Bloomberg reports that a U.S. Attorney’s office intends to recommend civil action against the lender tied to the bundling of home loans into securities, the firm said Wednesday in its quarterly regulatory filing. The bank also said its eventual legal costs could exceed even its revised estimates.
New lawsuits could hinder CEO Brian Moynihan’s effort to end fallout from the 2008 credit crisis and purchases of Countrywide Financial and Merrill Lynch. The bank has already spent more than $45bn on litigation, settlements and refunds for investors to compensate for shoddy mortgage lending, servicing and foreclosures.
'Two months ago I would’ve thought, before all this stuff hit with JPMorgan, that we were in the 8th inning of the mortgage aftermath', said Nancy Bush, a bank analyst who founded NAB Research in New Jersey. 'It’s like the slate has been wiped clean, and we’re starting all over again'.
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