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BofA Mortgage Talks Said to Stall as U.S. Prepares Suit

The U.S. is preparing to sue Bank of America Corp. after reaching an impasse in talks to resolve government probes of the lender’s sales of mortgage-backed bonds before the financial crisis, a person familiar with the matter said.

The Justice Department broke off negotiations earlier this week because it was dissatisfied with the bank’s offer to pay more than $12 billion, which included at least $5 billion in consumer relief, according to the person, who asked not to be identified because the discussions are private.