Business

Bank of America agrees to pay $16-$17b in mortgage deal

WASHINGTON (AP) — A person familiar with the matter says Bank of America has agreed to pay between $16 billion and $17 billion to settle an investigation into its sale of mortgage-backed securities before the financial crisis.

The deal with the bank would be the largest Justice Department settlement by far arising from the economic meltdown. It follows earlier agreements with Citigroup and JPMorgan Chase & Co.

The person, who spoke on condition of anonymity because the deal wasn’t yet final, said Wednesday some details still need to be worked out and it was possible the agreement could fall apart.

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But the person said the agreement was reached following a conversation last week between Attorney General Eric Holder and Bank of America CEO Brian Moynihan.

A bank spokesman declined to comment.