Bank Of America Reaches Deal Over Mortgage Suit

Bank of America will pay $8.5 billion to investors who lost money on risky mortgage securities. This would be the biggest bank settlement so far, relating to the housing market collapse.

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RENEE MONTAGNE, host:

NPR's business news starts with a big payout from Bank of America.

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MONTAGNE: B of A is expected to announce it's paying $8.5 billion to investors who lost money on risky mortgage securities. This is the biggest bank settlement so far, relating to the housing market collapse. It also marks a turnaround for Bank of America's CEO Brian Moynihan. Last year he vowed to fight off investors who wanted money back from securities they claim were badly managed or deceptively marketed. The investors involved in the settlement include the big money manager BlackRock, the insurance company MetLife, and the Federal Reserve Bank of New York.

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