Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Market
HuffPost: Bank profits 5x higher than fines since crash
WASHINGTON (8/11/14)--When Bank of America hands over a reported $17 billion to the U.S. Justice Department, the forfeiture will bring the total paid by big banks in the aftermath of the housing crash they're largely held responsible for causing up to about $128 billion, The Huffington Post reported Friday.

That number, however, pales in comparison to the $503 billion the Federal Deposit Insurance Corp. says many of those same banks have earned in profits over the last five years.

Further, while Bank of America's bottom line will suffer a blow--the settlement amount is more than double the bank's profits over the last 12 months--federal regulators agreed last week to allow the big bank to raise its dividend, which certainly will soften the pain.

According to Yahoo! Finance, Bank of America's shares rose 2.4% after the announcement of the quarterly dividend increase.

"Clearly $17 billion is not going to break the bank," Huffington Post said of settlement amount, a record in the history of corporate America.

Nor has the nearly $62 billion Bank of America has forked over in total since 2008 to resolve investigations and accusations of selling toxic mortgage securities and defrauding consumers leading up to the recession.
RSS





print
News Now LiveWire
Registration lottery for #CreditUnion #CherryBlossom Ten Mile Run opens Monday, Dec. 1 http://t.co/AGkKPof5Fy. Race is April 12
8 hours ago
The turkey hasn't even been served and #creditunions are already making plans for #GivingTuesday
9 hours ago
.@bankofamerica's $16.65 billion 'toxic mortgage' settlement finalized http://t.co/BIq1QyImXG
11 hours ago
RT @CUNA: #NussleReport: ICYMI: Revised RBC proposal in January w/a 90-day comment period #Fix RBC http://t.co/T4JcvWBDse
13 hours ago
.@TheNCUA release on Nov. prohibition orders out already. Here: http://t.co/YkA1QIYbYa
13 hours ago