Bank of America fined $US17b over GFC products

By Peter Ryan

Dennis Kelleher of US financial watchdog Better Markets says, while a $US17 billion fine for Bank of America sounds like a lot, it might be only be a fraction of what banks made from marketing dodgy products.

“There’s no way to evaluate whether or not it is a lot of money, or whether or not it’s fair punishment, or whether or not it will deter or incentivise future crime unless you actually know how much money the Bank of America actually made from its illegal conduct, how much money its investors, customers and clients lost,” he argued.

However, at almost $US17 billion, Bank of America is paying a much bigger price than other banks to resolve around a dozen state and federal investigations.

The Bank of America has paid almost $US17 billion to settle allegations about its role in the events leading up to the global financial crisis.

US regulators had been probing claims that the bank misled investors into buying dodgy mortgage-backed securities which exploded when America’s housing boom went bust more than six years ago.

Read more here: ABC


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