Bank of America on Thursday agreed to pay $16.65 billion to end investigations into mortgage securities that the bank and its units sold in the run-up to the financial crisis.
The claims relate primarily to conduct that occurred at Countrywide and Merrill Lynch prior to Bank of America's acquisition of those entities.
Bank of America will pay $9.65 billion in cash and about $7 billion will go toward consumer relief. The cash portion consists of a $5.02 billion civil monetary penalty and $4.63 billion in remediation payments.
"We believe this settlement, which resolves significant remaining mortgage-related exposures, is in the best interests of our shareholders, and allows us to continue to focus on the future," said Chief Executive Officer Brian Moynihan.
The settlement is the largest in a series of soaring penalties against banks for a range of misconduct, including violating U.S. sanctions and inappropriately marketing mortgage securities.