Bank of America Ordered to Pay $540.3 Million in FDIC Fee Dispute

A federal judge ruled against Bank of America for underpaying deposit insurance fees, as the bank reports strong Q1 financial performance despite challenges.

• U.S. District Judge Loren AliKhan ruled that Bank of America must pay $540.3 million to the FDIC for underpayment of deposit insurance fees from 2013-2014.
• The penalty stems from a 2017 FDIC claim originally seeking $1.12 billion, though earlier claims predating mid-2013 were dismissed as untimely.
• The court rejected Bank of America's arguments against a 2011 risk-reporting rule, affirming the FDIC's authority to enforce post-2008 financial stability measures.
• Bank of America reported Q1 earnings of 90 cents per share, $27.51 billion in revenue, and an 11% profit increase to $7.4 billion, exceeding market expectations.
• Despite a 16.5% year-to-date stock decline and ongoing recession fears, the bank demonstrated resilience with better-than-expected $1.5 billion loan loss provisions to address the penalty.

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