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Bank penalty $17 billion

Subprime blame is to cost Bank of America

Posted: August 21, 2014 at 4:59 a.m.

This Tuesday, Jan. 14, 2014 file photo shows a Bank of America sign in Philadelphia. Officials familiar with the deal say Bank of America on Wednesday, Aug. 20, 2014 has reached a record $17 billion settlement with federal and state authorities over its role in the sale of mortgage-backed securities in the run-up to the 2008 financial crisis.

Bank of America has reached a record $17 billion settlement to resolve an investigation into its role in the sale of mortgage-backed securities before the 2008 financial crisis, officials directly familiar with the matter said Wednesday.

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