Must Read Money Stories for Tuesday, May 24

by May 24, 2016

MRMSOverturned.

Bank of America won’t have to pay a $1.27 billion dollar fine after all. Reuters reports the 2nd U.S. Court of Appeals threw out a jury verdict in the case that had found Bank of America guilty of fraud for its mortgage investment practices. The case involved loans sold by Countrywide, which B of A bought in 2008. The appeals court ruled the bank may have breached contracts in its mortgage loan business, but it said there wasn’t enough evidence to show intentional deception.

Venezuela fallout.

The economic crisis in Venezuela seems to only be getting worse, and there’s a growing list of U.S. companies feeling the effects. The AP reports Bridgestone is selling off its Venezuela business, after operating for six decades inside the country. Bloomberg reports Coca-Cola has halted production in Venezuela, due to a sugar shortage. If you’re not caught up on why all of this is happening, Longreads assembled a reading list on Venezuela to help you understand the crisis.

Checking the algorithm.

Propublica, the independent, non-profit newsroom, ¬†investigated the track record of a software algorithm that predicts future criminal behavior. The software is used frequently in courts to help assist judges in handing down sentences for some offenders. Turns out, according to Propublica’s analysis, the software does a poor job of predicting future behavior, and it more frequently predicts that black defendants will re-offend compared to whites. The software was created by a private, for-profit company.

Pill popper.

Researchers at MIT have come up with a new way to manufacture pharmaceutical drugs. NPR reports the method could revolutionize the industry. It can make any kind of pill – in theory – and the machine that does it all takes up about the same amount of space as a refrigerator. The defense department funded the project, in hopes defense can use the technology in remote areas or battlefields.

Bank of America” by flickr user “jeepersmedia” cc license CC by 2.0.