Major Banks May Get a Multibillion-Dollar Deal
All the major players, Bank of America, JP Morgan Chase, Wells Fargo, Citgroup and Ally Financial, might get offered a multibillion-dollar deal to limit their liability for wrongful foreclosures, according to Financial Times and Reuters. The deal is related to “robo-signing” documents, a policy whereby an employee would sign off on foreclosure documents without having reviewed the file or the foreclosure paperwork, resulting in wrongful foreclosures. There was some speculation that the mega-deal might also release the firms from legal liability related to securitization, however, Iowa Attorney General Tom Miller denied that securitization was included in the “possible “robo-signing” deal.
The parties are scheduled to continue talks this week to see if a deal is possible.