Bank of America settles with Fannie and Freddie for $9.5 billion..who is going to jail?

Follow The Money

download (1),0,4603583.story#axzz2x7Kgx5w0

Putting to rest one of its biggest remaining headaches, Bank of America Corp. has agreed to pay $9.5 billion to settle claims by Fannie Mae and Freddie Mac.

The government-sponsored mortgage giants had demanded compensation from the Charlotte, N.C., bank for losses on housing-boom loans that produced mass defaults during the financial crisis.

The settlement, announced Wednesday, resolves all claims against Bank of America by the Federal Housing Finance Agency, BofA said. The FHFA is the regulator established as a conservator for Fannie and Freddie when the giant buyers and guarantors of home loans went insolvent during the financial crisis.

BofA already had suffered about $50 billion in losses and legal costs stemming from the mortgage meltdown in 2007 and the global financial crisis that ensued the following year – more financial damage than any other major bank.

But after a long string of settlements, BofA’s stock has…

View original post 468 more words