Bank of America in record $16.7bn settlementStaff writer ▼ | August 21, 2014
Bank of America has reached a comprehensive settlement with the U.S. Department of Justice (DoJ), certain federal agencies and several states.
Mortgage loans BofA and DoJ reached the deal
The claims relate primarily to conduct that occurred at Countrywide and Merrill Lynch prior to Bank of America's acquisition of those entities. Bank of America will pay a total of $9.65 billion in cash and provide approximately $7 billion worth of consumer relief. The cash portion consists of a $5.02 billion civil monetary penalty and $4.63 billion in compensatory remediation payments.
The settlement resolves certain actual and potential civil claims by the DoJ, the Securities and Exchange Commission (SEC) and State Attorneys General from California, Delaware, Illinois, Kentucky, Maryland and New York (State AGs), all of which are members of the Residential Mortgage Backed Securities Working Group of the Financial Fraud Enforcement Task Force; the FHA; and the Government National Mortgage Association (Ginnie Mae), as well as all pending claims against Bank of America entities brought by the Federal Deposit Insurance Corporation (FDIC). ■