Bank of America to pay $16.65 billion for financial fraud

Record-breaking settlement between Bank of America and US federal and state entities

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The US Department of Justice has announced a record $16.65 billion settlement with Bank of America to resolve a number of federal and state claims of fraud against the bank and its subsidiaries Countrywide and Merrill Lynch.

Bank of America admitted to selling billions of dollars' worth of residential mortgage-backed securities (RMBS) without disclosing to investors known facts about the quality of the securitised loans, leading up to and during the financial crisis.

"This historic resolution –

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