Bank of America is paying the fee to exit an arrangement in which the government had promised to cover $118 billion in risky assets
Bank of America has received a total of $45 billion from the Treasury's $700 billion financial bailout pot, which is financed by taxpayers.
The company says it wants to repay $20 billion of that money, which would remove the company from a list of firms that have received "exceptional" assistance from the government.
Such companies are subject to greater government scrutiny, including having to provide plans outlining compensation packages for their highest-paid employees. The Obama administration's pay czar, Kenneth Feinberg, has the power to veto them.
Click on the following for more details from NPR: Bank Of America To Pay U.S. $425M To Exit Agreement : NPR