U.S. Lawsuit Against Bank Of America Given Go-Ahead For Trial (Consumerist) It’s been nearly a year since the U.S. government sued Bank of America Corp (NYSE:BAC) a over Countrywide’s sale of billions of dollars worth of toxic loans to Fannie Mae and Freddie Mac. Predictably, BofA has attempted to have the case dismissed, but a federal judge has given the green light for the suit to finally head to trial next month. The lawsuit alleges that in the run up to the collapse of the housing market, Countrywide Financial, the failed mortgage lender bought by BofA in 2008, initiated a program dubbed the “High Speed Swim Lane,” better known as the “Hustle,” that removed most of the underwriting roadblocks that would have prevented unqualified applicants from receiving loans they could never feasibly pay back. The goal, claims the government, was for Countrywide to bundle up as many mortgages — regardless of quality — as possible and immediately resell them to Fannie and Freddie.
Bank of America to Pay $160M to Black Financial Advisers (Investor Place) An attorney representing black financial advisers who filed a class action lawsuit against Bank of America Corp (NYSE:BAC)’s Merrill Lynch unit in 2005 told Bloomberg that the bank has agreed to settle the discrimination suit. Under the settlement, up to 1,200 class representatives could receive part of a $160 million payment from Bank of America. A judge will review the proposed settlement early next month. A spokesperson for the bank confirmed that a settlement had been agreed to and that Bank of America Corp (NYSE:BAC) was “committed to enhancing opportunities for African-American financial advisers.”
Wells Fargo Waives Remittance Transfer Fees for Families and Friends Affected by the Philippine Floods (Daily Finance) Wells Fargo & Co (NYSE:WFC) is temporarily waiving all remittance transfer fees for ExpressSend® transfers from a linked checking or savings account for customers sending money using the ExpressSend service to friends and family impacted by the floods in the Philippines. The fee waiver is effective August 26, through September 15, 2013.
Citigroup Announces Upsizing of Offers to Purchase Specified Series of Outstanding Notes (Financial Post) Citigroup Inc (NYSE:C) announced today, that it has increased the maximum aggregate principal amount of specified series of notes (the “Notes”) that it will accept (each, a “Maximum Series Tender Cap”) in its previously announced cash tender offers (each, an “Offer” and, collectively, the “Offers”), as set forth in the table below
Citigroup Comfortably Leads U.S. Peers In Basel III Readiness (NASDAQ) Since the economic downturn of 2008, the primary focus of financial regulatory bodies across the globe has been to ensure that the banks they oversee are made strong enough to weather such unforeseen circumstances in the future. The guidelines laid down as a part of Basel III capital requirement norms form the crux of the rules implemented by these financial watchdogs, albeit with several additions of their own.
Tomorrow In :30 (CNBC)