Could someone please explain this to me. Bank of America is going to pay a settlement of 8.5 billion dollars to a group of 22 investors according to Reuters.
Reuters:
The largest U.S. bank by assets has been fighting claims by a group of 22 investors over the housing-related securities it packaged and sold before the financial crisis. The investor group includes BlackRock Inc, MetLife Inc and the Federal Reserve Bank of New York.
AP:
The Charlotte, N.C., bank was continuing talks late Tuesday with the group, which includes the Federal Reserve Bank of New York, Pimco Investment Management, the world's largest bondholder, and Blackrock Financial Management.
snip
Since the beginning of the year, the bank has struck large settlements with multiple investors. In January, the lender paid $2.6 billion to settle buyback claims on home loans sold to Fannie Mae and Freddie Mac. And in April, the bank agreed to pay up to $1.6 billion to Assured Guaranty Ltd.
Take a look at these investors. They are the very ones who should be indicted for their own fraudulent behavior and yet they are going to receive a settlement? And where is that money coming from? Are the BOA depositors going to wind up with some of this debt? Not to mention Goldman Sacs is getting away with only paying millions of dollars to settle not long ago.
I'm only seeing a transfer of money from one wealthy corporation to another. How about the real victims, you know the home owners, the unemployed, etc....
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