Investors are pissed
Bank of America, one of the largest banks in the country, has recently settled with 22 large investors to the tune of $8.5 billion. This comes after an ill-advised purchase by Bank of America of Countrywide for $4 billion. Countrywide is accused of having sold $424 billion in mortgage back securities to major investors, while continuing to service bad loans and charging service fees even as the securities lost value. As Bank of America now owns the investment company, it is on the line for the losses. Although $8.5 billion is only about 2% of the investments' initial $424 billion dollar principle value, the investers consider this a victory.