Bank of America is expected to pay $17 billion to settle charges it misled investors on mortgage-linked securities in a deal that could come this week, US media reported Wednesday.
The agreement, the largest US settlement with a single company, could come as soon as Thursday, reported the Wall Street Journal, citing an unnamed source.
The agreement is the latest to hold large banks accountable for the packaging and sale of securities linked to risky mortgages that were marketed as low-risk to investors ahead of the housing bust.
Some of the allegations are expected to cover securities sold by Merrill Lynch and Countrywide, both of which were acquired by Bank of America amid the housing bust.
The BofA settlement would exceed a record $13 billion pact between JPMorgan Chase and the Justice Department last November over similar allegations. Citigroup in July agreed to pay $7 billion to settle similar claims.
Representatives of the Bank of America and the Justice Department declined comment.
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