NEWARK, N.J. (CBS) – The feds announced a record settlement of financial fraud charges against Bank of America, stemming from the sale of mortgage backed securities that led to the national economic collapse several years ago.
Assistants in the U.S. Attorney’s office in Newark were looking into mortgage notes issued through Merrill Lynch, a Bank of America subsidiary, that predated the 2008 market collapse.
“We were poised to file a lawsuit a few weeks ago when we finally were able to close the deal with Bank of America on the amount that the bank would pay,” says U.S. Attorney Paul Fishman.
It was over $16.5-billion — the largest of three settlements with major national financial firms. $5-billion goes to the government. Some more goes to several states. A total of more than $9.5-billion will go to homeowner relief.
- VIDEO: Suspect Robs 7-Eleven After Being Denied Access To Restroom, Police Say
- WEATHER: Winter Unleashed With Arctic Blast
- More Beer Gardens Could Be Popping Up Across Philadelphia This Summer
- More Police Departments Across Pa. Keen To Acquire New License Plate Reader Technology
- “Free At Last!” Storm-Battered Cruise Ship Returns To NJ
- Police: Man Driving Stolen Truck Killed In Accident In Bristol
- Car Crashes Into Fishtown Concert Venue; Driver Faces DUI Charges
- Cab Driver Attacked, Robbed In Queen Village
- New Group Offers Women With Heart Disease Support, Information In South Jersey
- Local Sculptors Plan To Put Valentine’s Day On Ice