Bank of America to Pay $16.65 Billion to Settle Fraud Charges

The Department of Justice has announced a $16.65 billion settlement with Bank of America in connection with charges of financial fraud leading up to and during the financial crisis. According to the DOJ press statement, the settlement is "the largest civil settlement with a single entity in American history."

The settlement will "resolve federal and state claims against Bank of America and its former and current subsidiaries, including Countrywide Financial Corporation and Merrill Lynch." BofA has agreed to pay a $5 billion penalty and to provide billions of dollars of relief to homeowners.

BofA's press statement is available here.

Bank of America will pay a total of $9.65 billion in cash and provide approximately $7.0 billion worth of consumer relief. The cash portion consists of a $5.02 billion civil monetary penalty and $4.63 billion in compensatory remediation payments. - See more at: http://newsroom.bankofamerica.com/press-releases/corporate-and-financial-news/bank-america-reaches-comprehensive-settlement-us-departm#sthash.cKwH2UUc.dpuf

"The settlement does not release individuals from civil charges, nor does it absolve Bank of America, its current or former subsidiaries and affiliates or any individuals from potential criminal prosecution," according to DOJ.

Comments

[Victor Kaplan]

Financial penalties that come out of the big banks' profits won't deter future criminal activity because the perpetrators don't feel the pain. People need to go to jail so future higher-ups will think twice before engaging in criminal activity. These penalties are a joke.

[Vivian D'Angio]

Since corporations believe they are entitled to the same rights as persons ..based on the Supreme Court decision on Citizens United.... shouldn't they be tried under the criminal code which applies to all us "persons"?