A federal judge has ordered Bank of America to pay $540.3 million to the Federal Deposit Insurance Corporation (FDIC) in a case tied to unpaid deposit insurance fees.
The ruling, made public on Monday, covers fees the bank owed between mid-2013 and the end of 2014, plus interest. The lawsuit is part of a long-running dispute between the FDIC and Bank of America, the second-largest bank in the U.S.
The FDIC sued the bank in 2017, saying it had underpaid insurance fees by not following a 2011 rule. That rule changed how banks report their financial risk and was created after the 2008 financial crisis to help keep the banking system safe.
Judge Loren AliKhan, who issued the decision in Washington, D.C., rejected Bank of America’s arguments that the FDIC’s rule was unclear or unfair. She said the FDIC didn’t need to have a perfect method for estimating risk and that Bank of America had enough notice to follow the rule.
However, the judge also ruled that the FDIC waited too long to seek payment for fees before the second quarter of 2013.
Bank of America has denied trying to avoid payments. A spokesperson for the bank, Bill Halldin, said, “We are pleased the judge has ruled and have reserves reflecting the decision.”
The FDIC declined to comment on the ruling. The decision was made on March 31 but was released this week with some sections blacked out.
Bank of America is expected to release its earnings for the first quarter on Tuesday.
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