NEW YORK (TheStreet) -- Shares of Bank of America Corp. (BAC) are down -1.19% to $15.73 in pre-market trade after it was reported that the bank and the Justice Department reached an impasse in negotiations over a multibillion-dollar settlement deal, raising the stakes in an investigation into the bank's role at the center of the mortgage crisis, the New York Times reports.
The talks stalled on Monday after the bank's latest offer, of over $12 billion to resolve state and federal investigations into its sale of mortgage investments that later imploded, fell far short of prosecutors' demands, sources told the Times.
TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."