(Corrects to show a U.S. attorney's office, not the U.S.
NEW YORK Oct 30 Staff of a U.S. Attorney's
office recently told Bank of America Corp that they plan
to recommend the U.S. Department of Justice file a civil action
against the bank related to securitization of mortgages,
according to a regulatory filing on Wednesday.
That investigation is one of several the second-largest U.S.
bank is trying to resolve over mortgage practices of its own
legacy business, as well as those of Countrywide and Merrill
Lynch, which it acquired during the 2007-2009 financial crisis.
The bank did not name which U.S. attorney was planning to
make the recommendation.
Bank of America also lifted its estimate for possible losses
above what it has already set aside to cover litigation
expenses, according to its 10-Q filing with the U.S. Securities
and Exchange Commission.
Bank of America now estimates its litigation losses may
exceed reserves by up to $5.1 billion, up from a prior estimate
of $2.8 billion.
(Reporting by Lauren Tara LaCapra, Peter Rudegeair and David
Henry; Editing by Bernard Orr)