BofA Pays $3B To Freddie, Fannie In Subprime Deal

Law360, New York (January 03, 2011, 6:58 PM ET) -- Bank of America Corp. announced Monday that it had paid $2.8 billion to Freddie Mac and Fannie Mae to settle disputes over allegedly bad mortgages the bank sold them prior to the subprime crisis.

Freddie was paid $1.28 billion on Dec. 31, and Fannie got $1.52 billion the same day, Bank of America said. The company has set aside $3 billion total to settle claims brought by the two government-sponsored entities.

“Through this provision, Bank of America believes that it has addressed its remaining exposure to...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers