Bank of America to settle credit union accusations
Bank of America will pay $165 million to settle a dispute over mortgage-backed securities it sold to credit unions that later collapsed.
The National Credit Union Administration, which is the federal agency that regulates credit unions, announced the settlement Tuesday. Bank of America did not admit wrongdoing.
The NCUA has filed similar lawsuits against other banks and has won a combined $171 million in settlements from Citigroup, Deutsche Bank and HSBC. It still has lawsuits open against Barclays, Credit Suisse, Goldman Sachs, JPMorgan, RBS, UBS and others.
The agency said it uses the net proceeds from the settlements so that federally insured credit unions won't have to pay so much to the "stabilization fund" set up to pay for losses caused by the failure of other credit unions.
- Associated Press
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