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New York

Bank of America close to record $17B settlement

Agreement would set new high for damages, fines paid to resolve civil case

BoA CEO Brian Moynihan
BoA CEO Brian Moynihan

Bank of America is close to agreeing to pay as much as $17 billion to settle the mortgage-fraud case with the Justice Department.

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If the settlement occurs for that amount, it would break a record for the most damages and fines paid in a civil settlement suit involving a company and the U.S. government. The $9 billion that the Charlotte, N.C.-based bank already agreed to would not include funds that reduce loan balance for struggling consumers, the Wall Street Journal reported. This is part of the penalties the bank is facing for selling defective loans to Freddie Mac and Fannie Mae prior to the financial crisis.

The $16-to-$17 billion deal would surpass the $13 billion deal JPMorgan Chase made with the Justice Department in November last year. [WSJ] — Mark Maurer

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Bank Of AmericaMortgage Fraud