Banksters fined again
Bank of America has agreed to pay a record $16.7bn (£10bn) to US authorities for misleading investors about the quality of loans it sold.
The associate attorney general, explained: "It's kind of like going to your neighbourhood grocery store to buy milk advertised as fresh, only to discover that store employees knew the milk you were buying had been left out on the loading dock, unrefrigerated, the entire day before, yet they never told you. And just like you might be in for an unpleasant surprise when you got home and poured yourself that glass of milk, investors - such as public pension funds and federally-insured financial institutions - were unpleasantly met with billions of dollars in losses when those securities investments soured."
Not all bad news for Bank of America. Even after the penalty payment, it still left them with third-quarter profits of $5.3bn and the shares of Bank of America opened 1.5% higher following the settlement.
Bank of America has agreed to pay a record $16.7bn (£10bn) to US authorities for misleading investors about the quality of loans it sold.
The associate attorney general, explained: "It's kind of like going to your neighbourhood grocery store to buy milk advertised as fresh, only to discover that store employees knew the milk you were buying had been left out on the loading dock, unrefrigerated, the entire day before, yet they never told you. And just like you might be in for an unpleasant surprise when you got home and poured yourself that glass of milk, investors - such as public pension funds and federally-insured financial institutions - were unpleasantly met with billions of dollars in losses when those securities investments soured."
Not all bad news for Bank of America. Even after the penalty payment, it still left them with third-quarter profits of $5.3bn and the shares of Bank of America opened 1.5% higher following the settlement.
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