Bank Of America Reaches Settlement

Bank of America has reportedly reached an agreement with the U.S. Justice Department to pay between $16 billion and $17 billion to settle investigations into the sale of faulty mortgage securities.

The record-setting deal would top a $13 billion settlement between the government and JPMorgan Chase.   The agreement isn’t final, according to various published reports, and neither Bank of America nor the Justice Department has commented.   WFAE's Mark Rumsey spoke with Charlotte Observer reporter Deon Roberts, who is following this story.

Jennifer Lang

We've already established that Bank of America's 2008 acquisition of Countrywide was a costly move – and a mistake in the view of many. The Charlotte bank has spent tens of billions of dollars on settlements and losses tied to that mountain of messed-up mortgages. On Monday, Bank of America made some important progress.

Another day, another settlement - or really two,  in the case of Bank of America. And these are far from the last we'll expect to see. 

Bank of America is paying $2.4 billion to settle a lawsuit over its acquisition of Merrill Lynch. Shareholders accused the Charlotte-based bank of lying about the shape both companies were in at the time of the deal.

The bank’s then-CEO Ken Lewis raved about buying Merrill Lynch in 2008.

“Acquiring one of the premier wealth management, capital markets and advisory companies is a great opportunity for our shareholders,” Lewis said at the time.