender of mortgages, Countrywide Financial purportedly played a large role in distributing the bad loans. Mozilo has already paid the Securities and Exchange Commission a record $67.5 million settlement.


Full access to all news articles in English

1 month2000 somsubscribe
year20000 somsubscribe
These subscription fees are for private individuals only. Please contact us via phone +996 (312) 900-776 or email info@akipress.org for corporate subscription inquiries
Twitterfacebookprint
© AKIpress News Agency - 2001-2017. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75