Business in brief: B of A to pay $108 million in Countrywide settlement
WASHINGTON – Bank of America will pay $108 million to settle federal charges that Countrywide Financial Corp., which it acquired nearly two years ago, collected outsized fees from borrowers facing foreclosure.
It’s the latest evidence of misconduct at Countrywide, once an industry giant that has since fallen. Last year, three top executives, including former CEO Angelo Mozilo, were charged with civil fraud and insider trading by the Securities and Exchange Commission. The settlement seeks to refund money to about 200,000 borrowers.
Britain, Germany vow
to make cuts as euro falls
LUXEMBOURG – Europe’s economic picture darkened further Monday as Britain’s prime minister declared the nation’s finances to be worse than feared – requiring sacrifices that will affect “our very way of life” – and the euro slid further toward parity with the dollar.
Germany, Europe’s economic powerhouse, promised a raft of spending cuts, vowing to “set an example” for heavily indebted Greece, Spain and Portugal, which are buckling under their debt loads and threaten to drag Europe’s currency union down with them.
Fed reports slight April rise
in consumer borrowing
WASHINGTON – Consumer borrowing increased slightly in April, a sign that Americans may have more faith in the economic recovery.
Borrowing rose by $954.8 million in April, the Federal Reserve said Monday. But the government revised away a gain it had originally reported for March. Instead, it reported that credit fell a sharp $5.44 billion during that month.
The April increase, if it stands, would be only the second gain in 15 months.
Brake, wiring problems prompt Chrysler recall
DETROIT – Chrysler is recalling almost 600,000 minivans and Jeep Wranglers in the United States and another 100,000 elsewhere because of brake or wiring problems that could create safety problems, the company and federal regulators said Monday.
Chrysler said it is recalling 288,968 Jeep Wranglers from the 2006 through 2010 model years due to a potential brake fluid leak.
It also is recalling 284,831 Dodge Grand Caravan and Chrysler Town & Country minivans from the 2008 and 2009 model years because a wiring problem can cause a fire inside the sliding doors.
Another 76,430 Wranglers and 34,143 minivans are being recalled in Canada, Mexico and other international markets, Chrysler said.
Neither problem has caused crashes or injuries, Chrysler Group LLC said.