The news today was that Bank of America (NYSE:BAC) came up with $16.65 billion to resolve the biggest liability having to do with the subprime crisis from 2008. It’s the end of a process that has been a dark cloud hanging over the head of Bank of America since they made a proper mess out of the Countrywide deal; widely regarded as one of the worst purchases in the history of the banking industry.
USA Today posted one of the easier reads on the situation today, noting the following;
Announced by federal and state officials in Washington, the deal requires the nation’s second-largest bank to pay $9.65 billion in cash and provide $7 billion for consumer relief, such as reducing mortgage payments for struggling homeowners and funding neighborhood stabilization efforts.
The cash payment includes a $5.02 billion civil penalty to the Department of Justice, and $4.63 billion in compensatory remediation