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Bank of America Could Soon Be on the Hook for Another $13 Billion

Just when it seemed like Bank of America (NYSE: BAC  ) had finally cleaned up its legal liabilities, four more seemingly sprung out of nowhere. Add up the potential costs to the Charlotte, N.C.-based bank, and you get somewhere in the neighborhood of $13 billion.

The lion's share of the claims relates, like most of the bank's legal woes, back to the financial crisis. In one, the government is seeking "billions of dollars above" a $2.4 billion charge that Bank of America took for legal reserves in the latest quarter. In another, Ambac Financial Group  (NASDAQ: AMBC  ) wants a $2.5 billion pound of flesh. And in a third, American International Group  (NYSE: AIG  ) is trying to squeeze $5 billion out of the bank as penance for Countrywide's former misdeeds.

As we've come to find out, moreover, the nature of the claims against Bank of America extends far beyond malfeasance in the mortgage market. Namely, recent reports suggest that it's concluding negotiations with the Consumer Financial Protection Bureau over allegations that it coerced customers into paying for credit card services that were either worthless or entirely unwanted.

The net result, as Motley Fool contributor John Maxfield discusses in the video below, is that Bank of America still has considerable ground to cover before it has fully and finally atoned for its past indiscretions -- click here for a comprehensive list of the bank's settlements since 2008.

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  • Report this Comment On April 27, 2014, at 12:27 AM, Oregonboy wrote:

    Wait, the fool said that the last 9.5 billion lawsuit was the last BIG one. Now the DoJ wants another 13B. Why? I really hope BoA says...NO MORE. Payments have ALREADY been made to the Government. Come on BoA ..fight back with these crooks in Govenrment. Enough is enough. People defaulted on their OWN mortgage. Now BoA has to pay? WTF!!!

  • Report this Comment On April 27, 2014, at 12:29 AM, Oregonboy wrote:

    BTW Fool..can you PLEASE list the ongoing lawsuits for the investors? Also what about the statue of limitations? I thought that was already done here.

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John Maxfield

John is The Motley Fool's senior banking specialist. If you're interested in banking and/or finance, you should follow him on Twitter.

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