Government negotiators declined to credit the bank with $6.3 billion Bank of America agreed to pay the Federal Housing Finance Agency in March over misrepresentations in mortgage-backed securities purchased by Fannie Mae and Freddie Mac between 2005 and 2007. The credit would essentially close the gap, a second source said.
While talks with Bank of America have not progressed in about a month, Justice Department lawyers have been occupied with resolving a similar case against Citigroup, sources said, which may be settled as early as next week.
An announcement on Citigroup could pave the way for renewed negotiations with Bank of America, sources said.
The Justice Department had threatened both banks with lawsuits.
Citigroup is now likely to pay around $7 billion in a settlement, Reuters reported on Tuesday.
Bank of America spokesman Lawrence Grayson and Justice Department spokeswoman Emily Pierce declined to comment.
Moynihan's request was similar to one from JPMorgan CEO Jamie Dimon, who met with Holder in September as his bank negotiated a $13 billion accord to put its mortgage securities liabilities behind it.
After the JPMorgan deal was announced in November, Holder said he planned to use it as a template for other banks. The $13 billion included $4 billion JPMorgan paid to the FHFA over the bank's sale of mortgage securities.
The Justice Department has prioritized its pursuit of financial misconduct. Holder has expressed a desire to wrap up several major investigations this year.