Holder refuses to meet BOA chief over shoddy mortgage deals

by Adam Smith10 Jul 2014
Attorney General Eric Holder has refused to meet with Bank of America's CEO as mortgage talks have hit a standstill.

Reuters has reported Holder formally refused to meet with Bank of America chief executive Brian Moynihan to discuss a multi-billion dollar deal to resolve shoddy MBS deals. Holder told Moynihan in a letter sent late last month that the parties remained too far apart for a meeting to be productive, Reuters said.

Bank of America had suggested paying around $12 billion to settle probes into potential misconduct in packaging mortgages in the run-up to the economic meltdown, while the Justice Department was allegedly seeking a $17 billion payout.

At issue is $6.3 billion the bank agreed in March to pay the FHFA over misrepresentations of mortgage backed securities sold to Fannie Mae and Freddie Mac. The amount would close the gap between what the Justice Department is seeking and what the bank has suggested paying, but the government has declined to credit the amount to the bank, Reuters said.

 

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