Bank of America has ended its involvement with Chicago regarding the proposed sale of debt tied to city fines and fees. City officials confirmed that the financial institution is no longer assisting with the transaction, and efforts to move the deal forward have stalled this year.
The city has been attempting to offload roughly $1 billion in outstanding obligations, which include unpaid parking tickets. Mayor Brandon Johnson’s administration had previously chosen Bank of America to serve as the placement agent for this sale. Discussions regarding the arrangement began last month, according to data from the Bloomberg Terminal.
Despite the earlier selection, the deal has not progressed. A letter dated July 7 from Comptroller Michael Belsky to the city council indicated that the city is now actively looking for other options to handle the debt sale.
The mayor’s office stated that the administration has been unable to advance the agreement so far in 2026. It remains unclear when the city might finalize a new arrangement or if another financial institution will be selected to replace Bank of America.
The original source of this report is Bloomberg.com, published on July 16, 2026.
