DOJ Largest Settlement, BofA to Pay $9B in Cash

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Aug. 7 (Bloomberg) -- Bloomberg’s Phil Mattingly reports on Bank of America to pay nine billion dollars in cash and the rest in consumer relief. He speaks with Betty Liu on “In The Loop.” (Source: Bloomberg)

Be levy.

Bloomberg weiss -- bloomberg white house correspondent joins us.

What is different about the settlement and the ones we have heard of with j.p. morgan and citigroup?

The top cash number, betty.

It is enormous at $9 billion.

A tentative deal has been reached, according to officials, around $16 billion to $17 million will be the total.

But the hard cash paid to the justice department, nine billion dollars.

Compare that to jpmorgan's $13 billion settlement or citigroup's $7 billion settlement.

You have another $5 billion added onto this.

No question about it.

The largest settlement the justice department has ever gotten, particularly when it comes to crisis era loans.

Bank of america has had to come way up from their original offers.

While it still could fall apart, it looks like they are just about there.

It sounds like the number that is staggering here.

Did anyone thing bring anybody close to resolving these negotiations?

What has been interesting about the negotiations between doj and bank of america is the stop and start nature.

Bank of america was unwilling to go above some of their initial offers several times throughout the process.

At one point negotiation's completely broke down.

The justice department claims they were close or officials claim they were close to filing suit against bank of america, but there seems to be a breakthrough on july 30. there was a call between attorney general eric holder and brian moynihan, the bank's ceo.

Bank of america brought their offer up, and that set the tone for what appears to be a solid breakthrough.

This is no doubt an active area for u.s. prosecutors, so who is their next target?

What is next?

We know for a fact there are definitely other banks in the pipeline.

Attorney general eric holder's top negotiator has made it clear that others on the crisis, their loans will be considered on the civil side of things.

First, they have to finish the bank of america deal out.

It is august and a lot of people are going away, so that adds difficulty.

A crucial part of the deal is finishing up and agreeing upon the statement of facts.

They are not there yet.

This text has been automatically generated. It may not be 100% accurate.


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