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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