Monday, January 7, 2013

Another slap on the wrist

Tourists walk past a Bank of America banking center in Times Square in New York in this June 22, 2012 file photograph. Bank of America Corp said it will pay $3.6 billion to Fannie Mae to settle claims related to residential mortgage loans for the nine years to the end of 2008. REUTERS-Brendan McDermid-Files
Mon Jan 7, 2013 10:06am EST
"(Reuters) - Bank of America on Monday announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans, in a series of deals meant to help the bank move past its disastrous 2008 purchase of Countrywide Financial Corp.

The settlements and transactions and other charges will result in Bank of America posting only a small profit for 2012's fourth quarter. The bank is due to report results on January 17.

Bank of America is paying $3.6 billion to Fannie Mae and buying back $6.75 billion of bad loans from the mortgage company to clear up all claims that government-owned Fannie Mae had made against the bank."

No comments:

Post a Comment