- Associated Press - Thursday, August 21, 2014

NEWARK, N.J. (AP) - New Jersey’s U.S. attorney was in Washington as the Justice Department announced a $16.65 billion settlement with Bank of America over its role in the sale of mortgage-backed securities in the run-up to the financial crisis.

The deal announced Thursday calls for the second-largest bank in the U.S. to pay a $5 billion cash penalty and provide billions of dollars of relief to struggling homeowners. Bank of America says its cash payouts will total $9.65 billion.

The settlement is by far the largest deal the Justice Department has reached with a bank over the 2008 mortgage meltdown.

New Jersey’s U.S. Attorney’s Office helped investigate the claims.

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