Bankrupting America

US sues Bank of America for $1 billion

Thu, 25 Oct 2012 13:00:00 -0700

Via the NYT:

U.S. Accuses Bank of America of a ‘Brazen’ Mortgage Fraud

Five years after the housing market crumbled, government officials are still trying to assign blame for the problems that fueled the mortgage boom and bust.

On Wednesday, federal prosecutors in New York took aim at Bank of America. They accused it of carrying out a scheme, started by its Countrywide Financial unit, that defrauded government-backed mortgage agencies by churning out loans at a rapid pace without proper controls. In a civil suit, prosecutors seek to collect at least $1 billion in penalties from the bank as compensation for the behavior that they say forced taxpayers to guarantee billions in bad loans.

Financial firms have been battling chaotic — and at times redundant — litigation related to the mortgage mess. The cases have come from a patchwork of federal agencies, state officials and shareholder suits, some of which have been resolved in multibillion-dollar settlements.

“They never know who’s going to be coming after them next,” said Dan Hurson, a former federal prosecutor who now defends securities cases. “There’s no central traffic cop.”

Still, the public has been frustrated with the limited number of criminal actions that have been filed since the financial crisis. Few cases have taken aim at top executives. Even in the latest case against Bank of America, no company officials were sued as part of the complaint. Angelo R. Mozilo, the former chief executive of Countrywide Financial, never faced criminal charges but did agree in 2010 to pay $67.5 million to settle a civil fraud case brought by the Securities and Exchange Commission.

Rainforest Action Network: Another Bad Call by Bank of America… And I Ain’t Just Talking Football

Fri, 28 Sep 2012 12:50:00 -0700

Rainforest Action Network: Another Bad Call by Bank of America… And I Ain’t Just Talking Football:

rainforestactionnetwork:

I imagine there are quite a few folks over at Bank of America thanking god it’s Friday right about now, because this was one hell of a bad week for them. In fact, it’s been a pretty bad couple of weeks for the bank. And for Bank of America, of all companies, to have a bad couple of weeks, well… you know it must have been BAD.

This week kicked off with BofA VP of small business banking Lance Easley, who also happens to be a replacement referee for the NFL, making the infamous call that handed the Seattle Seahawks a victory over the Green Bay Packers on Monday Night Football—what some are calling “the worst call ever.” And it didn’t get any better from there—though things were already not exactly going BofA’s way.

Read more»

Climate activists with the OWS Environmental Solidarity group in...

Mon, 17 Sep 2012 15:21:42 -0700

Climate activists with the OWS Environmental Solidarity group in NYC hold a “polar bear die-in” outside a Bank of America branch to mark Occupy Wall Street’s 1-year anniversary.

Photos by John Duffy.

Via Occupy Wall St. on Facebook: There have been nearly 20...

Tue, 11 Sep 2012 09:32:52 -0700

Via Occupy Wall St. on Facebook:

There have been nearly 20 arrests per day since Sep 17, 2011 of Occupy protesters. 7,400 total as of Sep 5, 2012. How many bankers have seen a single day in jail?

Source: occupyarrests.moonfruit.com — with Anthony Zenkus.

March down U Street protests pending eviction of D.C. pastor

Thu, 06 Sep 2012 12:44:22 -0700

About three dozen people marched down U Street NW on Thursday morning to protest the pending eviction of a prominent local pastor from his Northeast Washington home.

Protesters march Thursday along U Street NW in support of the Rev. Michael Robert Vanzant, who faces foreclosure. (Astrid Riecken - for The Washington Post)Friends of the Rev. Michael Robert Vanzant, the outreach pastor for Faith Temple and a vocal supporter of LGBT rights, joined members ofD.C.’s Occupy movement for a noisy rally outside a Bank of America loan office on U Street, near 14th Street.

“They say eviction, we say no. Michael Vanzant will not go,” protesters chanted as they stood outside the loan office, knocking on the front door and posting cardboard “Eviction” signs on the windows.

Vanzant, who protest organizers said recently suffered a minor stroke, did not march or join the rally on his behalf. Staff at Washington Hospital Center confirm that he is undergoing tests.

Occupy members were joined by three of Vanzant’s friends, including Isaiah Poole, who had served as a church elder at Faith Temple with Vanzant in the 1980s.

According to Poole, Vanzant had to go on disability from his job as a Metro employee about two years ago. Vanzant reportedly contacted Bank of America, which inherited his mortgage when it bought Countrywide, to modify the loan on his home of 24 years. Poole said that the bank denied his request.

“For some reason, he just hit wall after wall after wall,” Poole said.

While passersby complained that the group was blocking the sidewalk, the only acknowledgment from inside the office was the closing of window blinds.

“Success today would be if Bank of America calls him and gives him his home back,” said Mike Haack, one of the organizers. “More realistically, this will put Mr. Vanzant on Bank of America’s radar.”

When Poole learned of his friend’s “saga,” he reached out to an acquaintance who worked with Occupy Our Homes D.C., an offshoot of the Occupy D.C. movement that aims to “resist” foreclosures and bank seizures in the District. The group successfully helped another local homeowner, Prince George’s County resident Bertina Jones, reclaim her foreclosed home earlier this year. Poole hoped Occupy could help his friend.
Charles Hicks of the D.C. Black History Celebration Committee joins Laura Kacere, left, and Megan Gabriel in support of the Rev. Michael Robert Vanzant, who faces foreclosure. The protest occurred Thursday in front of a Bank of America on U Street NW. (Astrid Riecken - for The Washington Post) About 8:30 a.m. Thursday, as Vanzant lay in Washington Hospital Center, protesters gathered at the Reeves Municipal Center, at 14th and U streets. They walked a half-block east on U Street, led by a regiment of news cameras, to the loan office. Protesters carried signs with slogans such as “Stop foreclosures now” and “Save Vanzant’s home.”

Poole said that Vanzant’s house is more than just a residence. Because Faith Temple does not have its own facility — the congregation worships at the New York Avenue Presbyterian Church — Vanzant’s home has become the church’s parsonage, Poole said.

“We hold Bible study there. We hold church events there. Our old church organ is in his house,” Poole said. Vanzant has even opened his house as a shelter on occasion.

Poole made an appeal to the Bank of America workers inside. Knocking on the door, he called out, “We are asking you to come to the table and do for him what you are obligated to do.”

No one inside responded, but three police cruisers pulled up beside the protesters. The officers asked why they were there and how long they intended to stay.

“Maybe 15 more minutes?” an organizer responded noncommittally.

But without a response from inside the loan office and with the rain outside growing heavy, the rally lost its momentum. The protesters marched away, chanting, “We’ll be back.”

Thursday afternoon, Occupy D.C. organizers reported that Bank of America had reached out to Vanzant after the rally to schedule an appointment to discuss the pastor’s mortgage.

Neither Vanzant nor Bank of America representatives could be reached to confirm the appointment.

Vanzant remains hospitalized and is expected to recover.

By Maggie Fazeli Fard | 11:57 AM ET, 09/06/2012

Via The Other 98%: BREAKING: God frowns on Bank of America.

Wed, 05 Sep 2012 15:59:14 -0700

Via The Other 98%:

BREAKING: God frowns on Bank of America.

Democracy Now! Ahead of Charlotte DNC, Hundreds Protest...

Wed, 05 Sep 2012 00:00:00 -0700

Democracy Now!

Ahead of Charlotte DNC, Hundreds Protest Corporate Giants in “March on Wall Street South”

rainforestactionnetwork: Good question, via The Other 98%.

Tue, 04 Sep 2012 15:48:09 -0700

rainforestactionnetwork:

Good question, via The Other 98%.

Rainforest Action Network: Bank of America targeted for protests at political conventions

Tue, 28 Aug 2012 12:54:24 -0700

Rainforest Action Network: Bank of America targeted for protests at political conventions:

rainforestactionnetwork:

Via LA TIimes:

“Occupy”-style protesters will have both political and corporate targets at hand next week when the Democratic National Convention is held in Charlotte, N.C, Bank of America Corp.’s hometown.

A group organized under the March on Wall Street South banner planned to demonstrate

Bank of America Protest at RNC

Mon, 27 Aug 2012 15:47:00 -0700

Early RNC protests focus on Bank of America

Franco Ordoñez and Jim Morrill

Published in: Politics

TAMPA, Fla. In what may have been a preview of next week in Charlotte, hundreds of demonstrators took to the streets Sunday to march against what they called corporate greed and to advocate for low-wage workers and an increase in the federal minimum wage.

The Republican National Convention may have been throw off-schedule by the incoming storm, but demonstrators wasted no time getting started.

One of Sunday’s first targets: Bank of America

Some 200 demonstrators gathered in downtown park for an unscheduled protest. After a series of speakers criticized tax cuts for the rich, about half of the group split off and marched across the street to Bank of America plaza.

They carried signs and chanted slogans against the “one percent.” Several demonstrators — armed with crayons and stickers — began pasting and scribbling slogans across the sidewalk and building pillars. One sign read: “You stole our money; we want it back.”

By the time Leah Rothschild wrote “Protect the People, Not the Banks” a few feet from the front doors, dozens of officers had swarmed in front of the bank using their bikes as shields.

Assistant Tampa Police Chief John Bennett approached and told the women and other protesters to move off the private property. As demonstrators pulled back, the officers pushed forward, maintaining their line.

“Stay behind the bikes,” Bennett repeated again and again — calmly, but firmly.

Once the protesters left, Bennett walked past the bicycle line, repeating “good job” to the officers.

Bennett said Tampa police are trying to set boundaries for demonstrators.

“It’s finding the balance between expressive speech and … the criminal boundaries,” he told the Observer.

A test for RNC security

Minutes after the protesters left, city workers began collecting balloons left behind and picking up dozens of black “We are the 99 percent” stickers that demonstrators had stuck on the sidewalk.

Marching away with what was left of her box of 61 crayons, Rothschild 30, of Lake Worth, Fla., said her goal is to be disruptive and annoying, but not cause permanent damage or get arrested.

“I want the Republicans to know that we’re in total opposition,” she said.

The protest was also one of the first tests for the RNC security teams, led by Tampa police. Officers met the group soon after they congregated at the park. Another team of officers on horseback arrived later.

Bike officers rolled alongside the marchers, closing streets in advance of the protesters. Police said the Salvation Army offered water to the demonstrators. Police reported no arrests.

Less than a mile away, another group of demonstrators prepped for the largest scheduled demonstration of the convention on Monday. An estimated 5,000 protesters are expected to speak out on corporate greed, immigration, reproductive rights, health care and war.

While acknowledging the expected storms may hurt turnout, the Coalition to March on the RNC promised that Monday’s march would take place.

“We will be wet, we will be angry, but we’ll still be there,” said Jared Hamil, one of the coalition’s lead organizers.

Some headed for Charlotte

Many in the group, such as Wade Fullmer, said they planned to travel to Charlotte and join the Coalition to March on Wall Street South, which will be hosting similar protests during the Democratic National Convention..

Fulmer, a retired accountant from Columbia, wore a pink vest with a hand painted slogan: “Bank of America is bad for America.”

Sara Flounders, co-director of the International Action Center, is one of the leaders of next Sunday’sMarch on Wall Street South in Charlotte.

“Charlotte… is the banking and financial center of the country after Wall Street,” she said. “That’s where the policies are set.
”

Criticism for new Bank of America directors

Mon, 27 Aug 2012 15:44:00 -0700

August 27, 2012 | By Jim Kim

Bank of America’s board is in flux, with four new directors set to come aboard next year. On the surface at least, all four are independent, but that didn’t stop analyst Richard Bove from leveling some criticism.

“These are the type of people banks want on the board, and they tend to be sycophants, who go along with whatever [bank management] tells them,” Bove said to TheStreet.com.

More specifically, he believes “the directors in general lack expertise in technology and capital markets, which is where he believes the future of the institution lies.”

The new directors are Sharon Allen, former Deloitte chairman; Jack Bovender, former HCA chairman and chief executive; Linda Hudson, president and CEO of the U.S. subsidiary of defense contractor BAE Systems; and David Yost, former CEO of pharmaceuticals company AmerisourceBergen. The board now has 16 members, though that will decline as people step off within a year.

It may be premature to pronounce them all spineless and it might be wise to give them some time to earn that reputation—or not. But I have noted that the new director nominees lack experience in the financial services industry. I would add that some academics have found a positive correlation between performance and independent directors with industry experience, but no correlation between performance and independent directors with no industry experiences.

For more:
- here’s the article

Source URL: http://www.fiercefinance.com/story/criticism-new-bank-america-directors/2012-08-27

Ex-Bank Of America Marketer Tells Jury He Helped Rig Bids

Fri, 24 Aug 2012 12:40:26 -0700

Via Bloomberg:

A former Bank of America Corp. municipal bond marketer testified that he conspired with four former members of the UBS AG (UBSN) municipal derivatives group to rig bids and fabricate work on transactions.

Doug Campbell, a senior marketer in the municipal reinvestment and municipal interest rate hedging group at Bank of America from 1998 to 2002, told a Manhattan federal jury yesterday that he worked with the men at UBS to ensure Bank of America won bids.

“Generally, it was a conspiracy to allocate and rig bids in the municipal reinvestment market,” Campbell said. When UBS employees initially approached him about an arrangement in which he would get bid information in advance, “I did not turn down the offer,” he said.

NPR Runs Bank of America PR Piece, Neglects to Explain Why Bank is Donating Foreclosed Homes

Fri, 24 Aug 2012 12:37:11 -0700

Via Firedoglake:

NPR ran a sappy story yesterday about Bank of America donating foreclosed homes, which got a critical response in their comment section. Here’s a representative sample of the comments:

This was a poorly researched, uncritical story by NPR. Why is it good thing to dispossess 2500 families from their homes and then give the houses to people deemed more needy by BofA? And why didn’t NPR mention that BofA acknowledged employing people who legally attested to the accuracy of foreclosure documents without reading them; and reached a multi-million dollar settlement with the Justice department for illegally foreclosing on military service members?

The story really facilitated the “camo-washing” efforts by the banks to improve their public image. The story focuses on Bank of America’s donation of 2,500 homes over the next two years, mostly to Iraq and Afghanistan war veterans. But it leaves out a number of key details. First, it never mentions what the commenter says above, that BofA was one of several banks cited for illegally foreclosing on service members while they were deployed overseas, leading to a large settlement which included the donation of homes to veterans. That means that this action has nothing to do with a generous spirit but acts as the fulfillment of an obligation.

But it gets worse. The foreclosure fraud settlement, also referenced above, included a system of “credits” for banks to pay off their penalties. One of the ways banks could get that credit is by… donating homes. So it’s entirely possible that they are getting credit for two separate settlements with the government by donating homes to veterans; both the foreclosure fraud settlement and the settlement on violations of the Servicemembers Civil Relief Act.

The punchline is this: banks always donate some stock of homes as a matter of routine. It is meant to generate positive headlines like the one NPR gave them yesterday. If BofA didn’t have a settlement obligation to fulfill, they would still donate homes. And so the idea that donating homes represents a penalty just shows you how toothless the settlements really are. But BofA has managed to figure out how they can kill two of their settlement birds with one stone.

But NPR completely missed the boat on that, preferring to buy the PR that BofA sold them.

rainforestactionnetwork: McKayla is most certainly not...

Tue, 21 Aug 2012 14:39:16 -0700

rainforestactionnetwork:

McKayla is most certainly not impressed with Bank of America’s Corporate Social Responsibility report. Until the bank stops being the #1 funder of US coal, the most socially irresponsible form of energy out there, BofA’s claims to “corporate social responsibility” are nothing but greenwash. Read more.

Bank of America’s Greenwash Doesn’t Fly On Twitter

Mon, 20 Aug 2012 17:24:00 -0700

Via Understory:

Bank of America released its so-called Corporate Social Responsibility report today. I say “so-called” because it’s still unclear how the bank justifies calling itself “socially responsible” when it is the #1 financier of US coal, the most socially irresponsible form of energy out there.

Unfortunately, the report doesn’t offer any clues, as it makes no mention of BofA’s coal financing, the immense, dirty, unsustainable elephant in the room.

BofA exec Andrew Plepler hosted a “Twitter chat”—whatever the hell that is—to discuss the report. It was almost like BofA decided to hold its press conference right here in our office. Given the glaring omission (and emissions) of BofA’s coal financing, the bank’s attempts to highlight its social responsibility are nothing but greenwash. And Twitter let Plepler know it.

The whole chat can be viewed here in all its dubious glory. I counted two, maybe three people actually trying to ask Plepler about his bank’s CSR initiatives. The rest of the 100+ tweets are by activists wanting to know how BofA can claim to be a responsible corporate citizen while propping up the dirty and outdated coal industry. For brevity’s sake, not all retweets are included, though I included several at the end just to show that even after Plepler tried to shut the conversation down, it just kept growing.

Thanks to everyone who participated in BofA’s first—and I’m going to go out on a limb here and say last—Twitter chat today.

As Bank of America tries to defend its new “Corporate...

Wed, 15 Aug 2012 11:37:26 -0700

As Bank of America tries to defend its new “Corporate Social Responsibility” report even though it makes no mention of the bank’s funding for coal, the most irresponsible energy out there, it’s important to remember all the people living in communities impacted by BofA-financed coal.

BofA is hosting a “Twitter chat”, whatever that is, to discuss its CSR report. Want to get in on the action? BofA is using the handle @BofA_Community and the hashtag #BofACSR. Have fun!

Via Understory: Bank of America’s New Report Touts Green Image,...

Wed, 15 Aug 2012 11:31:13 -0700

Via Understory:

Bank of America’s New Report Touts Green Image, Downplays Dirty Emissions

This morning Bank of America rolled out its annual Corporate Social Responsibility (CSR) report, which proudly promotes the company’s commitment to greening their public image but fails to address its biggest environmental impact: financing the coal industry.

Bank of America wants to have it both ways: The bank wants to appear as a responsible corporate actor, but still benefit from destructive coal mining and coal-fired utilities. Its CSR report reeks of hypocrisy as it profits at the expense of communities and our environment while also identifying itself as a climate champion.

Bank of America claims to be “working to finance the transition to a lower-carbon future”, yet commitments to renewable energy and energy efficiency only make progress towards greening its own image. To stem the impending climate crisis, however, the burning of coal must be phased out of the U.S. energy grid.

According to its CSR report, Bank of America acknowledges the impact of these investments by reporting on emissions of utilities in its lending portfolio. However, the bank’s reporting methodology is flawed and non-transparent. As it has in the past, the bank only reports on emissions from 75% of its utility portfolio, providing an incomplete assessment of emissions associated with the bank’s lending activities. Without full disclosure, it remains unclear whether the bank is actually shifting its lending away from the most coal-intensive utilities or whether the bank’s lending practices have lagged a national shift away from coal-fired power generation and towards cleaner alternatives.

Bank of America’s Environmental Business Initiative, while a step in the right direction, is insufficient to offset the environmental damage caused by its lending practices. The $3.65 billion lending component of BofA’s 2011 commitment represents less than half a percent of the bank’s total loans and leases as of December 2011 ($926 billion). In contrast, the bank charged off more than five times as much in bad debt during 2011 ($20.8 billion). Were the bank to offset the emissions from its utility portfolio in 2011, we estimate that the cost would far exceed this $3.65 billion amount.

This report fails to address Bank of America’s position as the number one underwriter of the coal mining industry or report plans for reducing fossil fuel investments. In fact, the record shows increases in spending. In 2010 and 2011, Bank of America provided $6.4 billion in underwriting for U.S. coal.

Bank of America has its hands in a dirty business, where the drive for profit outweighs consequences like human and environmental catastrophes associated with climate change. The bank is the largest financier of the coal industry in the U.S., and funds every stage of coal’s life cycle. It spends billions each year underwriting destructive mountaintop removal mining and utilities that operate coal-burning power plants.

It’s time for Bank of America to phase out funding for the coal industry. The impacts on the climate and public health make it a dangerous investment. Bank of America’s best course forward would be to end its investment in fossil fuels.

bmrgould: Greenwash This: Dumping 500 lbs of Coal at Bank of...

Tue, 14 Aug 2012 12:34:03 -0700

bmrgould:

Greenwash This: Dumping 500 lbs of Coal at Bank of America (by Rainforest Action Network)

As Bank of America executives attended the UN Conference on Sustainable Development in Rio to promote BofA’s latest greenwash attempts, the ironies of the bank’s grand environmental initiative were on full display outside corporate headquarters in Charlotte, NC.

Concerned local citizens dumped 500 pounds of dirty coal in front of the bank’s tower to mark the third consecutive day of dangerously polluted Charlotte air. Bucket by bucket, coal rained down, eventually covering a large banner reading “Bank of America’s Environmental Policy.” As black clouds of coal dust billowed, activists and media alike donned respiratory masks.

Bank of America is the leading financier of the US coal industry, having invested some $6.4 billion over the past two years.

Read more: Bank of America New Environment Initiative: Weak on Coal Means Weak on Climate | Rainforest Action Network ran.org/bank-america-new-environment-initiative-weak-coal…

Huffington Post Politics: Democratic National Committee To Pull Funds From Bank Of AmericaBank...

Tue, 14 Aug 2012 12:30:21 -0700

Huffington Post Politics: Democratic National Committee To Pull Funds From Bank Of AmericaBank...:

Democratic National Committee To Pull Funds From Bank Of America

Bank of America is likely about to lose a very prominent customer.

The Democratic National Committee will announce some time in the next few days that it’s pulling some of its business from Bank of America, the Wall Street…

Ex-Bank Of America Marketer Tells Jury He Helped Rig Bids

Tue, 14 Aug 2012 12:28:59 -0700

Via Bloomberg:

A former Bank of America Corp. municipal bond marketer testified that he conspired with four former members of the UBS AG (UBSN) municipal derivatives group to rig bids and fabricate work on transactions.

Doug Campbell, a senior marketer in the municipal reinvestment and municipal interest rate hedging group at Bank of America from 1998 to 2002, told a Manhattan federal jury yesterday that he worked with the men at UBS to ensure Bank of America won bids.

“Generally, it was a conspiracy to allocate and rig bids in the municipal reinvestment market,” Campbell said. When UBS employees initially approached him about an arrangement in which he would get bid information in advance, “I did not turn down the offer,” he said.

Campbell was testifying against Peter Ghavami, the former head of UBS’s municipal derivatives group, and Michael Welty and Garry Heinz, both former vice presidents and municipal reinvestment marketers at UBS. The three are charged with conspiracy to defraud municipal-bond issuers and U.S. tax authorities by fixing prices on investing agreements.

Responding to questions from a government lawyer, Campbell said he made a deal with the defendants that “UBS PaineWebber would start showing us information about the transaction in advance” and Bank of America would reciprocate through submitting intentionally losing bids in some transactions and involving UBS in Bank of America business when possible.