Bank of America demands a long-term lawsuit to pay more than $540 million to U.S. regulators; that’s why
A federal judge has ordered Bank of America to pay more than $540 million in fees to resolve a long-term lawsuit by U.S. regulators that alleged that the company provided a mandatory assessment of deposit insurance.
The order arrived on March 31 and was released publicly on Monday, arriving eight years after Federal Deposit Insurance Corporation sued Bank of America in 2017.
“We are pleased that the judge ruled and has reserves to reflect the decision,” Bank of America said in a statement to the Associated Press. The FDIC declined to comment when it arrived Tuesday.
Back in 2017, the FDIC was accused of refusing to pay more than $500 million in assessment fees (this figure later expanded to $1.12 billion), claiming that the banking giant failed to commemorate the 2011 regulatory rules with FDIC fees and “unfairly rich themselves.”
Bank of America then filed a motion partially dismissed, strongly denied that its actions were to avoid such payments. It also argues that some quarters of the FDIC used for evaluation are not outside the restricted statues.
After a year of legal struggle, U.S. District Judge Loren L. Alikhan in Washington, DC partially awarded and denied the motions of Bank of America and the FDIC. She said nearly $540.3 million in payments from Bank of America from the second quarter of 2013 to fiscal year 2014 would cover its underpaid assessment, plus interest — but ruled that the FDIC waited too long to file an early claim.
Founded in 1933, FDIC is one of several banking system regulators today. The agency is The most famous Run the U.S. deposit insurance program, which ensures Americans have a maximum deposit of $250,000 in case their bank fails.
Based in Charlotte, North Carolina, Bank of America is the second largest bank to be divided in the U.S. on Tuesday, and the company reported first-quarter profit of $7.4 billion and net interest expenses of $27.37 billion, exceeding Wall Street expectations.
