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New York gets $800M in Bank of America settlement

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Updated: 8/21 10:39 am

NEW YORK (AP) — New York state is getting $800 million as its share of a national $16.65 billion settlement with Bank of America over its role in the sale of mortgage-backed securities in the run-up to the financial crisis.

New York Attorney General Eric Schneiderman announced the settlement Thursday. He says the bank has agreed to pay the state $300 million in cash and $500 million in the form of direct relief to consumers.

The deal calls for the bank, the second largest in the U.S., to pay a $5 billion cash penalty and provide billions of dollars to struggling homeowners. Bank of America says its cash payouts will total $9.65 billion.

The settlement is the largest deal the government has reached with a bank over the 2008 mortgage meltdown.

 

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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