Bank of America Corp. is in talks with a group of six investors to settle charges that it mishandled $16.5 billion in mortgages packaged into bonds, the Wall Street Journal reported Wednesday.

The investor group, which includes Freddie Mac, PIMCO, BlackRock Inc. and Allianz SE, told the bank in October that it had 60 days to respond to allegations that it did not properly service 115 bond deals comprising mortgages. The deadline for the bank’s response was Thursday, the Journal said. Get the full story »