Verdicts & Settlements
Bank of America Agrees to $8.5B Settlement, a Record for a Financial Services Firm
Updated: Bank of America has reached an agreement to pay $8.5 billion to settle claims by major investors who lost money on mortgage securities.
The New York Times and the Wall Street Journal (sub. req.) had news of the deal before it was officially announced on Wednesday. The settlement covers bundled mortgages issued by Countrywide Financial Corp., purchased by Bank of America in 2008.
The accord still needs court approval, the Associated Press reports. The agreement is the largest settlement ever by a financial services firm, the Wall Street Journal says.
Updated at 6:50 a.m. to report that Bank of America’s board approved the deal on Wednesday.
Write a letter to the editor, share a story tip or update, or report an error.
