Tag Archives: Bank of America

Bank of America Scolded Over Pre-2008 Lending

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.

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Reports: FDIC slaps Bank of America with $542M lawsuit over payment claim

The Federal Deposit Insurance Corp. has filed a lawsuit against Bank of America Corp. (NYSE: BAC), claiming the Charlotte-bank owes at least half a billion dollars in unpaid deposit insurance, according to a Bloomberg report.

The U.S. banking regulator sued Bank of America in federal court in Washington on Monday over accusations that the bank “ignored FDIC instructions on how to account for its exposure to counterparties,” Bloomberg and other media outlets reported.

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HUD charges Bank of America with lending discrimination

The Department of Housing and Urban Development announced Friday that it is charging Bank of America and two of its employees with discriminating against Hispanic mortgage borrowers.

The charges stem from a complaint filed by the National Fair Housing Alliance, which conducted a series of “secret shopper” tests where Hispanic and non-Hispanic individuals, posing as prospective mortgage borrowers, attempted to get a mortgage from a Bank of America branch in Charleston, South Carolina.

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How Bank of America and J.P. Morgan Chase Dodge Taxes In England, Too

And it’s perfectly legal.

Some of the biggest foreign investment and commercial banks operating in Britain paid an average tax rate of just 6% on the billions of dollars of profits they made in the country last year, a Reutersanalysis of regulatory filings shows.

That is less than a third of Britain’s corporate rate of 20%. There is however nothing illegal about how they managed to reduce their taxes, and includes using losses built up during the financial crisis to offset current bills.

Seven of the biggest international banks operating in London—Europe’s main investment banking center—have published profit and tax data ahead of a year-end deadline stipulated by EU law.

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Bank of America takes $1,500 out of account of woman who deposited check with phone

Jennifer Rogers considers herself a savvy consumer.

“I read terms and agreements. I make sure I’m doing things the right way,” said Rogers, a Scottsdale resident.

She thought she did things the right way when she used mobile depositing for a $1,500 check.

But two months later, she says Bank of America took $1,500 out of her account with no explanation.

“I called the bank and I’m like ‘Oh my gosh, is there some kind of mistake? What’s happening?’ And they said ‘We can’t tell you’,” said Rogers.

Jennifer had to do her own digging.

“I’m trying to figure out: Where’s my money? Who took it? And why does it say the bank took it?” said Rogers.

She filed a police report, working with a detective to get more information.

“The check was lost and stolen,” said Rogers.

She learned that the mobile deposit went through, but someone stole the actual check. Bank of America held Jennifer responsible.

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Ex-Bank of America executive says ‘no truth’ in lawsuit’s racism claims

A former Bank of America Corp. executive accused of abusing one of the bank’s traders denied that he used racist language and said the allegations were “deeply upsetting.”

Anthony Dullaghan, the bank’s former head of short-term fixed income, said that claims he had referred to clients as “French rats” were untrue. The allegations were made in a witness statement released Tuesday in a racial discrimination lawsuit brought by Maurice Marco, an executive on the bank’s Euro Commercial Paper team.

“If I swore about clients it would be in frustration and was never racially motivated,” Dullaghan said in his own witness statement made public Thursday at a London employment tribunal. “I have now retired and it is deeply upsetting for me to be embroiled in this dispute when there is absolutely no truth in the allegations.”

According to Marco’s statement earlier this week, Dullaghan repeatedly referred to French clients as rats and called a Middle Eastern customer a derogatory term involving a camel. A lawyer for the Charlotte-based bank said Tuesday that Marco exaggerated and took his shirt off during a heated argument.

Marco told the employment tribunal that he had panic attacks after Dullaghan assaulted him during a trading floor disagreement when Dullaghan was “pushing the index fingers of both hands firmly” into his chest and asked Marco to “sort this out outside.”

Dullaghan denied assaulting Marco and said he “touched his shoulder” while Marco was screaming and shouting in an attempt to “indicate that he should turn around and leave the floor in order to defuse the situation.”

Supreme Court Probes Whether Miami Can Sue Banks Over Foreclosure Crisis

Should Bank of America and Wells Fargo be on the hook for potentially billions of dollars in tax revenue Miami and other cities lost after property values plunged in minority neighborhoods due to shoddy lending practices and foreclosures?

And if so, why can’t Miami sue for lost tourist revenue? Sales taxes? Why can’t the corner store sue the banks for the money its customers stopped spending when they lost their homes? Where does the chain of causation end?

Those were among the tough questions U.S. Supreme Court justices asked today in oral arguments overBank of America v. Miami, which tests the limits of who can sue under the expansive Fair Housing Act.

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