The second-largest US bank by total assets says it’s preparing for significant losses due to ongoing regulatory issues.
In a new filing with the U.S. Securities and Exchange Commission (SEC), Bank of America says it faces a “reasonably possible and estimable” loss of up to $800 million due to investigations from the Consumer Financial Protection Bureau (CFPB) and other federal regulators.
The Corporation has been responding to an inquiry from the Consumer Financial Protection Bureau (CFPB) regarding the Corporation’s processing of electronic payments of funds through the Zelle network.
The CFPB staff has initiated discussions with the Corporation to pursue a resolution of the inquiry or file an enforcement action. The Corporation is evaluating next steps, including litigation.”
Bank of America also says it’s engaging with several unnamed federal regulators over its anti-money laundering and sanctions compliance programs and a resolution of the discussions could result in “one or more public orders by the regulators.”
Investigators are reportedly probing BofA, along with JPMorgan Chase and Wells Fargo to determine whether the banks are properly reimbursing victims of fraud on the Zelle payments network and whether the banks are effectively eliminating scammer’s accounts.
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