The Bank of America Corporation has been ordered to pay a $16.65 billion settlement to the Department of Justice for its role in selling toxic mortgage bonds to Americans before the 2008 financial crisis. The settlement will also require the U.S. bank to reduce loan balances and create new loan agreements for low-income buyers. Although $7 billion is said to be allocated specifically for consumer relief, the watchdog group U.S. Public Interest Research Group claims that the settlement will actually cost taxpayers at least $4 billion in lost tax revenue. The group also reports that only $5.02 billion will be considered a civil penalty while the remaining $11.63 billion can be taken as a business expense. This would allow Bank of America to receive a $4.07 billion tax deduction from the settlement.
http://abcnews.go.com/Business/wireStory/bank-america-settlement-benefit-25073940
http://www.ibtimes.com/bank-america-settlement-cost-taxpayers-4b-lost-tax-revenue-taxpayer-watchdog-says-1667634