The largest banks as a group, and JPMorgan and Bank of America, in particular, have paid enormous legal bills to foreclose on homeowners.
These bills, a whopping $51 million a day, are enough to eclipse all of the major banks’ earnigns for 2012.
JPMorgan is facing even greater problems because a U.S. Housing regulator is suing for $6 billion, claiming that the mortgage giant sold bad mortgage bonds to Fannie Mae and Freddie Mac.
Bank of America is also facing new fire. They have also been accused of criminal violations alleging that they misled investors who they sold junk mortgage bonds that were really worthless.
Most legal commentators assume that the banks will be shouldering huge punitive damages awards and government settlements for years to come. One government analyst said, “There is wide political support for punitive action against these banks, and it’s not going away.”
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