MW: Banks said to offer $5 bln to end mortgage suits
By Steve Goldstein
BAC JPM C WFC
WASHINGTON (MarketWatch) -- Five top banks probed by federal and state authorities over mortgage practices have offered $5 billion to settle the case, The Wall Street Journal and Bloomberg News reported, citing people familiar with the matter. The $5 billion offer is less than the $20 billion that some of the officials want in penalties. The lenders' proposal comes as government officials called for a fund administered by state and federal officials to pay for principal writedowns, Bloomberg reported, citing a spokesman for Iowa Attorney-General Tom Miller. The big banks are Bank of America BAC +0.08% , J.P. Morgan Chase JPM +0.29% , Citigroup C -0.32% , Wells Fargo WFC -0.39% and Ally Financial, which combined service nearly two in three home loans. Federal bank regulators already have sanctioned 14 banks but haven't meted out fines.
