Don't assume that Bank of America Corp. has blinked.

On Wednesday the company said it was holding "constructive" talks with a small group of highly influential holders of its private-label MBS, who had accused BofA failing to uphold its obligations as a servicer. Only two months earlier, BofA's chief executive, Brian Moynihan, had quipped that unhappy holders of such bonds were akin to Chevy Vega owners demanding Mercedes-level performance.

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