Bank of America
is under scrutiny by the United States Department of Justice for its unscrupulous
financial practices. In order to prevent another economic collapse, the federal
government believes that Bank of
America, along with other large financial institutions, must be penalized
for their actions.
Allegedly having handled shoddy and fraudulent loans, Bank of America is in negotiations to
settle civil probes for 12 billion dollars. The amount of this settlement may go up, and if
a deal is reached, at least $5 billion will go towards consumer relief by way
of loan modifications with principal and monthly payment reductions and other
forms of help for defaulted loans. This potential settlement, of course, is
great news for the struggling homeowner and represents an enormous fine against
the financial behemoth of Bank of
America.
If a deal cannot be reached, the Justice Department will most likely proceed
with a lawsuit against Bank of America
for its fraudulent practices.
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