Monday, October 21, 2013

BofA could face $6 billion settlement on mortgages

As regulators close in on a record-setting penalty against JPMorgan Chase, another massive settlement could be reached with Bank of America.

The Federal Housing Finance Agency is reportedly pursuing $6 billion from the Charlotte bank over mortgage-backed securities sold to Fannie Mae and Freddie Mac that later went bad, according to the Financial Times.

That report comes as the same agency zeroes in on a $4 billion accord with JPMorgan, the nation's largest bank by assets, the Financial Times says. The Federal Housing Finance Agency penalty against that bank could be part of a $13 billion total settlement with other government agencies.

Bank of America has been battling a lawsuit against the Federal Housing Finance Agency since 2011. Some industry analysts had worried that a settlement could reach as much as $11 billion.

Should the $6 billion Bank of America deal come to fruition, it could confirm fears that analysts discussed during the second-largest U.S. bank's earnings call last week. After learning that JPMorgan had a total of $23 billion set aside to deal with litigation amid a "volatile" regulatory climate, the analysts had worried that more legal trouble could be in store for Bank of America.

Executives at Bank of America said it had paid more than any other bank in settlements over the past three and a half years, and said they thought there were adequately prepared.

Bank of America declined to comment.

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Anonymous said...

imagine that, "not immediately available for comment" when they post the article at 10 pm Sunday evening...

Anonymous said...

Lol good one

jay1937 said...

One simple question: Who made them lend to those that could not pay back?

Anonymous said...

Excellent Post.
I like it very much. Thanks for sharing with us.

Anonymous said...

Greed made them lend to those that couldn't repay.

Insurance Industry Email List said...

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Anonymous said...

Banks and the Jews that own them are criminals.....they aren't even really Jewish. They just hide behind it so they can scream Holocaust bloody murder when anyone calls them out. This is America's problem.....guilt over something we didn't do. They are NOT the chosen ones or they wouldn't be bilking the country out of every dime. The non-elite Jews have no idea they have been scammed and lied to since birth. They think it all happened the way Jewish history books say. Those are the same lies your kids learn in public school.

Naomi Watson said...

Another alarming call from the US, from the biggest bank, the Bank of America. The one that is too big to fail. Something tells me that this could be another attempt to scam more money out of the citizens pockets. If you happen to need online borrowing, try it elsewhere, but not in the BoA.