Bank of America settles claims it sold faulty bonds

03/27/2014 | Reuters · Hill, The · Bloomberg

Bank of America has settled claims it sold faulty mortgage bonds to Fannie Mae and Freddie Mac. The $9.3 billion settlement includes $6.3 billion in cash, plus securities to be purchased from Fannie and Freddie. Bank of America and its former CEO Kenneth Lewis also settled a civil suit brought by New York Attorney General Eric Schneiderman. That suit said that Lewis and the bank failed to disclose to shareholders losses at Merrill Lynch before BofA bought the securities firm in 2008.

View Full Article in:

Reuters · Hill, The · Bloomberg

Published in Briefs: