The bank is offering $13 billion, to be paid in both cash and consumer relief, but the Justice Department is asking for billions more, according to people familiar with the matter. The Wall Street Journal reported last month that the bank was in talks to pay at least $12 billion.
The bank announced Wednesday, in second-quarter earnings results, that it hadset aside $4 billion in litigation expenses and said it was for "previously disclosed legacy mortgage-related matters"—likely a nod to both the AIG cases and the Justice Department negotiations. That is far greater than the $471 million the bank set aside this time a year ago.
The bank also announced Wednesday that it had settled private mortgage-securities lawsuits from American International Group Inc.
Citigroup Inc. agreed to pay $7 billion to settle its mortgage-securities probe with the Justice Department on Monday.
Source:WSJ
