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BofA, Feds Near Biggest Settlement in US History

Justice Dept. deal would cost bank $16B-$17B for foreclosure mess

(Newser) - Bank of America is headed toward the biggest settlement to arise from the 2008 financial crash, a deal with the Justice Department reportedly worth $16 billion to $17 billion over its role in the sale of mortgage-backed securities, a source directly familiar with the matter tells the AP . The tentative...

Bank of America Agrees to $10B Fannie Mae Settlement
Big Banks Agree to $8.5B
in Mortgage Settlement

Big Banks Agree to $8.5B in Mortgage Settlement

Banks agree to $8.5B deal with regulators, as BofA gives Fannie $10B

(Newser) - A group of 10 major lenders has agreed to pay federal regulators $8.4 billion to settle claims of foreclosure "robo-signings" and other abuses, the New York Times reports. Among the lenders onboard are JPMorgan Chase, Citibank, and Bank of America. About $3.3 billion of that will go...

BofA Pays $335M to Settle Claims Over Minority Loans

It's the largest fair-lending settlement in history

(Newser) - Bank of America's purchase of Countrywide in 2008 just got more expensive. BofA agreed today to pay $335 million to settle a Justice Department complaint that Countrywide discriminated against black and Hispanic home buyers. The Wall Street Journal calls it the "largest residential fair-lending settlement in history."...

4 House Members Scored Countrywide VIP Deals

Issa calls for ethics probe of lawmakers who received discounted loans

(Newser) - At least four current members of the House of Representatives received discounted loans under Countrywide Financial's VIP program, according to Rep. Darrell Issa. The Republican chairman of the House Oversight Committee did not name the lawmakers who received sweetened deals from the now defunct lender—whose subprime mortgages were...

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

(Newser) - Rick Perry handed mortgage lenders millions to draw them to Texas—right when their risky lending practices surged. The governor gave Countrywide $20 million and Washington Mutual $15 million in what he called an exemplary job-creation move; in effect, that $35 million subsidized dangerous subprime lending, an AP analysis of...

Bank of America 'Hindered' Feds' Investigation

Company refused to let employees answer questions, allow walk-through

(Newser) - Given the chance to come clean on its robo-signing scandal, Bank of America instead dug in its heels and “significantly hindered” the federal investigation of its foreclosure practices, according to a HUD official. According to the official's sworn statement filed in Arizona court, BofA lawyers refused “on...

Investors Sue Countrywide Over 'Massive Fraud'

Their triple-A-rated securities are now junk, they claim

(Newser) - Investors are suing Bank of America’s Countrywide mortgage unit, claiming they were fraudulently led into purchasing supposedly triple-A-rated mortgage-backed securities that turned out to be junk. Between 2005 and 2007, the investors bought hundreds of millions of dollars of securities that were supposed to be “conservative” and “...

Subprime Screwups Reap Subsidies

(Newser) - Many of the lenders eligible for $75 billion in taxpayer subsidies from the government's foreclosure prevention program are the very same subprime lenders who fueled the mortgage crisis in the first place, the Washington Post reports. According to a report to be released tomorrow, JPMorgan, Countrywide, Wells Fargo, and other...

Countrywide's Mozilo Charged With Fraud

Mozilo, two others accused of fraud, misleading investors

(Newser) - The SEC has charged former Countrywide chief Angelo Mozilo and two other former execs with civil fraud, the Wall Street Journal reports. The agency accuses them of insider trading and withholding information from investors about the condition of what was once the nation's largest mortgage company. They are the first...

Like Father, Like Son: Dodd Fights for Future
Like Father,
Like Son: Dodd Fights for Future

Like Father, Like Son: Dodd Fights for Future

Conn. senator's recent troubles echo those of his disgraced dad

(Newser) - For the second time in recent memory, a Senator Dodd from Connecticut is accused of corruption and faces a rocky political future, Newsweek reports. The current senator, Chris Dodd, is a 28-year veteran and former presidential candidate, but after devising an AIG loophole and appearing to make shady housing deals,...

Her Golden Parachute Fine With McCain
Her Golden Parachute Fine With McCain

Her Golden Parachute Fine With McCain

'No analogy' between Fiorina's $45M from HP, subprime payouts

(Newser) - John McCain and Sarah Palin made a point yesterday of blasting CEOs who left their companies with multimillion-dollar golden parachutes while workers and shareholders suffered. But McCain’s top economic adviser deployed just such a shiny parachute when Hewlett-Packard ousted her, ABC News reports. Carly Fiorina pocketed $45 million, even...

Bank of America Posts Slide but Beats Q2 Expectations

41% drop in net earnings still better than forecast; shares rise 9.3% pre-market

(Newser) - Bank of America reported a 41% decrease in net income today, beating analyst expectations as writedowns shrank to $1.22 million in the second quarter from $2.81 billion a quarter earlier, reports the Wall Street Journal. The bank also said it expects to make money this year from its...

Illinois to Sue Countrywide, CEO Over Foreclosure Fiasco

State blames company for foreclosures

(Newser) - The state of Illinois will sue Countrywide and its CEO today for "unfair and deceptive practices" in the first suit related to the current mortgage crisis. The company is accused of pushing loans on homeowners even if they couldn't repay them, the Wall Street Journal reports. Illinois' attorney general...

Obama's Embattled Veep Hunter to Quit

Johnson was skewered over favorable mortgage he received

(Newser) - A member of Barack Obama’s VP selection team who has drawn a firestorm of criticism this week is stepping down from his post, CNN reports. “Jim [Johnson] did not want to distract in any way from the very important task of gathering information about my vice presidential nominee,...

Subprime Lender CEOs Defend Exec Pay

Merrill, Citi and Countrywide honchos cashed in as companies foundered

(Newser) - Banking executives who took home huge paychecks even as the subprime mortgage crisis battered their companies appeared before Congress today to defend their actions. Democrats on the House Oversight Committee grilled them about their enormous pay packages as Republicans apologized to them and questioned the premise of the hearing, the...

BofA May Buy Ailing Countrywide
BofA May
Buy Ailing Countrywide

BofA May Buy Ailing Countrywide

Talks between bank and troubled mortgage giant well advanced

(Newser) - Bank of America is in advanced talks to buy troubled Countrywide, the Wall Street Journal reports. The Charlotte-based bank could be on the brink of acquiring the US' largest mortgage lender, whose market value has plummeted to $3 billion—about 2 months' profit for BofA—as foreclosures continue to dent...

Stocks Soar After Bumpy Ride
Stocks Soar After Bumpy Ride

Stocks Soar After Bumpy Ride

Streeters pleased with Bernanke speech, BofA news

(Newser) - The Dow finished up 117.78 points today, closing at 12,853.09 on signals from Fed chairman Ben Bernanke of interest-rate cuts to come and reports that Bank of America is in talks to buy home-loan giant Countrywide. It was a bumpy ride, though, as the key index was...

Techs Put Damper on Optimism
Techs Put Damper on Optimism

Techs Put Damper on Optimism

Dell's struggles narrow Bernanke boost

(Newser) - The markets closed up today on rumors of a coming interest rate cut, but bad news in the tech sector limited gains. The Dow climbed 59.99 points to 13,371.72, but only after a negative forecast from Dell erased a sizable morning rally. The S&P 500 climbed...

SEC Looks Into Countrywide Stock Sales

CEO of nation's largest mortgage lender dumped $130M in stock before crisis hit

(Newser) - The CEO of troubled mortgage lender Countrywide is under investigation over stock sales, the Wall Street Journal reports. Angelo Mozilo sold at least $130 million this year of stock in a company deeply affected by the subprime mortgage mess; the Securities and Exchange Commission is looking into several aspects of...

Market Rallies on Corporate Gains, Labor News

GM, McDonald's bolster stocks

(Newser) - US stocks rallied today, with blue chips and Countrywide Financial at the helm. A General Motors' analyst upgrade and  a higher-than-anticipated dividend at McDonald's helped drive the Dow up 133.23 points, to 13,424.88. Countrywide rose 14% on news that the battered lender has lined up $12 billion...

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