WASHINGTON (8/11/14)--When Bank of America hands over a reported $17 billion to the U.S. Justice Department, the forfeiture will bring the total paid by big banks in the aftermath of the housing crash they're largely held responsible for causing up to about $128 billion,
The Huffington Post
That number, however, pales in comparison to the $503 billion the Federal Deposit Insurance Corp. says many of those same banks have earned in profits over the last five years.
Further, while Bank of America's bottom line will suffer a blow--the settlement amount is more than double the bank's profits over the last 12 months--federal regulators agreed last week to allow the big bank to raise its dividend, which certainly will soften the pain.
Bank of America's shares rose 2.4% after the announcement of the quarterly dividend increase.
"Clearly $17 billion is not going to break the bank,"
said of settlement amount, a record in the history of corporate America.
Nor has the nearly $62 billion Bank of America has forked over in total since 2008 to resolve investigations and accusations of selling toxic mortgage securities and defrauding consumers leading up to the recession.