Bank of America agreed to pay $8.5 billion to settle bad mortgage-backed securities claims

Wall_Street_Sign.jpg

On June 29, 2011, Bank of America (BOA) announced an $8.5 billion settlement agreement arising from claims that it had sold bad securities that contributed to the housing market collapse. The securities, called first-lien residential mortgage-backed securitization, were issued by its Countrywide Financial unit. In November 2011, a federal judge for the US District Court for the Southern District of Florida gave final approval to BOA's $410 million settlement of a class action suit concerning overdraft fees. The following month, the company reached two additional settlements: a $315 million settlement of claims brought by investors alleging they were misled with respect to mortgage-backed investments and a $335 million settlement with the Department of Justice, relating to discriminatory lending practices.

Learn more about Bank of America and the financial crisis from the JURIST news archive.

 

About This Day at Law

This Day at Law is JURIST's platform for legal history, highlighting interseting and important developments that shaped the law and the world.

© Copyright JURIST Legal News and Research Services, Inc., 2013.