Bank of America will pay Fannie Mae a $3.6 billion settlement on residential mortgage loans sold by the bank and Countrywide, which it acquired in July 2008 ahead of the financial crisis.
According to the Associated Press:
Bank of America will also buy back some of the loans sold to Fannie Mae for $6.75 billion.
Its stock gained more than 2 percent in premarket trading.
Read the full story on the Observer’s website here.
This article appears in Jan 2-8, 2013.
How much of that will find its way into the pockets of the higher-ups in Fannie?