Bank of America's agreement to pay a record $16.65 billion to settle a U.S. Justice Department lawsuit claiming the bank sold risky mortgage securities without warning investors paves the way for the lender to emerge from years of legal charges that have depressed earnings, said CEO Brian Moynihan. Observers are waiting to see whether Warren Buffett is correct in predicting that the lender will become a profit machine after it resolves its legal battles.

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