Sure Bank of America (BofA) has been sued a time or two by the government. Just take a look at my Cadence of Finance presentation slides 9 and 11. But they were also bailed out by the government. Are we being forced to watch and participate (via our tax dollars) in some sick (and expensive) good-cop bad-cop show? Nevertheless, if you like reading about BofA’s latest lawsuit, checkout this Forbes article.
As mentioned in the Cadence of Finance presentation, BofA was already sued for misleading investors about $16.5B (that’s B as in Billion). They eventually settled for a $315M judgement. What about the other $16.2B dollars? Where did that go? Nevertheless, it appears the only differences this time are the “lower” amount of bad mortgages ($850M) and their source (from “wholesale channels” rather than originated by BofA).
I hope everyone has made, or at least begun, the transition to banking with credit unions. See page 26 of “The Cadence of Finance” for a few reasons to make the switch. Those are in addition to the fact BofA laid off 30,000 workers after being bailed out, paying bonuses, and settling for pennies on the dollar (page 11).