The two sides are reportedly at odds over whether or not Bank of America should have to pay a cash penalty for Countrywide Financial and Merrill Lynch's securities dealings. The three entities combined to issue $965 billion in mortgage-backed securities to private investors from 2004 to 2008, well ahead of other major banks. Countrywide issued nearly 75% of this, and Bank of America issued a mere 4% of the $245 billion in securities that have defaulted or become severely delinquent.
Bank of America has offered $13 billion to end the government's probe into the mortgage-securities situation. The bank has already paid for some of Countrywide and Merrill Lynch's actions but does not think it should pay too severely, according to the Journal report.
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Bank of America has already paid approximately $60 billion for problems tied to the recent financial crisis.
The stock was down 0.42% to $15.44 at 11:57 a.m.
Separately, 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 attractive 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."