Bank of America Reaches 16 Billion Dollar Settlement with Department of Justice

08-27-2014 • http://thelibertybeat.com

The settlement will also require the U.S. bank to reduce loan balances and create new loan agreements for low-income buyers. Although $7 billion is said to be allocated specifically for consumer relief, the watchdog group U.S. Public Interest Research Group claims that the settlement will actually cost taxpayers at least $4 billion in lost tax revenue. The group also reports that only $5.02 billion will be considered a civil penalty while the remaining $11.63 billion can be taken as a business expense. This would allow Bank of America to receive a $4.07 billion tax deduction from the settlement.

http://abcnews.go.com/Business/wireStory/bank-america-settlement-benefit-25073940

http://www.ibtimes.com/bank-america-settlement-cost-taxpayers-4b-lost-tax-revenue-taxpayer-watchdog-says-1667634