(New: Holder-looking statements, market reaction, distribution of fines)
WASHINGTON (dpa-AFX) – For risky mortgage deals dating back to the financial crisis should the Bank of America & lt; NCB.ETR & gt; & Lt; BAC.NYS & gt; pay a record sum. The Institute is in the context of a comparison about $ 16.65 billion (12.5 billion euros) to be considered for these businesses accountable, as U.S. Attorney General Eric Holder announced in Washington on Thursday. It is the highest amount that a company has ever had to pay in a civil dispute with the U.S. government. Earnings per share (EPS) for the third quarter is likely to be lower because of the penalty by 43 cents, it said from the bench.
The Bank of America will transfer $ 9.65 billion directly to the Ministry of Justice . Another 7 billion will go over compensation to over-indebted Eigenheimer. The bank is alleged to have led investors on the sale of loans secured by real estate loans securities duped. The papers are considered to be one of the causes of the financial crisis of 2008.
SHARE UP DESPITE PENALTY
According to the U.S. Justice Institute has concealed the buyers before the collapse of the housing market, how bad it standing to the credit in the Securities
Investors took the punishment billion initially left out -.., the shares of Bank of America rose in New York trading at about 1.5 percent
MINISTER : STEP TO CITIZENS FROM FINANCIAL FRAUD TO PROTECT
Attorney General Holder said in Washington, with the punishment those who should be held accountable, “whose actions have threatened the integrity of our financial markets and undermine the stability of our economy.” He spoke of a great step to protect U.S. citizens from financial fraud
The U.S. authorities have been asked numerous major banks on account of such mortgage deals to checkout, last lt Citigroup &,. C.NYS & gt; & Lt; TRVC.FSE & gt; with seven billion dollars
OTHER BANKS PAID ALREADY HIGH TOTALS
So far, the US-rival JPMorgan & could lt;. CMC.ETR & gt; & Lt; JPM.NYS & gt; Comparative record itself take. The bank paid in November on similar charges $ 13 billion.
Bundled loan packages that were sold to investors around the world, are considered by some experts as the cause of major financial crisis that escalated in 2008 in the collapse of investment bank Lehman Brothers .
NUMBER OF PENALTIES FOR BANK OF AMERICA
The Bank of America had after a long struggle, agreed in March to the two state-owned Fannie Mae and Freddie Mac 9.5 to compensate billion dollars.
Overall, the Institute already lost more than 60 billion dollars for risky mortgage transactions. By now the settlement reached, is to seal the issue for the bank finally, the Gesamtbuße could rise to almost $ 80 billion. / Hbr / DP / stb