Flooded by foreclosures, America’s biggest banks were imperfect in their processing of mortgage defaults.
To punish the banks and to accumulate a nice slushfund to bribe voters, Democrat politicians want to extract about $20 billion from the banks.
As a result, bank stocks remain in the toilet.
Bank of America co-operated with the US inquiry, said Dan Frahm, a company spokesman.
“Any suggestion otherwise is both inaccurate and inconsistent with how we work with all regulators,” he said.
In addition to the 50-state probe, New York Attorney General Eric Schneiderman has opened a new inquiry tied to the packaging and sale of loans to investors, according to a person familiar with the matter. Bank of America is included in that probe along with other banks and bond insurers such as MBIA Inc.
Schneiderman’s office has sought information from additional financial institutions, two people familiar with the matter said.