Justice Department Goes After BofA for $13 Billion

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April 25 (Bloomberg) -- U.S. prosecutors are seeking more than $13 billion from Bank of America to resolve federal and state investigations of the lender's sale of bonds backed by home loans in the run-up to the 2008 financial crisis, according to people familiar with the matter. Erik Schatzker reports on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

First jpmorgan, now bank of america.

The justice department is seeking a settlement over a mortgage settlement.

Erik schatzker has the latest on the bank negotiations with the government.

Were negotiation should make everybody laugh because in the case like this a big like the fa or was the case back in november, jpmorgan, no bank can withstand a criminal claim by the government.

Much of your business would evaporate overnight.

That is why many banking executives refer to these negotiations as something more akin to extortion.

A reporting does it that it be if it not settle the government will indeed sue.

That is hanging like a dark cloud over the bank.

What the justice department accuses be of a of is tantamount to the same stuff and acute jpmorgan of misleading investors over the quality of the bonds -- excuse me, loans that were sold out before the financial crisis.

In jpmorgan case it was all about acquisitions.

Jpmorgan paid a total of more than $20 billion, in this particular component we're talking but it was $13 million.

Bma would pay even more the justice department's once more than $13 billion.

In its quarterly earnings statement just last month you earn more than $20 billion.

As ryan moynahan ever going to get out from under the mortgage cloud?

Yes.

This may be it.

It is impossible to see how many other small cases may come, but

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

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