Bank of America is officially on the hook for over $540 million after losing a major lawsuit battle with the Federal Deposit Insurance Corp. (FDIC).
The ruling, made public on April 14, 2025, ends an eight-year standoff that started when the FDIC sued the bank for underpaying its deposit insurance dues.
The original lawsuit, filed in 2017, alleged that Bank of America used reporting tricks to lower its deposit insurance payments after a 2011 rule change. The FDIC claimed the bank shortchanged the system by not properly disclosing its exposure to risk from counterparties. In total, the FDIC wanted $1.12 billion.
BofA, of course, denied trying to dodge payments. But the judge wasn’t having it, at least not entirely. While the court ruled that the FDIC waited too long to sue for payments before Q2 2013, it still found that the bank owed money from Q2 2013 through the end of 2014. That totals $540.3 million in unpaid assessments.
Bank of America’s response was cool and calculated. A spokesperson said, “We are pleased the judge has ruled and have reserves reflecting the decision.” Translation: they’ve already set cash aside for this.
The lawsuit was one of the last major cases tied to post-2008 reforms, but it also hits at a time when the FDIC itself is undergoing major changes. Under acting chairman Travis Hill, the agency is revamping its rules and taking a more modern approach to fintech and innovation. It’s also easing up on crypto-related activity and trying to lower compliance burdens for smaller banks.
So yeah, this case is more than just money. It’s a signal that regulators are still watching the big guys closely, even as the industry shifts toward digital banking and tokenized assets.
Bottom line? The “bank of america fdic lawsuit” just cost the bank half a billion dollars, and while that won’t bankrupt them, it’s a loud reminder: the watchdogs still have teeth.
