Bank of America has agreed to settle a law suit regarding the acquisition it made of Merrill Lynch in 2008.
The bank will pay a total of £2.43 billion to get rid of uncertainties over the issue, which centre on the allegation that Bank of America made misleading statements relating to the financial health of itself and Merrill Lynch.
Controversy emerged as the deal was made on the same weekend that Lehman Brothers collapsed in 2008, triggering the financial crisis, while Bank of America later revealed a $27.6 billion loss would be recorded by Merrill Lynch in the same year.
In a statement, Bank of America noted: "As we work to put these long-standing issues behind us, our primary focus is on the future and serving our customers and clients."
The financier continued to deny the allegations and said the settlement was agreed upon because it wished to relieve the burden and cost associated with the lawsuit.
By Asim Shah