BofA Spikes AH on Setttlement Talks Over Mortgages

Shares of Bank of America (BAC) are spiking after hours on headlines of a possible settlement with mortgage investors.

The WSJ reports that the banking giant “has begun potential settlement discussions with some of its largest mortgage investors…The group discussing a possible settlement with the nation’s largest bank as measured by assets includes the Federal Reserve Bank of New York, government-owned mortgage company Freddie Mac, BlackRock Inc. and Allianz SE’s Pacific Investment Management Co., or Pimco, a unit of Allianz SE.”

BAC gained 17 cents to $12.57 in extended trading. The shares, down 18 percent in the last 52-weeks, dropped 11 cents to $12.29 earlier today on the New York Stock Exchange.

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