On August 20, 2014, the United States Department of Justice, six states and Bank of America reached an agreement to settle claims that Bank of America, Countrywide, Merrill Lynch and First Franklin violated federal and state laws in connection with the packaging, origination, marketing, sale, structuring, arrangement and issuance of residential mortgage-backed securities and collateralized debt obligations.
Under the Settlement Agreement, Bank of America was required to (i) pay $9.16 billion in direct payments to federal agencies and six states; (ii) provide $7 billion in Consumer Relief; and (iii) provide $490 million for the payment of consumer tax liability as a result of such Consumer Relief.
Under the Settlement Agreement, the Monitor was appointed to publicly: (i) report quarterly on Bank of America’s progress towards completion of the Consumer Relief portion of the Settlement Agreement; (ii) report on credits earned by Bank of America; (iii) determine and certify Bank of America’s compliance with the terms of the Settlement Agreement; and (iv) oversee the tax relief payments required by the Settlement Agreement. On March 17, 2017, Professor Green determined and certified Bank of America’s compliance with its consumer relief obligations under the Settlement Agreement. The Monitor’s Final Report was issued on March 17, 2017.