Bank of America to Pay Record Settlement Over Countrywide Abuses

John Dunbar
iWatch News / News Report
Published: Thursday 22 December 2011
“Perez said more than 200,000 African-American and Hispanic victims are identified in the complaint and will receive compensation.”
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Bank of America will pay $335 million to settle allegations of discrimination at Countrywide Financial Corp., the troubled lender it bought in 2008.

Countrywide was the nation’s largest subprime lender and came to symbolize the real estate collapse that led to the nation’s economic meltdown. The Justice Department said Wednesday that the agreement is the largest fair lending settlement in the department’s history.

“If you were African-American or Hispanic and you went to Countrywide for a loan, and you were qualified, you likely paid more simply because of the color of your skin,” said Assistant Attorney General Thomas E. Perez. People of color also were “far more likely to be steered into an expensive and risky subprime loan than a similarly-qualified white borrower.”

iWatch News reporter Michael Hudson has covered the risky lending practices at Countrywide in a series of stories called “The Great Mortgage Coverup.

Perez said more than 200,000 African-American and Hispanic victims are identified in the complaint and will receive compensation.

Bank of America in a statement said that it does not discriminate.

The abuses occurred between 2004 and 2007, the peak of the subprime borrowing craze.

Reprinted by permission from iWatch News



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13 comments on "Bank of America to Pay Record Settlement Over Countrywide Abuses"

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muse53

December 31, 2011 10:24pm

How about Asians who had loans with Countrywide between 2004-2007? Technically,Countrywide had transactions with borrowers from different backgrounds.

William Bednarz

December 26, 2011 10:09am

. . . Wisdom eludes me sometimes -.-
Judge knocks down Citi SEC 285M settlement
A federal judge in Manhatten angrily blocked Citigruop's proposed 285 million settlement with the securities ans Exchange Comission over the sale of toxic mortgage debt, saying the SEC appeared uninterested in actually learning what Citigroup did wrong.
. The judge said the proposed settlement was "neither reasonable, nor fair, nor adequate, nor in the public interest The move opens the door for the case to be taken to trial.....Citi declined comment -.- The SEC said the settlement was fair (REUTERS)
. . . And with all settlements 285 million or 335 million NO ADMISSION OF GUILT????? How do you fix the problem without any admission of guilt - sweep it under the table ??? Trials cost big money -.- 50 million more to settle / and a trial would expose the truth and cost how much ????

Ogblofeld

December 23, 2011 12:26am

That's a fraction of what they've skimped on taxes.

American Muse

December 22, 2011 10:19pm

This so-called settlement is a monstrous travesty of justice. After looting untold trillions from Americans by perpetrating unspeakable fraud and confiscating their homes and retirement funds, not one thieving banker or financial criminal has served a single day in prison. Mr. Obama and his deplorable team let them all go free. Where are the perp-walks and mugshots?

Fisheddy

December 22, 2011 7:12pm

Discrimination! REALLY????? What about FRAUD, FRAUD, FRAUD????? Where is the Attorney General on that???? Agree with KIMPEK, send them to jail! One prison term might do more than Glass Steagall was intended to do. Just send them to jail.

b0ydrgn

December 22, 2011 4:52pm

What about Countrywide and their abuse of service (military) members. I just got a check for $300+ from them on that.

So $335,000,000.00 minus 33.3% for the lawyers comes to $223,445,000.00. Divide that by 200,000 people and the price for ruining someone's life comes to $1,117.23. Yeah, these guys spend that much on lunch. FU-BOA!!!

Lagibby

December 22, 2011 2:55pm

This discrimination was done by Countrywide, before it was bought by B of A. I'm no fan of Skank of America, but in this case, I wonder if any of the executives or loan officers who actually discriminated will suffer from these fines. I doubt it. Instead, they sold their problems to B of A and walked away with millions. That's the whole definition of corporation -- no individual responsibility. We need a complete re-ordering of banking and corporate law and regulations in this country.

Lagibby

December 22, 2011 2:54pm

This discrimination was done by Countrywide, before it was bought by B of A. I'm no fan of Skank of America, but in this case, I wonder if any of the executives or loan officers who actually discriminated will suffer from these fines. I doubt it. Instead, they sold their problems to B of A and walked away with millions. That's the whole definition of corporation -- no individual responsibility. We need a complete re-ordering of banking and corporate law and regulations in this country.

Christina Marlowe's picture
Christina Marlowe

December 22, 2011 1:58pm

The first and most urgent GOAL, in my opinion, is to THOROUGHLY INVESTIGATE, INDICT, PROSECUTE, FINE and IMPRISON...THE CRIMINALS!!!

If and only if THAT happens, can any of us go about restoring some semblance of law and order, basic civility, a measure of justice.

The fact of the matter is that, as it stands,
the U.S. Department of Justice, along with any and all other law enforcement agencies, do absolutely NOTHING; In fact, the habitual, serial Felons, the criminals, get FULL Pardons, Full ASYLUM, right here in America; None are ever investigated, indicted, prosecuted or punished. In fact, each of them are ABOVE ALL LAWS.

And Just Remember: It was President Obama that clearly stated that he would not get involved in prosecutions of these (war crimes and financial terrorism) crimes; He said, "I want to look forward, not go backward."

Well, I say to him, I want to move forward by upholding both the U.S. laws and the world's laws. If we continue to totally ignore SERIOUS CONSTANT crimes and the criminals walk away scott-free every time, it only gives both the criminals and the would-be criminals license to behave as if they're above the law. And that is exactly how they conduct themselves. Indeed this is a travesty...

workingsenior

December 22, 2011 1:57pm

Chump change for them. They all should be hauled off in chains.

Kimpek

December 22, 2011 1:43pm

crap.. $335 million!! lunch money fer these a$$holes!! shut them down!! LONG prision terms for the execs!! talk about the 1%!!Kimpek