Bank of America consented to pay out $16 billion in a agreement linked to a federal investigation of its sale of ‘toxic’ mortgage securities, on Wednesday.
The agreement represents the largest single federal deal in the US, American media reported. The deal is meant to settle accusations that the bank involved in the deceptive marketing of mortgage-backed securities based on sub-prime loans, which in turn started an economic crisis in 2007-2009.
In spite of the payment agreement, Wall Street regulators like Senator Bernie Sanders (I-VT), characterized the agreement as a ‘very modest settlement’ in light of the $1 trillion collected by Bank of America in “virtually zero-interest loans” through government bailouts in the crisis.
Bank Of America Agrees to Pay Out $16 Bn Agreement
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