Bank of America, one of the largest banks in the United States, is to pay a record $17bn (£10bn) to settle accusations that it misled investors into buying toxic mortgage securities, according to reports.
It will be the largest by a single settlement by a company in US history and relates to the bank's acquisition of Merrill Lynch and Countrywide Financial, which has already cost it tens of billions of dollars over the past six years.
Most of the problem loans were sold by Countrywide Financial and Merrill Lynch before Bank of America bought them during the 2008 financial crisis.
To settle the government's claims against the three companies, Bank of America will pay $9.65bn in cash in addition to providing the $7bn of consumer aid, AP reported, citing officials directly familiar with the matter who spoke on condition of anonymity because the deal wasn't scheduled to be announced until Thursday at the earliest.
Bank of America declined to comment.
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