English
French
German
Italian
Russian
Spanish
Bank of America racked up $1.2 billion in penalties, settlements in 2022
Bank of America racked up $1.2 billion in penalties, settlements in 2022 By Reuters
Breaking News
‘;
Stock Markets 56 minutes ago (Feb 22, 2023 11:06PM ET)
(C) Reuters. FILE PHOTO: A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS/Carlo Allegri
By Lananh Nguyen
NEW YORK (Reuters) – Bank of America Corp (NYSE:BAC) (BofA) amassed $1.2 billion in expenses for litigation and regulatory investigations last year including fines and settlements, according to a company filing on Wednesday.
The cost is a major jump from $164 million recorded by the second-largest U.S. lender in 2021 and $823 million in 2020, and excludes payments for internal and external lawyers.
The company dealt with several major issues in 2022, setting aside $354 million as part of a settlement to pay bond insurer Ambac Financial Group (NYSE:AMBC.N) for a major lawsuit that stemmed from the 2008 mortgage crisis.
BofA also paid $225 million in penalties to U.S. financial regulators last year over employees’ use of unauthorized messaging platforms including WhatsApp.
A pair of banking regulators also fined the bank $225 million over what they called a “botched” handling of jobless benefits during the pandemic.
While those three cases led to just over $800 million in combined expenses last year, BofA did not specify what accounted for the remaining $400 million. A company spokesperson declined to comment.
Some other U.S. banks also received hefty penalties in 2022.
In December, the U.S. Consumer Financial Protection Bureau hit Wells Fargo (NYSE:WFC) & Co with the watchdog’s largest ever civil penalty as part of a $3.7 billion agreement to settle charges over widespread mismanagement of car loans, mortgages and bank accounts.
Bank of America racked up $1.2 billion in penalties, settlements in 2022
Terms And Conditions
Privacy Policy
Risk Warning
(C) 2007-2023 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
