Bank of America Nears $16.5 Billion Mortgage-Bond Settlement

Bank of America Nears $16.5 Billion Mortgage-Bond Settlement

Wednesday, 06 Aug 2014 06:44 PM                                     

http://www.newsmax.com/Newsfront/Bank-America-Mortgage-Settlement/2014/08/06/id/587306

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).