Date
20 October 2017
Bank of America is said to have reached a deal with the US Justice Department to settle a mortgage-securities probe. Photo: Bloomberg
Bank of America is said to have reached a deal with the US Justice Department to settle a mortgage-securities probe. Photo: Bloomberg

Bank of America to pay record fine to settle US probe: WSJ

Bank of America Corp. is expected to pay nearly US$17 billion to settle a US investigation into mortgage securities that the group sold in the run-up to the financial crisis, the Wall Street Journal reported, citing a person familiar with the negotiations.

The deal, which will mark the biggest settlement between the US Justice Department and a single company, could be announced as early as Thursday, the report said.

The roughly US$17 billion payout will involve a combination of cash and consumer aid, according to the report.

An agreement in principle was reached earlier this month after a phone call between the bank’s chief executive, Brian Moynihan, and US Attorney General Eric Holder, Reuters said in a separate report.

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RC

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