Salon.com > Bank of America

13 facts about tax-dodging corporations that will blow your mind

Tue, 02 Jul 2013 15:22:00 +0000

A judicious writer avoids adjectives like "mind-blowing," especially when covering political or economic issues. But no other word seems to describe the stunning reality of corporate taxation in modern America, which cries out for the italics-heavy, exclamation-point-driven format made famous by "Ripley's Believe It or Not."

Stylistic overkill? Read these 13 facts and you may change your mind.

1. We're told we can't "afford" full Social Security benefits, even though closing corporate tax-haven loopholes would pay for Obama's "chained CPI" benefit cut more than 10 times over!

Abusive offshore tax havens cost the U.S. $150 billion in lost tax revenue every year (via FACT Coalition). That's $1.5 trillion over the next 10 years.

The "chained CPI" cut, proposed by President Obama and supported by Republicans, is projected to "save" a total of $122 billion to $130 billion over the same time period by denying benefits to seniors and disabled people.

New Bank of America whistle-blower emerges: More customer abuse secrets

Fri, 28 Jun 2013 19:30:00 +0000

Last week, I detailed bombshell revelations from Bank of America whistle-blowers, in which former employees of the bank detailed systematic fraud and deceptive practices inside their loan modification department -- including bonuses and Target gift cards for staff who racked up foreclosures.

Now, another new lawsuit, featuring a separate whistle-blower, contains additional remarkable revelations – and may shed light on Bank of America’s strategy in getting out from under the mountain of legal exposure and costs in which it now finds itself. Simply put, the bank seeks to pocket quick cash and evade practices set forth in major settlements – by cashing out of the subprime mortgage servicing business. The result would be to leave struggling homeowners back at square one, with even fewer protections to avoid foreclosure.

6 unbelievable ways big banks are scamming you

Thu, 20 Jun 2013 15:54:00 +0000

It is going on five years since the financial crash and three years since President Obama signed the meager Dodd–Frank Wall Street Reform and Consumer Protection Act, and the big banks are still scamming and conning and ripping off their customers. What a huge surprise.

After the financial crash, we heard about a laundry list of abuses and frauds that ranged from small things, like hidden fees, to pushing minorities into subprime loans and then switching them into more expensive mortgages at signing time, to huge things like selling trillions of dollars in complicated CDO schemes and making bets on derivatives of derivatives without having the reserves to pay off what they owed when the bets went bad.

Of course, no one at the top was prosecuted and the banks were allowed to settle a host of charges (which meant that their shareholders, not the executives who made the decisions, paid the fines). The bad behavior gave these giants a competitive advantage, driving out what good companies there were. So the costly and destructive bad behavior, schemes, cons and scams continue.

Check out the full Bank of America whistleblower details (affidavits)

Tue, 18 Jun 2013 16:06:00 +0000

In this story, I detailed the horrid schemes detailed by Bank of America whistleblowers that were used by the bank to mislead borrowers and boost foreclosures. To read the full details shared by the former employees, please click on the images below to read the affidavits in their entirety.

Bank of America whistle-blower’s bombshell: “We were told to lie”

Tue, 18 Jun 2013 11:45:00 +0000

Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.

“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.

Former employees: Bank of America regularly lied to homeowners

Fri, 14 Jun 2013 23:11:00 +0000

Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.

The employee statements were filed late last week in federal court in Boston as part of a multi-state class action suit brought on behalf of homeowners who sought to avoid foreclosure through the government’s Home Affordable Modification Program (HAMP) but say they had their cases botched by Bank of America.

In a statement, a Bank of America spokesman said that each of the former employees’ statements is “rife with factual inaccuracies” and that the bank will respond more fully in court next month. He said that Bank of America had modified more loans than any other bank and continues to “demonstrate our commitment to assisting customers who are at risk of foreclosure.”

Julian Assange: The government is a vindictive loser

Thu, 09 May 2013 17:01:00 +0000

London—A tiny tip of the vast subterranean network of governmental and intelligence agencies from around the world dedicated to destroying WikiLeaks and arresting its founder, Julian Assange, appears outside the red-brick building on Hans Crescent Street that houses the Ecuadorean Embassy. Assange, the world’s best-known political refugee, has been in the embassy since he was offered sanctuary there last June. British police in black Kevlar vests are perched night and day on the steps leading up to the building, and others wait in the lobby directly in front of the embassy door. An officer stands on the corner of a side street facing the iconic department store Harrods, half a block away on Brompton Road. Another officer peers out the window of a neighboring building a few feet from Assange’s bedroom at the back of the embassy. Police sit round-the-clock in a communications van topped with an array of antennas that presumably captures all electronic forms of communication from Assange’s ground-floor suite.

The Metropolitan Police Service (MPS), or Scotland Yard, said the estimated cost of surrounding the Ecuadorean Embassy from June 19, 2012, when Assange entered the building, until Jan. 31, 2013, is the equivalent of $4.5 million.

Turns out much-hyped settlement still allows banks to steal homes

Thu, 02 May 2013 15:08:00 +0000

The absolute least Americans can hope for from a major government settlement with a large industry over well-documented crimes is that the industry wouldn’t, after signing the settlement, just continue to commit the same crimes day after day. After all, following the tobacco industry settlement, cigarette makers did manage to stop advertising to teenagers that their product had no medical side effects.

But new evidence reveals the nation’s largest banks have apparently continued to fabricate documents, rip off customers and illegally kick people out of their homes, even after inking a series of settlements over the same abuses. And the worst part of it all is that the main settlement over foreclosure fraud was so weakly written that it actually allows such criminal conduct to occur, at least up to a certain threshold. Potentially hundreds of thousands of homes could be effectively stolen by the big banks without any sanctions.

The 6 most appalling statements of America’s biggest CEOs

Tue, 05 Mar 2013 18:10:00 +0000

The sh*t CEOs say! When the chiefs of giant corporations are not blaming others for their mismanagement and unscrupulous behavior, they’re explaining why their distorted worldviews are best for the 99 percent. They do this, of course, at a time of declining national median income and huge paydays for executives.

Recently, there has been an uptick of particularly stupid remarks coming from the mouths of America’s CEOs. Here are a few of the most out-of-touch and out-of-line oracles, a mix of recent gaffes and classic blunders.

1. “That's why I'm richer than you.”

JPMorgan honcho Jamie Dimon has taken time out of his regularly scheduled program of mismanaging a systemically dangerous bank to divulge why he's richer than the rest of us. Last week, Mike Mayo, who is both an analyst at CLSA and a critic of too-big-to-fail banks, was on an investor conference call -- a forum in which executives typically offer BS about their company’s performance. Mayo wasn’t having it. He asked pointedly if customers might take their money to better-capitalized banks than JPMorgan. (Check out the video.)

Banks wrongfully foreclosed on 700 military members

Mon, 04 Mar 2013 16:25:00 +0000

As part of a multibillion-dollar settlement deal over foreclosure abuses during the housing crisis, it has been discovered that over 700 members of the military were wrongfully evicted from their homes by major banks.

Federal regulators, tasked with determining how to payout the $8.5 billion settlement to victims of Wall Street abuses, demanded that Bank of America, Citigroup, JPMorgan Chase and Wells Fargo identify the borrowers who were evicted in violations of federal law. As the New York Times noted, the findings provide "the first detailed glimpse into the extent of wrongful foreclosures amid the collapse of the housing market."

The banks had long maintained that, although they had relied on faulty documents to push through foreclosures, they rarely forced people out of their homes by mistake. The discovery that over 700 active duty military members -- protected by federal law -- nonetheless faced foreclosure serves as star riposte to such claims.

As the Times noted:

Anonymous group claims to show BofA monitored hackers, activists

Wed, 27 Feb 2013 18:10:00 +0000

An Anonymous group, identifying itself as Par:AnoIA (aka Anonymous Intelligence Agency) has released 14 Gigabytes of data, code and software that it claims shows how Bank of America employed security firms to monitor hackers and activists.

In a Wednesday press release, Par:AnoIA stated that the data "shows that Bank of America and others are contracting other companies to spy and collect information on private citizens." The release also notes, however, that the "overall quality of the research is poor and potentially false."

The data was not obtained through any hack, but was "stored on a misconfigured server and basically open for grabs."

Leaked documents reveal that TEKSystems assembled reports on both Occupy Wall Street online activity and hackers throughout 2012. But the hackers group called such "intelligence" "sloppy, random and valueless":

Insiders reveal deep flaws with foreclosure review project

Mon, 14 Jan 2013 19:10:00 +0000

Last week Salon reported that 10 major banks, including Bank of America, Wells Fargo and JPMorgan Chase, agreed to pay a settlement of $3.3 billion in cash to 3.8 million mortgage borrowers who were foreclosed upon in 2009 or 2010. The settlement came after the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board closed down a vast project of independent reviews aimed to correctly determine how homeowners were burned and how much compensation they should receive.

The independent auditing project was deemed too costly, so instead -- to the dismay of a number of commentators and homeowner advocates -- the mortgage companies themselves will determine distribution of the $3.3 billion settlement sum. “It is just incomprehensible to me that they could not find a third party that has the wherewithal and independence to fairly determine what the damage is to homeowners,” John Taylor, president of the National Community Reinvestment Coalition, said when the settlement was announced.

Major settlements better for banks than homeowners

Tue, 08 Jan 2013 13:56:00 +0000

Two major settlements between 10 big banks and the government Monday totaling over $20 billion aimed to clear up allegations of widespread malpractice relating to the mortgage crisis. But what at first looks like great news for the 4 million Americans forced into foreclosure between 2009 and 2010, may be a greater boon to banks than burned homeowners.

In one settlement, Bank of America agreed to pay $10 billion to mortgage guarantor Fannie Mae to settle claims that Bank of America sold Fannie Mae bad loans for 10 years. As part of the agreement, Bank of America will also buy back $6.75 billion of bad mortgage loans. All of this settlement money will go directly to the U.S. Treasury (neither Fannie Mae nor Freddie Mac is permitted to keep profits). But as the Guardian's Heidi Moore pointed out, "the deal between Bank of America and Fannie Mae contains no mechanism by which the money would reach the homeowners who signed bad loans."

U.S. sues Bank of America for mortgage fraud

Wed, 24 Oct 2012 16:55:00 +0000

The Department of Justice sued Bank of America for mortgage fraud Wednesday, in the latest in a series of civil fraud suits filed by the U.S. government against major banks. According to a breaking Reuters report, the complaint filed in Manhattan accuses the banking giant of "deliberately generating and then selling thousands of toxic home loans that later defaulted to Fannie Mae and Freddie Mac."

According to U.S. Attorney Preet Bharara, these loan sales resulted in "countless" foreclosures and over $1 billion in losses. As Salon noted in early October, the U.S. filed a fraud complaint against Wells Fargo and, in September, a joint federal and state task force sued JPMorgan Chase for deceptive practices related to the sale of mortgage-backed securities. All of these suits, including today's BofA filing, are civil and may result in monetary penalties for banks, but no jail time for bankers.

As I wrote following the Wells Fargo complaint filing, "although many welcome the government going after Wall Street, critical pundits have raised questions about the timing, noting that the Obama administration might be projecting a tough-on-banks stance with the election countdown in mind."