Wednesday, February 8, 2012

Morning roundup: State AG settlement inching closer, California back to the table

Here's a look at what's news in banking and finance this morning:

  • The settlement between the largest U.S. mortgage servicers -- including Bank of America and Wells Fargo -- and a consortium of state attorneys general is inching closer, and California is back at the bargaining table after months of absence, The New York Times says. When the deal, expected to be as much as $25 billion, comes through, bank earnings shouldn't be majorly affected because they have already put aside money for the penalty, a Reuters analysis shows.
  • Bank of America, struggling to deal with the demand, is telling some customers looking to refinance their mortgages to wait up to 90 days to start an application, Bloomberg reports.
  • The total cost of mortgage problems and improper foreclosures has reached more than $72 billion for the largest U.S. mortgage servicers, Bloomberg reports. Bank of America alone counts for more than $40 billion.