Selling defective mortgage bonds will cost expensive to Bank of America , the second largest bank in the United States. In a landmark decision of the Department of Justice, that entity will have to face disciplinary proceedings in the amount of 16,650 million ( 12.600 million euros ). Of that amount, the bank has agreed to pay 7,000 million (5,300 million euros) will go directly to relieve homeowners affected by the “criminal conduct of the bank”, in the words of Attorney General Eric Holder, further accuses the bank had acted knowingly and thus contribute to the overall financial crisis.
“This historic decision is appropriate, given the size and scope of the crime” said in a statement the prosecutor general. The figure is equivalent to the benefits obtained from Bank of America in the last three years.
The record is the result of an agreement between Bank of America and the prosecution itself, which reveals an acceptance of guilt for part of the financial institution, you will have to deal with the largest fine ever paid by a company.
“We believe that this agreement, which addresses significant outstanding exposures related to mortgage assets is in the best interests shareholders and allows us to continue focusing the future, “said Brian Moynihan, CEO of Bank of America, in a statement.
However, the resolution does not just satisfy advocates of families affected you. They argue that Bank of America has agreed to pay the fine to avoid the process reaches senior executives responsible for the implementation of unlawful and abusive methods, which thus will escape facing criminal charges or civil.
“These are huge and frauds have been perpetrated by certain individuals who are not going to meet their individual responsibility and that means the sanctions are going to pay shareholders, so where is the justice?”. In these terms yesterday ruled know nothing Nylor Bart agreement, representative of Public Citizen, a non-profit organization that has led the defense of the affected families with subprime.
The Bank of pact America also includes the prosecution of 7,000 million dollars (5,300 million euros) for 9,650 families affected million (7,300 million euros) for the Department of Justice, amount distributed among several states with specific problems such as New York, Illinois , Delaware and Kentucky. The bank’s trading and prosecutors ran aground precisely the amount of the fine that the administration reserved.
The Bank of America problems stem from the acquisition in 2008 of 2,500 million dollars of Countrywide Financial , one of the leading financial institutions in the United States specializing in the mortgage market, and especially for the purchase of Merrill Lynch, in 2009, 50,000 million.
The prosecution of United States still maintains investigations into the conduct of major banks such as Goldman Sachs and Wells Fargo.
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