Daily News: August 7, 2014

BofA Nearing $17B Mortgage Settlement

Bloomberg reported Bank of America is nearing a $16 billion to $17 billion record settlement with the U.S. Justice Department to end probes into sales of mortgage-backed bonds that fueled the financial crisis, according to a person familiar with the matter.

According to Bloomberg, the bank would pay about $9 billion in cash and the rest in consumer relief to settle federal and state claims. Details of the proposed accord, such as the relief and a statement of facts, are still being negotiated, Bloomberg reported.

Bloomberg noted the outlines of the deal were reached last week after a phone call between Attorney General Eric Holder and Bank of America CEO Brian T. Moynihan. During the July 30 call, Holder said that the government was ready to file a lawsuit in New Jersey if the bank didn’t offer an amount closer to the department’s demand of about $17 billion, Bloomberg reported.

To view the full Bloomberg report, click here.