<- Hard dé e: 0.026121139526367 sec -> Bank of America (BofA) agreed Thursday to pay historic $ -16.65 billion of dollars- to end proceedings in the United States related to “subprime” , home loans to insolvent at the root of the financial crisis borrowers.
amicable agreement between the American bank and the Department of Justice, of American States and several regulators is “the largest civil agreement history with a personal business “and covers” pipes uncovered in more than a dozen cases and investigations, “said the Minister of Justice, Eric Holder.
At a press conference in Washington, he spoke of “a historic step forward in our efforts to protect the American people from financial fraud and to hold accountable those whose actions threatened the integrity of our financial markets and undermined the stability of our economy. “
American authorities accused Bank of America marketing before the financial crisis of 2008 complex investment , backed by toxic mortgages but presented as safe investments. They ultimately generated billions of dollars in losses for those who bought them.
“It’s a bit like going to the corner store to buy fresh milk, and discover that the store employees knew he had been left outside on a loading platform, unrefrigerated, all day the day before, but did you ever say, “said another official of DoJ, Tony West.
Bank of America argued that the charges were essentially held in its subsidiaries Countrywide and Merrill Lynch, before she buys them.
The amicable settlement is an amount in excess of its net profits accumulated for the years 2011 to 2013 (just under $ 14 billion) but it ends significant uncertainties related to mortgages.
It is “in the best interest of our shareholders, and allows us to keep our focus on the future,” said general manager Brian Moynihan.
Joe Morford, an analyst with RBC Capital Markets, notes note that the agreement is more expensive than initially anticipated but “removes a major sword of Damocles over the title and paves the way for the soon return to normal profits” for the bank.
shared the NYSE analysis: BofA shares closed on a rise of 4.12% to 16.16 dollars
– Possible individual lawsuits –
In detail, BofA. will pay a total of $ 9.65 billion (7.26 billion euros) in fines to the Justice Department, which accounts for the lion’s share to 5 billion to 6 American States, who opened surveys (California, Delaware, Illinois, Kentucky, Maryland and New York), as well as fellow policeman (SEC) and the Agency to guarantee bank deposits (FDIC).
Second, there are measures evaluated about 7 billion dollars (5.27 billion euros) and expected to bring compensation to consumers. Bank of America has agreed to renegotiate including mortgages for troubled borrowers, or to help build affordable housing for rent.
An independent monitor will also be appointed to verify the proper application of agreement.
This will cause the bank by a pretax charge of $ 5.3 billion and probably a net loss in the third quarter, but it will also help to avoid a civil action series of government agencies and regulators.
However, it has had to admit its responsibility, and the agreement does not rule out potential criminal prosecution, or against individuals.
American media in particular evoke a case against Angelo Mozilo in preparation, co-founder of Countrywide. This financial institution has become a symbol of the excesses of the financial sector for selling thousands of loans to insolvent households.
The record for the most expensive individual mutual agreement in the banking sector in the United States was held so far by JPMorgan Chase, which agreed in November to pay $ 13 billion to avoid prosecution in a case also linked to subprime loans.
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