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

Law360, New York (January 3, 2011, 6:58 PM EST) -- 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, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.