Bank of America has agreed to pay $17 billion to settle federal investigators' allegations that it sold shoddy mortgage-backed securities ahead of the financial crisis, according to a media report.

Bank of America will pay $10 billion in cash and $7 billion in consumer relief as part of the settlement agreement, the Associated Press reported, citing unidentified sources. The settlement agreement between B of A and the Justice Department is expected to be announced as early as Thursday.

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