How should Bank of America deal with potential ethical and l

How should Bank of America deal with potential ethical and legal misconduct discovered at Countrywide Financial?

Solution

BofA has been accused of sticking it to their customers, their shareholders, investors, the government and even their own employees. some of the legal problems of BofA are:

$25 billion agreement between the five largest mortgage servicers and the nation’s attorneys general addressed foreclosure abuses, specifically the notorious practice called robo-signing. BofA got hit with the biggest share of the settlement: $11.8 billion.

$9.7 billion – Auction Rate Securities Scandal
According to SEC complaints, BofA misrepresented to investors that Auction Rate Securities were safe, highly-liquid investments comparable to money markets. The SEC alleged that in late 2007 and early 2008, BofA knew that the ARS market was collapsing, so the bank purchased additional ARS inventory to prevent failed auctions.

$8.5 billion – Mortgage Securities Fraud
Investors who lost money on mortgage-backed securities they purchased before the housing collapse were awarded the largest payout of its kind. At the time, the settlement was greater than all of the bank’s total profits since 2008.

$624 million – Mortgage Securities Fraud
This settlement stemmed from a shareholder class action alleging that investors were misled investors about Countrywide’s financial condition and lending practices.

$461 million – Bond Fraud
BofA settled with WorldCom investors who bought bonds from BofA. The investors said BofA should have been aware of the massive criminal fraud taking place at WorldCom. BofA reached this settlement as closing arguments were being made, so they clearly did not like their chances.

$410 million – Unfair Overdraft Scheme

and some more are there. now it is difficult to the bankers. and they need to face all the legal querries and later, it has to create trust in its customers. otherwise they are going to be lost their name like WarnerBrothers.