By Vicki Needham - 08/20/14 05:47 PM EDT
Bank of America is expected to pay a record-setting settlement of roughly $17 billion with the Justice Department over shoddy mortgage practices.
The announcement of an agreement over the bank’s packaging and sale of mortgage-backed securities leading up to the 2008 financial crisis could come as early as Thursday, according to news reports.
The bank is expected to pay about $10 billion in cash to the Justice Department and various other government groups, and $7 billion to consumers for mortgage relief and other help.
An agreement would set a record for penalties and damages in a civil settlement between the government and a business.
Bank of America also would have to concede that it misrepresented the quality of its mortgage securities.
The agreement comes after JPMorgan Chase paid $13 billion in November over similar issues. Last month, Citigroup agreed to a $7 billion deal over its sale of bad mortgage-backed securities running up to the financial crisis.