Mealey's Banking & Finance - Bank Of America To Pay $9.3B To Settle FHFA Securities Claims

Mealey's Banking & Finance - Bank Of America To Pay $9.3B To Settle FHFA Securities Claims

WASHINGTON, D.C. - Bank of America Corp. on March 26 agreed to pay $9.3 billion to settle claims in four separate lawsuits that it, as well as Merrill Lynch & Co. and Countrywide Financial Corp., sold toxic, private-label, residential mortgage-backed securities (RMBS) to Fannie Mae and Freddie Mac in violation of state and federal securities laws, according to a press release issued by the Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (Federal Housing Finance Agency v. Bank of America Corp., et al., No. 11-6195, S.D. N.Y.; Federal Housing Finance Agency v. Countrywide Financial Corp., et al., No. 12-1059, C.D. Calif.; Federal Housing Finance Agency v. Merrill Lynch & Co., Inc., et al., No. 11-6202, S.D. N.Y.; and Federal Housing Finance Agency v. First Horizon National Corp., No. 11-6193, S.D. N.Y.).

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