Billions in Fines, but No Jail Time for Bank of America

Bank of America has now joined JPMorgan Chase in a special category called: Banks That Agreed to Pay Billions in Fraud Fines While No Executives Have Gone to Jail.

The company agreed to $9.5 billion in fines to settle civil lawsuits filed by the Federal Housing Finance Agency on behalf of Fannie Mae and Freddie Mac, which claimed that Bank of America had fraudulently misrepresented the quality of $57.5 billion worth of residential mortgage-backed securities leading into the financial crisis. Cash payments of $6.3 billion will be made to Fannie and Freddie, and the bank will buy back $3.2 billion of mortgage securities. This brings the grand total of what the bank has agreed to pay to resolve mortgage claims to more than $50 billion, according to Bloomberg News.