Bank of America’s mortgage settlement deadlocked over fine

Fortune

Talks between Bank of America [fortune-stock symbol=”BAC”] and the Justice Department over a potential multibillion-dollar settlement deal have reportedly stalled, with the impasse centered on how much the bank should pay to settle mortgage-related litigation.

A potential settlement deal stalled on Monday after Bank of America’s latest offer of more than $12 billion to resolve state and federal litigation into its sale of mortgage investments that later imploded was deemed too low, according to a report by The New York Times. That publication, citing people familiar with the matter, said the Justice Department had sought a settlement of more than $17 billion, which would be the largest payout of any bank to date.

Bank of America spokesman Lawrence Grayson declined to comment on the report. A Justice Department representative wasn’t immediately available to comment on the report.

Bank of America, the second-largest U.S. bank by assets, in late March had said it…

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