Why Bank of America’s Latest Settlement Should Scare These Investors

Bank of America (NYSE: BAC  ) is now in settlement talks with the Consumer Financial Protection Bureau over how aggressively the company promoted new credit card products to its customers. If a settlement is agreed upon, the bank may be required to pay more than $800 million to settle the allegations.

In this segment from Friday's Where the Money Is, Motley Fool financial analysts David Hanson and Matt Koppenheffer discuss the settlement. While $800 million is relatively small in comparison to other settlements the bank has had to face, it may say more about the Consumer Financial Protection Bureau than it does about Bank of America. David tells investors about a certain type of lender that may be the next to fall under tough scrutiny from the agency, and whether or not investors should be worried.

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Comments from our Foolish Readers

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  • Report this Comment On April 05, 2014, at 2:24 PM, stockmajor wrote:

    David and Matt, I like you discussion videos and I would really like it if you could provide a transcript of them.

    I find transcripts allow me to read through a 20+ minute video in less than half the time. And it makes it easy to go back and review the parts I find most interesting.

    Often, I choose not to view the videos your produce to to time constraints.

    Thanks and keep up the good work.

  • Report this Comment On April 05, 2014, at 2:25 PM, sluggo47 wrote:

    The big question is what was wrong with offering these add on services? On the surface it sounds ridiculous, we all get these offers and we have the choice to buy or not to but. What gives?

  • Report this Comment On April 06, 2014, at 8:16 AM, ChristianRiley wrote:

    I end up just skipping the fool videos too - I don't want to sit through minutes of fluff to get to the seconds of meat. Transcripts would be most useful.

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