Litigation tops agenda as BofA pays $17bn

By Owen Sanderson
20 Aug 2014

Bank of America has reached a record $17bn settlement with the US Department of Justice, federal agencies and six states, showing the extent to which litigation risk still dominates bank performance. The settlement comes hot on the heels of Citigroup’s $7bn settlement last month and the $9bn fine paid by BNP Paribas over sanctions violations.

JP Morgan set the previous record last year, agreeing to a $13bn settlement with the Department of Justice. BofA’s settlement will consist of $9.65bn cash and approximately $7bn of consumer relief.

BofA said it expected the settlement to reduce its pretax earnings by $5.3bn in the third ...

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