Bank of America, Wells Fargo & Co. and Citigroup, Inc. are warning that a comprehensive investigation by the 50 states attorneys general into their faulty foreclosure practices, which include admissions of “robosigning” thousands of affidavits and court filings, run the risk of major fines and other legal related costs.
According to a report in the Washington Post, the three big banks “called out” the possible financial repercussions in annual filings with the SEC. The filings, though, failed to provide any specific details about how much was at risk.
“Those investigations and any irregularities that might be found in our foreclosure precesses, along with any remedial steps taken in response to governmental investigations or to our own internal assessment, could have a material adverse effect on our financial condition and results of operations,” Bank of America said. BoA warned that the attorneys general probe could result in material fines and penalties, and could expose the bank to new lawsuits and more legal costs.
Citigroup, parent company to CitiMortgage said that the investigations and scrutiny over its foreclosure activities have “resulted in, and may continue to result in, the diversion of management’s attention and increased expense, and could result in fines, penalties, other equitable remedies, such as principal reduction programs and significant legal, negative reputational and other other costs.”
Wells Fargo cited to increased scrutiny by governmental agencies and warned that it was likely that more probes against Wells Fargo would be initiated which might include civil monetary penalties.
Attorney Andrew Garcia, your SouthCoast Business Attorney, is a principal of Phillips Garcia Law. Locally he has appeared live on WBSM-AM radio and nationally on NBC’s Today Show and Fox’s Fox & Friends program. If you are interested in learning more about his Business Legal Planning services, just contact him at email@example.com or by calling (508) 998-0800.