Page 19 - Bank of America E Case Study

Just prior to this investment BofA’s Chairman and CEO,
Brian Moynihan, had told BofA investors that it did not

need to raise capital.

In July 2014, the DOJ and BofA reached a $16.65 billion

settlement over the “toxic” mortgage claims for state and

federal claims relating to the practices of Merrill Lynch

and Countrywide in the runup to the financial meltdown.

The amount was made up of about $10 billion in

cash payments and $7 billion in so-called mortgaged

relief to consumers.

This resolution was the largest such settlement on record

and went far beyond “the cost of doing business”.

Attorney General Eric Holder said:

““Under the terms of this settlement, the bank

has agreed to pay $7 billion in relief to

struggling homeowners, borrowers and

communities affected by the bank’s conduct.
This is appropriate given the size and scope of

the wrongdoing at issue,” he concluded. It’s the
third major settlement that the Obama

administration has reached with a Wall Street

bank over the financial crisis, following similar

agreements with Citigroup and JPMorgan

Chase”. (4)

This was followed in December 2014 FINRA fined Merrill

Lynch $4 million as part of a case against ten investment

banks for allowing their stock analysts to solicit business