(Adds Department of Justice declined to comment)
June 5 Bank of America Corp could pay
more than $12 billion to settle probes by the U.S. 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 also declined to comment on the matter.
The second-largest U.S. bank faces multiple government
probes over the underwriting, sale and securitization of
residential mortgage bonds before the financial
(Reporting By Sudarshan Varadhan in Bangalore and Daniel Levine
in San Francisco)