State gets $800M in Bank of America settlement

NEW YORK (AP) — New York state will get $800 million as its share of a national $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.

Attorney General Eric Schneiderman announced the settlement Thursday. He said the bank has agreed to pay the state $300 million in cash and $500 million in the form of direct relief to consumers.

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

The settlement is the largest deal the government has reached with a bank over the 2008 mortgage meltdown.