Bank of America (BAC) has reportedly struck a side deal with the government over foreclosures...

|About: Bank of America Corporation (BAC)|By:, SA News Editor

Bank of America (BAC) has reportedly struck a side deal with the government over foreclosures that will allow the bank to reduce its penalties in exchange for bigger reductions of mortgage balances. According to the WSJ report, BofA will avoid as much as $850M in penalties by giving over 200K borrowers the chance to sharply reduce their mortgage balances.