The Bank Slate


BofA settling legal claims from 2008 financial crisis

Bank of America in Charlotte, N.C., agreed to pay about $1.8 billion to resolve claims that go back to the 2008 financial crisis.

 The $2.2 trillion-asset Bank of America disclosed in a regulatory filing that it will pay the settlement to Ambac Assurance to address pending Ambac lawsuits against the company and its subsidiaries.

Pending lawsuits against Bank of America had aggregate damages claims totaling more than $3 billion. The lawsuits against Bank of America and Countrywide, which BofA bought, were tied to bond insurance policies Ambac provided before the financial crisis.

All pending litigation will be dismissed with prejudice. Ambac also agreed to release Bank of America and its subsidiaries from all outstanding claims tied to the issuance of bond insurance policies for certain securitized pools of residential mortgage loans.

Bank of America said the settlement should lead to a $354 million pretax expense in the third quarter.

Leave a Reply

Your email address will not be published. Required fields are marked *