Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Bank of America agrees record $17bn MBS settlement

Bank of America agrees record $17bn MBS settlement

Bank of America has agreed to pay out a record $17 billion (£10.2 billion) to settle claims around its role in the sale of mortgage-backed securities in the run up to the financial crisis.

The bank is to pay $10 billion in cash with the other $7 billion to be used for consumer debt relief, according to the Associated Press. The settlement is arising from the slew of recent banking scandals and the biggest in US history.

AP reports that agreement was finally reached between Bank of America CEO Brian Moynihan and attorney general Eric Holder. It is understood that the deal will also require Bank of America, along with Countrywide Financial and Merrill Lynch, which it later acquired, to acknowledge the fact that they misrepresented the quality of packaged loans that it sold on to investors.

The three institutions combined issued just under £1 trillion, or $965 billion of mortgage-backed securities between 2004 and 2008.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter