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Big differences remain in BoA-Justice Department settlement talks

Bank Of America Speeds Up Plan For Mass LayoffsBank Of America Speeds Up Plan For Mass Layoffs

Negotiations between federal officials and Bank of America to hammer out a settlement over shoddy mortgages in the run-up to the financial crisis are dragging on, according to the Wall Street Journal.

Bank of America (BAC) has reportedly offered $13 billion to settle the suit against it, but the Justice Department apparently wants several billion more. The Journal writes that the offer was made in a meeting requested by the banks lawyers in Washington on Tuesday. The meeting ended with no real progress being made.

Another point of contention is how much of a potential settlement would come in cash versus consumer relief. The $13 billion was a mix, but the Justice Department wants a larger cash penalty.

Two of the bank’s peers recently settled similar suits. JPMorgan Chase (JPM) paid $13 billion, while Citigroup (C) paid $7 billion.