CHICAGO (CBS) — Illinois is set to receive a $300 million share of a record $16.7 billion nationwide settlement with Bank of America, over allegations of financial misconduct that helped lead to the 2008 financial crisis.
WBBM Newsradio’s John Cody reports most of the state’s share of the settlement will go to cover losses state pension systems suffered by investing in mortgage-backed securities.
Illinois Attorney General Lisa Madigan – who helped negotiate the settlement between Bank of America and the U.S. Justice Department and state attorneys general – expressed confidence that banks would take note in the future.
“I think that the large banks and the market recognizes that they’ve got state attorneys general, they’ve got people at the Department of Justice, they’ve got HUD [Department of Housing and Urban Development], they’ve got the SEC [U.S. Securities and Exchange Commission], they have a lot of people watching them,” she said. “Nobody wants to see another financial crisis hit this country.”