U.S. attorney wants DOJ to take civil action against BofA -filing
NEW YORK, Oct 30 (Reuters) - The U.S. Attorney's office recently told Bank of America Corp that they plan to recommend the U.S. Department of Justice file a civil action against the bank related to securitization of mortgages, according to a regulatory filing on Wednesday.
That investigation is one of several the second-largest U.S. bank is trying to resolve over mortgage practices of its own legacy business, as well as those of Countrywide and Merrill Lynch, which it acquired during the 2007-2009 financial crisis.
Bank of America also lifted its estimate for possible losses above what it has already set aside to cover litigation expenses, according to its 10-Q filing with the U.S. Securities and Exchange Commission.
Bank of America now estimates its litigation losses may exceed reserves by up to $5.1 billion, up from a prior estimate of $2.8 billion.