Thread: BofA reaches $17 BILLION settlement over sale of mortgage-backed securities

BofA reaches $17 billion settlement over sale of mortgage-backed securities

1 Hour Ago The Associated Press

Officials familiar with the deal say Bank of America has reached a record $17 billion settlement with federal and state authorities over its role in the sale of mortgage-backed securities in the run-up to the 2008 financial crisis.

The officials say the bank will pay $10 billion in cash and provide consumer relief valued at $7 billion.

They spoke with The Associated Press on condition of anonymity because the deal isn't scheduled to be announced until Thursday at the earliest.

AIG in $650M settlement with BofA over mortgages

The bank declined comment.

The agreement requires the bank to acknowledge making misrepresentations about the quality of its residential mortgage-backed securities itself and in those by Countrywide Financial and Merrill Lynch.

Those institutions were acquired by the bank in 2008 and were responsible for the bulk of the questionable loans.

BofA shares were modestly higher on afternoon trading.

http://www.cnbc.com/id/101923736

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