Bank of America to pay $16.65 billion over mortgages - Aug. 21, 2014On Thursday, the bank reached a $16.65 billion agreement to pay the biggest settlement in history, adding to what was already a hefty bill for the bank.
The latest agreement settles probes by the Justice Department and six states that accused the bank of misleading the buyers of mortgage-backed bonds about the quality of the loans. The bank admitted responsibility, but the announcement did not include criminal charges.
The settlement includes almost $10 billion in various penalties and civil suit claims from federal and state regulators, with the rest earmarked for homeowner relief.
It's been an expensive few years for Bank of America (BAC):
That brings BAC to a staggering $74 Billion in penalties due to misconduct in the mortgage boom. Yet there are some who doubt the culpability of the banks for causing the crisis. They had help of course, GW Bush was invaluable in his support of the bankers scheme and it could not have happened without his help.
HUD Archives: President George W. Bush Speaks to HUD Employees on National Homeownership Month (6/18/02)