Wed, Aug 6, 2014 5:41 PM EDT 0:49
Bank of America (BAC) is reportedly ready to make a record deal with the U.S. Department of Justice to settle its involvement in the mortgage crisis. Bank of America CEO Brian Moynihan has agreed to pay nearly $9 billion in cash to the Justice Department, States and other government units, according to The Wall Street Journal. The remainder of the money would go to consumer relief. The total settlement would be somewhere between $16 billion to $17 billion. The latest development comes after Moynihan spoke on the phone with Attorney General Eric Holder last Thursday. The Justice Department has been seeking $17 billion, while Bank of America has said it would not pay more than $13 billion. In November, JPMorgan Chase (JPM) agreed to pay $13 billion to settle claims of its involvement in mortgage fraud. Last month, Citi (C) announced a $7 billion dollar settlement with the DOJ. TheStreet's Susannah Lee has the latest from New York.