NEW YORK (AP) — A federal judge has ordered a bank’s U.S. judge to pay more than $540 million to resolve a long-term lawsuit from US regulators who allegedly paid a mandatory assessment of deposit insurance.
The order reached March 31st and released Monday, the order arrived more than eight years after the Federal Deposit Insurance Corporation sued Bank of America in 2017.
“We are pleased that the judge has awarded and has reserves reflecting the decision,” Bank of America said in a statement to the Associated Press. The FDIC declined to comment when it reached Tuesday.
In 2017, the FDIC accused the bank’s major of rejecting a valuation of more than $500 million, claiming it had “unreasonably enriched” at the FDIC costs, expanding that figure to $1.12 billion.
Bank of America later filed a motion for rejection and strongly denied acting with the intention of avoiding such payments. He also claimed that some of the FDICs targeted for evaluation fell outside the statue of restrictions.
After years of legal battles, Washington, DC US District Judge, Judge Lauren L. Alican, partially granted the allegations to both the Bank of America and the FDIC. She said that covering the low-wage valuation that spans the second quarter of 2013 and the end of the 2014 fiscal year, it determined that the $540.3 million payment from Bank of America was waiting for the FDIC to sue their previous claims too long.
Formed during Great Repression in 1933, FDIC is one of several banking systems regulators today. The agency is best known for running a national deposit insurance program that guarantees American deposits up to $250,000 in case the bank fails.
Bank of America, headquartered in Charlotte, North Carolina, reported Tuesday that it was the second-largest bank in the United States, with first-quarter profits of $7.4 billion and interest costs of $27.37 billion.
Original issue: April 15th, 2025, 1:50pm
