The Los Angeles Times (4/2/13) reports that Bank of America has not admitted any wrongdoing in agreeing to the settlement, which resolved claims from the National Credit Union Administration on behalf of five credit unions. Citigroup, Deutsche Bank and HSBC have previously agreed to similar settlements, totaling around $170 million.
Bloomberg Businessweek (4/2/13) reports Bank of America has so far spent more than $40 billion to settle claims related to home loans and foreclosures. The National Credit Union Administration announced in a news release (4/2/13) that it had obtained more than $335 million in legal settlements related to mortgage-backed securities. Other firms that face similar lawsuits include Wachovia, Washington Mutual and Bear Stearns, the National Credit Union Administration said.
Meanwhile, Citigroup will reportedly pay $730 million to settle allegations that it misled investors in matters regarding preferred stock and bonds, according to Forbes (3/19/13). Citigroup did not admit any wrongdoing in agreeing to the settlement, but said it had agreed to the settlement to avoid further litigation.
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The judges were reportedly upset that the banks and financial firms got away without admitting guilt, that there was a lack of clear reasoning for the settlement amounts and that the penalties were inadequate. One judge rejected the proposed settlement, worried that the company’s shareholders would be on the hook to pay the settlement, rather than the executives involved in the legal action.