Bank of America appears to be ready to end its lengthy fight over its role in the mortgage meltdown with a tentative $16 billion to $17 billion deal.
The financial institution had dug in its heels on paying a big fine, but had a change of heart this week.
The New York Times reports the deal would involve $9 billion in cash and the remainder in “soft money” to aid consumers affected by the mortgage problems.
The federal government alleged that the company’s Countrywide mortgage unit had sold mortgage securities on bad loans that helped propel the nation into a financial crisis.
A ruling in another case in New York left Bank of America with little leverage in seeking a less expensive settlement, the website reported.
Bank of America has been under pressure from investors to come up with a deal as the overall economy improves.
Bank of America has credit card and banking operations in Delaware. According to estimates, it has around 7,000 employees in the state.
Click on the link below for the story from NYTimes.com
Bank of America Offers U.S. Biggest Settlement in History – NYTimes.com.
