Skip to main content
Tags: Bank | America | Mortgage | Settlement

Bank of America Nears $16.5 Billion Mortgage-Bond Settlement

Wednesday, 06 August 2014 05:32 PM EDT

Bank of America Corp. is close to a deal with the U.S. Department of Justice to pay more than $16.5 billion to end investigations into mortgage securities that the bank and its units sold in the run-up to the financial crisis, a person familiar with the matter said on Wednesday.

The bank has agreed to pay around $9 billion in cash and the rest in help to struggling homeowners, said the person who was not authorized to speak publicly about the matter.

A BofA representative was not immediately available for comment.

Negotiations continued on Wednesday, with a meeting between Bank of America general counsel Gary Lynch and the No. 3 official at the Justice Department, Tony West, the person said. An announcement of a final deal is not expected this week.

The agreement in principal was reached after a phone call last Thursday between BofA Chief Executive Brian Moynihan and Attorney General Eric Holder, the person said.

The bank raised its earlier offer of $14 billion, to resolve three Justice Department investigations as well as claims from the Federal Deposit Insurance Corp and several states.

Citigroup Inc agreed to pay $7 billion over similar charges last month.

Bank of America's shares edged up to $15.27 after closing at $15.20 on the New York Stock Exchange.

© 2024 Thomson/Reuters. All rights reserved.


Finance
Bank of America Corp. is close to a deal with the U.S. Department of Justice to pay more than $16.5 billion to end investigations into mortgage securities that the bank and its units sold in the run-up to the financial crisis, a person familiar with the matter told Reuters Wednesday.
Bank, America, Mortgage, Settlement
215
2014-32-06
Wednesday, 06 August 2014 05:32 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
Get the NewsmaxTV App for iOS Get the NewsmaxTV App for Android Scan QR code to get the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved