Bank of America Expect to Reach $17 Billion Settlement with Department of Justice
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iStock Editorial/Thinkstock(NEW YORK) — Bank of America is expected to agree to a $17 million settlement on Thursday in connection with its sale of mortgage-backed securities prior to the 2008 financial crisis.
The bank is expected to agree to the deal with the U.S. Department of Justice and state attorneys general, in what would be the largest settlement ever with a bank or private company. The previous record settlement was a deal with JPMorgan for $13 million related to its losses in the London whale case. JPMorgan was accused of failing to, “keep watch over its traders as they overvalued a very complex portfolio to hide” $6 billion in trading losses.
The $17 billion is the equivalent of approximately three years of Bank of America profits.
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