BOA, Justice Dept. said to be approaching $17bn settlement

by Ryan Smith06 Aug 2014
Bank of America and the Justice Department are reportedly nearing a settlement deal for almost $17 billion.

Citing unnamed sources, CNBC reported that Bank of America and the government are nearing an agreement to settle a probe into the bank’s sale of mortgage-backed securities. The deal would include $9 billion in cash penalties, according to CNBC. Also included would be so-called “soft-dollar” penalties that would most likely take the form of homeowner relief.

Negotiations between the bank and the government have been fraught, with the bank initially pushing for a penalty around $13 billion and the government refusing to budge on its $17 billion figure.
 

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