Bank of America shareholders should vote for a proposal to split the CEO and chairman positions at the Charlotte-based bank, a shareholder advisory firm recommended this week.
Institutional Shareholder Services joins Glass Lewis, another major proxy advisory firm, in backing the shareholder proposal that is being voted on at the bank’s April 26 annual meeting.
Brian Moynihan currently holds both titles at the nation’s second-biggest bank by assets. If approved, the board would be able to phase in the policy for the next CEO transition, according to the proposal.
“The company’s size, complexity, and legacy legal and regulatory concerns suggest that shareholders would benefit from the strongest form of board leadership structure in the form of an independent chair,” ISS said in its report dated Thursday.
A married couple resorted to self-harm after being physically and psychologically terrorized by Bank of America over their house—until a judge fined the bank $46 million.
“Franz Kafka lives… he works at Bank of America.”
Judge Christopher Klein’s words kick off an incredible ruling in a federal bankruptcy court in California last week, condemning Bank of America for a long nightmare of a foreclosure against a couple named Erik and Renee Sundquist. Klein ordered BofA to pay a whopping $46 million in damages, with the bulk of the money going to consumer attorney organizations and public law schools, in hopes of ensuring these abuses never happen again—or at least making them less likely.
The ruling offers numerous lessons in the aftermath of a foreclosure crisis that destroyed millions of lives. First of all, the judge specifically cited top executives as responsible, not lower-level employees. Second, the sheer size of the fine—for just one foreclosure—is a commentary on the failure of America’s regulatory and law enforcement system to protect homeowners, despite the financial industry’s massive legal exposure.
Bank of America must pay $46 million for improperly foreclosing on a California couple’s home in 2010.
U.S. Bankruptcy Court Judge Christopher Klein levied [PDF] the judgement against the bank this week, calling Bank of America’s actions in foreclosing on the couple’s home “heartless” and “brazen.”
In all, Klein ordered the bank to pay $46 million, most of which will be divvied up by law schools and consumer advocate agencies, with the couple receiving about $1 million.
Klein noted in the 107-page ruling that the fine should be enough to spur change with the bank’s mortgage practices, and not be seen as “petty cash or chump change.”
ST. LOUIS • A 97-year-old St. Louis man who ran a jewelry repair shop downtown for decades after emigrating from Hungary believes Bank of America has cheated him out of more than $77,000 of his retirement money.
Karlo Tanko, a widower who lives in the city’s Boulevard Heights neighborhood, sued Bank of America on Friday in St. Louis Circuit Court, accusing his former branch at 6639 South Kingshighway of liquidating one of his savings accounts without his consent by forging his signature on a withdrawal slip.
Around the time his wife of 69 years died in June 2012, Tanko transferred five CD accounts from Bank of America to U.S. Bank, according to the lawsuit and his lawyer, Albert Watkins. Tanko soon realized he never received statements from one of accounts that held $77,477.51. He inquired with U.S. Bank and was told it was never transferred. At that point, he went back to Bank of America and was told the account didn’t exist.
Bank of America (BAC) CEO Brain Moynihan believes it is the right time to introduce changes to the Volcker rule of the Dodd-Frank Act. Moynihan was speaking with Handelsblatt Global, a German language business newspaper published in Dusseldorf.
The Volcker rule is a federal regulation that keeps banks from conducting some investment activities using their own accounts. It also limits the banks’ ownership of and their relationships with hedge funds.
CHICAGO (CN) – The Seventh Circuit issued Bank of America a stinging rebuke, finding it should not recover $893,000 from three convicted fraudsters because its own reckless mortgage lending showed deliberate indifference to the risk of losing the money.
Minoas Litos and Adrian and Daniela Tartareanu were convicted of fraud for falsifying loan applications and financing the sale of their own properties to buyers in Gary, Ind. They walked away with the purchase price of the property, minus the amount of the down payment.
As required by federal law, the fraudsters were ordered to pay restitution to their victim – Bank of America – in the amount of $893,015, on the ground that they cheated the bank by pretending that the buyers were the source of the down-payment money.
On appeal, the Seventh Circuit vacated the restitution order Friday and condemned the bank’s pre-2008 financial crash lending practices.