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(Politico)   BoA pays $17B overdraft fee   (politico.com) divider line 32
    More: Cool  
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1534 clicks; posted to Business » on 07 Aug 2014 at 11:15 AM (29 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



32 Comments   (+0 »)
   
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2014-08-07 08:43:46 AM  
Corporations are just like people, right up to the point where you can't send corporations (or anyone working for corporations) to jail for white collar crimes.

Clearly Madoff's biggest mistake was that he was just one guy operating alone rather than leading an institution of assholes doing the same thing.
 
2014-08-07 09:23:44 AM  
$17 billion? What's that, about 3 days worth of profits?
 
2014-08-07 11:19:30 AM  

Demetrius: $17 billion? What's that, about 3 days worth of profits?


2....they will foreclose on a few more widows and veterans homes today to make up for lost time
 
2014-08-07 11:23:30 AM  

Dust: Corporations are just like people, right up to the point where you can't send corporations (or anyone working for corporations) to jail for white collar crimes.

Clearly Madoff's biggest mistake was that he was just one guy operating alone rather than leading an institution of assholes doing the same thing.


No, his big mistake was stealing from the rich. Had he stuck to fleecing the poors, he wouldn't have been hit with a penalty worse than losing a few hundred thousand dollars in fines; he tried to financially screw over rich white people, and now he's in jail and his worldly possessions are being and/or have been auctioned off with the proceeds going to his wealthier victims.
 
2014-08-07 11:23:44 AM  
No prison = no justice
 
2014-08-07 11:36:03 AM  
And admits no wrongdoing and nobody goes to jail.  The system works!
 
2014-08-07 11:37:37 AM  

Dust: Corporations are just like people, right up to the point where you can't send corporations (or anyone working for corporations) to jail for white collar crimes.

Clearly Madoff's biggest mistake was that he was just one guy operating alone rather than leading an institution of assholes doing the same thing.


Madoff stole from the rich. That was his mistake. Capital One, Bank of America, HSBC, etc steal from the poor and middle class.

Just don't steal from Biden and you're ok.
 
2014-08-07 11:51:51 AM  
Government extortion.

LOL you bought Countrywide!! Give us $$$$ or we take away banking license! LOLOLOL!!
 
2014-08-07 12:06:32 PM  
As a former BoA mortgage holder and costumer, when do I get a check?
 
2014-08-07 12:18:55 PM  
Can't they claim to be a church?
 
2014-08-07 12:26:50 PM  

stuhayes2010: As a former BoA mortgage holder and costumer, when do I get a check?


You probably benefited from whatever they supposedly did. How were you wronged by BoA?
 
2014-08-07 12:34:52 PM  
Punishments arent negotiated. Everyone involved with this should be killed
 
2014-08-07 12:41:18 PM  

Lost Thought 00: Punishments arent negotiated. Everyone involved with this should be killed


That's a lot of borrowers who failed to pay back their mortgages, as they contractually agreed. Do we have enough bullets?
 
2014-08-07 12:49:53 PM  

Debeo Summa Credo: Government extortion.

Yes, poor little innocent Bank of America, being harassed by the evil government.

Here's a little hint for you: no one settles for $17 billion when they did nothing wrong. You pay $17 billion when the alternative is $50 billion and you just want the whole thing to go away with no finding of guilt.
 
2014-08-07 12:56:10 PM  

ImpendingCynic: Debeo Summa Credo: Government extortion.
Yes, poor little innocent Bank of America, being harassed by the evil government.

Here's a little hint for you: no one settles for $17 billion when they did nothing wrong. You pay $17 billion when the alternative is $50 billion and you just want the whole thing to go away with no finding of guilt.


You pay $17b when someone in your company (or a company you bought) did something wrong and the govt could take your license away if you don't pay them whatever they want, even if that fine isn't in any way related to whatever you did.

Would you agree to pay a $700 fine for driving 5 miles over the speed limit? You would if the alternative was losing your license, regardless of whether the fine is appropriate.

I agree with the general sentiment expressed here that any individuals who committed crimes should be pursued. The problem is many things aren't actually crimes and it is difficult for prosecutors to actually get a jury to convict an individual, at least in comparison to holding a bank hostage for its license for political grandstanding purposes.
 
2014-08-07 01:28:09 PM  
The problem is that our system is bought and paid for by these same actors.  No one at the banks went to jail because their lobbyists changed the laws to make blatant theft legal.  Justice is only ever inflicted on the little people, if you're a Master of the Universe you're untouchable in America.  You may pay a minimal fine, but you'll never see the inside of a prison.
 
2014-08-07 01:40:02 PM  

ImpendingCynic: Debeo Summa Credo: Government extortion.
Yes, poor little innocent Bank of America, being harassed by the evil government.

Here's a little hint for you: no one settles for $17 billion when they did nothing wrong. You pay $17 billion when the alternative is $50 billion and you just want the whole thing to go away with no finding of guilt.


Was based on an estimated 1 trillion dollars worth of bad mortgages.
 
2014-08-07 01:43:18 PM  

Incontinent_dog_and_monkey_rodeo: The problem is that our system is bought and paid for by these same actors.  No one at the banks went to jail because their lobbyists changed the laws to make blatant theft legal.  Justice is only ever inflicted on the little people, if you're a Master of the Universe you're untouchable in America.  You may pay a minimal fine, but you'll never see the inside of a prison.


If it were truly bought and paid for then why are there these enormous fines? Sounds like whomever is doing the "buying and paying for" isn't getting their money's worth.

Seriously, who is paying whom? Is Eric Holder on the take from Brian Moynihan? Is Jamie Dimon bribing Obama to keep the DOJ off his back? Does James Gorman have incriminating pictures of NYAG Eric Schneiderman?
 
2014-08-07 02:02:45 PM  
someone should be going to jail...
 
2014-08-07 02:03:46 PM  

Debeo Summa Credo: Incontinent_dog_and_monkey_rodeo: The problem is that our system is bought and paid for by these same actors.  No one at the banks went to jail because their lobbyists changed the laws to make blatant theft legal.  Justice is only ever inflicted on the little people, if you're a Master of the Universe you're untouchable in America.  You may pay a minimal fine, but you'll never see the inside of a prison.

If it were truly bought and paid for then why are there these enormous fines? Sounds like whomever is doing the "buying and paying for" isn't getting their money's worth.

Seriously, who is paying whom? Is Eric Holder on the take from Brian Moynihan? Is Jamie Dimon bribing Obama to keep the DOJ off his back? Does James Gorman have incriminating pictures of NYAG Eric Schneiderman?


Enormous fines?  Not in the scope of the theft.  The answer to someone stealing $100 is not to fine them $20.
 
2014-08-07 03:03:18 PM  
I thought the corporate line was that these infractions were done by CountryWide Mortgage, and BOA bought up CountryWide as a favor to the US, practically losing their shirts on the purchase and subsequent problems/fines?
 
2014-08-07 03:04:02 PM  
They are getting away with murder.
 
2014-08-07 03:30:45 PM  

ImpendingCynic: Debeo Summa Credo: Government extortion.
Yes, poor little innocent Bank of America, being harassed by the evil government.

Here's a little hint for you: no one settles for $17 billion when they did nothing wrong. You pay $17 billion when the alternative is $50 billion and you just want the whole thing to go away with no finding of guilt.


When I was working for BOA about 1.5-2 years ago there was an emergency IT refresh project running of virtually every machine in the company, especially newly bought meryl lynch, everything was being replaced as fast as possible with new machines that were firmware-locked down, you couldn't put in a usb drive, a new hard drive, heck even put in/take out a video card or the machine would be locked completely out until you got authorization for the changes, very difficult to support.
The point is, the reason that project happened was to make sure retention policies were being kept, email is kept the minimium number of days, period, what is saved and where is tightly monitored, everything that didn't meet strict guidelines was thrown out.  Its likely that this settlement happened because most of the evidence that hasn't already been found has been destroyed.
 
2014-08-07 03:32:34 PM  

coldcuts: I thought the corporate line was that these infractions were done by CountryWide Mortgage, and BOA bought up CountryWide as a favor to the US, practically losing their shirts on the purchase and subsequent problems/fines?


There is no doubt that BoA's acquisition of Countrywide was one of the worst acquisitions in the history of business.

They took on countrywide's terrible mortgage exposure and their legal liability. All for a business model that was dead months after purchase.
 
2014-08-07 03:34:14 PM  

DaStompa: ImpendingCynic: Debeo Summa Credo: Government extortion.
Yes, poor little innocent Bank of America, being harassed by the evil government.

Here's a little hint for you: no one settles for $17 billion when they did nothing wrong. You pay $17 billion when the alternative is $50 billion and you just want the whole thing to go away with no finding of guilt.

When I was working for BOA about 1.5-2 years ago there was an emergency IT refresh project running of virtually every machine in the company, especially newly bought meryl lynch, everything was being replaced as fast as possible with new machines that were firmware-locked down, you couldn't put in a usb drive, a new hard drive, heck even put in/take out a video card or the machine would be locked completely out until you got authorization for the changes, very difficult to support.
The point is, the reason that project happened was to make sure retention policies were being kept, email is kept the minimium number of days, period, what is saved and where is tightly monitored, everything that didn't meet strict guidelines was thrown out.  Its likely that this settlement happened because most of the evidence that hasn't already been found has been destroyed.


Many companies do that now. You'd be stupid not to when one email out of hundreds of thousands can be taken out of context to damn a whole company.
 
2014-08-07 03:37:11 PM  
Debeo Summa Credo:
Many companies do that now. You'd be stupid not to when one email out of hundreds of thousands can be taken out of context to damn a whole company.

Yeah, but people outside of IT in my experience at least dont' understand that saving an email archive on a network server means if you get a legal request we have to turn over the whole server which is an infinite amount of liability.  The difference between usual retention and this was it seemed to be in panic mode, tons of contractors, brand new equipment being ffr'd and tossed, nothing was spared, i was making /insane/ money for my skillset flying to 3-4 meryl lynch locations a week just doing tech refresh and there were dozens of techs doing the same thing.
 
2014-08-07 04:09:28 PM  
So will BOA be instituting a new 'Trial Settlement Fee'?
 
2014-08-07 05:16:14 PM  

stuhayes2010: As a former BoA mortgage holder and costumer, when do I get a check?


It depends.  How fabulous was the costume?
 
2014-08-07 07:05:04 PM  

Dust: Corporations are just like people, right up to the point where you can't send corporations (or anyone working for corporations) to jail for white collar crimes.

Clearly Madoff's biggest mistake was that he was just one guy operating alone rather than leading an institution of assholes doing the same thing.


Holder is free to prosecute. No law barring him. SEC gets more money from settlements.
 
2014-08-08 12:22:25 AM  

Incontinent_dog_and_monkey_rodeo: Debeo Summa Credo: Incontinent_dog_and_monkey_rodeo: The problem is that our system is bought and paid for by these same actors.  No one at the banks went to jail because their lobbyists changed the laws to make blatant theft legal.  Justice is only ever inflicted on the little people, if you're a Master of the Universe you're untouchable in America.  You may pay a minimal fine, but you'll never see the inside of a prison.

If it were truly bought and paid for then why are there these enormous fines? Sounds like whomever is doing the "buying and paying for" isn't getting their money's worth.

Seriously, who is paying whom? Is Eric Holder on the take from Brian Moynihan? Is Jamie Dimon bribing Obama to keep the DOJ off his back? Does James Gorman have incriminating pictures of NYAG Eric Schneiderman?

Enormous fines?  Not in the scope of the theft.  The answer to someone stealing $100 is not to fine them $20. $1.70.


FTFY

I've ofeth wondered where the money from this type of settlement goes.
 
2014-08-08 12:23:19 AM  
Often, not ofeth.

/WTF was going on with my keyboard?
 
2014-08-08 11:17:11 AM  
That's more than BAC earned in 2013, so it's a significant penalty. Bank of America stock has gone from the $45-$50 range 10 years ago to $15 range now. Some of that decline is due to dilution from new share issues, but it still represents a huge loss for many long-term investors in the bank. No fine will restore their losses. In fact, a large enough fine would hurt bank shareholders more than it would hurt those responsible.
 
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