Bank Of America Settlement Includes Illinois Consumer Relief


Illinois Attorney General Lisa Madigan says one-third of the state's $300 million share of a national settlement with Bank of America will go toward consumer relief.

She says it's the fourth such enforcement action she's brought against Bank of America for the "widespread fraud'' at the root of the economic crisis.
The deal announced Thursday by the U.S. Justice Department stems from the bank's role in the sale of mortgage-backed securities in the run-up to the crisis.

Nationwide, the settlement adds up to nearly $17 billion.

It's the largest deal the Justice Department has reached with a bank over the 2008 mortgage meltdown.
In Illinois, the settlement includes $200 million to recover losses incurred by Illinois' pension systems.  Madigan says it'll make a small impact on the system's unfunded liability.

Story source: AP