**Bank of America Ordered to Pay $540 Million in FDIC Case**
A federal judge has mandated that Bank of America pay over $540 million to settle a prolonged legal dispute with a U.S. regulatory agency, which accused the bank of underpaying required assessments for deposit insurance. This ruling, issued on March 31 and made public on Monday, comes more than eight years after the Federal Deposit Insurance Corporation (FDIC) initiated legal action against the bank in 2017.
In a statement to the Associated Press, Bank of America expressed satisfaction with the judge’s decision, noting that it has set aside reserves in anticipation of this outcome. The FDIC, however, declined to comment when approached for a response.
The legal battle began when the FDIC alleged that Bank of America had failed to pay over $500 million in assessments, a figure that was later increased to $1.12 billion. The agency claimed that the bank did not comply with a regulatory rule established in 2011 and “unjustly enriched itself” at the FDIC’s expense. In response, Bank of America filed a motion to partially dismiss the case, firmly denying any intent to evade payment and arguing that some of the assessment periods cited by the FDIC were beyond the statute of limitations.
After years of litigation, U.S. District Judge Loren L. AliKhan in Washington, D.C., issued a ruling that partially granted and denied motions from both parties. The judge determined that the nearly $540.3 million payment from Bank of America would address its underpaid assessments from the second quarter of 2013 through the end of the 2014 fiscal year, including interest. However, she ruled that the FDIC had waited too long to pursue claims related to earlier periods.
Established in 1933 during the Great Depression, the FDIC is one of several regulators overseeing the banking system today. It is primarily known for managing the nation’s deposit insurance program, which protects American deposits up to $250,000 in the event of a bank failure.
Headquartered in Charlotte, North Carolina, Bank of America is the second-largest bank in the U.S. by assets. On Tuesday, the bank reported a first-quarter profit of $7.4 billion, with revenue net of interest expense reaching $27.37 billion, exceeding Wall Street expectations.
**FAQ**
**What was the outcome of the FDIC lawsuit against Bank of America?**
Bank of America has been ordered to pay over $540 million to settle claims of underpayment for deposit insurance assessments, covering specific periods from 2013 to 2014.