Bank of America on Thursday agreed to pay $16.65 billion to end investigations into that the bank and its units sold in the run-up to the financial crisis.
The settlement announced on Thursday by the U.S. Department of Justice calls for the second-largest U.S. bank to pay a $9.65 billion cash penalty, and provide $7 billion of consumer relief to struggling homeowners and communities.
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It is expected to resolve the vast majority of the Charlotte, North Carolina-based bank's remaining liabilities tied to its purchases of Countrywide Financial, once the nation's largest mortgage lender, and Merrill Lynch.
"This historic resolution—the largest such settlement on record—goes far beyond 'the cost of doing business,"' U.S. Attorney General Eric Holder said in a statement.