BofA could pay at least $12b to settle US probes

Tags: Banking
Bank of America Corp could pay more than $12 billion to settle probes by the US Justice Department and a number of states into the bank's alleged handling of shoddy mortgages, the Wall Street Journal said on Thursday, citing people familiar with the negotiations.

At least $5 billion of that amount is expected to go toward consumer relief consisting of help for homeowners in reducing principal amounts and monthly payments, and paying for blightremoval in struggling neighborhoods, the paper said, citing people with knowledge about the issue.

A BofA spokesman declined to comment on the issue. The Department of Justice also declined to comment on the matter.

The second-largest US bank faces multiple government probes over the underwriting, sale and securitization of residential mortgage bonds before the financial crisis.

EDITORIAL OF THE DAY

  • J Jayalalithaa’s death invites questions on the future course of Tamil Nadu politics

    The death of Tamil Nadu chief minister J Jayalalilthaa, an all-powerful regional leader who has left behind no successor who can even remotely match h

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

<b>Cut & Thrust:</b> At the cost of human life

Can we put a cost to human life? The incident ...

Urs Schoettli

japan’s trump card

Like most, the Japanese, too, were surprised by the election ...

Rajgopal Nidamboor

Soul consciousness and reason

The soul, in the philosophical writings of ancient Greece, has ...