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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.


Cathleen Flahardy

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