BofA and Feds Reach Tentative Deal

    A Bank of America sign is displayed outside a branch in Tucson, Arizona January 21, 2011. Bank of America Corp, the largest U.S. bank, reported weaker-than-expected revenue and a second straight quarterly loss after its limping mortgage business triggered writedowns and legal settlements.

    Joshua Lott/Reuters

    Bank of America has reached a tentative settlement with the Justice Department to pay close to $17 billion for its mortgage-backed securities sale in the run-up to the financial crisis. The deal could fall apart, but if it holds, it will be the Justice Department’s largest financial win from a single company.  Bank of America has been going back and forth with the feds for months over a settlement. The negotiations reportedly moved forward last week after a phone call between Attorney General Eric Holder and Bank of America chief executive Brian T. Moynihan. While $17 billion is nothing to snuff at, critics argue that Bank of America will be getting off easy without any criminal charges for its employees.

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