Bank of America agrees to record $17bn settlement over mortgage fraud

America’s second largest lender has reached a $16.65 billion settlement with US federal authorities for selling toxic mortgages misleading investors, the Justice Department said Thursday. “This historic resolution – the largest such settlement on record – goes far beyond ‘the cost of doing business,’” Attorney General Eric Holder said in a statement posted on the US Justice Department website on Thursday. The bank will pay out $9.65 billion in cash and $7 billion for consumer relief – such as modified home loans and refinanced mortgages. “Under the terms of this settlement, the bank has agreed to pay $7 billion in relief to struggling … Continue reading Bank of America agrees to record $17bn settlement over mortgage fraud