Bank of America in $16.65bn mortgage settlement: DoJ

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Bank of America on Thursday agreed to pay $16.65 billion to end investigations into mortgage securities that the bank and its units sold in the run-up to the financial crisis.

The claims relate primarily to conduct that occurred at Countrywide and Merrill Lynch prior to Bank of America's acquisition of those entities.

Bank of America will pay $9.65 billion in cash and about $7 billion will go toward consumer relief. The cash portion consists of a $5.02 billion civil monetary penalty and $4.63 billion in remediation payments.

"We believe this settlement, which resolves significant remaining mortgage-related exposures, is in the best interests of our shareholders, and allows us to continue to focus on the future," said Chief Executive Officer Brian Moynihan.

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The settlement is the largest in a series of soaring penalties against banks for a range of misconduct, including violating U.S. sanctions and inappropriately marketing mortgage securities.

-By CNBC

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