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Bank of America to pay up in record damages deal

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Bank of America to pay up in record damages deal

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Bank of America and the US Justice Department have reached a landmark deal to resolve allegations of mortgage misconduct in the run-up to the financial crisis.

The bank is to pay between $16bn and $17bn. The agreement will set a record for damages in a civil settlement between the U.S. government and a company.

The previous record was a $13bn deal struck less than nine months ago between the Justice Department and J.P. Morgan Chase over allegations the bank knowingly sold investors shoddy mortgages.