Bank of America has asked to pay more than $ 540 million in the long -standing lawsuit of the US regulator; Here's why | Company Business News

A Federal Judge ordered Bank of America to pay more than $ 540 million to solve prolonged litigation from a US regulator claiming that the company has underpaid mandatory deposit insurance. The order, which was reached on March 31 and publicly published on Monday, arrives more than eight years after the Federal Deposit Insurance Corporation in 2017 sued Bank of America. “We are glad that the judge ruled and has reserves that reflect the decision,” Bank of America said in a statement to the Associated Press. The FDIC refused to comment when it was reached on Tuesday. In 2017, the FDIC Bank of America accused of refusing to pay more than $ 500 million to judgments – a figure that later expanded to $ 1.12 billion – in which he claimed that the bank giant did not honor a 2011 regulatory rule and “unfairly enriched itself” at the expense of the FDIC. The Bank of America later filed a motion to partly dismiss and strongly denied that it acted for the purpose of evading such payments. It also argued that some of the quarters that the FDIC sent for assessments fell beyond the statue of restrictions. After a year -long legal battle, US District Judge L. Alikhan in Washington, DC partially granted and denied the motions for both Bank of America and the FDIC. She said the payment of nearly $ 540.3 million from Bank of America will cover its underpaid judgments from the second quarter of 2013 to the end of 2014’s financial year, plus interest, but ruled that the FDIC waited too long to sue earlier claims. The FDIC, founded in 1933 during the Great Depression, is today one of several banking systems regulators. The agency is best known for managing the country’s deposit insurance program, which secures the deposits of Americans up to $ 250,000 if their bank fails. Bank of America, headquartered in Charlotte, North Carolina, is the second largest bank by assets in the US on Tuesday. The company reported a profit in the first quarter of $ 7.4 billion and $ 27.37 billion to revenue-net interest costs, which achieved the expectation of Wall Street. First published: 15 Apr 2025, 23:02 IST