Bank of America’s $16.65 billion deal in the previous week has been a profitable one for law firms suggesting the financial institution on government allegations that it sold false mortgage securities until the 2008 financial crisis.
In the meantime, the deal also adds a boon for a program offering civil legal services to the poor via interest from trust accounts of attorneys.
The $30 million out of the $7 billion marked for client legal aid will go directly to the Interest on Lawyers Trust Program (IOLTA).
The programs gathers interest from the generated client funds made by lawyers from each state. The proceeds will go to every state’s civil legal firms.
IOLTA has been struggling since 2008 due to low interest rates, making it hard to gain from the deposits. The IOLTA program in each state will now get $200,000 and the remaining $30 million will be evenly handed out in every state in accordance to the number of people living in poverty.