These big fines are a good first step. But its worth noting that no one’s going to jail.
The Wall Street Journal reports:
Bank of America Corp. and the Justice Department are closing in on a landmark deal in which the bank will pay $16 billion to $17 billion to resolve allegations of mortgage-related misconduct in the run-up to the financial crisis, according to people familiar with the matter.
The bank has agreed to pay roughly $9 billion in cash to the federal government, states and other government entities, these people said, as part of an overall pact that could be finalized this month. Additional money would be aimed at consumer relief, such as reducing mortgage balances for struggling homeowners.
If finalized, the agreement would set a record for fines and damages in a civil settlement between the U.S. government and a company. It would eclipse a $13 billion deal struck less than nine months ago between the Justice Department and J.P. Morgan Chase JPM +0.30% & Co. over similar issues, alleging the banks knowingly sold investors shoddy mortgages.