On April 14, 2025, PYMNTS reported that Bank of America is set to pay $540.3 million following a judge’s ruling in a lawsuit where the FDIC accused the bank of underpayment for deposit insurance.
In 2017, the FDIC sued Bank of America for $1.12 billion alleging that the bank did not follow a 2011 rule about how banks should report their risk exposure to other financial institutions. Bank of America has denied attempts to evade payments. The judge found that the FDIC's requirement for banks to assess potential losses did not need to be a perfect measure; however, the lawsuit was determined to be filed too late for claims prior to the second quarter of 2013. Consequently, the bank was ordered to pay assessments covering the period from the second quarter of 2013 through the end of 2014.
This decision came at a time when the FDIC, like other regulatory agencies, is is undergoing significant changes. In a statement made following his appointment in January, FDIC’s new acting chairman, Travis Hill, said that he would “conduct a wholesale review of regulations, guidance and manuals” and “adopt a more open-minded approach to innovation and technology adoption, including (1) a more transparent approach to FinTech partnerships and to digital assets and tokenization, and (2) engagement to address growing technology costs for community banks.”
Read the PYMNTS full article here.