Bank of America
Nears $16.5 Billion Mortgage-Bond Settlement
Wednesday,
06 Aug 2014 06:44 PM
Bank of America Corp.
is close to a deal with the U.S.
Department of Justice to pay more than $16.5 billion to end investigations
into mortgage securities that the bank and its units sold in the run-up to the
financial crisis, a person familiar with the matter said on Wednesday.
The bank has agreed to pay around
$9 billion in cash and the rest in help to struggling homeowners, said the
person who was not authorized to speak publicly about the matter.
A BofA representative was not
immediately available for comment.
Negotiations continued on
Wednesday, with a meeting between Bank of America general counsel Gary Lynch
and the No. 3 official at the Justice Department, Tony West, the person said.
An announcement of a final deal is not expected this week.
The agreement in principal was
reached after a phone call last Thursday between BofA Chief Executive Brian
Moynihan and Attorney General Eric Holder, the person said.
The bank raised its earlier offer
of $14 billion, to resolve three Justice Department investigations as well as
claims from the Federal Deposit
Insurance Corp and several states.
Citigroup Inc agreed to pay $7
billion over similar charges last month.
Bank of America's shares edged up
to $15.27 after closing at $15.20 on the New
York Stock Exchange.
Bank of America Corp. (Bailout Company)
Covington
& Burling LLP was the lobby firm for the Bank of America Corp. (Bailout Company).
Note: Eric H. Holder Jr.
was a partner at Covington & Burling
LLP, a board member at the American
Constitution Society, an intern at the NAACP
Legal Defense & Educational Fund, and is the attorney general at the U.S. Department of Justice for the Barack Obama administration.
Walter E.
Dellinger III is a board of adviser’s member for the American Constitution Society, a special counsel for the New York Stock Exchange, and was the acting
solicitor general for the U.S.
Department of Justice.
Open
Society Foundations was a funder for the American Constitution Society.
George
Soros is the founder & chairman for the Open Society Foundations, and was the chairman for the Foundation to Promote Open Society.
Foundation
to Promote Open Society was a funder for the NAACP Legal Defense & Educational Fund, and the Roosevelt Institute.
Cantwell
F. Muckenfuss III is a director at the Roosevelt
Institute, was the counsel to the chairman for the Federal Deposit Insurance Corporation, and a senior deputy
comptroller for the Comptroller of the
Currency.
John
C. Dugan was a director at the Federal
Deposit Insurance Corporation, the comptroller for the Comptroller of the Currency, and is a partner at Covington & Burling LLP.
Eugene A. Ludwig
was the comptroller for the Comptroller
of the Currency, and a partner at Covington
& Burling LLP.
Covington
& Burling LLP was the lobby firm for the Bank of America Corp. (Bailout Company).
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