Skip to main content

A pedestrian walks past a Bank of America ATM in Charlotte, North Carolina July 17, 2009.

CHRIS KEANE/REUTERS/Chris Keane

Bank of America is paying dearly for all the mistakes it made leading up to, and during, the financial crisis.

On Friday the bank announced yet another settlement, this time agreeing to pay $2.43-billion (U.S.) to settle a lawsuit from shareholders over its acquisition of Merrill Lynch.

That figure alone is big. But add up everything BofA's agreed to pay in the past few years, and you quickly hit $25-billion.

Story continues below advertisement

There was the $8.5-billion payment to resolve the issue of selling bad mortgage-backed securities from its Countrywide division, $3-billion to settle an issue with Fannie Mae and Freddie Mac, $11.8-billion to "extend additional relief to homeowners who are struggling to make mortgage payments" as part of a deal with 49 state attorney generals and the U.S. Department of Justice, and now the Merrill settlement.

The latest settlement stems from a class action lawsuit filed by shareholders who alleged that Bank of America misled them when buying Merrill Lynch. One of the major accusations was that BofA hid a big loss at Merrill before the shareholder vote.

Still, BofA's stock is up 60 per cent this year.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter