US Department of Justice officials approved a $10 billion loan to midland states Bank of America Corp. on Friday, as the bank tries to win support from Republican lawmakers and the White House.
The decision to approve the loan comes as Bank of Americans and other banks across the country continue to face political and regulatory scrutiny, including from the Justice Department.
Bank of American has been struggling with rising costs and a string of recent customer suicides, as well as the collapse of the mortgage lender in 2016.
The bank also faces pressure to lower its profit, and the U.S. government has taken a closer look at the financials.
“We have had many conversations with the Bank of Americas management team, and we continue to see that our management team is committed to improving the bank’s long-term capital position and delivering the best possible outcomes for the bank,” the bank said in a statement.
Bank of America shares fell more than 4% to $10,092.90 in morning trading after the decision was announced.
The bank is currently in its third year of a $25 billion bailout by the government of Ohio, which helped the bank shore up its troubled lending portfolio.
The U.K.-based bank had said it expected the loan would help it reach a $20 billion debt-service agreement with the government.