Bank of America Corp. is close to finalising a deal that calls for the lender to pay $8.5 billion to settle claims from a group of investors who bought mortgage-backed securities from the lenders.
A person familiar with the settlement discussions between the bank and the investor group said late Tuesday that the lender is nearing an agreement and is expected to announce that it's a done deal as early as Wednesday.
Calls to a Bank of America spokesman were not immediately returned.
The investors, which include the Federal Reserve Bank of New York and Blackrock Financial Management, have pressed the lender to buy back defaulted mortgages made by its Countrywide unit.
A Wall Street Journal report late Tuesday estimated the group holds more than $56 billion in mortgage-backed securities. - Sapa-AP