Over the past year, Bank of America has written down and paid out about $30 billion to settle claims with its mortgage division.
The bank is ready to settle a foreclosure probe with most of the state Attorney Generals.
Without a settlement, the bank’s liabilities are unknown, and this spooks investors and drives down the bank’s stock price.
Bloomberg says: Bank of America Corp. (BAC) may settle a state and federal probe of foreclosure practices in a deal that lets New York proceed with an inquiry into securitizations, according to two people with direct knowledge of the talks.
The firm may pursue an accord with most of the 50 state attorneys general, even if it omits New York’s Eric Schneiderman and at least two other states who are opposed because a deal would impede related inquiries, said one of the people. Negotiations on a broad settlement stalled after Schneiderman indicated he wouldn’t let it block his probe into the bundling and sale of mortgages, said the people, who declined to be identified because talks are private.