NEW YORK ( TheStreet) -- Shares of Bank of America (BAC - Get Report) rose in extended trades on Wednesday after the bank said it's secured additional time to negotiate in a dispute with a large bondholder group over about $47 billion in soured mortgage backed securities.
Charlotte, N.C.-based Bank of America was facing a deadline this week to respond to allegations raised by attorneys for the bondholders, which include Pacific Investment Management Co., BlackRock (BLK) and the New York Federal Reserve.
Wall Street Journal is reporting Bank of America is now in settlement talks with some of its largest mortgage investors, a move that it said would represent a "major shift in strategy for CEO Brian Moynihan, who has pledged to fight against having to repurchase any of the securities.
The stock was last quoted at $12.67, up 3.1%, on volume of 11.2 million, according to Nasdaq.com. Based on a regular session close at $12.29, the shares are down almost 18% year-to-date.