Bank of America Hit With $540 Million Judgment Over FDIC Lawsuit
So, there’s some major news shaking up the banking world—Bank of America has been ordered to pay a whopping $540.3 million following a legal battle with the FDIC. This isn’t just a slap on the wrist; it’s a serious consequence stemming from a long-standing dispute over how the bank calculated what it owed for deposit insurance.
Here’s what went down. Back in 2017, the Federal Deposit Insurance Corporation filed a lawsuit against Bank of America. The claim? The bank allegedly shortchanged the government by underpaying for deposit insurance, to the tune of over $1.1 billion. The core of the case was a 2011 rule that required banks to change how they reported their risk exposure to other parties. According to the FDIC, Bank of America didn’t fully comply, and as a result, ended up paying less into the insurance fund than it should have.
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Now, Bank of America didn’t take this lying down. They denied any wrongdoing and argued that the rule itself wasn’t based on a reasonable standard. But the judge wasn’t buying that. In a ruling made public on April 14, 2025, the court sided with the FDIC, affirming that the agency wasn’t obligated to come up with a perfect formula—just a reasonable one. That said, the judge did limit how far back the FDIC could claim damages. Because the lawsuit was filed too late for earlier periods, the payment covers the time from the second quarter of 2013 through the end of 2014.
Despite the hefty sum, Bank of America seems relatively unbothered. A spokesperson for the bank said they were “pleased the judge has ruled” and that the bank had already set aside reserves in anticipation of this decision. That’s corporate speak for “we saw this coming.”
What makes this case even more interesting is that it comes at a time when the FDIC itself is undergoing transformation. Under new acting chairman Travis Hill, the agency is embracing more modern approaches to regulation. From rethinking how they handle innovation and tech in banking to making it easier for new banks to enter the market, the FDIC is clearly signaling a new direction.
And let’s not overlook this: they’ve also eased restrictions on crypto activity. Under new guidance, FDIC-supervised banks can now dive into crypto-related business without needing prior approval—so long as they manage the risks properly. That’s a big shift from how things were handled before.
So, while Bank of America takes this financial hit, the bigger picture here is about how regulatory agencies like the FDIC are stepping up, redefining the rules of engagement, and holding even the biggest players accountable. It’s a powerful reminder that in the ever-evolving world of finance, compliance isn’t optional—and that the past can catch up, even years later.
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