Bank of America racked up $1.2 billion in
penalties, settlements in 2022
Send a link to a friend
[February 23, 2023]
By Lananh Nguyen
NEW YORK (Reuters) - Bank of America Corp (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. |
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 |
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 (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 & 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.
(Reporting by Lananh Nguyen; Editing by Jamie Freed)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
|