Bank of America August Mortgage Settlement Stalls Over SEC Policy Fight

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 (United States v. Bank of Am. Corp., W.D.N.C., 3:13-cv-00446, proposed settlement filed; SEC v. Bank of Am. N.A., W.D.N.C., 3:13-cv-00447, proposed settlement filed; In re Bank of Am. Corp., SEC, Admin. Proc. File No. 3-16082).

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 ...