The Bank of America has not been having a good time. The recession pushed the bank down right down to its knees and its take a long time to get back again. But now it’s been hit hard with several whopping lawsuits that threaten to dent its bottom line and its reputation in the long run.

Lawsuits Galore In 2009-2010

In the shaky economy, the Bank of America had foreclosed on several homes all over the US due to non payment of dues. According to homeowners and recent disclosures, these foreclosures could have been illegal and carried out due to an automatic rubber stamping process that resulted in a huge subprime mortgage problem that resulted in a housing crash. The Attorney General has now filed suit against the Bank of America, JP Morgan Chase, Citi, Ally Financial and Wells Fargo, as well as the MERS corp alleging that they indulged in deceptive trade practices and fake documentation to push the foreclosures through. At present apart from the above mentioned banks, seventeen major banks are facing a lawsuit over the mortgage issues and the subsequent losses that were experienced by lending companies. A bank of america settlement might be possible but it still has to be negotiated through.h In a separate case, the US BANCORP association filed suit against the Bank of American stating that the Bank must buy back its present mortgages. They are currently arguing that the loans were made without proper documentation. The Bank of America had acquired Countrywide, a subprime lending giant in 2008 and most of these loans were theirs. The Association states in their suit that as soon as the loans were sold to US BANCORP, the loans started to default at an alarming rate and these loans where all set up by Countrywide. Countrywide cost about $4 billion to purchase but the subsequent losses from its acquisition have hit a mind boggling $30 billion.

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