Superman Building
Steven Senne/AP
By Supriya Kurane

Bank of America and the U.S. Department of Justice have reached an impasse in negotiating a multibillion-dollar settlement deal related to the bank's mortgage investments, The New York Times reported, citing people briefed on the matter.

The talks stalled Monday after the bank's latest offer of more than $12 billion to resolve state and federal investigations into its sale of mortgage investments fell far short of prosecutors' demands, the newspaper said.

On Tuesday, as Bank of America (BAC) sought to continue negotiations, the Justice Department moved to put the finishing touches on a civil complaint against the bank, the report said, citing the people.
The lawsuit, which isn't imminent, is expected to accuse the bank of selling mortgage investments that led to billions of dollars in losses.

Reuters reported in April that Bank of America said in an annual regulatory filing that a U.S. Attorney's office advised the bank it would recommend the Justice Department bring a civil case against its affiliates over mortgage bonds.

The second-largest U.S. bank faces multiple government probes over the underwriting, sale and securitization of residential mortgage bonds before the financial crisis.

Representatives for Bank of America and the Justice Department didn't immediately respond to emails seeking comment outside regular U.S. business hours.


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darbrow717

Offer them a billion under the table, pay them off and then they will reduce the fines.
Then just sweep it under the rug like usual.

June 11 2014 at 11:28 AM Report abuse rate up rate down Reply
Paul

If they will not settle, break them up. Merryll Lynch would be better off with Wells Fargo Investments after they were broken off from Wells Fargo Bank. And between the two banks their
insurance companies are large enough to make it on their own. This is just a dream I have. The banks have way too much power, they are supposed to work for the people, not the other way around.

June 11 2014 at 6:51 AM Report abuse rate up rate down Reply
Paul

If they will not settle, break them up. Merryll Lynch would be better off with Wells Fargo Investments after they were broken off fom Wells Fargo Bank. Ana d be wteen the two banks their
insurance companies are large enough to make it on their own. This is just a dream I have. The banks have way too much power, they are supposed to work for the people, not the other way around.

June 11 2014 at 6:49 AM Report abuse rate up rate down Reply