A date with Bank of American cost them $11.6 billion dollars.
In my day, Bank of America (then known as Bank of Italy) could have bought not only San Francisco after the 1906 earthquake... but could have bought the Dutch homeland, Holland.
I wonder why the bank choice to give Fannie Mae such a lot of money for a good time. In contrast, that horrific bank takes even more money by foreclosing homes, kicking out poor folk.
Another twist to this sordid tale: Bank Of America To Pay Fannie Mae $3.6B, Buy Back $6.75B In Mortgages National Public Radio.
As Planet Money has explained before, "during the housing boom, banks sold investors bundles of mortgages that were shoddier than promised, according to lawsuits the federal government" has filed. Now, BofA is resolving the claims against it from Fannie Mae.
Word about Bank of America's settlement with Fannie Mae comes as The New York Times reports that "a $10 billion settlement to resolve claims of foreclosure abuses by 14 major lenders is expected to be announced as early as Monday, several people with knowledge of the discussions said on Sunday. ... An estimated $3.75 billion of the $10 billion is to be distributed in cash relief to Americans who went through foreclosure in 2009 and 2010, these people said. An additional $6 billion is to be directed toward homeowners in danger of losing their homes after falling behind on their monthly payments. All 14 banks , including JPMorgan Chase, Bank of America and Citigroup, are expected to sign on."
Update at 9:45 a.m. ET. Statements From Fannie Mae And The Federal Housing Finance Agency:
In a statement, Bradley Lerman, executive vice president and general counsel of Fannie Mae, says that "a favorable resolution of this long-standing dispute between Fannie Mae and Bank of America is in the best interest of taxpayers. ..."
by Mark Memmott
January 07, 2013
Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul ☑
Want DP delivered to your inbox daily? Subscribe here: