Bank of America Nears $16.5 Billion Mortgage-Bond Settlement

Wednesday, 06 Aug 2014 06:44 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
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.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Dow Surges 421 Points to Extend Fed-Fueled Rally

Thursday, 18 Dec 2014 16:28 PM

U.S. stocks rose, sending the Dow Jones Industrial Average up 421.28 points, as global equities rallied on the Federal R . . .

Pimco: Global Growth to Flourish Next Year on Cheap Oil

Thursday, 18 Dec 2014 12:59 PM

Pacific Investment Management Co expects global growth to accelerate in 2015 to around 2.75 percent from around plus 2.5 . . .

Buffett-backed Chinese CarMaker BYD Loses $1 Billion

Thursday, 18 Dec 2014 12:45 PM

Shares in Warren Buffett-backed BYD Co. Ltd. posted their biggest-ever single-day drop in Hong Kong on Thursday, wiping  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved