--- description: Authorities are on the verge of imposing a $16.65bn fine on BoA to settle allegations that it knowingly sold toxic mortgages to investors. title: Bank of America Is About to Pay the Biggest Fine Ever image: https://static.time.com/v3/assets/bltea6093859af6183b/blt9649699469bc5b38/69869e8a35ba6f3619c03500/bank-of-america.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close # Bank of America To Pay Record $16.65 Billion Fine by [Nash Jenkins](/author/p-nash-jenkins/) ## Nash Jenkins Update your preferences in [Account Settings](/account/preferences/) Close Aug 21, 2014 9:40 AM CUT  NEW YORK, NY - APRIL 16: A sign for a Bank of America branch is viewed on April 16, 2014 in New York City. As the nation's second-largest bank continues to struggle with fallout from the financial crisis, Bank of America reported a $276 million first-quarter loss Wednesday. (Photo by Spencer Platt/Getty Images) NEW YORK, NY - APRIL 16: A sign for a Bank of America branch is viewed on April 16, 2014 in New York City. As the nation's second-largest bank continues to struggle with fallout from the financial crisis, Bank of America reported a $276 million first-quarter loss Wednesday. (Photo by Spencer Platt/Getty Images)Spencer Platt—Getty Images by [Nash Jenkins](/author/p-nash-jenkins/) ## Nash Jenkins Update your preferences in [Account Settings](/account/preferences/) Close Aug 21, 2014 9:40 AM CUT **Updated: 10:14 a.m.** The Justice Department announced Thursday that Bank of America will pay [a record $16.65 billion fine](http://www.justice.gov/opa/pr/2014/August/14-ag-884.html "undefined") to settle allegations that it knowingly sold toxic mortgages to investors. The sum represents the largest settlement between the government and a private corporation in the United States’ history, coming at the end of a long controversy surrounding the bank’s role in the recent financial crisis. In issuing bad subprime loans, some observers say, the bank helped fuel a housing bubble that would ultimately burst in late 2007, devastating the national and global economy. “We are here to announce a historic step forward in our ongoing effort to protect the American people from financial fraud – and to hold accountable those whose actions threatened the integrity of our financial markets and undermined the stability of our economy,” Attorney General Eric Holder said at a news conference announcing the settlement. Since the end of the financial crisis, the bank has incurred more than $60 billion in losses and legal settlements. Of the latest settlement, $7 billion will go to consumers faced with financial hardship. In turn, the bank largely exonerates itself from further federal scrutiny. However, not all is forgotten. The [New York _Times_ reports](http://dealbook.nytimes.com/2014/08/20/bank-of-america-expected-to-settle-huge-mortgage-case/?%5Fphp=true&%5Ftype=blogs&%5Fr=0 "undefined") that federal prosecutors are preparing a new case against Angelo Mozilo, the former chairman and chief executive officer of Countrywide Financial, which Bank of America acquired in mid-2008\. As the country’s largest lender of mortgages, Countrywide Financial purportedly played a large role in distributing toxic loans. Mozilo has already paid the Securities and Exchange Commission a record $67.5 million settlement. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/3153262/bank-of-america-record-16-billion-fine-mortgages-subprime-loans/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/3153262/bank-of-america-record-16-billion-fine-mortgages-subprime-loans/"},"headline":"Bank of America To Pay Record $16.65 Billion Fine","datePublished":"2014-08-21T09:40:22.000Z","dateModified":"2026-02-21T09:46:48.404Z","description":"$7 billion of it will go to consumers faced with financial hardship","url":"https://time.com/3153262/bank-of-america-record-16-billion-fine-mortgages-subprime-loans/","keywords":["Economy","Money","financial crisis","Bank of America","SEC","Banks"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt9649699469bc5b38/69869e8a35ba6f3619c03500/bank-of-america.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Nash Jenkins","jobTitle":null,"url":"https://time.com/author/p-nash-jenkins/"}],"articleSection":"World","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt9649699469bc5b38/69869e8a35ba6f3619c03500/bank-of-america.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Bank Of America Reports Loss Due 6 Billion Dollar Legal Charge","caption":"Bank Of America Reports Loss Due 6 Billion Dollar Legal Charge","creditText":"Spencer Platt—Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"https://time.com/3153262/bank-of-america-record-16-billion-fine-mortgages-subprime-loans/","name":"Bank of America To Pay Record $16.65 Billion Fine"}}]},{"@context":"https://schema.org","@type":"VideoObject","name":"Bank of America Reported Close To Record DOJ Settlement","description":"Several outlets report Bank of America will pay the DOJ $16 to $17 billion over its role in the housing crisis. 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