In the largest settlement by a single company in history, the Bank of America Corp. will pay $17 billion dollars to the U.S. Department of Justice.
The settlement includes $9.65 billion paid in cash and $7 billion in aid to communities and homeowners hit hard by the housing market crash that triggered the Great Recession. Included in the aid is funding for some mortgage reductions and more affordable rental housing.
The deal settles claims from the Justice Department, the Securities Exchange Commission, and other federal agencies, as well as California, New York, and four other states. This is the largest settlement since the economic fiasco in which millions of Americans lost their homes to foreclosure.