NEW YORK (TheStreet) -- Bank of America (BAC) fell Thursday as the bank and the U.S. government remain far apart on a deal to resolve the latter's investigation into the bank's mortgage securities sales.
The New York Times reports the two sides remained far apart on a settlement as of Wednesday night even after the bank increased its offer. The Justice Department demanded approximately $17 billion to settle the case prior to Wednesday's meeting to discuss the amount of the cash penalty. The department wanted $10 billion in cash and the rest in payments to aid struggling homeowners.
Bank of America had offered $13 billion, including $4 billion in cash, but increased that offer to $14 billion, including $7 billion in cash. The Justice Department could announce a lawsuit against the bank if the two sides do not reach an offer in the upcoming days.
The stock was down 1.73% to $15.31 at 12:43 p.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."