The Justice Department has announced USD 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 today calls for the bank, the second-largest in the US, to pay USD 5 billion cash penalty and provide billions of dollars of relief to struggling homeowners.
Bank of America says its cash payouts will total USD 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 USD 13 billion settlement while Citigroup reached a separate USD 7 billion deal.
