(Reuters) – Large U.S. banks are mired in negotiations with state attorneys general over mortgage servicing abuses, as bank regulators prepare their own enforcement actions against the banks.
On Wednesday, banks including Bank of America and JPMorgan and a group of attorneys general met at the U.S. Justice Department to kick off what could be a long and contentious negotiation.
“It was a breaking of the ice,” said Iowa Attorney General Tom Miller who heads an executive committee comprised of 13 state AGs.
The Justice Department, the Department of Housing and Urban Development, the Federal Trade Commission, and Treasury officials were also at the meeting, but the leading U.S. bank regulators were not.
Miller described the meeting as a good start but said the authorities and banks still have a long way to go because there are many differences.
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