Tuesday, October 21, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

BofA reaches $17B settlement with US

By
From page B5 | August 21, 2014 |

WASHINGTON — Bank of America has reached a record $17 billion settlement to resolve an investigation into its role in the sale of mortgage-backed securities before the 2008 financial crisis, officials directly familiar with the matter said Wednesday.

One of the officials, who spoke with The Associated Press on condition of anonymity because the announcement isn’t scheduled until Thursday at the earliest, said the bank will pay $10 billion in cash and provide consumer relief valued at $7 billion.

The deal is the largest settlement arising from the economic meltdown in which millions of Americans lost their homes to foreclosure. It follows agreements in the last year with Citigroup for $7 billion and with JPMorgan Chase & Co. for $13 billion.

Like the Bank of America deal, those settlements were a mixture of hard cash and “credits” for various forms of consumer aid that the banks promised to provide in coming years.

The Bank of America settlement was negotiated through a joint federal and state working group established by President Barack Obama two years ago with the Justice Department and other federal and state authorities. Individual states are expected to share in the settlement.

Justice Department spokeswoman Ellen Canale declined to comment, as did New York Attorney General Eric Schneiderman, a co-chairman of the group. The bank also declined comment.

The deal requires Bank of America to acknowledge making serious misrepresentations about the quality of its residential mortgage-backed securities issued by itself and by Countrywide Financial and Merrill Lynch. Those institutions were acquired by the bank when they were on the brink of failure in 2008 and they were responsible for the bulk of the questionable loans.

The deals are intended to offer some financial relief to homeowners, whose mortgages were bundled into securities by the banks in question and then sold to investors.

The securities contained residential mortgages from borrowers who were unlikely to be able to repay their loans. Still, the securities were promoted as relatively safe investments until the housing market collapsed and investors suffered billions of dollars in losses.

The poor quality of the loans led to huge losses for investors and a slew of foreclosures, kicking off the recession that began in late 2007. The cash totals now being paid by some of the country’s largest banks are not nearly enough to reverse the damages caused by the bursting of the housing bubble and the ensuing recession.

Bank of America had argued that it shouldn’t be held liable for the subprime mortgages issued by Countrywide and Merrill Lynch. Combined, those three firms issued $965 billion in mortgage-backed securities from 2004 to 2008, according to public records. Roughly 75 percent of that total came from Countrywide.

In a federal lawsuit last year, the Securities and Exchange Commission charged Bank of America and two subsidiaries with defrauding investors in an offering of residential mortgage-backed securities by failing to disclose key risks and misrepresenting facts about the underlying mortgages.

The Justice Department filed a parallel civil action against Bank of America alleging violations of the Financial Institutions Reform, Recovery, and Enforcement Act.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Crime key topic again at Fairfield candidates night

By Ryan McCarthy | From Page: A5, 10 Comments | Gallery

 
 
Dixon corn maze breaks own world record

By Jess Sullivan | From Page: A5 | Gallery

PAL center seeks volunteers

By Jess Sullivan | From Page: A5, 1 Comment

 
Police Department hosts employee recognition event

By Jess Sullivan | From Page: A5

.

US / World

Police say they might have spotted ambush suspect

By The Associated Press | From Page: B2

 
Fashion designer Oscar de la Renta dies at 82

By The Associated Press | From Page: B2 | Gallery

Yosemite proposes raising entrance, camping fees

By The Associated Press | From Page: B2, 2 Comments

 
CDC releases revised Ebola gear guidelines

By The Associated Press | From Page: B2

Clinton: Midterm elections should motivate women

By The Associated Press | From Page: B2 | Gallery

 
Surfer fends off shark attack with fist, board

By The Associated Press | From Page: B2

WWII airman to be buried in Oakland

By The Associated Press | From Page: B2, 1 Comment

 
Brown: California needs long-term vision on water

By The Associated Press | From Page: B2, 3 Comments

Colorado proposes edible pot ban, then retreats

By The Associated Press | From Page: B2, 1 Comment

 
Submarine hunt sends Cold War chill across Baltic

By The Associated Press | From Page: B2

Oscar Pistorius to finally learn his sentence

By The Associated Press | From Page: B2

 
Youths, tech workers duel over San Francisco field

By The Associated Press | From Page: B2

Suspect in Va. abduction charged in DC area rape

By The Associated Press | From Page: B2

 
Warming Earth heading for hottest year on record

By The Associated Press | From Page: B2, 1 Comment

Lacking a plan, Abbas opts for rhetoric

By The Associated Press | From Page: B2 | Gallery

 
Police: Indiana suspect hints at more killings

By The Associated Press | From Page: B2 | Gallery

Turkey says it helps Kurdish fighters enter Syria

By The Associated Press | From Page: B2

 
Nigeria declared Ebola-free; ‘spectacular success’

By The Associated Press | From Page: B2 | Gallery

Urgent-care clinics ill-equipped to treat Ebola

By The Associated Press | From Page: B2

 
GOP governors don’t see ‘Obamacare’ going away

By The Associated Press | From Page: B2

British royal couples’ 2nd child due in April

By The Associated Press | From Page: B2

 
.

Opinion

Spering kept youth league going

By Letter to the Editor | From Page: A11, 2 Comments

 
Day, Blankenchip good for respective cities

By Letter to the Editor | From Page: A11, 1 Comment

‘Misleading’ mailer sent to residents

By Letter to the Editor | From Page: A11

 
.

Living

Community Calendar: Oct. 21, 2014

By Susan Hiland | From Page:

 
.

Entertainment

Yearwood, Santana to perform at World Series

By The Associated Press | From Page: B6

 
Standing ovation at Met Opera despite protest

By The Associated Press | From Page: B6 | Gallery

Still the Same: Bob Seger launching tour, album

By The Associated Press | From Page: B6 | Gallery

 
San Francisco radio stations ban hit song ‘Royals’

By The Associated Press | From Page: B6

Pitbull to host American Music Awards on Nov. 23

By The Associated Press | From Page: B6

 
‘Buffy the Vampire Slayer’ actor arrested in Idaho

By The Associated Press | From Page: B6

NBC’s Snyderman faces credibility issues

By The Associated Press | From Page: B6 | Gallery

 
Not so fast cordcutters – cable’s not going anywhere

By The Associated Press | From Page: B5 | Gallery

TVGrid Oct 21

By Daily Republic Syndicated Content | From Page: A11

 
.

Sports

Local Report: Armijo boys soccer team falls to Vintage

By Daily Republic staff | From Page: B1

 
Steelers rally past stunned Texans 30-23

By The Associated Press | From Page: B1

Bumgarner against Shields in World Series opener

By The Associated Press | From Page: B1 | Gallery

 
Raiders plagued by 3rd-down defensive woes

By The Associated Press | From Page: B1 | Gallery

Champion drag racer Raymond Beadle dies at 70

By The Associated Press | From Page: B1

 
Stiviano lawsuit against Shelly Sterling dismissed

By The Associated Press | From Page: B1

With TD mark in bag, Manning can set more records

By The Associated Press | From Page: B1 | Gallery

 
49ers lose center Daniel Kilgore, needs surgery

By The Associated Press | From Page:

Giants-Royals: A capsule look at World Series

By The Associated Press | From Page: B1

 
Belichick, Brady praise Manning on TD record

By The Associated Press | From Page: B1

Penn State board to meet on disputed Freeh Report

By The Associated Press | From Page: B1

 
McIlroy to skip 2 events to focus on lawsuit

By The Associated Press | From Page: B1

Column: Keselowski marches to his own beat

By The Associated Press | From Page: B1 | Gallery

 
Wanted: Cities interested in hosting 2024 Olympics

By The Associated Press | From Page: B1

Giants rely on core of 4 relievers

By The Associated Press | From Page: B1

 
Royals, fans bond over improbable postseason run

By The Associated Press | From Page: B1

Voynov suspended on domestic violence suspicion

By The Associated Press | From Page:

 
.

Business

Facebook sues law firms, claims fraud

By The Associated Press | From Page: B5

 
Apple reports record 39.3 million iPhone sales

By The Associated Press | From Page: B5

US regulator: Fannie, Freddie in deal with banks

By The Associated Press | From Page: B5

 
Sears plans to raise more cash via rights offering

By The Associated Press | From Page: B5

Survey: Pay raises rarer despite strong US hiring

By The Associated Press | From Page: B5 | Gallery

 
US agency warns car owners to get air bags fixed

By The Associated Press | From Page: B5

.

Obituaries

.

Comics

Pickles Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Bridge Oct 21

By Daily Republic Syndicated Content | From Page: B7

Sudoku Oct 21

By Daily Republic Syndicated Content | From Page: B7

 
Baby Blues Oct 21

By Daily Republic Syndicated Content | From Page: B6

Sally Forth Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Wizard of Id Oct 21

By Daily Republic Syndicated Content | From Page: B6

Dilbert Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
B.C. Oct 21

By Daily Republic Syndicated Content | From Page: B6

Crossword Oct 21

By Daily Republic Syndicated Content | From Page: B7

 
Frank and Ernest Oct 21

By Daily Republic Syndicated Content | From Page: B6

Blondie Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Word Sleuth Oct 21

By Daily Republic Syndicated Content | From Page: B7

Garfield Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Get Fuzzy Oct 21

By Daily Republic Syndicated Content | From Page: B6

Baldo Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Rose is Rose Oct 21

By Daily Republic Syndicated Content | From Page: B6

For Better or Worse Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Zits Oct 21

By Daily Republic Syndicated Content | From Page: B6

Peanuts Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Cryptoquote Oct 21

By Daily Republic Syndicated Content | From Page: B7

Beetle Bailey Oct 21

By Daily Republic Syndicated Content | From Page: B6