News Column

Bank of America set for biggest settlement since financial crash

August 21, 2014

MICHAEL BIRD



BANK of America is reportedly set to pay out $17bn (10.2bn) to US authorities and in consumer relief, in a bid to settle an investigation into sales of mortgage-backed securities before the 2008 crisis.


The agreement with US regulators is the largest of any yet to emerge from the crash.


According to the AP news agency, which originally reported the settlement, the deal would be split, with roughly $10bn going to the US government and a further $7bn going to relief for consumers.


Reuters also reported that the deal was agreed in principle earlier this month by US Attorney General Eric Holder and Bank of America chief executive Brian Moynihan.


The reported size of the agreement has swelled with every mention. As recently as June, insiders suggested that the deal would run to $12bn or $13bn.


The bank also made a $9.33bn agreement with the US housing authorities earlier this year.


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Source: City A.M. (UK)


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