In The News Today – July 16, 2014

The Department of Justice reportedly rejected a $13 billion settlement offer from Bank of America in the long-running mortgage-backed securities probe. The Department is seeking billions more in both cash and consumer relief. Bank of America also announced it was setting aside $4 billion for litigation expenses. (Wall Street Journal)

Standard & Poor’s Ratings Services is willing to reopen negotiations with the Department of Justice over a lawsuit alleging the bond rating firm gave improperly optimistic grades to mortgage-backed securities. S&P has spent more than a year fighting the case, but a new general counsel at the firm’s parent company, McGraw Hill, has signaled a willingness to engage with DoJ. (Wall Street Journal)