NEW YORK (TheStreet) -- Bank of America Corp (BAC) has reportedly reached an agreement to pay a record $17 billion to settle an investigation by the Justice Department over mortgage backed securities the company sold before the 2008 financial crisis, the Associated Press reports.
The announcement isn't scheduled until Thursday, but sources told AP that Bank of America will pay $10 billion in cash and $7 billion in customer relief.
As part of the deal, Bank of America must admit it misrepresented the quality of the mortgage backed securities it issued along with Merrill Lynch and Countrywide Financial.
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The $17 billion deal is the largest settlement to come out of the economic crisis, during which time millions of homes were foreclosed on, AP noted.
Shares of Bank of America are up 0.58% to $15.54 in mid-afternoon trading on Wednesday.
Separately, TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."