Bank of America Inc (BofA) incurred $1.2 billion in litigation and regulatory investigative costs through 2022, including fines and settlements, according to a company filing.
The expense is a significant increase from the $164 million and $823 million recorded by the second-largest US lender in 2021 and 2020, respectively, and excludes expenditures for internal and external attorneys.
In 2022, the corporation dealt with a number of significant difficulties, including setting aside $354 million as part of a settlement to pay bond insurer Ambac Financial Group for a substantial litigation stemming from the 2008 housing crisis.
In addition, BofA paid $225 million in fines to US financial regulators for employees’ use of unapproved communications networks, including WhatsApp, in 2016.
A pair of banking authorities also fined the bank $225 million for “botched” unemployment payments during the pandemic, as described by the regulators.
BofA did not disclose the source of the other $400 million in charges last year, despite the fact that these three cases amounted for little over $800 million. A representative of the corporation declined to comment.
A number of other institutions also received substantial penalties through 2022.
In December, the US Consumer Financial Protection Bureau slapped Wells Fargo & Co with the highest civil penalty in the agency’s history as part of a $3.7 billion settlement agreement for widespread manipulation of auto loans, mortgages, and bank accounts.