Feds, BofA Strike $17B Settlement

Justice announces largest deal it's ever reached

By Newser Editors and Wire Services

Posted Aug 21, 2014 8:40 AM CDT

(Newser) – 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 2008 financial crisis. The deal announced today calls for the bank, the second-largest in the US, 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.

Officials 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 run-up to the 2008 financial crisis.
Officials 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 run-up to the 2008 financial crisis.   (Matt Rourke)
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