Bank of America’s Humorous Half-Billion Dollar Fiasco! 💸😂

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Ah, the illustrious Bank of America, poised to part with a staggering half a billion dollars! Why, you ask? Well, it seems our dear lender has been playing a rather cheeky game of hide-and-seek with its deposit insurance fees for over a year. 🎭

Back in the golden year of 2017, the FDIC decided to rain on BofA’s parade, filing a lawsuit for the audacious failure to cough up a mere $1.12 billion in mandatory fees between Q2 of 2013 and Q4 of 2014. Talk about a financial faux pas! 💰

But wait, there’s more! The FDIC accused BofA of indulging in a little unjust enrichment, keeping the money like a child hoarding candy. 🍬

According to the lawsuit, BofA was rather careless in reporting its counterparty exposures, which, in turn, led to lower risk scores and, you guessed it, lower insurance payments. A classic case of “Oops, I did it again!” 🎶

“In 2016, an FDIC audit revealed that ‘[BofA] had not consolidated its counterparty exposures to the ultimate parent level as required…’ This lowered [BofA’s] concentration measure, which in turn considerably lowered the overall amount that BANA paid in assessments for those quarters.”

Now, BofA, in its defense, claims it was merely interpreting regulations created post-2008 financial crisis to bolster the banking system’s stability. How noble! They even called the FDIC’s interpretation “arbitrary and capricious and procedurally flawed.” Oh, the drama! 🎭

US District Judge Loren L. Alikhan, however, was not swayed by BofA’s theatrical performance. Most of their arguments were tossed aside like yesterday’s news, but the judge did show a smidgen of mercy, slashing the claim in half. 🪄

According to Alikhan, the rule stands firm, and the FDIC was absolutely right to chase after BofA’s underpaid fees. So, instead of the full $1.12 billion, BofA will only have to part with a paltry $540.26 million plus interest. A bargain, really! 🤑

“The court agrees with the FDIC that, after reading the text of the 2011 Rule and ‘acting in good faith,’ [BofA] should have been able to ‘identify[] with ascertainable certainty, the standards’ it was expected to apply.”

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2025-04-19 02:21