One of the largest banks in the country is getting slapped with a multi-million dollar fine from the Consumer Financial Protection Bureau (CFPB).

The agency says Bank of America will pay $12 million for repeatedly sending false information to federal regulators.

The CFPB says BofA has routinely violated the Home Mortgage Disclosure Act, which was enacted in 1975.

The law requires lenders to maintain certain records and submit data about loan applications and originations to the CFPB to protect consumers against predatory practices in the residential mortgage market.

The CPFB says that hundreds of BofA loan officers neglected their duty to ask mortgage applicants a number of demographic questions as mandated by federal law. But instead of following up to get the necessary details, the loan officers falsely reported that 100% of mortgage applicants opted not to provide their demographic data over a three-month period.

The regulator also says that BofA failed to ensure that its loan officers were providing accurate information on mortgage applications. According to the CFPB, the lender’s loan officers were not collecting the required demographic data from mortgage applicants as early as 2013 but BofA chose to overlook the shortcoming.

Says CFPB Director Rohit Chopra,

“Bank of America violated a federal law that thousands of mortgage lenders have routinely followed for decades. It is illegal to report false information to federal regulators, and we will be taking additional steps to ensure that Bank of America stops breaking the law.”

In addition to the $12 million fine, the CFPB is requiring Bank of America to take measures that would stop its illegal data-collection practice.

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US banks are now saddled with a staggering $684 billion in losses on securities, according to a new report from the Federal Deposit Insurance Corporation (FDIC).

The agency says the total number of unrealized securities in the banking system at the end of Q3 surged by $126 billion – a 22.5% increase in the span of a few months.

Unrealized losses represent the difference between the price banks paid for bonds and the current value of those securities on the open market.

Although banks can simply hold their bonds until they mature, they can become an extreme liability when banks need injection of liquidity.

The dangers of unrealized losses came into focus early this year amid the collapse of Silicon Valley Bank.

The bank’s sudden failure back in March was sparked by an announcement that it had booked a $1.8 billion loss from selling a portion of its underwater bond portfolio.

Those losses stem from a historic collapse in bonds amid the Fed’s push to keep interest rates higher for longer.

In response to the failures of SVB and Signature bank, the Federal Reserve launched the Bank Term Funding Program (BTFP), which offers one-year emergency funding to banks in distress.

The FDIC says the banking industry’s profits margins have remained remarkably resilient, although deposit flight continues.

“In the third quarter, domestic deposits declined for the sixth consecutive quarter, though the outflow of deposits continued to moderate from the large outflows experienced in the first quarter. The level of liquid assets fell in the third quarter due to a reduction in securities portfolios…

Though the U.S. economy has remained strong in 2023, the banking industry still faces significant downside risks from the continued effects of inflation, rising market interest rates, and geopolitical uncertainty. These issues could cause credit quality, earnings, and liquidity challenges for the industry.”

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A resident of Skokie, Illinois is suing banking giant Citibank on behalf of his disabled sister over the sudden disappearance of $120,000.

Scott Jacobson says his mother left $150,000 in a Citibank trust account to pay for the expenses of his 65 year-old sister, who’s been fighting Alzheimer’s disease for years, reports NBC Chicago.

Jacobson says that caring for her disabled sister was manageable until October 14th, 2021, when he realized thieves somehow stole $120,000 from the account.

“I was shaking because I was more concerned about my sister than I was about anything else.”

According to Jacobson, a Citibank teller told him that someone made three international wire transfers from Bangkok, Thailand, which he says he never authorized.

In his effort to recoup the funds, Jacobson says he filed three fraud affidavits with the lending titan on the same day, expecting the bank to get to the bottom of the case. However, a bank representative told him that he should seek help from the US justice system.

“I had a personal banker, and I went in there and I asked him about all this. He says, ‘Well, you’re gonna have to get attorneys.’”

Jacobson also says he did not receive any notifications about the wire transfers.

Although the bank says it did not get Jacobson’s approval before greenlighting the wire transfers, Citibank says it did alert him via text and email, and is “in compliance with all regulations regarding wire transfers.”

Jacobson says he filed fraud affidavits on October 14th, 2021, but Citibank argues that he took legal action long after the 60-day record-keeping deadline had passed.

“Jacobson, through counsel, first made demand on Citibank to repay the three wire amounts on Aug. 29, 2022. By that time, [the third-party vendor] had already deleted the emails and text messages sent to Jacobson.”

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