BofA (BAC) Nears Settlement w/ DoJ Over Countrywide Probe
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Shares of Bank of America (NYSE: BAC) are moving higher Wednesday morning following reports it might be close to alleviating pressure from one of its major overhangs.
According to Bloomberg, BofA and the U.S. Department of Justice may be nearing an agreement with regard to allegations of Countrywide Financial violating fair-lending practices.
The settlement might be announced later this week, with monetary compensation for Countrywide customers expected.
BofA acquired Countrywide in 2008, and prior to that, Countrywide was the biggest issuer of subprime mortgages in the U.S. -- loans which were "disproportionately" offered to minorities, according to Bloomberg.
Settlement with the DoJ won't end Countrywide's troubles; the lender is also being sued by Illinois AG Lisa Madigan, as well as facing issues with other mortgage servicers.
Any bit of good news for Countrywide should add some zest to BofA shares. Currently, the stock is up about 1 percent Wednesday morning. Shares have fallen substantially in 2011, recently piercing the $5 support level which hadn't been touched since early-March 2009.
According to Bloomberg, BofA and the U.S. Department of Justice may be nearing an agreement with regard to allegations of Countrywide Financial violating fair-lending practices.
The settlement might be announced later this week, with monetary compensation for Countrywide customers expected.
BofA acquired Countrywide in 2008, and prior to that, Countrywide was the biggest issuer of subprime mortgages in the U.S. -- loans which were "disproportionately" offered to minorities, according to Bloomberg.
Settlement with the DoJ won't end Countrywide's troubles; the lender is also being sued by Illinois AG Lisa Madigan, as well as facing issues with other mortgage servicers.
Any bit of good news for Countrywide should add some zest to BofA shares. Currently, the stock is up about 1 percent Wednesday morning. Shares have fallen substantially in 2011, recently piercing the $5 support level which hadn't been touched since early-March 2009.
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