Bank of America’s 10 Biggest Legal Blunders

10. $1.28 billionJan. 2011 – B of A settles claims with Freddie Mac over faulty Countrywide-issued mortgages that were backed by the government sponsored entity.

Source: Freddie Mac

9. $1.52 billionJan. 2011 – B of A settles claims with Fannie Mae over faulty Countrywide-issued mortgages that were then backed by the government-sponsored entity.

Source: Wikimedia Commons

8. $1.6 billionMay 2011 – B of A settles with mortgage-bond insurer Assured Guaranty over toxic Countrywide-issued mortgage-backed securities.

Source: Assured Guaranty

7. $1.7 billionMay 2013 – B of A settles with mortgage-bond insurer MBIA over the latter’s losses from faulty mortgages originated by Countrywide Financial.

MBIA Headquarters in Armonk, New York.Source: Wikimedia Commons

6. $2.4 billionSept. 2012 – Bank of America settles class action lawsuit alleging that the bank provided “false and misleading statements about the health of” Merrill Lynch in the lead up to the acquisition. The settlement was approved by a judge last year.

Source: Hidehiro Kagawa

5. $4.5 billionJune 2009 – Bank of America settles SEC charges that it “misled investors regarding the liquidity risks associated with auction rate securities.” The $4.5 billion figure constitutes ARS repurchases.

Source: Wikimedia Commons

4. $8.4 billionOct. 2008 – Countrywide Financial agrees to $8.4 billion program to modify home loans.

Countrywide’s former CEO and COO. Source: Countrywide Financial

3. $8.5 billionJune 2011 – B of A settles with Bank of New York Mellon and 22 institutional investors (including Goldman Sachs, Blackrock, and others) over Countrywide Financial-issued mortgage-backed securities. Final approval of the settlement is still pending.

The Goldman Sachs building in Jersey City. Source: Wikimedia Commons

2. $11.2 billionJan. 2013 – B of A settles with Fannie Mae over faulty mortgages sold to the government-sponsored entity between 2000 and 2008.

Source: Wikimedia Commons

1. $11.8 billionFeb. 2012 – B of A joins four other mortgage servicers to settle charges related to faulty home foreclosure processes. B of A’s share is estimated at $11.8 billion.

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