June 5 Bank of America Corp could pay
more than $12 billion to settle probes by the Justice Department
and a number of states into the bank's alleged handling of
shoddy mortgages, the Wall Street Journal said on Thursday,
citing people familiar with the negotiations.
At least $5 billion of that amount is expected to go toward
consumer relief consisting of help for homeowners in reducing
principal amounts and monthly payments, and paying for blight
removal in struggling neighborhoods, the paper said, citing
people with knowledge about the issue.
A BofA spokesman declined to comment on the issue. The
department of justice wasn't immediately available for comment.
The second-largest U.S. bank faces multiple government
probes over the underwriting, sale and securitization of
residential mortgage bonds before the financial crisis [ID:
(Reporting By Sudarshan Varadhan; Editing by David Gregorio)