Justice Dept. announces $17B settlement with BofA
By PETE YOST and MARCY GORDON, Associated Press
Aug 21, 2014 8:20 AM CDT
FILE - This Tuesday, Jan. 14, 2014 file photo shows a Bank of America sign in Philadelphia. Officials familiar with the deal say Bank of America on Wednesday, Aug. 20, 2014 has reached a record $17 billion settlement with federal and state authorities over its role in the sale of mortgage-backed securities...   (Associated Press)

WASHINGTON (AP) — The Justice Department has announced a $16.65 billion settlement with Bank of America over its role in the sale of mortgage-backed securities in the run-up to the financial crisis.

The deal announced Thursday calls for the bank, the second-largest in the U.S., to pay a $5 billion cash penalty and provide billions of dollars of relief to struggling homeowners. Bank of America says its cash payouts will total $9.65 billion.

The settlement is by far the largest deal the Justice Department has reached with a bank over the 2008 mortgage meltdown. In the last year, JPMorgan Chase & Co. agreed to a $13 billion settlement while Citigroup reached a separate $7 billion deal.