It seems that Bank of America has a free pass from the federal government to do whatever it wishes - despite its abysmal track record that includes bolstering the rate of Miami foreclosures to a dizzying high, robbing investors, and defrauding taxpayers.
And yet, our Miami foreclosure defense attorneys never cease to be amazed at the handouts our government - both the current and former administrations - continue to offer to an organization that has all but admitted to serious and widespread fraud and other felonies.
All of this was the reason behind an, in-depth Rolling Stone article entitled "Bank of America: Too Crooked to Fail." Here, we're going to break down some of the main points of that article in this third of a three-part series.
You or I could walk into a store, steal a pack of gum and be faced with the possibility of jail time. Bank of America, on the other hand, is able to somehow steal from millions of taxpayers, and is repeatedly handed more money by the government. How is it possible that this continues to happen?
In this third blog on Bank of America, we'll explore the cozy relationship between this financial giant and Uncle Sam. The more you understand what this company is capable of, the clearer it will be that an experienced attorney is an absolute must if you plan to go up against them in the process of a Miami foreclosure.
Four years ago, the federal government gave this megabank more than $45 billion of taxpayer money to keep it going. The idea, as politicians framed it, was that this would help to prevent a global depression. This despite the fact that the recession we were already in was a direct result of the criminal actions taken by this company to enrich its corporate big wigs.
But why? It does seem that President Obama, like George W. Bush before him, apparently is of the belief that projecting an image of financial security - no matter how untrue that is - is more important than allowing the collapse of an inherently corrupt institution.
In fact, just last year, the Federal Reserve gave the green light for the bank to move a large number of risky deals into a portion of the company that is insured by the Federal Deposit Insurance Corporation. What that means is that taxpayers, once again, are going to be held responsible if that dealmaking goes bad.
And then there was the issue of the $26 billion pay-out that was agreed upon by five major banks and attorneys general in 49 states. This money is to go to homeowners who were illegally removed from their homes, and to offer relief to homeowners who became the victim of predatory loans. But first of all, Bank of America is only responsible for a portion of that $26 billion - a mere drop in the bucket for this banking giant. Secondly, that deal allows the bank to right off even billions of dollars more in lawsuits.
In fact, the bank may even be looking for a second bail-out, amid hundreds of more lawsuits brought on by insurance companies, who were lured into insuring bad deals on false pretenses.
And yet, the bank has literally admitted to committing felonies. Take the $140 million fine it had to pay for systematically screwing with the government's contracting process in Baltimore, Mississippi and Guam. To weasel out of prosecution, it filed an application with the Justice Department to be afforded corporate leniency - basically confessing that it is a felon.
And yet, the government continues to offer them hand-outs.
When the bank has such powerful allies, you too need to be able to negotiate from strength.
If you're battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.
Bank of America: Too Crooked to Fail, Rolling Stone