Forum Post: ((12-21-2011)) Bank of America Agrees to Record $335Million Fair-Lending Deal /// Bank Of America Derivatives Timebomb Shows System Is Corrupt To The Core
Posted 13 years ago on Nov. 8, 2011, 8:55 a.m. EST by MonetizingDiscontent
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Bank of America Agrees to Record $335Million Fair-Lending Deal
-Dec 21, 2011-
Bank of America Corp. (BAC) will pay a record $335 million to compensate Countrywide Financial Corp. borrowers who were charged more for home loans based on race and national origin.
Countrywide, acquired by Bank of America in 2008, assessed higher fees and interest rates to more than 200,000 black and Hispanic borrowers, the U.S. Department of Justice said yesterday in a statement. The lender also steered minorities into higher-cost subprime mortgages from 2004 to 2007, even when they qualified for prime loans, the agency said.....
(((Continue Reading this article Here))) http://www.bloomberg.com/news/2011-12-21/bank-of-america-to-pay-335-million-to-end-countrywide-fair-lending-probe.html
-Financial Apartheid-
http://maxkeiser.com/2011/12/22/financial-apartheid/
Justice Department Reaches $335 Million Settlement to Resolve Allegations of Lending Discrimination by Countrywide Financial Corporation
http://www.justice.gov/opa/pr/2011/December/11-ag-1694.html
-December 21, 2011-
More than 200,000 African-American and Hispanic Borrowers who Qualified for Loans were Charged Higher Fees or Placed into Subprime Loans
Bank Of America Overdraft Lawsuit: Judge Approves $410 Million Settlement
http://www.huffingtonpost.com/2011/11/07/bank-of-america-overdraft_n_1079924.html
MIAMI — A federal judge on Monday gave final approval to a $410 million settlement in a class-action lawsuit affecting more than 13 million Bank of America customers who had debit card overdrafts during the past decade.
Senior U.S. District Judge James Lawrence King said the agreement was fair and reasonable, even though it drew criticism from some customers because they would only receive a fraction of what they paid in overdraft fees. The fees were usually $35 per occurrence.....
(((Continue Reading Here))) http://www.huffingtonpost.com/2011/11/07/bank-of-america-overdraft_n_1079924.html
-11/ 7/2011-
Bank Of America Derivatives Timebomb Shows System Is Corrupt To The Core
-11/3/2011-
The Federal Reserve recently allowed Bank of America to move its massive derivative positions... http://problembanklist.com/bank-of-america-derivatives-timebomb-shows-system-is-corrupt-to-the-core-0426/ ...from the bank holding company to its banking subsidiary which is an FDIC insured depository institution. By allowing this transfer, the Federal Reserve has allowed Bank of America to shift the risk of loss on speculative derivative contracts from the non-bank affiliate. A failure of Bank of America could result in huge losses for the FDIC which would ultimately be passed on to the taxpayers.
The most noteworthy aspects of this remarkable event include the following:
#####The disclosure of the derivatives transfer to Bank of America’s FDIC insured depository was apparently leaked by the FDIC which opposed the move due to the huge amount of risk being transfered to the FDIC and bank depositors.
##### In allowing the transfer, the Federal Reserve apparently violated Section 23A of the Federal Reserve Act which was supposed to keep the risks of investment banking activities at the bank holding company level.
##### The notional value of the Bank of America derivative contracts is $75 trillion. The request for the derivatives transfer was initiated by counterparties of the contracts with Bank of America who were alarmed over the credit downgrade of Bank of America.
##### The transfer of the derivatives from Bank of America’s holding company to the FDIC insured depository institution has received remarkably little mainstream press coverage. The quick approval by regulators at the Federal Reserve to protect the bank holding company indicates that the Federal Reserve is corrupt to the core and more interested in protecting the banks than the American public.
Bill Black, a former banking regulator, who exposed the corruption of banks and politicians during the savings and loan crisis, harshly criticizes the Fed’s actions in his recent article “Bank of America’s Death Rattle“. http://neweconomicperspectives.blogspot.com/2011/10/not-with-bang-but-whimper-bank-of.html
"Now for the Really Bad news...."
(((Continue Reading this article Here))) http://problembanklist.com/bank-of-america-derivatives-timebomb-shows-system-is-corrupt-to-the-core-0426/
FDIC To Cover Losses On $75 Trillion Bank of America Derivative Bets
http://problembanklist.com/fdic-to-cover-losses-on-trillion-bank-of-america-derivative-bets-0419/
-October 20, 2011-
Potential losses on Bank of America’s massive $75 trillion book of risky derivative contracts has just been dumped onto the FDIC by the Federal Reserve.
Derivatives, once described by Warren Buffet as “financial weapons of mass destruction” are complex contracts entered into for speculation or to hedge risks linked to a wide variety of other (derivative) financial instruments such as currencies, commodities, interest rates, bonds, etc. In testimony to the Financial Crisis Inquiry Commission in March 2011, Buffett warned that the trillions in derivatives held by major banking institutions could be “disruptive to the whole financial system” and that the risks were “virtually unmanageable.”
Regulators have fought to rein in risky trading in derivatives by banks under the Volcker Rule, but the banks have fiercely resisted and, so far, have been winning the battle. Derivatives contributed to the financial meltdown in 2008 when the government was forced to bail out giant insurance company AIG whose huge derivative bets exploded, putting the entire financial system at risk. Part of the problem is that due to the immense complexity of derivatives, regulators are unable to formulate rules that would effectively regulate them or reduce risks....
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