Popular bank could pay more than $12 billion to settle probes
A U.S. law enforcement official says Bank of America’s negotiating a deal with the Justice Department and a number of states.
The negotiations could lead to a roughly 12 billion dollar settlement related to the bank’s mortgage banking practices.
At issue are allegations that Bank of America defrauded buyers of mortgage-backed securities by misleading them about the quality of the loans involved.
The securities in question consisted of home loans that financial institutions bundled according to their risk.
The products played a key role in the 2008 financial crisis.
Loans that were rated as safe began to fail in huge numbers as the housing market collapsed.
Bank of America declined to comment on the potential settlement.
The U.S. Official said a deal is still weeks away.