Friday, October 26, 2012

Libor probe reaches Bank of America

A probe into allegations that banks conspired to rig the Libor interest rate has reached Bank of America, according to The Wall Street Journal.

Bank of America was one of nine banks served subpoenas during an investigation by state prosecutors, led by New York Attorney General Eric Schneiderman and Connecticut Attorney General George Jepsen.

The Charlotte bank had already disclosed that it had received subpoenas and other requests from a number of regulatory agencies looking into the issue.

Other news stories this morning:

Countrywide costs. The legal costs stemming from the ill-fated acquisition of Countrywide Financial by Bank of America is at $40 billion and counting after a lawsuit from the Manhattan U.S. Attorney, The New York Times says. U.S. News and World Report says the suit is an example of why it's now so difficult to get a mortgage.

CEO tenure. Guess which big-bank CEO has been in his job the longest? It's Jim Rohr, head of PNC Financial, who took over the helm in 2000. His secret? Bloomberg Businessweek reports that Rohr and analysts say it's been being "conservative and opportunistic."


Anonymous said...

Got to love the Anti-OWS gop'ers....Naaaa Hey just maybe we can get through a couple of days without another bank fraud headline....

Anonymous said...

Well, well, another scandle with BofA and she just got sued for $1B from the federal government. Same ole same for the bank. Law suit after law suit. When are we ever going to hear any good and exciting news coming out of the headquarters of BofA in Charlotte.

Anonymous said...

All these law suits by the government during the libor investigations... all that money will never get to the citizens that were screwed... 1 billion dollars does not matter to them - the will make it all back in a short time - on our expense...

Shamash said...

Anon 5:23.

What do you mean the money will never GET to the citizens?

Where do you think it came from?

BofA got its money from the gubmint in the first place.

And then they loan it to citizens and take their cut for giving citizens money that the citizens gave them through the Fed.

It's not like they "earn" their money the same way you and I do.

The gubmint suing BofA is like the gubmint suing themselves.

All they're doing is re-cycling money we've already given BofA.

I'm sure we'll "loan" BofA even more gubmint money that they can re-distribute after taking their cut.