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