BOA offers $13bn to settle mortgage probe

by Ryan Smith16 Jul 2014
Bank of America has offered to pay $13 billion to settle an investigation into its sales of mortgage-backed securities.

Citing people familiar with the matter, the Wall Street Journal reported that the bank met with the Justice Department Tuesday. The meeting didn’t yield any progress toward a final deal, however.

Bank of America had previously offered $12 billion to settle the probe. The DOJ countered with a $17 billion settlement, according to Reuters.

Talks between the bank and the government have been acrimonious. Bank of America CEO Brian Moynihan requested to meet with Attorney General Eric Holder last month to hash out a deal, but Holder refused, saying the parties were too far apart for the talks to be productive.

At $13 billion, the bank’s offer would equal the payout agreed to last year by JPMorgan. That settlement was the largest with a single entity in US history.


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