Bank of America Corp (BAC) Far Apart on Settlement with the Department of Justice

News reports indicate that Bank of America Corp (NYSE:BAC) is far apart from coming to a settlement-agreement with the Department of Justice (DOJ) on its illegal dealings of mortgage securities during the economic crisis. The bank has been the most hit in terms of settlements due to dealings of its Merrill Lynch Branch.

Bank of America Corp (NYSE:BAC)

The bank has already settled nearly 16 cases totaling $56 billion in value. Bank of America Corp (NYSE:BAC) has now been dealt a major blow in its attempt to settle with the DOJ. Fox Business reporter, Liz McDonald, reported that talks have stalled as there are contentious points especially on the total settlement package as well as other terms.

“A legal cloud hangs over it because the DOJ and BOFA talks have yet again broken down even though they resumed on Tuesday there are still sticking points that are stopping the settlement of mortgage-backed securities,” said McDonald.

Bank of America Corp (NYSE:BAC) has upped its settlement package to $13 billion up from $12 billion and is consequently demanding for consumer relief as part of the deal. The department of Justice is, on the other hand, pushing for more cash with sources quoting a figure of around $17 billion. It is also not clear whether Bank of America will include its $9 billion settlement with the FHSA in its final settlement with the Department of Justice. JPMorgan Chase & Co. (NYSE:JPM) got to include its $4 billion penalty with the FHFA on its final settlement of $13 billion with the department of justice.

“What we are also waiting to hear is whether or not Bank of America Corp (NYSE:BAC) will get to include in whatever the final settlement is, that earlier $9 billion settlement with the FHFA (Federal housing finance administration),” said McDonald.

Disclosure: none

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!