Bank of America is going to pay up -- big time. The bank and its related parties, such as Countrywide Financial Corporation and Merrill Lynch, agreed Thursday to the largest civil settlement with a single entity in American history to the tune of $16.65 billion.
Of the settlement, Attorney General Eric Holder said, "This historic resolution -- the largest such settlement on record -- goes far beyond ‘the cost of doing business.’ Under the terms of this settlement, the bank has agreed to pay $7 billion in relief to struggling homeowners, borrowers and communities affected by the bank’s conduct. This is appropriate given the size and scope of the wrongdoing at issue.”
Shareholders, however, didn't seem overly concerned. Hours after the announcement of the settlement, Bank of America Corporation's stock was up by nearly five percent.