BofA Mortgage Settlement Stalls Over SEC Political Fight
This article is for subscribers only.
A final piece of Bank of America Corp.’s record $16.7 billion toxic-mortgage settlement is being held up by an internal fight at the U.S. Securities and Exchange Commission, said four people familiar with the case.
The agreement with the bank, announced in August, has stalled as the agency’s commissioners wage a behind-the-scenes battle over waiving a series of additional sanctions that will kick in when the settlement is entered in court. Getting a pass on the penalties, which can affect a lender’s asset-management business and ability to raise capital easily, had once been routine. It’s now a flashpoint, according to the people.