Bank of America has agreed to pay $2.43 Billion to investors as compensation for its decision to match-up with Merill Lynch and its toxic mortgage loans.
I remember when account executives representing subprime loans came calling on our office at the mortgage brokerage. They invited us to submit loans that couldn’t get approved anywhere else. You know, those “no income, no problem” loans.
There was even a loan called NINA. It stood for No Income No Assets. And no questions were asked. The borrower signed what was basically a blank loan application.
Beats me why squeaky-clean Bank of America thought it was a good idea to buy high-risk loans. Oh wait, I think I know. BOA was hungry for bigger profits, and since these loans carried higher interest rates, the insatiable desire for more money was fed.
Now, without admitting guilt (of course!), Bank of America will dole out more than two billion dollars to its investors who were duped into thinking the match between the Big Bank and Merill Lynch would bring them increased profits.
And to think that some people try to pin the blame for the mortgage crash on a 1970s era law to make it easier for the poor to get financed.
30 months
Daver, thank you for this information. Out of curiosity, how did you find out the prison sentence was 30 months? It seems short to me, don’t you think?