Bank of America set to seal record USD 17 bln deal with Justice Department over faulty mortgages
A report has revealed that the final terms for a record 17 billion dollars settlement between the Bank of America and the Department of Justice have almost been finalized. The United States' second largest bank has been held in the dock by the Justice department for selling faulty mortgage securities that ultimately contributed to the 2008 global financial crisis.
According to The Washington Post, a source familiar with the talks said on Wednesday that an announcement can be expected as early as Thursday.
The settlement will go down in history as the biggest penalty paid by a single firm. The next in line is the 13 billion dollars settlement paid by JPMorgan Chase to the Justice department last year over similar charges.
However, the settlement deals are being criticized for the lack of individual accountability. Bart Naylor, a financial policy advocate with the nonprofit group Public Citizen, said that the scandal was massive and was perpetuated by someone but no-one involved in producing, selling or signing off the mortgages has faced civil or criminal charges.
The report added that spokespersons for Bank of America and the Justice Department refused to comment.
(Posted on 21-08-2014)