Changing Timelines Are Killing the Dow Jones Industrial Average (.DJI)’s Momentum

In a new filing from one of the dissenting investors, American International Group Inc (NYSE:AIG), the insurer disclosed that though the judge had suggested the parties try mediation to decide the fairness of the settlement, Bank of America Corp (NYSE:BAC) refused and wants to continue with the hearing.

The bank is confident that the hearing will result in a win (i.e., only a $8.5 billion payout), so mediation would probably prove to be counterproductive. But for investors, this confidence may be overblown, as the bank may have lost some of its clout due to misrepresentations about the ability to put Countrywide into bankruptcy.

In more positive news, the bank, along with Wells Fargo & Co (NYSE:WFC), may be avoiding another courtroom battle altogether. State and federal officials for last year’s $25 billion mortgage settlement have told New York Attorney General Eric Schneiderman that no enforcement actions will be taken against the banks for their alleged violations of the settlement’s terms. Though the NYAG has been trying to file suit against the banks for these violations, this latest action may have taken the wind from beneath the AG’s wings.

The article Changing Timelines Are Killing the Dow’s Momentum originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned — you can contact her here. The Motley Fool recommends American International Group, Bank of America, and Wells Fargo. The Motley Fool owns shares of American International Group, Bank of America, and Wells Fargo and (NYSE:WFC) has the following options: Long Jan 2014 $25 Calls on American International Group.

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