Bank of America Corp. is in talks to pay at least US$12 billion to settle probes by the US Justice Department and a number of states into the lender’s mortgage practices, the Wall Street Journal reported Thursday, citing people familiar with the matter.
At least US$5 billion of that amount is expected to go towards consumer relief, consisting of help for homeowners in reducing principal amounts and reducing monthly payments, and aiding struggling neighborhoods, the report said.
The bank’s total tab to end government probes and lawsuits related to its pre-crisis conduct is increasingly likely to surpass the record US$13 billion that JP Morgan Chase paid last year to settle similar allegations, according to the report.
BofA has already struck a US$6 billion settlement with the Federal Housing Finance Agency, the Journal noted.
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