Free Market Evaluation - Send us your resume and we will give you free feedback
Allied Irish Bank Sues Citibank for Fraud
Allied Irish Bank Sues Citibank for Fraud
Record-Setting Settlement for Gulf of Mexico Oil Spill
Record-Setting Settlement for Gulf of Mexico Oil Spill
Beck’s Beer Loses False Advertising Suit, Beer Actually Brewed in the U.S.
Beck’s Beer Loses False Advertising Suit, Beer Actually Brewed in th...
General Electric to Sell Most of Its Fleet-Financing Business
General Electric to Sell Most of Its Fleet-Financing Business
Legal Job Listings
Download PDF

Bank of America Reaches Tentative Settlement with Justice Department View Count: 704

bank of america logo

Bank of America is closing in on a settlement that would total $16 or $17 billion and would resolve the investigation into its role of selling mortgage-backed securities prior to the 2008 financial crisis, according to The Associated Press.

The settlement still needs to be finalized and it would be the largest settlement with the Justice Department involving the recession so far.

A person close to the situation spoke on the condition of anonymity due to the deal not being announced yet. That person said that both sides reached the agreement in principle after a conversation between Attorney General Eric Holder and CEO Brian Moynihan last week.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The deal will see Bank of America pay $9 billion in cash and the rest of the money will go to consumer relief.

Earlier in this case, Bank of America had argued that it should not be held liable for the subprime mortgage problems experienced by Merrill Lynch and Countrywide. These are two firms the bank acquired back in 2008. All told, the three firms issued $965 billion in mortgage-backed securities between 2004 and 2008. Close to 75 percent of it came from Countrywide.

In a separate case last week, a federal judge from Manhattan shot down the claim that the bank should not be penalized for pre-merger actions by Countrywide. The judge also issued fines totaling $1.3 billion.

Bank of America Corporation is now hiring at multiple locations, visit Granted.com to apply.

Bank of America Reaches Tentative Settlement with Justice Department by

Tagged: , ,

Posted by on August 8, 2014. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Accountant for Law Firm
USA-FL-Pensacola
Cutting-edge law firm seeks experienced Staff Accountant to join their team! This position offers job security, flexibility, work-life balance, and competitive salary. Candidates should have 7 to 1...


Apply now

Related Posts: