Charlotte, NC, United States (4E) – Bank of America Corp. is nearing a deal with the U.S. Department of Justice that may result for the bank to pay $16bn to $17bn to settle allegations of mortgage-related misconduct before the financial crisis, according to sources with about the matter.
The Charlotte, N.C. bank has agreed to pay about $9bn in cash to the federal government, states and other government institutions, according to the sources. Additional money would be spent at consumer aid, including giving struggling homeowners more relief with their mortgage balances.
The agreement, which could be finalized this month, would become a landmark deal as it will set a record for the most amount of fines and damages in a civil settlement between a company and the U.S. government. The figure would surpass the $13bn deal made between the JPMorgan Chase & Co. and the Justice Department nine months ago over the same issues.
Earlier this year, Bank of America settled with the Federal Housing Finance Agency over similar mortgage issues. Including the recent deal, the bank’s total government-related legal expenses could reach around $23bn.