Bank of America has reached a record $17 billion settlement with the government over sales of shoddy mortgage-backed securities during the run-up to the financial meltdown. The settlement is the largest with a single corporation in U.S. history.

Citing officials familiar with the negotiations, the Associated Press reported today that the lender would pay the government $10 billion in cash and provide $7 billion in consumer relief.

“Strong job growth helped boost consumers’ assessment of current conditions, while brighter short-term outlooks for the economy and jobs, and to a lesser extent personal income, drove the gain in expectations,” said Lynn Franco, director of economic indicators at board.

The improvement in consumer confidence “suggests the recent strengthening in growth is likely to continue into the second half of this year,” Franco said. Indeed, most economists predict the U.S. will expand by more than 3% in both the third and fourth quarters.