Bank of America Ordered to Pay $540.3M in FDIC Insurance Dispute

Bank of America must pay $540.3 million to resolve the FDIC’s deposition insurance claim lawsuit because the bank did not pay enough required fees. Bank of America must pay judgments and interest on insurance assessments the judge approved from 2013’s second quarter through 2014’s end. The legal dispute started in 2017 when FDIC sued Bank of America, but the court released its decision on Monday 2019 after redaction.

Headlines everywhere announced that Bank of America must pay $540 million following the FDIC lawsuit because it represents one of the biggest official banking punishments against U.S. financial giants this year. The lawsuit emerged from a 2011 banking regulation established after the financial crisis to make the banking system stronger. Bank of America needed to disclose all its customer risk exposure correctly to meet minimum insurance regulations.

In her 59-page decision, Judge AliKhan rejected Bank of America’s arguments that:

  • The rule lacked reasonable basis
  • The FDIC acted arbitrarily and capriciously in its enforcement
  • The bank had insufficient notice of requirements
Aamna kn

Aamna is keen to write important news about politics, entertainment, business, etc., and to bring it to the public's attention.

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