Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

More On

BofA enters multibillion dollar settlements with Fannie Mae

Bank is also buying back $6.75 billion in bad loans

Bank of America (BofA) and Fannie Mae may be burying their hatchet. The two parties agreed to a series of settlements totaling nearly $12 billion. The agreement is expected to help BofA move past its 2008 purchase of Countrywide Financial Corp., which resulted in epic financial disaster for BofA and the financial industry as a whole.

These settlements mean BofA’s fourth quarter 2012 profits, which it will announce next week, will be markedly smaller than expected.

According to the agreement, BofA will:

  • Pay Fannie Mae $3.6 billion
  • Buy back $6.75 billion of bad loans from Fannie Mae to clear claims the mortgage company made against BofA
  • Pay Fannie $1.3 billion over foreclosure delays

Read more about these settlements on Thomson Reuter.

Read more InsideCounsel stories about the financial crisis:

U.S. government files $1 billion suit against Bank of America

Barney Frank defends JPMorgan against government lawsuit

Homeowners accuse 12 banks of manipulating Libor

Bank of America pays $2.43 billion in shareholder suit settlement

Lehman Brothers to pay another $10.5 billion to creditors

Citigroup will pay $590 million in settlement related to financial crisis

Editor

Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.