How did this banking crisis end for Suntrust Bank and Bank of America?
The bank and the other two big banks have agreed to pay more than $4 billion to settle their criminal charges.
Suntrust, which had more than 800,000 customers as of October, had already agreed to repay $3.5 billion to customers.
Bank of Americans agreed to settle charges of misleading customers, money laundering, failing to pay taxes, and conspiracy.
But the bank also agreed to reimburse $2.9 billion to federal regulators, the Federal Deposit Insurance Corp., the Justice Department and state attorneys general for not providing financial counseling.
The agreement also includes $4.9 million to the National Consumer Law Center to help defray legal fees, and a $250,000 payment to state and local officials in New York, New Jersey, Delaware and Pennsylvania.
The banks’ guilty pleas came less than two weeks after the Justice Dept. announced it would probe the banks’ actions.
In a statement, the Justice department said the settlement will “support our ongoing work with regulators and others to ensure the integrity and accountability of our financial systems and the financial system of the United States.”
“The companies, who have been found guilty of these offenses, are subject to civil penalties that could range from up to $250 million,” the statement said.
Suntrust Bank, which was the first to go public, had faced a total of $17.7 billion in fines and settlements.
Bank of America, which followed Suntrust and Bancorp in March, reached a deal with the DOJ to pay $6.3 billion, while Bancor, another company, agreed to a settlement with the department of $2 billion.
Bankers and regulators have said the banks knew they were breaking the law and tried to cover up the problem.
As part of the settlement, Suntrust will pay $1 billion to the Consumer Financial Protection Bureau, which regulates banks that are subject as financial institutions to the Fair Credit Reporting Act. “
This settlement will also support the ongoing efforts of our regulators to ensure that the integrity of our markets and the integrity, fairness and accountability are not compromised,” the department added.
As part of the settlement, Suntrust will pay $1 billion to the Consumer Financial Protection Bureau, which regulates banks that are subject as financial institutions to the Fair Credit Reporting Act.
Bancorp will pay a $1.5 million penalty to the U.S. Securities and Exchange Commission for failing to prevent the bank from violating the law.
All three banks agreed to offer consumers access to information about their accounts.
According to The Hill, the banks will not have to pay the government’s penalties, but must pay to the consumer-friendly nonprofit.
If the government doesn’t agree to the settlements, the bank’s fines will go into a special fund to help other banks and regulators who face similar charges.
It’s been a difficult day for the banks, but the fact that they’re getting off the hook is a huge win for consumers, said Matt McTigue, director of the consumer advocacy group the Campaign for Accountability.
It’s just a sad day for consumer protections in general.” “
This was a bank that was so bad, they were so brazen, and they knew it.
It’s just a sad day for consumer protections in general.”
Follow the money on the net