BofA, DOJ Mortgage Settlement Talks Hit Impasse

(RTTNews) - Bank of America Corp. (BAC) and the U.S. Department of Justice have reached an impasse in negotiations over a multibillion-dollar settlement related to the bank's mortgage investments, the New York Times reported, citing people briefed on the matter.

The talks stalled on Monday after the company offered more than $12 billion to resolve state and federal investigations into its sale of mortgage investments that later imploded, falling far short of prosecutors' demands, the Times quoted the people as saying.

The Justice Department, which had imposed a Monday evening deadline for the bank to deliver its near-final offer, has sought a settlement worth roughly $17 billion, the newspaper said.

As Bank of America sought to continue negotiations Tuesday, the Justice Department moved to put the finishing touches on a civil complaint against the bank, but a lawsuit is not imminent, the Times said.