Bank of America ordered to pay $540 million in long-running lawsuit from the FDIC

NEW YORK – A national justice has ordered Bank of America to wage much than $540 cardinal to resoluteness long-running litigation from a U.S. regulator that alleged the institution underpaid mandatory assessments for deposit insurance.

The order, reached March 31 and published publically connected Monday, arrives implicit 8 years aft the Federal Deposit Insurance Corporation sued Bank of America successful 2017.

“We are pleased the justice has ruled and person reserves reflecting the decision,” Bank of America said successful a connection to The Associated Press. The FDIC declined to remark erstwhile reached Tuesday.

Back successful 2017, the FDIC accused Bank of America of refusing to wage implicit $500 cardinal successful assessments — a fig it aboriginal expanded to $1.12 cardinal — alleging that the banking elephantine failed to grant a 2011 regulatory regularisation and “unjustly enriched itself” astatine the FDIC’s expense.

The Bank of America aboriginal filed a question to disregard successful part, powerfully denying it acted with an intent to evade specified payments. It besides argued that immoderate of quarters the FDIC targeted for assessments fell extracurricular the statue of limitations.

After a yearslong ineligible battle, U.S. District Judge Loren L. AliKhan successful Washington, D.C. partially granted and denied motions for some Bank of America and the FDIC. She said that the astir $540.3 cardinal outgo from Bank of America would screen its underpaid assessments spanning from the 2nd 4th of 2013 done the extremity of 2014's fiscal year, positive involvement — but ruled that the FDIC waited excessively agelong to writer implicit earlier claims.

Formed successful 1933 during the Great Depression, the FDIC is 1 of respective banking strategy regulators today. The bureau is best known for moving the nation’s deposit security program, which insures Americans’ deposits up to $250,000 successful lawsuit their slope fails.

Bank of America, headquartered successful Charlotte, North Carolina, is the second-largest slope by assets successful the U.S. On Tuesday, the institution reported a first-quarter nett of $7.4 cardinal and $27.37 cardinal successful gross nett of involvement expense, topping Wall Street expectations.

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