BOA wants to meet with Holder

by Ryan Smith23 Jun 2014
In talks over a possible multibillion dollar lawsuit, it looks like Bank of America has decided it wants to deal with the top dog.

Bank representatives have asked Attorney General Eric Holder to meet with CEO Brian Moynihan, to discuss settling the suit, according to a Reuters report. The government is seeking the settlement over shoddy mortgage-backed securities sold by the bank.

Negotiators for the bank and the Justice Department have had no luck so far in reaching an agreement. Bank of America has put forward a $12 billion figure to settle the suit, but Justice Department negotiators didn’t consider the offer a serious one, Reuters reported. The DOJ, meanwhile, has suggested a figure of $17 billion.

A sticking point in negotiations has been the amount of fines versus the amount of consumer relief, according to Reuters. The bank wants more consumer relief included in the final figure.

Also at issue is whether Bank of America’s recent payment to the Federal Housing Finance Agency should be included as part of the final settlement. In March, the bank paid the FHFA $6.3 billion to settle probes over shoddy mortgage bonds.


Should CFPB have more supervision over credit agencies?