Bank of America’s $56B in Post-Crisis Legal Costs

From Corporate Counsel
By Sue Reisinger
September 19, 2013

Since the 2008 financial crisis, the Bank of America has paid out nearly $56 billion in legal settlements, attorney’s fees, and forced mortgage buybacks—more than any other U.S. bank, according to a story published Tuesday by the Charlotte Observer…

The bank’s troubles were a topic of discussion this week at a banking conference in Boston. Professor Cornelius (Con) Hurley of Boston University said the bank’s name came up as attendees were debating a Government Accountability Office study on whether big banks receive a financial benefit from being designated “too big to fail” (TBTF), as Bank of America has.

Such a financial benefit, critics argue, is an implied subsidy for big banks. In Hurley’s view, the GAO study should not deduct costs of regulator-required compliance efforts or the billions of dollars in penalties that big banks have paid over their misconduct.

To do so would be subsidizing the banks’ inefficiency, argued Hurley, a former bank general counsel and now director of the Boston University Center for Finance, Law & Policy.

“These are the costs of being unmanageable,” Hurley told CorpCounsel.com. “The U.S. taxpayer should not have to foot the bill for the TBTFs choosing the [inefficient] business model they have.”

Read the full article at Law.com.