Thursday, January 29, 2015
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

1st release for birds with mysterious goo a success

By Amy Maginnis-Honey | From Page: A1, 1 Comment | Gallery

 
4-H Annual Presentation Day returns in February

By Susan Hiland | From Page: A3

 
Vacaville SWAT team serves search warrant

By Kevin W. Green | From Page: A3

Real estate occupancy continues to climb

By Kevin W. Green | From Page: A3, 1 Comment

 
 
Council backs beer, wine sales for Vacaville store

By Ryan McCarthy | From Page: A3

Vacaville police seek help to find sex offender

By Kevin W. Green | From Page: A3, 3 Comments | Gallery

 
Sweep by sheriff’s team nets 4 arrests

By Kevin W. Green | From Page: A3, 3 Comments

 
 
Travis starts work on Functional Fitness Center

By Ian Thompson | From Page: A3

 
Boy Scouts to screen award-winning film

By Ian Thompson | From Page: A3

 
Church makes ready for health, wellness fair

By Susan Hiland | From Page: A3

Fairfield police log: Jan. 27, 2015

By Susan Hiland | From Page: A10

 
Suisun City police log: Jan. 27, 2015

By Susan Hiland | From Page: A10, 1 Comment

.

US / World

Air Force probing alleged ‘treason’ remark by general

By The Associated Press | From Page: A1, 1 Comment | Gallery

 
Expect tiny tuxes but no real puppy love at doggy weddings

By The Associated Press | From Page: A2 | Gallery

 
Large salmon release planned

By The Associated Press | From Page: A4

Violations mount for toxic recycler

By The Associated Press | From Page: A4

 
Quake rattles N. California coast

By The Associated Press | From Page: A4

Second arrest in student stabbing

By The Associated Press | From Page: A4, 1 Comment

 
Marshals track down missing treasure hunter

By The Associated Press | From Page: A5

‘Drunk’ excuse falls flat in Vandy rape trial

By The Associated Press | From Page: A5

 
Attorney General nominee defends Obama immigration changes

By The Associated Press | From Page: A5, 1 Comment | Gallery

Police seek law to alter Google app

By The Associated Press | From Page: A5, 1 Comment

 
Investigation stems from police-involved shooting outbreak

By The Associated Press | From Page: A6

Hezbollah missiles kill soldiers

By New York Times | From Page: A6

 
ISIS extends hostage deadline

By The Associated Press | From Page: A6

Euro coast guards scramble to locate Syrian ghost ship

By The Associated Press | From Page: A6

 
Chinese regulators go after online sale of fake goods

By The Associated Press | From Page: A6

Tape: Scientist offers to build nuke bomb targeting New York

By The Associated Press | From Page: A10 | Gallery

 
.

Opinion

India now has 322 billion reasons to fix economy

By William Pesek | From Page: A7

 
Don’t brush off bullying

By Kelvin Wade | From Page: A7, 2 Comments

Editorial Cartoon: Jan. 29, 2015

By Daily Republic Syndicated Content | From Page: A7

 
Just be honest and come forward

By Letter to the Editor | From Page: A7, 1 Comment

 
A truly misinformed writer

By Letter to the Editor | From Page: A7, 25 Comments

.

Living

Today in History: Jan. 29, 2015

By The Associated Press | From Page: A2

 
Community Calendar: Jan. 29, 2015

By Susan Hiland | From Page: A2

Deadbeat boyfriend ruined my relationship with my granddaughter

By Kathy Mitchell and Marcy Sugar | From Page: A9

 
Horoscope Jan. 29, 2015

By Holiday Mathis | From Page: A9

.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: B5

 
Theater legend Joel Grey reveals that he is gay

By The Associated Press | From Page: B5, 2 Comments

Super Bowl advertisers aim not to offend

By The Associated Press | From Page: B5

 
.

Sports

Kings center DeMarcus Cousins hoping to make All-Star team

By The Associated Press | From Page: B1

 
Rodriguez wrestlers pull out 34-24 win over Wood

By Brian Arnold | From Page: B1 | Gallery

 
Tony Stewart acquires national sprint car series tour

By The Associated Press | From Page: B2

Solano men cruise past LMC for biggest win of season

By Daily Republic staff | From Page: B2

 
NFL players who started young show more thinking problems

By The Associated Press | From Page: B2

GM John Schneider has been architect of Seahawks’ success

By The Associated Press | From Page: B2

 
Patriots not dwelling on last Super Bowl loss in Arizona

By The Associated Press | From Page: B2

Woods returns to Phoenix with plenty of memories

By The Associated Press | From Page: B2

 
Korda, Lewis, Munoz tied for lead at LPGA season opener

By The Associated Press | From Page: B3

Head of NCAA enforcement: Academic misconduct on rise

By The Associated Press | From Page: B3

 
Chicago Cubs’ Ernie Banks statue moved downtown for tribute

By The Associated Press | From Page: B3

Kobe Bryant has surgery, expected to be out for 9 months

By The Associated Press | From Page: B3

 
This date in sports history for Jan. 29, 2015

By The Associated Press | From Page: B4

 
.

Business

.

Obituaries

.

Comics

Garfield

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

Pickles

By Daily Republic Syndicated Content | From Page: A8

 
Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

Peanuts

By Daily Republic Syndicated Content | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

Blondie

By Daily Republic Syndicated Content | From Page: A8

 
Zits

By Daily Republic Syndicated Content | From Page: A8

Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

Sally Forth

By Daily Republic Syndicated Content | From Page: A8

 
B.C.

By Daily Republic Syndicated Content | From Page: A8

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

Sudoku

By Daily Republic Syndicated Content | From Page: A9

 
Crossword

By Daily Republic Syndicated Content | From Page: A9

Bridge

By Daily Republic Syndicated Content | From Page: A9