Today in Insanely Rich and Enormous Companies Paying to Make Things Go Away

A blog about business and economics.
July 16 2014 5:54 PM

Today in Insanely Rich and Enormous Companies Paying to Make Things Go Away

131117952-sign-hangs-above-a-bank-of-america-branch-in-the
The Justice Department is coming.

Photo by Scott Olson/Getty Images

Two big pieces of settlement news today: Bank of America offered $13 billion to settle a mortgage-securities probe from the Justice Department and Apple agreed to pay $450 million over colluding with publishers to fix e-book prices.

The $13 billion settlement proposed by Bank of America would be almost twice the $7 billion settlement Citigroup announced two days ago over a similar investigation into its handling of rotten loans. But nothing is set yet for BoA. Its meeting with the DOJ on Tuesday ended with "no progress made toward a final deal." Shares of BoA slipped 1.9 percent on Wednesday after the bank reported a 43 percent drop in its second-quarter profit on legal charges of $4 billion.

Advertisement

Now, to Apple. One month ago, a letter filed with the Southern District of New York showed that Apple had reached a settlement with consumers and U.S. states in a civil class action lawsuit over fixing the prices of e-books. Newly unsealed terms show that of the $450 million Apple has agreed to pay, $400 million would go to consumers. That said, the settlement is conditional on an appeals court ruling that could significantly reduce or eliminate altogether the amount Apple owes.

Alison Griswold is a Slate staff writer covering business and economics.

 

TODAY IN SLATE

Frame Game

Hard Knocks

I was hit by a teacher in an East Texas public school. It taught me nothing.

Chief Justice John Roberts Says $1,000 Can’t Buy Influence in Congress. Looks Like He’s Wrong.

After This Merger, One Company Could Control One-Third of the Planet's Beer Sales

Hidden Messages in Corporate Logos

If You’re Outraged by the NFL, Follow This Satirical Blowhard on Twitter

Sports Nut

Giving Up on Goodell

How the NFL lost the trust of its most loyal reporters.

How Can We Investigate Potential Dangers of Fracking Without Being Alarmist?

My Year as an Abortion Doula       

  News & Politics
Weigel
Sept. 15 2014 8:56 PM The Benghazi Whistleblower Who Might Have Revealed a Massive Scandal on his Poetry Blog
  Business
Moneybox
Sept. 15 2014 7:27 PM Could IUDs Be the Next Great Weapon in the Battle Against Poverty?
  Life
Dear Prudence
Sept. 16 2014 6:00 AM Can of Worms Prudie offers advice to a letter writer who wants to blackmail a famous ex with tapes of his fetish.
  Double X
The XX Factor
Sept. 15 2014 3:31 PM My Year As an Abortion Doula
  Slate Plus
Tv Club
Sept. 15 2014 11:38 AM The Slate Doctor Who Podcast: Episode 4  A spoiler-filled discussion of "Listen."
  Arts
Brow Beat
Sept. 15 2014 8:58 PM Lorde Does an Excellent Cover of Kanye West’s “Flashing Lights”
  Technology
Future Tense
Sept. 15 2014 4:49 PM Cheetah Robot Is Now Wireless and Gallivanting on MIT’s Campus
  Health & Science
Bad Astronomy
Sept. 15 2014 11:00 AM The Comet and the Cosmic Beehive
  Sports
Sports Nut
Sept. 15 2014 9:05 PM Giving Up on Goodell How the NFL lost the trust of its most loyal reporters.