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| Bank of America in NYC |
The bank of America assured US authorities
to pay a record of $16.7 billion for misleading investors about the quality of
loans they have sold or bought.
Before the Bank of America bought the loans
in 2008, it hit rock bottom when the Countryside Financial and Merrill Lynch
owned it. The Bank of American invests
$9.65 billion in cash as well as $7 billion consumer relief, which takes up ¾
profit of the bank.
It’s a historic step forward for the US
government with the compensation payments they got for illegal settlements they
weren’t involved in. By reselling items to investors in the US but not showing
them the whole risk that is involved, which demonstrates the misuse of
marketing. With marketing the wrong information to earn more profit, they don’t
deserve – illegal marketing.
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| JP Morgan Bank |
The BBC NY reports that the US has a hold
on Wall Street, which led to a financial crisis, which is command economy. The
financial crisis that was made by the Bank of America was paid by another Bank,
JP Morgan, which is a profit-based organization because it had already invested
in many cases that were in financial crisis to make more profit - which made
them become one of Americas biggest Bank.
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| Wall Street in NYC |
The Strategy on Wall Street was to be a shareholder
in Bank of America, which opened 1.5% higher following their settlement that
was made. This means that Wall Street as a shareholder will have a limited
liability. Therefore JP Morgan Bank paid of a $13 billion settlement for misleading
investors, to collect more shares in different bank, to achieve a higher
profit.
http://www.bbc.com/news/business-28880307
