Bank of America to pay $17bn fine over toxic loans

Several US banks have already reached settlements over the sale of dodgy mortgage-backed securities, the asset class which played a crucial part in the financial collapse. Bank of America - which ended up buying floundering businesses Merrill Lynch and Countrywide at the height of the crisis - had reportedly been pushing for a smaller penalty, on the basis the sales were carried out by the two companies above, rather than itself. Indeed the bulk of mortgage-backed securities credited to Bank of America were in fact issued by Countrywide. However, the government has been firm in its de...