Bank of America to face coming indictments? on clarkhoward.com

CLARKONOMICS: There's a disconnect between what the brainiacs tell us about the economy and what average Americans are experiencing.

Federal Reserve Chairman Ben Bernanke has just been quoted saying the recession is over. Yet a new poll from ABC News/The Washington Post says two-thirds of people report they've been hurt financially by job losses and pay cuts. In addition, 60 percent are worried about more of the same going forward.

For his money, Clark thinks we'll have a very sluggish return to hiring. We will not boom back because we still have to deal with all the excesses of the banks, brokerage houses and insurance companies.

To give you a feel for how messed up the banks had become, just look at Bank of America. Indictments of all the top brass are coming -- possibly later this week -- from New York's attorney general.

BOA entered into a settlement with the Securities and Exchange Commission (SEC) where they agreed to pay a fine for defrauding shareholders -- without actually admitting any wrongdoing. The federal judge who was to approve this arrangement wants to hold BOA more accountable, even accusing the bank and the SEC of a conspiracy.

When BOA took over Merrill Lynch, the bank did a secret deal to allow $6 billion to be paid out in bonuses to Merrill Lynch's people. That is core to what is going to go on in a trial that the judge is requesting to bring BOA and the SEC to justice.

It's all so indicative of what went wrong in this country. So many job losses are because of the recklessness of banks, brokerage house and insurance companies.

What others are saying

BOA forced over draft fees on me
I believe BOA is haveing thier customers pay back for the fines they had to pay back for defrauding shareholders. Sept. 9th,10th,and 11th they charge me for 13 over draft fees when i should have only paid 3, I,m writeing the corporate office about this matter i can not be held responsible for thier mistakes they charge me 455.00 when i only should have paid 105.00 i had to pond alot of my property. I need the I-TEAM to help me and also investigate these forced over draft fees so i can get reimbust monetary and also for pain and suffuring,I had to go to the hospital this has put me into hypotention mode please get back with me on this i have print outs of transaction showing how they changed my transaction arround several times. thank you and may god bleess
By angela darden @ 09/17/09 04:40:09 PMreport abuse
This is the beginning, not the end
It's time for these experts and Clark to quit being so optimistic and start being realistic, this recession/depression has just begun, we haven't seen nothing yet.

If the banks, insurance companies and other large powerful entities didn't have such a stranglehold on our congress I would have more hope that we could actually recover, but this is not the case, and without jobs and justice served there will be no real recovery, PERIOD. I wasn't one who stocked up on food, guns and ammo for the year 2000 scare and I'm not some nut that thinks this year 2012 BS has any significance, but I do believe our economy will collapse and the monetary system as we know it will no longer exist in the future. Who's to say we won't stay in this continuous recession for many years until that happens? There are no experts for this mess we are in now, and with the federal reserve, a private entity, in charge of it all, there is little hope we will survive as a nation in the long-run.
By Chris @ 09/16/09 03:01:35 PMreport abuse
Bank of America
I have no problem with people earning a decent living. These bonuses are obscene. No one is worth what they pay these executives.
By Deb Schroeder @ 09/16/09 02:25:50 PMreport abuse
too big to fail?
i work for what clark calls a monopoly telephone company. the government didn't have a problem with breaking my company up a few years back because we were "too big". why can't they do the same for these other large companies?

p.s. clark needs to pull out a dictionary and look up the word "monopoly"
By d.e.kimbrell @ 09/16/09 01:44:51 PMreport abuse
Why regulations are necessary
Case in point, this example here with BOA. Regulations are good when they keep people honest. Economics runs at its' highest potential when all parties involved in any situation treat each other as if Jesus were standing there and they asked of themselves What would Jesus do? Do unto others as you would have them do unto you. Any regulation that violates this truth is over regulation(wrong regulation) or under regulation as in this case. Whether it is the lack of a regulation or the lack of enforcement of an existing one, both possible here, you will always find yourself sitting holding the short end of the stick and the subsequent lower standard of living. When confronted with an idea ask your self WWJD and you will get a definitive answer of which way to go. FYI not that one party is better than another as they both do not see this principle but generally speaking Republicans much more than Democrats believe in the principle of less regulation is better and are more apt to quote the unwise but often quoted "The government that governs best is the government that governs least". One regulation I would like to offer you would be Executive Pay for all publicly traded companines. They must circulate to all shareholders accurate statements as to the base pay for all executives paid in similar companines and explain why this Exec deserves what he is asking for(sell himself). The shareholders votes up or down this base pay. The executive does not recieve a dime more. The only bonus they can recieve is what was included in the base pay agreement that is paid out upon a predetermined level on the stock price 3,4 or 5 years later and this is the only bonus he can recieve. No golden parachutes nada nothing more. That is the true meaning of do unto others. Just expect the truth that nothing changes that is meaningful because you the public are told what to know and that the cycle of me, me, me continues. Yes the media is influencing you and money interests are out buying you.
By Mitch @ 09/16/09 01:32:49 PMreport abuse
The games government plays
I jsut finished speaking to a reputable architect who stated that there are states that award government jobs to lets say five design build firms that do not have to bid and then lets say the cost of the jobs are lowend, 100,000. Of the 100,00, 50,000 is for testing that has already been done. When questioning the testing that already has proved no asbestos or lead or whatever, the comment was you have to play by their rules. Wow, I am floored by this. Architects that would do this do deserve to lose their license.
By BK @ 09/16/09 01:30:23 PMreport abuse
I'm totally shocked
I can't believe my government would sell me out! I can't believe that putting the same execs that got us into this mess, into positions at the Fed and treasury would lead to corruption? We might see 1 or 2 low level execs indicted, but that'll just be to appease the masses.
By drew @ 09/16/09 12:08:23 PMreport abuse
Recession Over?
If the recession is over, this must be the depression.
By GP @ 09/16/09 12:03:44 PMreport abuse
The resession is over?
Maybe the recession is over in the Bernanke household but he needs to get out of his office and see things as they are. He might start by reading the newspapers.
By Jim @ 09/16/09 10:48:31 AMreport abuse
RISK OF DOING BUSINESS
I could be wrong but without criminal penalties (jail time) there is incentive to make money even if it's doing illegally or unethical. Even if crooks are caught they have lots of money to hire the best lawyers to get them off the hook. Besides, perhaps the crooks even factor in the risk of getting caught with the risk of making lots of money.
By Vic @ 09/16/09 10:23:34 AMreport abuse
Big companu
We seem to have forgotten that the reason for the collapse of America and Corporate America is due to the GREED of people.
By Joe @ 09/16/09 07:07:32 AMreport abuse
Gov't Intervention
Why can't people realize that this is what is wrong with gov't bailouts. Those who made bad decisions should be allowed to fail. There should be no one "too big to fail." But when the gov't steps in and saves those who made bad decisions, all kinds of distortions like this are the result. General Motors or Bank of America, it doesn't matter. They should be allowed to fail and suffer the consequences. Our economy will rebuild and be even stronger afterwords.
By Buzz G @ 09/16/09 06:49:33 AMreport abuse
Results Not Efforts
The only economy that matters to me is the money in my pocket.
By The General Public @ 09/16/09 05:26:32 AMreport abuse
Lets "rip off" BOA
Be on the look out for free $100 offers, if you open an account. Close the account after 6 months.

I have "stolen" $1,000 from BOA in this way.
By anonymous @ 09/15/09 10:48:57 PMreport abuse
disgusted
never liked boa, now even less....so many innocent employees loosing their jobs due to executives fraud and more...someone needs to happen to boa
By domestic engineer @ 09/15/09 09:26:31 PMreport abuse
BoA = DOA
BoA was married to Countrywide last year with Bernanke and Paulson as brides maids. The shotgun marriage swept all manner of sins under the rug and the trash mortgage paper now sitting on Boa's books probably means they are insolvent and should be closed. Will it happen, will anyone be indicted? Heck no, they are too big to fail and untouchable.

Remember when we lived in a free country?
By Frank @ 09/15/09 03:38:23 PMreport abuse

BOA forced over draft fees on me

I believe BOA is haveing thier customers pay back for the fines they had to pay back for defrauding shareholders. Sept. 9th,10th,and 11th they charge me for 13 over draft fees when i should have only paid 3, I,m writeing the corporate office about this matter i can not be held responsible for thier mistakes they charge me 455.00 when i only should have paid 105.00 i had to pond alot of my property. I need the I-TEAM to help me and also investigate these forced over draft fees so i can get reimbust monetary and also for pain and suffuring,I had to go to the hospital this has put me into hypotention mode please get back with me on this i have print outs of transaction showing how they changed my transaction arround several times. thank you and may god bleess

By angela darden @ 09/17/09 04:40:09 PMreport abuse

This is the beginning, not the end

It's time for these experts and Clark to quit being so optimistic and start being realistic, this recession/depression has just begun, we haven't seen nothing yet.

If the banks, insurance companies and other large powerful entities didn't have such a stranglehold on our congress I would have more hope that we could actually recover, but this is not the case, and without jobs and justice served there will be no real recovery, PERIOD. I wasn't one who stocked up on food, guns and ammo for the year 2000 scare and I'm not some nut that thinks this year 2012 BS has any significance, but I do believe our economy will collapse and the monetary system as we know it will no longer exist in the future. Who's to say we won't stay in this continuous recession for many years until that happens? There are no experts for this mess we are in now, and with the federal reserve, a private entity, in charge of it all, there is little hope we will survive as a nation in the long-run.

By Chris @ 09/16/09 03:01:35 PMreport abuse

Bank of America

I have no problem with people earning a decent living. These bonuses are obscene. No one is worth what they pay these executives.

By Deb Schroeder @ 09/16/09 02:25:50 PMreport abuse

too big to fail?

i work for what clark calls a monopoly telephone company. the government didn't have a problem with breaking my company up a few years back because we were "too big". why can't they do the same for these other large companies?

p.s. clark needs to pull out a dictionary and look up the word "monopoly"

By d.e.kimbrell @ 09/16/09 01:44:51 PMreport abuse

Why regulations are necessary

Case in point, this example here with BOA. Regulations are good when they keep people honest. Economics runs at its' highest potential when all parties involved in any situation treat each other as if Jesus were standing there and they asked of themselves What would Jesus do? Do unto others as you would have them do unto you. Any regulation that violates this truth is over regulation(wrong regulation) or under regulation as in this case. Whether it is the lack of a regulation or the lack of enforcement of an existing one, both possible here, you will always find yourself sitting holding the short end of the stick and the subsequent lower standard of living. When confronted with an idea ask your self WWJD and you will get a definitive answer of which way to go. FYI not that one party is better than another as they both do not see this principle but generally speaking Republicans much more than Democrats believe in the principle of less regulation is better and are more apt to quote the unwise but often quoted "The government that governs best is the government that governs least". One regulation I would like to offer you would be Executive Pay for all publicly traded companines. They must circulate to all shareholders accurate statements as to the base pay for all executives paid in similar companines and explain why this Exec deserves what he is asking for(sell himself). The shareholders votes up or down this base pay. The executive does not recieve a dime more. The only bonus they can recieve is what was included in the base pay agreement that is paid out upon a predetermined level on the stock price 3,4 or 5 years later and this is the only bonus he can recieve. No golden parachutes nada nothing more. That is the true meaning of do unto others. Just expect the truth that nothing changes that is meaningful because you the public are told what to know and that the cycle of me, me, me continues. Yes the media is influencing you and money interests are out buying you.

By Mitch @ 09/16/09 01:32:49 PMreport abuse

The games government plays

I jsut finished speaking to a reputable architect who stated that there are states that award government jobs to lets say five design build firms that do not have to bid and then lets say the cost of the jobs are lowend, 100,000. Of the 100,00, 50,000 is for testing that has already been done. When questioning the testing that already has proved no asbestos or lead or whatever, the comment was you have to play by their rules. Wow, I am floored by this. Architects that would do this do deserve to lose their license.

By BK @ 09/16/09 01:30:23 PMreport abuse

I'm totally shocked

I can't believe my government would sell me out! I can't believe that putting the same execs that got us into this mess, into positions at the Fed and treasury would lead to corruption? We might see 1 or 2 low level execs indicted, but that'll just be to appease the masses.

By drew @ 09/16/09 12:08:23 PMreport abuse

Recession Over?

If the recession is over, this must be the depression.

By GP @ 09/16/09 12:03:44 PMreport abuse

The resession is over?

Maybe the recession is over in the Bernanke household but he needs to get out of his office and see things as they are. He might start by reading the newspapers.

By Jim @ 09/16/09 10:48:31 AMreport abuse

RISK OF DOING BUSINESS

I could be wrong but without criminal penalties (jail time) there is incentive to make money even if it's doing illegally or unethical. Even if crooks are caught they have lots of money to hire the best lawyers to get them off the hook. Besides, perhaps the crooks even factor in the risk of getting caught with the risk of making lots of money.

By Vic @ 09/16/09 10:23:34 AMreport abuse

Big companu

We seem to have forgotten that the reason for the collapse of America and Corporate America is due to the GREED of people.

By Joe @ 09/16/09 07:07:32 AMreport abuse

Gov't Intervention

Why can't people realize that this is what is wrong with gov't bailouts. Those who made bad decisions should be allowed to fail. There should be no one "too big to fail." But when the gov't steps in and saves those who made bad decisions, all kinds of distortions like this are the result. General Motors or Bank of America, it doesn't matter. They should be allowed to fail and suffer the consequences. Our economy will rebuild and be even stronger afterwords.

By Buzz G @ 09/16/09 06:49:33 AMreport abuse

Results Not Efforts

The only economy that matters to me is the money in my pocket.

By The General Public @ 09/16/09 05:26:32 AMreport abuse

Lets "rip off" BOA

Be on the look out for free $100 offers, if you open an account. Close the account after 6 months.

I have "stolen" $1,000 from BOA in this way.

By anonymous @ 09/15/09 10:48:57 PMreport abuse

disgusted

never liked boa, now even less....so many innocent employees loosing their jobs due to executives fraud and more...someone needs to happen to boa

By domestic engineer @ 09/15/09 09:26:31 PMreport abuse

BoA = DOA

BoA was married to Countrywide last year with Bernanke and Paulson as brides maids. The shotgun marriage swept all manner of sins under the rug and the trash mortgage paper now sitting on Boa's books probably means they are insolvent and should be closed. Will it happen, will anyone be indicted? Heck no, they are too big to fail and untouchable.

Remember when we lived in a free country?

By Frank @ 09/15/09 03:38:23 PMreport abuse

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Sep 15, 2009 -- Bank of America to face coming indictments?

What others are saying