FINANCIAL TIMES: Bank of America agreed on Wednesday to a $9.5bn settlement with a US housing regulator, as its former chief executive agreed in a separate case to a three-year ban from serving as an officer or director of a public company.
BofA’s pact with the Federal Housing Finance Agency is the largest payout to a single regulator over misleading mortgage sales practices in the run-up to the financial crisis. JPMorgan Chase paid $5bn to the FHFA, and government mortgage agencies Fannie Mae and Freddie Mac last year as part of its broader $13bn settlement with the Department of Justice and state attorneys-general.
[BofA’s former chairman Ken] Lewis, 67, agreed to a three-year ban and $10m fine. BofA is expected to pay Mr Lewis’s portion of the settlement as part of an employment agreement, people familiar with the settlement said… (more)
