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Wed August 6, 2014
Bank Of America 'Close' To Settlement With Justice Department
Bank of America and the Justice department are "close" to finalizing a settlement of $16 billion to $17 billion over allegations of mortgage-related abuses.
The Wall Street Journal first reported on the outlines of a deal, which was then confirmed to NPR by a source familiar with the talks.
A final announcement may come next week or later, NPR's Jim Zarroli reports for our Newscast Desk.
"Such a settlement would outstrip the penalty paid by JPMorgan Chase last year for similar allegations," Zarroli says. He adds, "Much of the alleged misconduct took place in the years leading up to the financial crisis."
A settlement would end "months of on-again off-again negotiations between the Justice Department and Bank of America, The New York Times reports.
The paper reminds us that the bank "has already paid more than $50 billion to settle lawsuits by private investors and regulators largely related to its Countrywide Financial and Merrill Lynch units."
NPR's source says some details have not been worked out yet and that the deal could still fall apart.