B of A Settles with DOJ for $17 Billion

Mega-bank, Bank of America, has agreed to pay a $17 billion fine for its role in the mortgage crisis that led to the 2008 financial meltdown. Those who cheer the huge fine miss the larger picture. Certainly many banks used dubious tactics and business practices that helped lead to the 2008 meltdown. However, willing partners included the US government that pressured banks into giving mortgages to individuals who could not afford them, and the Federal Reserve whose easy money policies were major factors in creating the housing bubble. These issues, along with banker greed and borrowers, were significant factors in creating the bubble and subsequent meltdown.   Continue reading

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