Bank of America have received $45 billion from TARP. Today Bank of American holds revenue of 134.194 billion. Bank of America was involved in subprime mortgage lending, they were reports on many approved loan without proper documents and no credit checks. House mortgage plays a major roll in relations to the financial crisis. Bank of America were giving out loans to people that could not afford to buy a house when they know based on their credit history but the bank still gives out the loan to them which most of them soon realize they could not repay the loan. In result of that ,the bank was force to take the house they purchased and put them up for auctions in that case the bank are going to lose a great deal of money.
No comments:
Post a Comment