Bank of America Agrees to Record-Breaking Fine for Mortgage Securities Sales
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User Rank: Author
8/21/2014 | 1:22:07 PM
Re: Sobering
I agree. These fees have turned into a sideshow. And there's a sick incentive to them now for regulators because of the press they get for these huge settlements. J.P. Morgan Chase to paid $13 billion, which was then a record. Bank of America paid $16.65 billion, breaking that record. Each time they earn lots of headlines. So what will the next institution have to pay? And we have no transparency in terms of whether or not the fines are in any way proportionate to their actual fines. Did Bank of America do more to earn a higher fine than J.P. Mogan did? How will that affect the next institution that the regulators turn their eye on? Without that transaprency we don't really know what the fines were based on, leading back to your question of whether all that money could have been put to better use.
User Rank: Author
8/21/2014 | 1:15:01 PM
Wow, this is sobering: "Bank of America's total bill for regulatory fines and settlements since the financial crisis to $70 billion." I'm sure that must exceed the GDP of a number of countries. I'm not saying the fines aren't merited, but it still seems like such a waste of $$, time and resources, that could have been invested in lots of other things that potentially could have really helped consumers. Hopefully banks will view this as a cautionary tale in terms of deals/partnerships they pursue, products they create and market, how they serve customers and communities, appropriate processes and risk management, etc.

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