More Heat From New York Brings Focus Back to Banks' Legal Woes

Last month we saw Bank of America and Wells Fargo named in a suit filed by New York Attorney General Eric Schneiderman for alleged violations of last year's $25 billion mortgage settlement. But with some push back from B of A, the AG office backed off in order to give the banks proper notice and time to cure any outstanding violations.

This week, news from the AG's office is bringing more heat back onto the banks, with remarks of evidence from other states that the banks, including others that were unnamed, committed the alleged violations. In the video below, Motley Fool contributor Jessica Alling discusses what the banks have gone through to date, what the news from New York means, and how investors might feel about the new legal issues for the banks.

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Fool contributor Jessica Alling has no position in any stocks mentioned -- you can contact her here. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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