Bank of America pays $8.5bn over housing crash claims

  The payouts are to large investors who bought bonds backed by bad-quality mortgage loans 

Bank of America says an $8.5bn (£5.3bn) payout over housing crash claims will leave it with quarterly losses of up to $9.1bn.

The money, from the bank's Countrywide arm, is to settle claims that it sold poor quality mortgage-backed bonds that lost money when the market crashed.
The mortgages were granted without proper checks on, for example, borrowers' creditworthiness.
The payout is the third of its type this year.
The bank says it will also set aside another $5.5bn in provisions.
Bank of America's chief executive, Brian Moynihan, said: "We will continue to act aggressively and in the best interest of our shareholders to clean up the mortgage issues largely stemming from our purchase of Countrywide."
In pre-US market trading, though, the shares rose 6% on relief that the issue had been resolved.
Earlier this year, the bank agreed to pay US mortgage giants Fannie Mae and Freddie Mac about $2.6bn (£1.7bn) to settle claims it sold them bad home loans.
Those claims also related to loans sold by Countrywide Financial Corporation, which Bank of America bought in 2008.
Bank of America agreed a further payout in April for an estimated $1.6bn to resolve claims with the bond insurer Assured Guaranty.
The payout is subject to court approval.