America

Bank Of America 'Close' To Settlement With Justice Department

Bank of America would pay more than $16 billion in a settlement that it's close to finalizing with the Justice Department. i

Bank of America would pay more than $16 billion in a settlement that it's close to finalizing with the Justice Department. Spencer Platt/Getty Images hide caption

itoggle caption Spencer Platt/Getty Images
Bank of America would pay more than $16 billion in a settlement that it's close to finalizing with the Justice Department.

Bank of America would pay more than $16 billion in a settlement that it's close to finalizing with the Justice Department.

Spencer Platt/Getty Images

Bank of America and the Justice department are "close" to finalizing a settlement of $16 billion to $17 billion over allegations of mortgage-related abuses.

The Wall Street Journal first reported on the outlines of a deal, which was then confirmed to NPR by a source familiar with the talks.

A final announcement may come next week or later, NPR's Jim Zarroli reports for our Newscast Desk.

"Such a settlement would outstrip the penalty paid by JPMorgan Chase last year for similar allegations," Zarroli says. He adds, "Much of the alleged misconduct took place in the years leading up to the financial crisis."

A settlement would end "months of on-again off-again negotiations between the Justice Department and Bank of America, The New York Times reports.

The paper reminds us that the bank "has already paid more than $50 billion to settle lawsuits by private investors and regulators largely related to its Countrywide Financial and Merrill Lynch units."

NPR's source says some details have not been worked out yet and that the deal could still fall apart.

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