NEW YORK (TheStreet) -- Bank of America (BAC) and the Justice Department are nearing a landmark deal in which the bank will pay $16 billion to $17 billion to resolve allegations of mortgage-related misconduct in the run-up to the financial crisis, sources told the Wall Street Journal.
The bank agreed to pay about $9 billion in cash to the federal government, states and other government entities, sources said, as part of an overall pact that could be finalized this month. Additional money would be directed at consumer relief, such as reducing mortgage balances for struggling homeowners, the Journal said.
Shares of Bank of America are up 0.86% to $15.33 in pre-market trade.
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 multiple 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: