US bank gets $17bn subprime penalty

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BANK of America has reached a record $16.65 billion (R178bn) settlement with the US government to settle charges that it and companies it bought misled investors into buying troubled mortgage-backed securities, helping the bank close a major chapter tied to the subprime-led financial crisis. The settlement calls for the second-largest US bank by assets to pay $9.65bn in cash to resolve more than a dozen federal and state investigations, and provide $7bn in help to struggling homeowners and communities. – Bloomberg

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