Bank of America has been ordered by a federal judge to pay $540.3 million in a case brought by the Federal Deposit Insurance Corporation (FDIC).
Driving the news: The lawsuit, filed in 2017, alleged that Bank of America underpaid its deposit insurance contributions by failing to follow a 2011 rule related to reporting risk exposure to counterparties.
The big picture: U.S. District Judge Loren AliKhan in Washington, D.C., announced the ruling, covering assessments from the second quarter of 2013 through the end of 2014, along with accrued interest.
- AliKhan dismissed Bank of America’s arguments challenging the basis for the rule and the FDIC’s actions, stating that the FDIC was not required to have a perfect measure for predicting banks’ potential losses.
- The ruling was issued by AliKhan on March 31 and presented in a partially redacted form to the public.
- Apart from ordering the payment, the judge also noted that the FDIC took too long to file claims preceding the second quarter of 2013.
