Business
BofA’s $17B Settlement Not as Large as it Appears

In this Dec. 7, 2011 photo, a woman passes a Bank of America office branch, in New York. Bank of America said Jan. 19, 2012, it made $2 billion in the last three months of 2011 from selling its stake in a Chinese bank and selling debt. That offset losses and higher legal expenses in its mortgage business. (AP Photo/Mark Lennihan)
WASHINGTON (AP) — Bank of America’s purchase of Countrywide Financial has cost it tens of billions of dollars over the past six years. An expected $17 billion settlement with the Justice Department will increase that toll, but not by a full $17 billion.
That sensational amount, which would be the largest mortgage settlement to date with the department, is expected to include $7 billion in consumer aid. But as with previous settlements with JPMorgan Chase and Citigroup, the true cost of that relief is likely to be a good deal less.
The expected Bank of America settlement will resolve allegations that the bank and companies it later bought misrepresented the quality of loans they sold to investors. Most of the problem loans were sold by Countrywide Financial and Merrill Lynch before Bank of America bought them during the 2008 financial crisis. To settle the government’s claims against the three companies, Bank of America will pay $9.65 billion in cash in addition to providing the $7 billion of consumer aid, according to officials directly familiar with the matter who spoke on condition of anonymity because the deal wasn’t scheduled to be announced until Thursday at the earliest.
Bank of America declined to comment on any settlement-related topics Wednesday.
Whether cash payments are structured as penalties or legal settlements can determine whether targeted companies can declare them as tax-deductible business expenses. Also, consumer relief is an amorphous cost category: If Bank of America’s deal resembles the department’s previous settlements with JPMorgan and Citigroup, that part could be less costly to the company than the huge figures suggest.
Some of the relief will, in fact, come in the form of cash donated to community organizations or, in Citi’s case, lending money to affordable housing projects at below-market rates. But much of the relief will come from modifying loans that the banks have already concluded could not be recovered in full. Reducing the principal on troubled loans often just brings the amount that borrowers owe in line with what the banks already know the loan to be worth.
Settlement math also affects the actual cost of the deals, allowing banks to earn a multiple for each dollar spent on certain forms of relief. Under Citi’s deal, for example, each dollar spent on legal aid counselors is worth $2 in credits, and paper losses on some affordable housing project loans can be credited at as much as four times their actual value.
How much the total package of cash and noncash borrower aid is worth is impossible for outside observers to say.
“Companies that have reached for these settlements have not taken an explicit charge for it,” said Moshe Orenbuch, a banking stock analyst for Credit Suisse who has debated how to value noncash settlements with clients.
In discussing the deals with analysts, the banks “always say, ‘Just remember, there’s the piece that’s cash and the piece that’s not cash.’ In general terms, they’re suggesting that the relief is stuff they’re doing anyway.”
Beyond the bonus credits, the lengthy durations of the deals mean banks can accrue some of the credits they need simply by running business as usual.
JPMorgan, for example, must provide roughly $2 billion of principal reductions to homeowners before the end of 2017. That is one-fifth the $10 billion that the bank forgave between 2009 and 2012, according to its annual social responsibility reports.
Even before its settlement with the Justice Department, the bank had committed itself to continuing the same principal reduction programs.
Both the Justice Department and the banks declined to comment Wednesday.
Consumer advocates said settlement amounts can obscure the actual costs at stake. But since the disputed business behaviors affected mortgage investors, not mortgage borrowers directly, they welcome any consumer aid.
“This is public policymaking through settlements that aren’t even related to the nature of the lawsuit,” says Ira Rheingold, executive director of the National Association of Consumer Advocates. “But there’s no other tool available for people who are concerned about poor communities right now.”
In the deal with JPMorgan in November, the Justice Department had a clear message for homeowners: Billions of dollars’ worth of help was coming. Attorney General Eric Holder at the time described the appointment of an independent monitor who would distribute $4 billion set aside for homeowner relief.
The actual relief is more complicated than cash handouts, however.
Both Citigroup and JPMorgan earn credits under the settlement from a “menu” of different consumer-friendly activities, according to settlement documents. The options are effectively an update of the consumer relief previously provided through the national mortgage servicing settlement, a 2012 deal between state attorneys general and the major banks.
JPMorgan probably will earn its $4 billion in credits under the settlement through a total of $4.65 billion of activities that qualified as relief, according to a report by Enterprise Community Partners, a nonprofit run by executives from low-income housing groups and major banks.
More than half will come from principal reductions, with the rest earned through actions such as writing new loans in distressed areas, donating foreclosed properties to community groups and temporarily suspending payments on some loans.
The report described the settlement as “a reasonable model from a consumer perspective.” But one of its authors, Andrew Jakobovics, acknowledged that many of JPMorgan’s credits probably will come from activities that are part of its regular business practices. The bank has announced plans to complete its obligations at least one year ahead of schedule.
Citigroup’s settlement gives it until the end of 2018 to earn $2.5 billion in credits. It must provide half its $825 million in principal reduction credits in neighborhoods designated as “hardest hit” by the Housing and Urban Development Department because of high concentrations of foreclosures and vacant properties.
It also can earn credit by waiving some closing costs on new loans to low-income home buyers and forgiving principal on loans where the bank began a foreclosure but never completed it.
“Will it cost them money? No,” said Rheingold, who said he supports the settlements. “But would they have done it otherwise? No.”
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Black Press
Statement from the President of the National Association of Black Journalists on Press Ban
TEXAS METRO NEWS — The National Association of Black Journalists (NABJ) condemned President Donald Trump’s decision to deny access to MS NOW journalists and his threats against CNN and Politico due to unfavorable coverage. The NABJ stated that journalists hold power accountable for the American people, and government officials cannot grant or withhold access based on reporting they like or dislike.
NABJ condemns President Donald Trump’s decision to deny access to MS NOW journalists and his threat to exclude CNN and Politico because of coverage he dislikes. The role of journalists is to hold power accountable on behalf of the American people. Government officials cannot reward reporting they find favorable with access, or withhold access as punishment for journalists who have scrutinized or criticized them. This retaliation is a threat not only to the news organizations being targeted, but to every journalist working to report independently and without fear of government reprisal. The White House belongs to the American people, and they have a right to know what their government is doing. Journalists must be free to ask difficult questions and report the answers. A free and independent press is not a privilege granted at the discretion of any president. It is a cornerstone to a healthy and functioning democracy. The First Amendment can never be optional.
Based on reporting by Texas Metro News.
Black History
HBCU Leaders, Corporate Partners Convene in D.C. to Strengthen Support for Black Colleges’ Athletic Programs
COLUMBUS TIMES — HBCU athletic conference commissioners, university presidents, and corporate leaders gathered in Washington on Tuesday, September 15, for the Salute to HBCU Sports Leadership Reception. This invitation-only event, hosted at Gensler’s K Street office, aimed to deepen investment in historically Black colleges and universities.
Commissioners from HBCU athletic conferences joined university presidents and corporate leaders in Washington on Tuesday, Sept. 15, for the Salute to HBCU Sports Leadership Reception — an invitation-only gathering aimed at deepening investment in historically Black colleges and universities.
Hosted at Gensler’s K Street office, the evening brought together conference commissioners, campus presidents, and executives from sports, media and design organizations under the theme “Building Partnerships. Celebrating Excellence. Advancing HBCUs.” Gensler highlighted its partnership with Paxton Baker on the event in a post on Instagram, showcasing the room full of HBCU presidents and conference leaders.
Five Conferences, One Room
Commissioners from four NCAA conferences and one NAIA conference were on hand, representing institutions that compete across Division I, Division II and the NAIA:
Anthony Holloman — Southern Intercollegiate Athletic Conference Charles McClelland — Southwestern Athletic Conference Jacqie McWilliams Parker — Central Intercollegiate Athletic Association Sonja Stills — Mid-Eastern Athletic Conference Kiki Baker Barnes — HBCU Athletic Conference
Their presence linked leadership from across the HBCU athletics landscape with campus administrators and organizations working in event management, design and media.
Presidents and Black Press Leadership in the Room
Among the university presidents in attendance were Prairie View A&M’s Tomikia P. LeGrande and Bowie State’s Aminta H. Breaux.
LeGrande’s appearance came just days after the Thurgood Marshall College Fund named her the recipient of its Educational Leadership Award, as announced by Prairie View A&M. She was honored at TMCF’s 39th Anniversary Gala on Sept. 12 in Washington. LeGrande has served as Prairie View A&M’s ninth president since June 2023.
Breaux, who has led Bowie State since July 2017, previously chaired the CIAA’s board of directors, according to her university biography.
Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association, also attended — fitting, given the NNPA’s role as one of the reception’s presenting partners. Chavis and HBCU GO’s Lawrencia Moten conducted two 30-minute interview sessions with the conference commissioners, covering topics ranging from the NIL era to conference growth and the experience of leading HBCU athletics, according to HBCU GO President Curtis Symonds, who spoke with HBCU Legends about the sessions.
Corporate and Institutional Partners
Five organizations presented the reception together:
Gensler — the architecture and design firm that hosted the event Events DC — the District’s convention and sports authority USA Track & Field — the sport’s national governing body National Newspaper Publishers Association — representing Black newspaper publishers HBCU GO — the network dedicated to HBCU sports and culture
That mix of partners pointed to a range of possible collaborations ahead, from athletic facilities and event operations to sports programming and media coverage.
Building Beyond the Scoreboard
What stood out most was the mix of people in the room — conference commissioners setting strategy for their leagues, university presidents shaping institutional priorities, and corporate partners bringing resources and expertise from multiple industries.
With college athletics undergoing rapid change, particularly for HBCUs navigating the NIL era and shifting conference dynamics, the reception offered a venue for candid conversation and relationship-building. Its underlying purpose went beyond athletics: using sports as an entry point to broader opportunities in education, workforce development and economic growth for HBCUs.
Based on reporting by Columbus Times.
Black History
At CBCF Conference, a Panel Asks What Black Public Figures Owe the People Who Follow Them
COLUMBUS TIMES — The Congressional Black Caucus Foundation’s Annual Legislative Conference featured a panel titled “Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach.” Actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét, and rapper Yung Joc discussed how public figures can translate influence into real-world change.
WASHINGTON — Among the more than 100 policy forums and brain trusts at this year’s Congressional Black Caucus Foundation Annual Legislative Conference was a conversation about influence itself: who has it, and what they do with it.
"Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach" brought together actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét and rapper and radio host Yung Joc. The session looked at how entertainers, creators and elected officials can turn public attention into real-world change.
The panel took place at the 55th Annual Legislative Conference, a five-day event in Washington that began Wednesday. This year’s theme is "Rooted, Ready & Rising," and the conference coincides with the CBC Foundation’s 50th anniversary. CBCF President and CEO Nicole Austin-Hillery has said the gathering is meant to "combine celebration with purpose," while taking up issues including voting rights, economic opportunity, education, health disparities and criminal justice.
That mix of celebrity and policy is a long-running feature of the conference, which brings lawmakers, advocates, entrepreneurs, students and entertainers into the same rooms. The panel’s premise reflects a broader question as creators reach audiences that rival traditional media.
A career built on both stage and street
Sampson is a natural fit for that conversation. The Houston native is known for television and film work, including HBO’s Insecure, and for his activism off screen. He co-founded BLD PWR, a 501(c)(3) nonprofit that combines entertainment, education and activism.
The organization says its mission is to "reimagine and realize the liberated future we know our people deserve." It works to mobilize entertainment-industry figures and organize communities around racial, gender, immigration, economic and environmental justice, mental health and wellness, and opposition to state violence. BLD PWR emphasizes storytelling and community healing, and it centers the voices of Black, Indigenous and other marginalized communities.
What to watch
The conference runs through Sunday at the Walter E. Washington Convention Center. Details on sessions and registration are available through the CBC Foundation.
Based on reporting by Columbus Times.
Black Press
Newsom Signs Addictive Social Media Law to Protect Kids
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
Word Count: 391
Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.
AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.
The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.
“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.
AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.
Lowenthal said the new rules represent a shift toward greater accountability for technology companies.
“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.
The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.
Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.
Black Press
Newsom Signs Addictive Social Media Law to Protect Kids
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
Word Count: 391
Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.
AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.
The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.
“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.
AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.
Lowenthal said the new rules represent a shift toward greater accountability for technology companies.
“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.
The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.
Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.
Black Press
OP-ED: How Head Start Also Helps Parents
BLACKPRESSUSA NEWSWIRE — “I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”
Ron Herndon Head Start Parent Scholarship awardee Paris Hill, of Sunbelt Human Advancement Resources in Greenville, South Carolina, says that Head Start has been instrumental in reaching her dreams.
“Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better—not only as parents but for yourself.”
Hill embodies the spirit of NHSA’s Ron Herndon Scholarship, which celebrates a Head Start parent who goes above and beyond in their community.
During the pandemic, Hill participated in virtual classroom instruction with her children and engaged in parent virtual activities such as Parent Committee meetings and financial literacy classes. She recently contributed over 96 hours to her program.
“I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”
Hill enrolled in college and pursued a bachelor’s degree in applied sciences with a concentration in business management. She has met and exceeded her personal goal of becoming a nail technician and creating her own business.
The $2,500 parent scholarship supported her vision. “Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better — not only as parents but for yourself.”
She has an uncommon career goal — to become a mortician — and has already found part-time work. She has found it rewarding to assist families who were going through challenging times because of the death of a loved one.
“When I first applied for the parent scholarship program, I was excited and this was my time to show what I’m capable of. It fills my heart with joy knowing I had a team of teachers and directors pushing me to do better and acknowledging me as parents and not just as a mom.”
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