Bank of America to pay $16.7bn in mortgage settlement
August 22 , 2014
In a record mortgage settlement, Bank of America will pay $16.7bn to United States authorities for failing to adequately warn investors about the nature of loans being sold.
Associate attorney general Tony West said no institution was “too big or too powerful” to avoid accountability.
As a result of the settlement, Bank of America’s third-quarter profits will fall by over $5bn.
The bank’s chief executive said the settlement was “in the best interests of our shareholders.”