Yet Another Back Door Bailout for One of the Big Banks

The New York Fed just absolved Bank of America of potentially billions in claims stemming from mortgage fraud during the housing bubble for the paltry amount (for B of A) of $43 million. Scott free for pennies on the dollar.

One is either in the club or one is not. Most of us are not.

(From The New York Times)

Still, last week’s details of the undisclosed settlement between the New York Fed and Bank of America are remarkable. Not only do the filings show the New York Fed helping to thwart another institution’s fraud case against the bank, they also reveal that the New York Fed agreed to give away what may be billions of dollars in potential legal claims.

Here’s the skinny: Late last Wednesday, the New York Fed said in a court filing that in July it had released Bank of America from all legal claims arising from losses in some mortgage-backed securities the Fed received when the government bailed out theAmerican International Group in 2008. One surprise in the filing, which was part of a case brought by A.I.G., was that the New York Fed let Bank of America off the hook even as A.I.G. was seeking to recover $7 billion in losses on those very mortgage securities.

It gets better.

Click here for the article.

18 comments
Joyce Smith
Joyce Smith

Bank of America takes taxpayers money for their own good/benefits and then treats its loyal long term customers like S--T. We need to stop feeding our hard earned dollars to these corporate money hungry top dogs.

Brad Steeples
Brad Steeples

Obama scratches his crony buddy Buffet's back once again. Disgusting.

Alan Clontz
Alan Clontz

Tear them down, fill their banks with concrete, put thier CEO's in stocks in the town square, boil them in oil, add your own idea here...........

Dwane Walton
Dwane Walton

BoA should have been allowed to fail like Wachovia did. Wells Fargo bought Wachovia assets for 6% and is now a strong institution. BoA is a wounded duck that will need bailout after bailout - all at taxpayer expense.

Joshua F. Kitzler
Joshua F. Kitzler

Backdoor indeed...because they pull the money out of their asses :D

Janet Day
Janet Day

Let the banks suffer their stupidity.

Jean Geiger Wagoner Lauver
Jean Geiger Wagoner Lauver

There is so much backdoor stuff going on in our country. How in the world will we ever get back to what we were?

Aidan Haggerty
Aidan Haggerty

Time to End the Fed. Bank of America should of suffered with the banks that made bad loans.

Eileen Sparks Selzer
Eileen Sparks Selzer

We bail the banks out who helped to destroy our economy and they don't go to jail? Hogwash!

Eugene Jr Ingram
Eugene Jr Ingram

I agree a crash of epic proportions is coming. Bankrupt bankers will be jumping out of skyscrapers in Manhattan skyrises, like people jumped out of the World Trade Center when it was burning.

John Lehman
John Lehman

String all the banksters up by their thumbs. Or any other short stubby appendages they may have... :p

Matthew Brandley
Matthew Brandley

in the next few months they will fail folks . mark my words . theres one hell of a crash comming thats taking them with it