Bank of America Corp (NYSE:BAC) is expected to pay $16.5 billion in a record settlement concerning the mortgage bond sales processed during the financial crisis of 2008. Bank of America Corp (NYSE:BAC) has been working with the U.S. Department of Justice to cut out a deal and the bank is planning to pay $9 billion in cash and settle the rest by assisting homeowners.
If the settlement were final, then this would be biggest settlement in the history of the bank for violation of U.S. Sanctions and rogue marketing practices deployed for mortgage securities. The settlement amount will resolve any civil allegations by the state and federal Government in New Jersey, California, and New York. Further, it will resolve a lawsuit filed against the bank in North Carolina.
Bank of America Corp (NYSE:BAC) reported its second quarter 2014 results with revenue of $22.0 billion and net income of $2.3 billion for the quarter. Bank paid $4.0 billion in litigation expenses or $0.22 per share. Bank of America Corp (NYSE:BAC) issued 1.1 million credit cards during the quarter and total deposit balance of $54 billion at the end of the period.
The CEO of Bank of America Corp (NYSE:BAC), Brian Moynihan, said,
“The economy continues to strengthen, and our customers and clients are doing more business with us. Among other positive indicators, consumers are spending more, brokerage assets are up by double digits and our corporate clients are increasingly turning to us to help finance business expansion and merger activity. We are well positioned for further progress.”
Bank of America Corp (NYSE:BAC) provides banking and financial services to its customers in the United States and worldwide. The bank has a current market cap of $163.21 billion and its shares trade at $15.52.
This article has been written by Prakash Pandey and edited by Serkan Unal.