By Daniel Hunter

The Bank of America will pay a record $16.7bn (£10bn) to US authorities after it was accused of misleading investors over the quality of its loans.

The Bank reached a settlement with authorities over loans sold by Countrywide Financial and Merrill Lynch before the Bank of America bought them during the financial crisis in 2008.

JP Morgan Chase and Citigroup have paid for similar allegations and the $16.7bn figure is likely to cut the Bank of America's third quarter profits by around $5.3bn.

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