Bank of America’s mortgage settlement in deadlock

first_imgBank of America Corp and the U.S. Department of Justice (DOJ) have reached an impasse in negotiating a multibillion-dollar settlement related to the bank’s mortgage investments, the New York Times reported citing people briefed on the matter.The talks stalled on 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 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 is not 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. continue reading » 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more