Attorney General Eric Holder has formally refused to meet with Bank of America CEO Brian Moynihan as they try to negotiate a multi-billion-dollar deal over allegations of shoddy mortgage securities sold by the bank. Holder told Moynihan that the two remain too far apart to continue negotiations in person and that at this point, a meeting would not be productive. Negotiations have been at a stand-still since early June when BofA suggested around $12 billion dollars to settle the allegations, whereas the Justice Department proposed $17 billion. Moynihan's proposal was not far off from JP Morgan's $13 billion settlement with the DoJ back in September, which Holder said he would use as a template for other banks. Citigroup nears a roughly $7 billion deal with the Department of Justice after similarly heated negotiations over shoddy mortgages. Citigroup's penalty was negotiated down from an initial $10 billion. The final terms of the deal could come as early as next week.
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