DOJ demands more in BofA, Countrywide deal
Deal hung up over penalties
Despite already offering $13 billion to end the government's mortgage securities probe, the Department of Justice is demanding billions of more from Bank of America (BAC) for the dealings of Countrywide Financial Corp. and Merrill Lynch & Co. Per The Wall Street Journal:
Bank of America, which has already shelled out some $60 billion for crisis-era legal problems, has told the Justice Department it is willing to pay for the past misdeeds of Countrywide and Merrill Lynch—but not at levels it considers overly punitive, according to people familiar with the talks. Bank of America scooped up Countrywide and Merrill with the encouragement of regulators after housing troubles nearly sank both firms. It wants the penalty related to the firms' past misconduct to come in the form of consumer assistance or other so-called soft money that has a less severe impact on Bank of America's bottom line than a cash fine.