Bank of America asks Eric Holder to Meet With its CEO, Sources Say

Brian Moynihan, CEO of Bank of America (Getty Images)
Brian Moynihan, CEO of Bank of America (Getty Images)

Brian Moynihan may be taking a play out of Jamie Dimon’s book.

Representatives of Bank of America have asked U.S. Attorney General Eric Holder to meet with Moynihan, its chief executive officer, in an attempt to resolve differences over a possible multibillion-dollar settlement involving shoddy mortgage securities sold by the second-largest U.S. bank and its units, according to people familiar with the negotiations.

Negotiators for Bank of America and the Justice Department have not met in more than a week and have no plans to do so after a flurry of meetings did not bring them close to a settlement amount, sources said.

Bank of America spokesman Lawrence Grayson and Justice Department spokeswoman Dena Iverson declined to comment.

Dimon, the CEO of JPMorgan Chase, took a much-ballyhooed trip to Washington in September to meet with Holder in an effort to close a deal that would allow the largest U.S. bank by assets to put its mortgage securities problems behind it.

In November, the two sides reached a $13 billion accord that Holder has said he planned to use as a template for other banks.

The meeting between JPMorgan’s top executive and the nation’s top law enforcement official was viewed as unusual at the time. Most such settlements are negotiated between a company’s lawyers and other Justice Department officials. Associate Attorney General Tony West, the No. 3 person at the agency, has been leading negotiations with Bank of America and other banks over similar investigations.

The Department of Justice has not yet responded to Bank of America about the possibility of the meeting, sources said.

SOURCE: Reuters

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