NEW YORK (TheStreet) -- Bank of America Corp. (BAC) announced on Thursday that it reached a comprehensive settlement with the Justice Department and state attorneys general to resolve an investigation into the quality of the mortgage backed securities its sold prior to the 2008 financial crisis.
Shares of Bank of America are up 1.68% to $15.78 at the start of trading on Thursday.
Bank of America came to terms with the DOJ "certain federal agencies and six states" to settle the litigations and investigations, agreeing to pay $9.65 billion in cash and provide $7 billion in consumer relief.
The investigations relate primarily to the mortgage backed securities sold by Merrill Lynch and Countrywide Financial, prior to Bank of America's acquisition of the firms, the company said.
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This $16.5 billion payout is the largest settlement in a series of cases against banks resulting from investigations into a variety of misconducts, including violating U.S. sanctions and dishonesty regarding the quality of mortgage securities, Reuters reports.
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."