Is Bank of America About to Pay Out Billions More Dollars?

New York State's attorney general is on the march again. This time against Bank of America (NYSE: BAC  )  for potential securities violations committed during the housing boom. Good grief. How much more can one bank take?

One busy guy
Eric Schneiderman's latest investigation was revealed in a Thursday SEC filing by B of A. According to Bloomberg News, Schneiderman is "probing the [bank's] purchase, securitization and underwriting of home loans and mortgage securities."  

Last October, it was revealed that Schneiderman was coming after JPMorgan Chase (NYSE: JPM  ) for securities fraud committed by its Bear Stearns unit in the run-up to the financial crisis. In yesterday's SEC filing, B of A said it "'continues to cooperate fully' with the investigation." 

The gift that keeps on giving
Less than two months ago, B of A agreed to pay more than $10 billion to government-run housing giant Fannie Mae to settle allegations over troubled mortgages. In 2012, the superbank agreed to pay $1 billion to the federal government over subprime loans generated by Countrywide, and $11.8 billion to a nationwide settlement over foreclosure abuses. 

When the $10 billion January settlement was reached, some B of A bulls declared it to be the last the bank and its investors would ever hear about the financial crisis: that this massive bill due for financial crisis missteps and misdeeds would be the final bill due.

I said it then, and I'll say it again now: The big banks haven't heard the last of the financial crisis. If JPMorgan and B of A remain susceptible to Schneiderman's investigations, surely Citigroup (NYSE: C  ) and maybe even Wells Fargo (NYSE: WFC  ) do, too: both banks did massive amounts of housing-boom lending.

But maybe nothing will come of this latest crisis-related B of A eruption. Maybe New York's attorney general will find that all of the bank's books are in perfect order. Speaking of New York, if you believe that, I have a bridge you might be interested in buying.

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio.  The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy, and as an added bonus, you'll receive a full year of free updates and expert guidance as key news breaks.


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  • Report this Comment On March 01, 2013, at 1:57 PM, rayzur9 wrote:

    Another pitch for an "in depth report"... no thanks...Holding for the long run here.

    Maybe your bash article will gain your short buddies a few bucks, but thats fine..

    Media sentiment is not a new trick in the book..

  • Report this Comment On March 01, 2013, at 3:37 PM, LAidOff27 wrote:

    Some may love it when banks pay big fines, but they lay off good people like me to save a dime. Got my notice just before Christmas after 13 years from BofA, some thanks.

  • Report this Comment On March 01, 2013, at 5:23 PM, mrecsommers wrote:

    Bank of America has lied cheated and stole from it's customers for decades to the tune of hundreds of millions of dollars. Look at the history of this bank, it was caught in the early seventies mid-seventies, and on and on. Any other company would have been put out of business for such crap as this bank has pulled. To laid off 27 I feel even if the bank had not been slamed you still would of been laid off of your 30,000 dollar a year job, look to see how many of who's got sacked when you did, you will see a pattern.

  • Report this Comment On March 01, 2013, at 8:29 PM, sgperformer wrote:

    My experience with B of A has been quite different. I've banked with them now for 23 yrs. They've handled all of my personal banking, two credit cards and two home loans. I have been responsible for paying my bills on time. I have responsibly paid my mortgages, and they have treated me like a gem. It is amazing what a different story you can tell when you are responsible with your money. So many people failed to pay their mortgages and foreclosed because they were morons to sign loans that they couldn't afford in the first place. And it is so much easier to blame someone else than to take responsibility for yourself. Bunch of god damn whiners and losers. Stop bitching about B of A and learn to balance a simple home budget.

  • Report this Comment On March 01, 2013, at 8:39 PM, sgperformer wrote:

    As for the people who were laid off, I feel horrendous for you, and I wish you all the very best, but don't blame B of A. Blame the morons who can't responsibly handle money.

  • Report this Comment On March 01, 2013, at 8:55 PM, lillybean wrote:

    After B of A took over my mortgage I didnt know the horror of trying to work with them after I lost my job. When it first happened I notified them and we began fed-exing for a few months then that stopped all of a sudden. I called and they gave me a name and number to my "person" who was suppose to help so I thought. Now remember B of A was bailed out by the government so they are in turn required to help develop a plan to continue homeownership, The same B of A who a few weeks ago was thinking of suing the government for whatever problems arose concerning the bailout. My person whom I called and left several messages for has never called back that is until yesterday after he received notice I was still trying to save my home. This was at least 9+months ago from when I first left him the message. He was trying to inform me of the several pages of info I was to fax over. One of the pages are complete tax records from 2010 and 2011. Not W2's every piece of paper between turbo tax and me. Remember I was employed and in 13 years of payments never ever late. Why when my situation arose last year(2012) no info needed or asked for. I had inquired about e-mailing the sheet of requirements to me he had the nerve to tell me everything is "over the phone". What about the mail I inquired why in the previous 9+months had he never contacted me by mail to what he replied "i didnt have your number" he's always had my address. Before I have another panic attack he told me I had to get on the internet and print out this form and that form 1 being an IRS form. I got so feed up I hung up on him. I'm sure he has again LOST MY NUMBER but still has my address. The final straw before I hung up was he "told me I had to HURRY UP".

  • Report this Comment On March 03, 2013, at 2:42 PM, amgseniorvp wrote:

    Sounds like "superformer" has got a little brown around the lips from his pucker job with B of A! While I do agree most of us caused our own demise...so did the bank. They were taking loans from ME to float their derivative plays, 65% of their profits are still "off book", took enough executive bonus money for 17 persons that literally would have raised every nation wide employees (meaning primarily tellers) could have had a salary increase from approx. 30K to over $100,000.00 per annum and I have to tell you, even I haven't got down to the basement and ordered those employess to forge documents at a frenzied pace. See the difference between most of us and your butt kiss loverof Bof A is simple...I lost my money by gambling and being undisciplined with my investments. They on the other hand lost zero of theirs and all of others. Even "morons" to your nth can comprehend the difference. So since you are certainly wrong about peoples "whining" and "bitching" again as even a moron like you can see it would probably be best if you left your uninformed paraphrased little thoughts to yourself. The people you are putting down are the ones that were nice to you in the bank, you douche. The bank, much like myself know you for the little wimpy wannabe you are. Of course you can balance your little home budget! It probably consists of ten minutes a month and a 1040EZ at the end of the year. My tax atty's fees each year were probably more than your total lifes savings. So get off and out of the way. And don't have the audacity to belittle others problems to them in the future. If I find your uppity rant continuing somewhere online, I'll be glad to let you see first hand little you can feel too! Promise

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