August 24, 2014

BofA-Justice settlement eyed at $16B

Aug. 8, 2014 – The Justice Department and Bank of America may be nearing a deal on a settlement involving more than $16 billion that would conclude an investigation into the bank's sale of toxic mortgage securities, according to the The New York Times.

The report follows a decision by a federal district court judge in Manhattan to order Bank of America to pay $1.3 billion over selling defective loans – a decision the Times called "unexpected" and said may have affected the bank's decision to "suddenly cave in" to the Justice Department's demand that it raise its previous settlement offer.

In April 2013, Bank of America entered into a $165 million settlement with NCUA in response to purchases of residential mortgage-backed securities by failed corporate credit unions.