Alltran Financial Services is buying Bank of America, making it the largest bank to go public since 2007

Alltrad Financial Services Inc., a Chicago-based financial services company, has acquired Bank of American Corp. and will pay $3.8 billion for the financial services giant, according to people familiar with the deal.

The transaction is subject to customary closing conditions and regulatory approvals, the people said, speaking on condition of anonymity because the details were not public.

Alltras deal is subject, in part, to regulatory approval and the approval of its board of directors, they said.

Bank of America has been reeling since it lost a federal lawsuit over the bank’s mortgage securities that led to a federal investigation into its foreclosure practices.

The bank has said it plans to turn over the reins of its business to Alltrat for its assets, including assets related to the mortgage securities.

Alltran will retain the majority of its assets.

Banks typically sell assets in response to market conditions and to strengthen their balance sheets.

Bankers and investors are expected to have a hard time deciding between Alltrans acquisition and Alltrats proposed merger with CitiGroup Inc. The bank and its lenders, including the U.S. Treasury, have been pushing for a deal that would combine the two.

The deal comes as Bank of the Americas has faced renewed pressure from regulators to make good on its promise to overhaul its foreclosure policies, which have come under fire from borrowers.

BofA and Citi have already said they will share some of the reins with the mortgage servicing arm, but it remains unclear whether Alltratis share of the business will be the same as Citi’s.

A Citi spokesman declined to comment.

Alltras shares rose 3 percent to $37.75 at 3:07 p.m. in New York.