Denver, CO, 06/12/2014 (Stocksntrade) – Reuters news agency reported yesterday evening, that a federal judge who is hearing a civil case of fraud, brought against the nation’s second largest bank, Bank of America Corp (NYSE:BAC) by the Department of Justice has given a inkling to the way he is leaning on the case, by indicating that he is considering throwing out the civil suit, following few pertinent points that the financial institution has managed to underscore in documents it has filed in response to the civil suit.
Negotiations Hit Dead End on Monday
New York Times reported on 11th June morning, that Bank of America Corp (NYSE:BAC) and the Justice department have hit a dead-end in their ongoing negotiations to amicably settle the allegations of wrong doing by the bank in the run up to the financial crisis in 2008. The U.S. Department of Justice had brought charges against the bank, of fraudulently pushing caustic mortgage investment portfolios to unsuspecting reinsurers and other third party investors and thereby wilfully causing billions of losses to the public and state exchequer.
BOA Makes $12B Offer
The newspaper has credited its news source to individuals who were privy to the negotiations. The negotiations began to falter after the Justice department turned down the close to $12 billion that Bank of America Corp (NYSE:BAC) was willing to offer as penalty in lieu of the ongoing federal and state run investigations into its alleged wrong doings with respect to peddling under par mortgage investments. The prosecutors were demanding more as penalty, the newspaper has quoted its sources to have indicated.
Justice Department Goes to Court
This impasse was further tightened, when the prosecutors representing Justice Department went on to firm up the civil complaint which would be brought against the bank on 10th June, even as Bank of America Corp (NYSE:BAC) tried to pick up the negotiation threads which had been dropped the previous day.