Category Archives: Bank of America
Bank of America is aggressively moving to appeal a Nevada county judge’s order halting more than 8,900 foreclosures.
In one of a growing number of foreclosure cases across the country in which judges are questioning whether notices and documents were improperly prepared, Nye County District Court Judge Robert Lane issued a preliminary injunction against BofA’s ReconTrust subsidiary, blocking it from proceeding with non-judicial foreclosures statewide until a Feb. 28 hearing.
The case involves a borrower, Suzanne A. North, who sued the bank on Jan. 11 arguing that ReconTrust filed foreclosure papers when it did not have the legal standing to do so.
Goodness, gracious! Since BofA bought CountryWide Financial, one of the nations most crooked mortgage companies, I am sure there are plenty of phony loans and phony foreclosures in the mix. Suzanne North uses the word FRAUD in her filing and brotha..I wouldn’t doubt it..do you?
Read the rest of my post over at RJ’s new blog BofA666. I did the inaugural post. I am so giddy as I hate those Tarp-taking, bonus-lovin fuckers.
A group of Investors for BofA are highly pissed and to that end, they sued Bank of America. From Jurist:
Twelve plaintiffs on Monday combined to file a lawsuit [complaint, PDF] in the New York State Supreme Court [official website] against Countrywide Financial Corporation[NYT backgrounder] alleging widespread fraud that resulted in substantial financial losses. The plaintiffs invested hundreds of millions of dollars with the Bank of America (BOA) [corporate website] subsidiary between 2005 and 2007, believing the purchases of mortgage-backed securities to be “conservative, low-risk investments.” The suit claims that Countrywide “recklessly” misrepresented the stability of the investments and failed to adhere to its stated underwriting and credit analysis procedures, leading the credit ratings of many of the securities to fall significantly. The complaint also names several former Countrywide executives as defendants, and seeks compensatory and punitive damages.
BOA has recently been the target of several lawsuits alleging fraud. Arizona Attorney General Terry Goddard filed a lawsuit in mid-December against BOA for misleading customers [JURIST report] in mortgage modification and foreclosure practices. Earlier in the month, the US Securities and Exchange Commission(SEC) [official website] reached a $137 million settlement agreement [JURIST report] with BOA over fraud charges [order, PDF] in a lawsuit that claimed BOA used anti-competitive bidding processes with 20 state municipalities. In June, BOA subsidiary Countrywide Home Loans, Inc reached [JURIST report] a $108 million settlement agreement [text, PDF] with the Federal Trade Commission (FTC) [official website] in response to a lawsuit that charged it with collecting excessive fees from homeowners facing foreclosure.
Because it’s Bank of America, that’s why. Sure, BofA ratted out it’s own employees, but it appears said employees are not being charged with any crimes. From BLT:
Bank of America has agreed to pay $137.3 million to resolve allegations of bid rigging in the municipal bond industry, U.S. Justice Department officials said today.
The bank today entered a global agreement with 20 states and four federal agencies, including the Securities and Exchange Commission. DOJ officials said Bank of America employees conspired to rig bids in connection to the marketing and sale of tax-exempt municipal bond derivative contracts. SEC documents are here.
Under the Justice Department’s leniency program, the bank will not be prosecuted for the conduct as long as there is continued cooperation, Varney said.
Wait, the DOJ has a leniency program for corporate criminals? Bank of America screwed people in 20 states and all they get is a lousy fine? Holy Fuckamoly…the bullshit never stops when it comes to corporate, financial criminals….except for this case that is actually being heard by SCOTUS. From the Jurist link:
The US Supreme Court heard oral arguments Tuesday in Janus Capital Group v. First Derivative Traders, a securities fraud case. The question before the court is whether a service provider can be held primarily liable in a private securities fraud suit for aiding and participating in another company’s misstatements. Section 10(b) of the Securities and Exchange Act prohibits any manipulation or deception in connection with the purchase or sale of securities, but it is unclear whether the liability associated with the act extends to service providers that aided in the selling of securities where misinformation was involved. The US Court of Appeals for the Fourth Circuit overturned the district court decision and allowed a class action against the petitioner to proceed, holding that a service provider may be liable for securities fraud. There is currently a circuit split on this issue.
Fraud is Fraud right? Stealing is Stealing, and a Derivative is a Derivative. Now, the only difference I can see is that BofA is too big to charge, whilst Janus is going after a derivative trader, which of course is a lot smaller fish in the big financial pond, all by their lonesome..without any help from the DOJ.
$137 million sounds like a big number, but when you consider BofA makes BILLIONS each quarter…it really ain’t shit.