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...
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