Bank of America settles with Fannie Mae and Freddie Mac for $9.3 billion

The settlement represents a major step forward in BOA’s effort to resolve all litigation from the 2008 financial crisis

It’s Bank of America’s turn to settle with Fannie Mae and Freddie Mac over faulty mortgage bonds stemming from the financial crisis, and the price tag is a lofty one: $9.3 billion.

The bank announced the settlement on March 26. It will include a $6.3 billion cash payment to the home-loan financiers, while the rest will be in securities purchased from the two agencies.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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