Retributions for the 2008 financial crisis might be coming sooner than expected.
The Wall Street Journal reports Bank of America is in talks with the Department of Justice to pay at least $12 billion to the federal government to end probes into its handling of shoddy mortgages.
Of that $12 billion, $5 billion would go to consumer relief for reducing principal amounts and monthly payments. The Justice Department is seeking more than the $12 billion for this reason, and the bank is likely to pay more than the record $13 billion fine paid by J.P. Chase Morgan in 2013.
The minimum amount is more than Bank of America’s profits from 2013, which were reported at $11.43 billion — the highest in six years. The bank already paid $6 billion to the Federal Housing Finance Agency for activity related to the crisis.
However, The Wall Street Journal notes the two sides are still far apart on negotiations because the Justice Department wants the bank to pay billions more than the $12 billion.
If the bank and the Justice Department cannot come to terms on a settlement, the department would have to decide whether or not to pursue civil action against the bank. To date, no single person involved in the financial crisis has seen any criminal charges.